The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1897-12-07

which ID has steadily and faithfully
done and which under the authority
now given it viii continue to do.
The law which requires the govern
ment after having redeemed its United
States notes TO pay them out again as
current funds demands a constant re-
Punishment OF the gold reserve. This
Is especially 50 In times of business
panic and when the revenues are in
sufficient to meet the expenses OF the
government. At such times the govern.
ment has no other way TO supply its
deficit and maintain redemption but
through the increase OF its bonded debt.
as during the administration OF my
predecessor, when S262, ,sib,i 400 of four
and half per cent. bonds were issued
and sold and the proceeds used 20 pay
the expenses of the government in ex-
cess OF the revenues and sustain the
gold reserve,
MAINTAINING GOLD RESERVE.
While 1t is true that the greater part
OF the proceeds Of these bonds were used
TO supply deficient receipts, n consider
able portion was required TO maintain
the gold reserve.
Without revenue 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 how
VIII 1t be replenlshed except by selling
more bonds? Is there any other way
practicable under existing law? The
serious question then Is, shall we con-
tinue the policy that has been pursued
In the past; that Is, when the gold re-
serve reaches the point OF danger, is
sue mere bonds and supply the needed
gold, or shall we provide other means
10 prevent these recurring drains upon
the gold reserve? II no further legis-
latlon is had and the policy OF selling
bonds ls to be continued, then congress
should give the secretary OF the treas
ury authority TO sell bonds at long or
short periods, bearing less rate OF in
terest than Is now authorized by law.
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 Uni
ted States notes are presented for re-
demption In gold and are redeemed IN
gold, such notes shall be kept and set
apart, and only paid out In exchange
for gold, This Is an obvious duty. II
the holder of the United States noto
prefers the gold and gets II from the
government he should not receive back
from the government United States
note without paying gold In exchange
for it, 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 Uni
ted States notes-a non-interest bear
Ing debt. Surely 1t should not pay
them out again. except on demand and
for gold, II they are put out In any
other way, they may return again TO be
followed by another bond issue to re-
deem them-an interest bearing debt to
redeem non-lnterest bearing debt
In my view II is OF the utmost import
ance that the government should be re-
lleyed OF the burden OF providing all
the gold required for exchanges and
export. This responsibility is alone
borne by the government without any
of the usual and necessary banking
powers 90 help Itself. The banks do
not feel the strain OF gold redemption.
The whole strain rests upon the gov
ernment and the size OF the gold re-
serve in the treasury has come TO be
with or without reason the signal OF
danger or OF security. This ought TO
be stopped.
II we are to have an era OF prosper
ity In the country with sufficient re-
ceipts for the expenses of the govern
ment, we may feel no immediate enl-
barrassmeut from our currency: but
the danger still exists and win be ever
present mennclng US so long as the ex-
listing system continues. And besides
Il Is in time OF adequate revenues and
business tranquility that the govern
ment should prepare for the worst. We
cannot avoid without serious conse-
quences the wise consideration ana
prompt solution OF this question.
CoNCURs WITH SEC. GAGE.
The secretary of the treasury has out.
lined q plan in great detail for The
purpose of removing the threatened re-
currence of depleted gold reserve
and save us from future embarrass-
ment on that account To this plan
invite your careful consideration.
! concur with the secretary of the
treasury in his recommendation that
the national banks be allowed to issue
notes to the face value OF the bonds
which they have deposited for circula-
tion, and that the tax on circulating
notes secured by deposit OF such bonds
be reduced to one-half OF one per cent
per annum. 1 also Join him In recon-
mendlng that authority be given for
the establishment OF national banks
with minimum capital OF $4,000. This
will enable the smaller villages and
agricultural regions OF the country TO
be supplied with currency to meet
their needs.
/ recommend that the issue of ma
tIonnl bnnlS notes be restricted to the
denomination OF ten dollars and up
wards. II the suggestions l have here
In made shall have the approval OF
congress then 1 would recommend that
national banks he required to redeem