The citizen. (Frederick City, Md.) 1895-1923, 1897-12-10

bonds at long or short periods bearing
less rate of interest than is now au-
thorized by law.
1 earnestly recommend as soon as the
receipts of the government are quite
sufficient to pay all the expenses of
the government that when any of the
United states notes are presented for
redemption in gold and are redeemed in
gold such notes shall be kept and set
apart and only paid out in exchange
for gold. This is an obvious duty. If
the holder OF the United States note
prefers the gold and gets II from the
government, he should not receive back
from the government a United States
note without paying gold in exchange
for 1t. The reason for this is made all
the more apparent when the govern
ment issues an interest bearing debt to
provide gold for the redemption of
United States notes-a noninterest
bearing debt Surely it should not pay
them out again except on demand and
for gold. If they are put out in any
other way, they may return again, to be
followed by another bond issue TO re-
deem them-another interest bearing
debt to redeem a noninterest bearing
debt.
In my view it is of the utmost
Importance that the government should
be relieved from the burden of provid-
ing all the gold required for exchanges
and export. This responsibility is alone
borne by the government without any
of the usual and necessary banking
powers to help itself.
AN AWFUL STRAIN.
The banks do not feel the strain of
gold redemption. The whole strain rests
upon the government. and the size of
the gold reserve in the treasury has
come to be, with or without reason, the
signal of danger or of security. This
ought to be stopped.
If we are to have any era of pros
perity in the country, with sufficient
receipts for the expenses of the govern
ment, we may feel no immediate en-
barrassment from our present curren-
cy, but the danger still exists and will
be ever present, menacing us so long
as the existing system continues, and
besides it is in times of adequate rev.
enues and business tranquility that the
government should prepare for the
worst. We cannot avoid, without seri-
Gus consequences, the wise considera-
ton and prompt solution of this ques-
ton.
The secretary of the treasury has
outlined a plan in great detail for the
purpose Of removing the threatened re-
currence of depleted gold reserve and
to save us from future embarrassment
on that account. To this plan 1 invite
your careful consideration.
1 concur with the secretary of the
treasury in his recommendation that
national banks be allowed to issue notes
to the face value of the bonds which
they have deposited for circulation and
that the tax on circulating notes Sc
cured by deposit of such bonds be re-
duced to one-half of l per cent per an
num- I also Join him in recommending
that authority be given for the estab-
lishment of national banks of a mini
mum capital stock of $4,000. This will
enable the smaller villages and agri-
cultural regions of the country to be
supplied with currency to meet their
needs.
l recommend that the issue of nation
al bank notes be restricted to the de-
nomination of $40 and upward. If the
suggestions I have herein made shall
have the approval of congress, then
would recommend that national banks
be required to redeem their notes in
gold.
SPAIN AND CUBA.
The most important problem with
which this government is now called
upon to deal with pertaining to its for
eign relations concerns its duty toward
Spain and the Cuban insurrection. Prob
lens and conditions more or less in
common with those now existing have
confronted this government at various
times in the past. The story of Cuba
for many years has been one of unrest,
growing discomfort an effort toward a
larger enjoyment of liberty and self
control, of organized resistance to the
mother country. of depression after dis
tress and warfare and of Intellectual set
Element to be followed by renewed re-
volt For no enduring period since the
of the continental pos,
sessions of Spain in the western CONT
nent has the condition of Cuba or the
policy of Spain toward Cuba not caused
concern to the United States
The prospect from time to time that
the weakness of Spain's hold upon the
Island and the present vicissitudes and
embarrassments of the home govern
nent might lead to the transfer of Cuba
10 a continental power called forth. be-
tween 1923 and 1860, various emphatic
declarations of the policy of the United
States to permit no disturbance of Gu
Da's connection with Spain unless in
the direction of independence or ac-
Iuisition by us through purchase; nor
has there been any change of this de-
dared policy since upon the part of the
government.
The revolution which began in 1868
asted for ten years despite the strenu-
ous efforts of the successive peninsular
governments to suppress it. Then. as
now. the government of the United
states testified its grave concern and
offered its aid to put an end to blood
she'd in Cuba.
OUR OVERTURES REJECTED.
The overtures made by General Grant
we're refused and the war dragged on.
great loss of life and treasure
and increased injury to American in
erests, besides throwing enhanced bur-
lens of neutrality upon this govern
nent. In 1878 peace was brought about
oy the truce of Zanjon, obtained by
between the Spanish COM
Martinez de Campos, and the
nsurgent leaders.
The present instruction broke out in
February. 1895. 1t is not my purpose
at this time to recall its remarkable
Increase or to characterize its tenacious
assistance against the enormous forces
nassed against it by Spain. The revolt
nd the efforts to subdue it carried de-
truction tt every quarter of the is
and developing wide proportions and
lefying the efforts of Spain for it's sup
nrAssint Tho nia.iliznl alndn IL /,