El Paso daily herald. (El Paso, Tex.) 1881-1901, 1897-12-18
A WASHINGTON LETTER.
MANY MATTERS TO BE TOUCHED ON
BY THE PRE- SENT CONGRESS.
The Currency Question Will Require a
Great Deal of Attention and Deep
Study by Congressman.


| OF course the presidents message
and the recommend ations of the sec
rotary of the treasu y or the currency
question are The. chi subjects
of discussion in Washington
this week. And it may be
added that the comment upon them
is extremely favorable. Aside from a
few people WHO are determined not to
be satisfied with any thing the rr side mt
does, the expression of views upon his
message and recommended ons were
favorabl" in or ara:ter and the COM
mendation of his al titude on leading
questions were in such clear end
vigorous terms as TO cave no doubt
that the band of Pr. sident Mckinley
are being corGi .ly rphci@ by the pee
pie of the Tilted States i, respective
of party.
| THE CURRENCY QUESTION.
| On the currency question the clear
cut, concise and pointed recommends
lions are received with marked favor.
The president recommends, in brief,
that SO soon as the revenues of the
government equal the expenditure a
new system be adopt d by which all
United States notes which are redeem
ed in gold shall be set aside as q
for god. This process would break
the so-called "endless chain" by which
the gold has been on former occasions
pumped out of the treasury. The
greenbacks are upon their face re-
deemahle in gold upon presentation,
W bile the declaration of congress that
the policy of the government is to
maintain all of it's currency at par with
gold has been looked upon as Indirect
| under the so-called Sherman act with
in that category. The law as it now
stands requires that greenbacks, when
redeemed in gold, shall be reissued by
the government in current business
transactions, and this of course max es
it practicable to use them again :or
drawiag more gold out of the treasu' y;
thus they become what Is pOpula-ly
known as the endles chain for the co.,
slant Withdrawals Of gold. Should the
presidents recoa mendat on be adopt
ed. those notes which are Re deemed in
gold would not be reis sued, and thus
the opportunity for continued with
drawais of gold would soon cease. The
criticism which is made by those de-
string to criticise this proposition il
that it would result in q con- raction oil
the currency, because those notes thus
redeemed and retained in the treasury
would not again go into circulation
and thus the circuls ton medium Of
the country be practically reduced tC
that exte1t. This objection is smet
however, by further recommendation
by the president that the national
banks be permitted to issue currency
up to tbepar value of the bonds deposit
1 ed as security for their circulation
instead of 80 per can't of their ia &c
value as at present; also that the gov
ernment tax upon national bank clrcu
lation be reduced to one-half of one
per cent, instead OF one per cent a. at
prs sent 1t is believed that this. il
adopted, would cad thu n stional banks
10 increase their currency to q greater
extent than the reduction in currency
which might come from the retention
of the United States notes redeemed in
gold. The national banks at present
utilize as basis for the
currency less than one half of the gov
ment bonds outstanding. It woulo
thus, in case of an increased demsnd FOL
currency, be practicable for tn IN to in
crosse very ma erially the amou Mt o
have utilized only email proportion
of the hoods available for that purpose
because of the fact that there is moi
sufficient profit in the Issuance OF their
notes to warrant such action, and ii the
presidents recommendations are car
ried out, a nd they are permi ted to issue
notes up to the par value of the bonds
and the tax upon tbei currency is re.
duced, it is believed that it will
certainly add to the currency of the
country more than any reduction which
would follow the retention in the
treasury of the nited States notes re-
deemed in gold. The president also
recommends that the banks themselves
be required to redeem their own notes
in gold. Thus, by the gradual retire
meat of those obligations of the govern
| ni<,h r,Nld Mt y
be demanded and making the obliga
lions of the banks payable by those
banks in gold, the foundation is laid
for gradual transfer to the banks OF
the burden of supplying the gold de-
mapded by the country. The general
proposition. which lays the foundation
for final retirement ofsthe COLLIDE.
maud obligations aad transfer of this
burden to the banks, as is the case in
other parts of the world, is oked upon
as a simple, plain and easy beginning
of a system which will gradually and
finally bring the desired result, aud do
so in q way which will MT disturb
business conditions or require radical
action in the way of an in crease in the
interest-he sring obligations of the
cove nment. This view of the presi.
dents proposition renders it generally
acceptable, and results in favorable
comment from not only mem bers OF his
rarty, but large element of these
composing the opposition parties.
THE CUBAN QUESTION.
The presidents expressions upon the
Cuban question are also earnestly and
warmly reco amended y members Il
| rarties. The present sentiment up-
on this subject, compared with that oil
a few months ago, is strongly marked
aud is q high Endorsement of the
course of the president which he took
Immediately after his inauguration In
the face OF much a1vtr se critisism,
even Ia his own party. Those who q
few months ago were critic sing saw