The Bourbon news. [volume] (Paris, Ky.) 1895-19??, 1897-12-10
ANNUAL REPORT
Of Secretary of the Treasury Gage
Made to the Congress.
Recommends New Department of the
Treasury to Be Known as the Issue and
Redemption DivisiOn-FavOrs Re-
funding of the Outstanding Debts.

WASHINGTON, Dec. S.-The annual
report of the secretary of the treasury
sent to congress Tuesday shows
that the total receipts for the year
ending June 80, 1897, were $3.50, 37s,-
1917, and the expenditures S44s, 49,
622, leaving a deficit for the year of
SIS, O52, 454. The receipts for the year
however, exceeded those for the year
1896 by $40, Oil, 759. The customs it is
shown yielded SIG, 554, 126, and intern
al revenue sources $146,6SS, 574. As
compared with 1896, this is an
increase in the customs of $16,-
$50, 374, and in internal revenue
81, 342, 721. The secretary, at some
length, argues the need of reform in
the currency, and in conclusion recon-
mends the enactment of legislation es-
tablishing a department of the treas
ury to be designated as the issue and
redemption division in which is to be
deposited $125, 600, 900 in gold to be used
only for redemption purposes, and all
silver now held in the treasury for re-
demption purposes, and also ali silver
bought under the act of 1890. He further
recommends that the sum of $500, 00O,-
600 in United States legal tender notes
be also deposited in this division, to be
disbursed therefrom only upon the re-
ceipt of gold 1t is also recommended
that provision be made for the issue of
refunding loan ten year 21G per cent.
bonds payable in gold, in exchange for
any part or all of the outstanding loans
of the United States.
The secretary also recommends that
national banks be authorized with a
minimum capital of $4,000 in places
having a population 1000 or less, and
that the rate of taxation on circulat-
ing notes secured by deposit of bonds
be reduced to one-half of one per cent.
per annum; also, that banks be per-
mitted to. issue circulating notes
to the par value of the refund
ing bonds deposited by them in the
treasury, and further, that banks be
allowed to deposit as security with the
treasury, greenbacks. treasury notes
or silver certificates to total amount
of the 100000, 600 against which ma
tional bank notes shall be issued to
them to an equal amount. After the
banks have deposited such bonds,
greenbacks, treasury notes and silver
certificates to the amount of so
per cent. of their capital, they
shall be permitted to issue bank
notes, in addition to the so per
cent. thus provided, to the extent of
25 per cent, for which the banks as
sets shall be liable. He also recon-
mends that the guaranty of payment
by the government be extended to all
circulating notes of the bank, whether
issued against deposited security or
against assets. To secure the govern
ment against loss, if any, tax of two
per cent. should be levied on un-
secured circulation to create q
safety fund, to be invested by
the controller in United States
bonds. In addition the goverFNept
should be further protected, the secre-
tary says, by having first lien upon all
assets in case of failure of the issuing
bank. 1t is further recommended that
all notes be redeemed in the city of
New York and at other sub-treasuries
at the expense of the banks. and that
the issue of national bank notes be re-
stricted to the denomination of $40 and
upwards