The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-12-07
Pr0Sident MGKinl0uS
Massage 10 Congress

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, issue
more bonds and supply the needed gold,
or shall we provide other means to pre-
vent these recurring drains upon the
gold reserve? If no further legislation
is had and the policy of selling bonds
is to be continued, then Congress should
gve the Secretary of the Treasury au
thority to sell bonds at long or short
periods, bearing q less rate of interest
than is now authorized by law.
81 earnestly recommend that 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 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. If the
holder of the United States note pre-
fers the gold and gets it from the gov
eminent, 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
United States notes-a non1nterest
bearing debt. Surely it 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, tc
be followed by another bond issue It
redeem them-anOther interest bearing
debt to redeem non-interest bearing
debt.
I'm the meanwhile, it is of the utmost
Importance that the government should
be relieved from the burden OF prov-d
ing 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 to help itself. The banks dc
not feel the strain of gold redemption
The whole strain rests upon the govern
ment. 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 bt
STOPPED.
IF we are to have an era of pros
perity in the country, with sufficient re-
ceipts for the expenses of the govern
ment, we may feel no immediate EN-
barassment from our present currency;
but the danger still exists, and will he
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 govern
ment should prepare for the worst. We
cannot avoid without serious conse-
quences the wise consideration and
prompt solution of this question.
The Secretary of the Treasury has
outlined a plan IN great detail, for the
purpose of removing the threatened re-
currence of a depleted gold reserve, and
save us from future embarrassment on
that account. To this plan l invite
your careful consideration.
Il 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 circula-
ton, and that the tax on circulating
notes secured by deposit of such bonds
be reduced to Il of 1 per cent per an
mum. | also join him in recommending
that authority be given for the estab-
lishment of national banks with a min
imum capital of $25, 0O0 This will en-
able the smaller villages and agricul-
tural regions Of the country to be sup
piled with currency to meet their needs.
Il recommend that the issue Of ma
tlonal bank notes be restricted to the
denomination of ten dollars and up
wards. If the suggestions have herein
made shall have the approval of Con-
gress, then l would recommend that
national banks be required to redeem
their notes in gold.'