Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-12-07

Secretary Cages Report.
The annual report Of the Secretary Of
the Tre. susy. submitted to Congress today.
is worthy of careful study in every par
ticular. II is a strong well-written docu-
ment. Interesting in every branch of its
treatment of the multitude of affairs con-
centrated under the control of this i'm
portant cabinet officer Secretary Gage =
plan for the cure of the currency evils
that beset the country has been al
ready outlined. but this report gives first
publicity to its details. and the interest
in 1t is the more acute in view of the fact
that President Mckinley. in the course of
AIS annual message. referred to it only in
broad terms. specifying merely certain
features of the plan meeting with his
direct approval and concurrence.
secretary Gage treats of the currency
question in a scholarly but business-like
manner. mis- words this subject indicat-
ing the thought of the nan of affairs as
well as the expert observer of the COM
plexitics of financial questions He briefly
indicates the record of the legislation that
las led to the present cInbarrassments.a and
clearly shows the magnitude of the menace
to financial stability which these embar-
easements embody. In the heartest SYM
ps,thy with the President he demons trates
question and to secure. If possible, a rem
edy Ior the prevention of future ills. AS
i'll the case of the Presidents reasoning
the Secretary takes the ground that the
lest tim" to meet a difficult situa ton is
when con ditiOls for its solution are most
promising. and the prevailing prosperity,
he declares. is the best evidence ti,a: the
Present should be utilized for the deyising
CT SAT" measures of currency reform.
Inc Secretary Indicates that there are
Two possible steps in this direction: % A
large reinforcement of the permanent gold
reserve. ca important reductions in the
objectionable form OF liabilities He be-
heNes The latter to be the more desirable
course to pursue. and proceeds without
delay 10 outline his scheme which is in
brief. 10 withdraw from general circula ton
u certain proportion of the notes that NAV
NJ utilized to drain the treasury of its
gold For this purpose d new division of
TIE Treasury Department is proposed to
the credit of which snail be deposited
f2-'"H.'ph' in gold Tor redemption PURPOSES
Together with $2JUUtJ 900 in grcenbacks. to
to dis1drsed Only on receipt of gold coin.
7" ne he'd as part OF the general redemp-
ton iund Thus in its essential features
IL Is TO re seen that the Secretary's plan
VIC same dS tndt proposed by
the President, who believed that the best
remedy l. 10 prevent the reissue of gold
demand notes to form a part of the end
IS drain upon the gold reserve
Other features of the secretsry's niar ara
'oh'riputory to this general purpose He
contFmpiates congressional authority for
The issue OF refunding loan bonds navab,e
in ten years at two and one-haif percent
lIEh hl
tirlhe the sod-demand liabilities without
contracting the circulation the Secretary
beileVes some other form of paDer money
should lie supplied and he prefers national
pana notes as the reaGiest and the most
practicable. To this end ne suggests a
RUNNER of changes in the national banking
system, the most important of which were
oltllEed by the President in his message
IN ac'ltlon, the secretary plans that the
fund of sHHOoCOo of demand liabilities to
be held for reissue only in exchange for
gold shall be made UP out of deposits by
national banks in the treasury as security
Ter the-r own issues. Other measures are.
suggested to secure the government in its
guarantee of the national bank notes.
1he secretary recog nizcs the prejudices
against our currency and banking system
and urges that this system with such
amendm .nts as are proposed is the best
adirt"f 10 the purposes of the government
He anticipates that it will lie urged that so
large sum as he contemplates, held in
reserve in the treasury. will be a ternDta-
ton 10 Congress to make heavy apprCpria-
lions, but he recalls to mind the fact that
there Is nothing to prevent Congress. if
there should arise such an emergency as
10 make the temptation in this direction
irresistible. from issuing at any time and
III any amount legal tender notes OF the
Aited States to circulate as money
II IL Interesting to observe that the sec
Irtdry figures upon deficit Of SIS $50 800
fer tie present fiscal year, and that accord
ing to the anticipa- ii revenues for the
fiscal Year ending June 80 1893, ard the
already submitted estimates of expenditures
f"r the same period. that year will produce.
Il possible deficit of ST. ,6i1 $3.50 added
- the deficit of the last fiscal year, amount
Ing To slightly ever eighteen million dollars
IN" actual and estimated deficits at the end
% The fiscal year 1899 would amount. ac-
'orilDS TO the secretary's present figures
III ronni numbers 10 ST. 7ViWD 1t is to be
iOrre in mind. however that the estimat ed
deficit &c 1889 may be entirely wiped out by
REDUCTIONS in the estimates of expenditures
1t IS TO lie hoped that the bouquets which
Ion I..a,r