The Mena weekly star., 1897-12-08

there would be no deficit reQuiriQg the issu- ance of bonds But if the gold r1serve falls below 100 000 0l0 how will iU b. repleulshe3 ax~ cept by selling more bonds? Is there any other way practicable under existing law? The se- rious question then is, shall we continue the policy that has been pursued in the past: that is. when the gold reserve reaches the point of Qangar, issue more bonds ana supply the needed gold. or shal we provide other means to pre- vent these recurring drains upon the gold re- serve? If no further legislationis had, and the policy Of selling bonds is to be continued then congress should give the secretary of the treas- ury authority to sell bonds at lOngor short pe- riods, bearing less rate of interest than is now authorized by law l carr nestly 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 redemption in gold and redeemed in gold, such notes shall be kept and set apart, and only paid out in exchange for gold This is an obvious duty If the holder of the United States note prefers the gold and gets it from the government he should not receive back from the government United States note without pay ing gold in exchange for it. The reason for pL.S ss made all the more apparent when the government issues an interest-begring note to provide gold for the redemption of United States notes-a non-interest bearing debt Surely 1t should not pay them out again except on demand and for gold If they are put out in any other way they may return again to be followed by another bond issue to redeem them-another interest," bearing debt to redeem a non-interest bearing debt
 Providing Gold for Business.
 In my view it is of the utmost importance that the government should be relieved from the business of providing all the gold required for exchange 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 and the size of the gold reserve in the treasury has come to be, with or without reason the signal of danger or of security This ought to be stopped. If ~e are to have an era Of prosperity ii the country with sufficient receipts for the ex penses of the government, we may feel no inn mediate embarrassment from our present cur rency; but the danger still exists and will be ever present menacing us so long as the existing system continues. And besides it is in times of adequate revenues and business tranquility that the government should prepare for the worst We cannot avoid without serious con- sequences the wise consideration and prompt solution of this question.
 Secretary Cages Plan.
 The secretary of the treasury has outlined plan in great detail for the purpose of remov- ing the threatened recurrence of a depleted gold reserve and save us from future embar- rassment on that acconnt To this plan ! in- vlte your careful consideration ! concur with the secretary of the treasury in his reeopmen- dati0n that national banks be allowed to issue notes to the face value of the bonds which they deposited for cireulation aud that the tax on circuntin& notes secured by deposit of such bonds an reduced to one-haM of one per cent. per annum also join him in recommending that authority be given for the establishment of national banks with a minimum capital of wi t5ff and agricuitural regions of tho country to be supplied with currency to meet their needs.
 recommend that the issue of national bank notes be restricted to the denominaeioa Of sl0 and upwards If the sug sesti0ns have herein made shal have the approval of congress then l would recommend that national banks be re- quired to redeem their notes in gold
 FOREIGN RELATIONS.
 The most important problem with which this government is now called to deal, pertain ing to it's foreign relations, concerns it's duty toward Spain and the Cuban insurrection. Problems and conditions more or less i'll com mon with those now existing have confronted this government at various times in the past The story of Cuba for many years has been one of unrest; growing discoatent an effort toward a larger enjoyment of liberty and self-cOntrOl; Of organized resistance to the mother country; of depression after distress and warfare, and of intellectual settlement to be followed by re- newed revolt For no enduring period since the enfranchisement of the continental posses sion of Spain in the western continent has the condition of Cuba, or the policy Of Spain to- ward Cuba not caused concern to the United States
 The War in Cuba
 The present insurrection broke out in Febru- ary 1895. It is not my purpose at this time to recall it's remarkable increase or to character ize it's tenacious resistance against the enor- mons forcpS nnaSgnd araiuSt it by Spain. The revolt and the efforts to subdue it carried de- struction to every quarter of the island devel- oping wide proportions and defying the efforts of Spain for it's suppression. The civilized code of war has been disregarded, no less 50 by the Spaniards than by the Cubans The exist ing conditions cannot but i'll this government and the American peoplA with the gravest ap- prehension. There is no desire on the part of our people to profit by the misfortunes of Spain. We have only the desire to see the Cubans prosperous and contented, enjoying that measure of seH-contr0l which is lhe in alienable right of man, protected in their right to reap the benefit of the exhaustless treasures of their country
 The offer made by my predecessor in April 1s96, tendcring the friendly offices of this gov ernment failed Any mediation on our part was not accepted. In brief the answer read sThere is no effectual way to pacify Cuba un- less it begin with the actual submission of tho rebels to the mother" Then only could Spain act in the promised direction of her own mo- tion and after her own plans. The cruel policy of concentration was initiated February i6 1896 The productive districts controlled by the Spanish armies were depopulated and the agricultural inhabitants were herded in and about the garrisoned towns. their land laid waste and their dwellings destroyed. This policy of the late cabinet of Spain was justified as a necessary measure of war and as q means of
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