The representative. [volume] (St. Paul, Minn.) 1893-1901, 1897-12-08
GAGE MAKES HIS REPORT
THE TOTAL RECEIPTS FOR THE FIS-
CAL YEAR SHOW AN INCREASE.
The Secretary Repeats I'm Detail His
Well known Monetary RecOm-
mendatiOns.

WASHINGTON, D. c., Dec. 1.-THE annual
report OF the secretary Of the treasury sent
to congress today shows that the total re-
celptS for the year, ended June 30, 1897,
were s43O,378 167 and the expenditures $44S.-
1852, leaving deficit of $1S.052, 454 The
receipts OF the year, however, exceeded
those for the year 1896 by $40, 759. The
customs, it Is shown. yielded 1854, 26
and internal revenue sources s146 6Ss,574. AS
compared with 1896 this is an increase in
the customs of $l6,532374 and internal
-evenue of $4,342, 721 The secretary at some
-ength argues the need of a reform In the
currency and in conclusion recommends
the enactmenut of legislation establishing
department of the treasury to be desig
mated as the issule and redemption divi-
sion, in which is to be deposited $l25, 900 900
in gold to be used only for redemption Tur-
poses aid all silver now held in the trea-
su,y for redemption PURPOSES and also all
silver bought under tnc act of $780,
He further recommends that the sum of
$200. 100000 in United States legal tender
notes be also deposited in the division to
be disturbed therefrom only from the re-
ceipt of gold. 1t is also recommended that
provision be made for the issue of refund-
ing loan ten year 212 per cent bonds, pay
able in gold in exchange for any part or
all Of the outstanding loans of the United
States.
The secretary also recommends that ma.
tfOnal banks be authorized with a minimum
capital of $4,000 in places having a popu-
latiOn Of 1000 or less and that the rate Of
taxation on circulating notes secured by
deposit of bonds be reduced to One-half of
one per cent per annum; also that banks
be permitted to issue circulating notes to
par value of refundng bonds deposited by
them in the treasury, and further. that
banks be allowed to deposit security
with the treasury, greenbacks, treasury
amount Of $500, 900 against which ma
tional bank notes shall be issued to them
to an equal amount.
After the banks have deposited such
bonds, greenbacks, treasury notes and sill
yer certificates to the amount Of SO per cent
OF their capital, they shall be permitted to
issue bank notes, in addition to the 50 per
cent thus provided, to the extent of 20 per
cent for which the banks assets shall be
liable. He also recommends that the guar
anty of the government shall be eXten1ed
to all circulating notes OF the banks wheth-
er issued against deposited security or
against assets. To secure the government
against loss, If any, a tax of per cent
shall be levied upon the unsecured portion
to create a safety fund to be invested by
the comptroller in United States bonds. In
addition the government should be further
protected, the secretary says, by having a
first lien upon all assets in case of a failure
of the issuing bank. 1t is further recon-
mended that all notes be redeemed in the
city of New York and at other sub-treas-
urieS at the expense Of the banks, and that
the issue of national bank notes be re-
stricted to the denomination of $40 and up
wards.