Gulf Coast breeze. [volume] (Crawfordville, Fla.) 1897-19??, 1897-12-10

revenue 10 pledged to maintain gold re.
demption, which 10 has steadily and
faithfully done, and which. under the
authority now given. 10 will continue
20 do
The law which requires the govern.
ment, after having. rcd eemed It's United
States notes. TO pay them out again as
current funds, demands constant re-
plenishment Of the gold reserve. This
II especially 30 In times OF business
panic and when the revenues are III.
sufficient to meet the expenses Of the
government At such times the gov
eminent has no other way to supply its
deficit and maintain redemption but
through the increase Of its bonded debt.
40 during the administration Of my
predecessor, when $282, 400 Of AZ
per cent bonds were issued and sold and
the proceeds used to pay the expenses
of the government in excess of the rev.
enues and sustain the gold reserve.
While IL ia true that the greater part Of
the proceeds OF these bonds were used
to supply deficient revenues, a consid.
cradle portion was required to maintain
the gold reserve
With our revenues equal TO our ex.
penses. there would be no deficit requir-
Ing the issuance Of bonds. But IL the
gold reserve falls below 500, 900, 700
how will IL be replenished except by
selling more bonds? Is there any other
way practicable under existing law?
The serious question then is, shall we
continue the policy that has been pur.
sued In the past; that is, that when the
government reserve reaches the point OF
danger. issue more bonds and supply
the needed gold, or shall we provide
other means to prevent those recurring
drains upon the gold reserve? II no
further legislation is had aud the policy
Of selling bonds 10 to 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 is now authorized by law.
AZ to Unitsd State. Notoa
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 re.
demption In gold aud are redeemed in
gold, such notes shall be kept aud set
apart aud only paid out in exchange for
kOIu. Ills ~ I'LL OUVlOuS uuty.
II the holder Of the United States pre-
fers the gold aud gets il from the gov.
eminent lie should not receive back
from the government United States
note without paying gold In exchange
for II. 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 n oninterest bea3.
ing debt Surely it should not pay
them out again except on demand aud
for gold. II they are put out in any
other way, they return again to be fol.
lowed by another bond issue to redeem
them--another interest bearing debt to
redeem d noninterest bearing debt.
In my view it 10 OF the utmost impor.
lance that the government should be
relieved from the burden Of providing
oil 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. The banks do not feel the
strain Of the gold redemption. The
whole strain rests upon the government
aud the size of the gold reserve in the
treasury has come to be with. or with.
out reason, the signal Of danger or OF
security. This ought to be stopped IL
we are to have al 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 dan.
ger still exists. and will be ever present,
menacing us so long as the existing sys-
tenn continues Aud besides, IL Is in
time Of adequate revenues and business
tranquility that the government should
prepare for the worst. We cannot avoid
without serious conseQ the wise
consideration and prompt solution OF
this question.
The secretary Of the treasury has ont.
lined q plan in great detail for the pur.
pose OF removing the threatened recur.
renee OF a depleted gold reserve and
save as from future embarrassment Oh
that account To this plan / invite
your careful consideration.
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 one. half Of per cent per annum.
I also join him in recommending that
authority be given for the establishment
of national banks with minimum cap.
ital of $4,000 This will enable the
smaller villages aud agricultural regions
of the country to be supplied with our
rency to meet their needs
| I recommend that the issue OF ma.
tional bank notes be restricted to the
denomination Of $40 aud upwards. II
the suggestions have herein made shall
have the approval Of congress. then I
would recommend that national banks
be required to redeem their notes In
gold. /
NO CUBAN INTERFERENCE.