Condon globe. (Condon, Gilliam Co., Or.) 189?-1919, 1897-12-17
RepIenishinE the Gold Reserye,

TO maintain the gold reserve.
ReplenishinE the Gold Reserve.
With our revenues equal 10 our expenses
there would be no deficit requiring the is
suance OF bonds. But II the gold reserve
falls below ti00,000,000. how will II be re-
plenished except by selling more bonds?
Is there any other way practicable under
existing law7 The serious question then
Ia, Shall we continue the policy that has
been pursued In the past--that Is, when the
gold reserve reaches the point OF danger
issue more bonds and supply the needed
gold-or shall we provide other means
TO prevent these recurring drains upon the
gold reserve? II no further legislation
is had and the policy OF selling bonds IL
10 be continued, then congress should give
the secretary OF the treasury authority to
sell bonds at long or short periods. bearing
a less rate OF interest than u now author
lied by law. I earnestly recommend, AZ
soon as the receipts OF the government
are quite sufficient 10 pay all the expenses
OF the government, that when any Of the
United states notes are presented for re-
demplion In gold and are redeemed In gold
such notes shall be kept and only paid out
IN exchange for gold. This is an obvious
duty. III the holderof the United States note
prefers gold from the government, he should
not receive back from the government
a United States note without paying gold
In exchange for II. The reason for this IL
made all the more apparent when the gov
ernmeDt Issues an interest bearing debt
70 provide gold for the redemption OF
United States noteg~a Notwithstanding
debt, Surely II should not pay them out
again except on demand and for gold. IL
they are put out In any other way they
may return again 10 be followed by am
safl - a blrF
intcreat-bearlng debt 10 redeem a nom
intereet-bearlng debt
In my View. II In Of the utmost import
ance that the government should be re-
lieved from tho business Of providing for
all the gold required for exchange or ex-
port. This responsibility IL atone borne
by the government without any OF the
usual and necessary banking powers TO
help itself The banks do not feel the
strain Of the 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 with
out reason. the signal Of danger or OF Sc
curity. This ought TO be stopped.
II we are TO have an era OF prosperity
In the country with sufficient receipts for
the expenses of the government, we may
feel no Immediate embarrassment from
our present currency; but the danger still
exists. and will be ever present, menacing
US as long 40 the existing system con-
tlnues. And. besides, IL is In times OF
adequate revenues and business tran
qullllty that tho government should pre-
pare for the worst. We cannot avoid.
without serious consequences. the wise
consideration and prompt solution OF this
question.
Plan of Secretary Gage.
The secretary of the treasury haa out
lined n plan In great ietail ;or the pur-
pose of removing threatened recurrence
OF depleted gold reserve and saving Us
from future embarrassment on that ae-
count. To this plan ! invite your care
ful consideration. concur with the Sec
retary OF the treasury In his recommends
tion that national banks be allowed TO
issue notes 20 the face value of the
bonds which they deposited for circua-
tion. and that the tax on circulating
notes. secured by the deposit of such
bonds, be reduced TO one-half OF one per
cent per anuum. also join him In
recommending that authority be given for
the establishment OF national banks with
minimum capital OF $4,000. This will
enable the smaller villages and agricul-
tural regions OF the country 10 be sup
piled with currency TO meet their de-
mAnds. | recommend that the Issue OF
national bank notes be restricted 10 the
denomination OF $40 ard upwards. II the
suggestions ! have herein made shall
have the approval OF congress. then
would recommend that national banks be
required TO redeem their notes In gold.