The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1897-12-09

ernment, after having redeemed its
@oni.eu @ states notes, to pay them on;
again as current funds, demands n con.
sian slant .replenishment of the gold reserve
ms is especially so in times of business
raaic and when the revenues are in.
sunclent TO meet the expenses of the
government. At such times the govern.
dnGn;. tn; nus no otner way to supply its
through the increase Of its honded debt
as during the administration of INV nrede'
cessor, when 262,315 400 in 4 ID ner
cenl ponds were issued and sold and
we proceeds used to pay the expenses
or the government in excess of the reve.
nues , and to sustain the gold reserve
W nile 1t is true that the ma ior norton of
the proceeds of these bonds were nsed
10 supply deficient revenues, a consider.
aoie portion were to retain the gold re-
serve. e'''
!, without revenue equal to our expenses
there would be no deficit requiring the
issuance Of bonds. but if the gold re-
II ne replenished except by selling more
bonds? Is there any other practicahle
way under existing law? The serious
question Is, then, shall we continue the
poilcy that has been pursued in the past.
that is. when the gold reserve reaches
lhe point OF danger, issue more bonds
and supply the needed gold, or shall we
provide other means to prevent these re-
CURING drains upon the gold reserve?
II no further legislation is had and the
policy of selling bonds is to he continued.
tnen congress should give the secretary
OF the treasury authority to sell bonds at
long or short periods, bearing less
rate OF interest than is now authorized
by law.
Must Break the Endless Chain.
| earnestly recommend as socp as the
receipts of the government are quite suf-
hcient to pay all the expenses of the gov
ernment. that when any of the United
states notes are presented for redemption
IN gold and are redeemed in gold. such
notes shal! be kept and set apart and
only paid out in exchange for gold This
IL an obvious duty. If the holder of the
United States note prefers the gold and
gets it from the GOV: rnment he should
not receive back from the government Il
United States note without paying gold
in exchange for it. This is made all the
more apparent when the government is
sues an interest-bearing debt to provide
gold for the redemption of United States
notes. MISUNDERSTANDING 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 return
again. to be followed by another bond
issue to redeem them-an interest-bearing
| debt to meet misunderstanding debt.
The Government Handicapped.
In my view it is of the utmost i'm
| pOrtance that the government should be
relieved from 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 bowers to
| help Itself. The banks do not feel the
strain of the gold redemption. The whole
strain rests upon the government and the
rise 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 we are to have
an era of prosperity in the country. Will
sufficient receipts for the expenses of the
government. we may feel no immeGia tt
embarrassment from our present curren.
cy situation, but the danger still exists
and will he ever menacing us so long as
the existing system continues. And he.
sides. it is in time of adequate revenues
and business tranquility that the gov
ernment should prepare for the worst
We can not avoid without serious consc-
VUpHcCS the Wise consideration ana
prompt solution of this question.
Recommends Cages Plan.
The secretary Of the treasury has out
lined plan in great detail for the pur-
pose of removing the threatening exist
ence of depleted gold reserve and save
us from future embarrassment on that
account. To this plan l invite your care
full consideration.
/ concur with the secretary of the treas
ury in his recommendation that the ma
tional banks be allowed TO issue notes TO
the face value of the bonds which they
have deposited for circulation and that
the tax OH "TcIating notes secured by
deposits of such bonds he reduced to one
half of l per cent per annum. | also
Join him in recommending that author
ity he given for the establishment of ma
tional banks with Il minimum capital of
$4,000. This will enable the smaller
villages and agriculture relations of the
country to he supplied with currency to
meet their demands.
Banks Should Redeem in Gold.
I recommend that the issue of national
bank notes he restricted to the denomina
ton of $40 and upwards. If the suggcs-
tions | have herein made shall have the
approval of congress- then | would rec
Ommend that national banks be required
to redeem their notes in gold.