The times. [volume] (Richmond, Va.) 1890-1903, 1897-12-07

which II has steadily and faithfully done
and which under the authority now given
II will continue TO do.
'The law which requires the Govern
mont. after having redeemed It's United
States notes. 10 pay them out again as
current funds. demands a constant re-
plenishmcnt OF the gold reserve. rms
Is especially so at times Of business panic
and when the revenues are insufficient
TO meet the expenses OF the Govern
ment AT such times. the Government has
no ether way 10 supply ITS deficit ana
maintain redemption but through the IN
crease Of its bonded debt. as during the
administration Of my predecessor Wheh
500. 3i5 400 Of four and a half per cent
bonds were issued and sold ana the no
cceds used to pay the expenses ot Ae
Government in excess OF the revenues
and sustain the gold reserve.
is THERE 4 REMEDY?
while II is true that the greater part
OF the proceeds Of these bonds were used
10 snioplv deficient revenues. consider
able portion was required 10 maintain the
gold reserve. with our revenues equal to
our oxpenses. there would be no deficit
recurring the Issuance Of bonds, bnt u
the gold reserve falls below SloOW0oD
how Will IL be rcpicnished. except by
selling more bOnds2 is there any other
wav practicable under existing law
"The serious question then is. shall we
continue the policy that has been pur-
sued I'm the past: that IS. when the foid
reserves are at the point Of danger. issue
more bonds and supply the needed fold
or shall we provide other means 10 pre-
vent these recurring drains upon the gold
reserve? II no further legislation la had
ana the policv Of selling bonds IS 10 be
4 rnnfNfI
Secretary OF the Treasury authority 10
sell bonds at long or short periods bear
ing less rate Of interest than is now
authorized by law.
HIS PLAN
'I earnestly recommend as soon AS lne
receipts Of the Governments are quite SUI
ncient to paw all the expenses or the
Government that when any Of the nlion
states notes are presented for redemp-
ton I'm gold and are redeemed In gold
such notes shall be kept and set apart
and only paid out In exchange Tor ton'
This IS an abvious duty. II the holder
Of the United states notes prefers inc
gold and gets u from the Government ne
sbould not receive back from the Govern
roont "a United states note without paying
gold i'm exchange for a. The reason for
this IS made all the more apparent Wncn
tho Government issues am interest-boar-
ing debt 10 provide gold for the rederlp-
lion of United states nOtcs-a non-intcros'-
hearing debt. Surely 30 should not pay ihem
out again except on demand and for Rold.
If thev are put out I'm any other way they
may return again 10 DE followed hy an-
other bond issue To- redeem them-anolhcr
interest-bearng debt 10 redeem nom
intorcst-bcaring debt
In my view. 10 is Of the utmost I'M
cont aI
relieved from the burden OF providing an
the gold required for exchanges ana eN-
port. This responsibility is alone born'
bv the government without any OF the
usual and necessary banking powers 10
.hclp itself. The banks do not feel the
strain of gold redemption The Who'll"
strain rests upon the government ana
besides tho gold reserve In the treasury
has become 90 De with or without rel-
son. the signal OF danger or of security.
This ought 10 Doe stopped. If we are
10 have an erasof prosperity IN the coun-
try with sufficient receipts for the eN-
pcnses of the government we may ieel
no Immediate embarrassment from our
present currency. but the danger sti'
exists and VIII be ever present mcnacing
us so long as the existing system con-
tinues And besides 10 is i'm times OF
adequate revenues and business tran
guilty that the government should pre-
pare for the worst We cannot avoid
without serious consequences the wise
consideration and prompt solution on
this question.
SECRETARY CAGES PLAN.
"The Secretary OF the Treasury has
outlined "a plan i'm great detail for the
purpose of relieving that threatened re-
currance of a depleted gold reserve. ami
save ms from future embarrassment ON
that account To this plan ! invite your
careful consideration. concur with the
Secretary OF the Treasury in his recon-
mcndation that national banks Doe issued
notes TO the face value of the bonds
which they have deposited for circulation
and that the tua on Cirllauon OF nOicI
seurod Ly deposit OF such bonds De res
duod TO onG-half OF one per cent. per
annum.
~ also join him in recommending that
authority Dee given for the establishment
OF national banks with p minimum cap
ital OF $4,000. This will enable the small
or Villages and agricultural regions OF
The country To Doe supplied with currency
90 meet thcir needs.
"I recommend that the issue OF nation
IA bank notes be restricted to the denom-
ination OF ten dollars au0 upwards.
"lf the suggestions / have herein made
shall have the approval OF Congress. then
| would recommend that national banks
be required TO redeem their notes ina
gold"