The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1897-12-07

1T is revolving to relate your private
| ills to a man
maintain redemption but through the
increase Of Its bonded debt, as during
the administration Of my predecessor,
when 1852 ,315, 400 of four and half per
cent. bonds were issued and sold and
the proceeds used to pay the expenses
of the government
While it is true that the greater part
Of the proceeds Of these bonds were
used to supply deficit revenues, a con-
siderable portion was required to main
tain the sold reserve.
With our revenues equal to our ex-
penses, there would be no deficit requir-
ing the Issuance of bonds. But If the
gold reserve falls below $100,0000O0 how
will 1t be replenished? The serious
| question is shall we continue the policy
that has been pursued in the past, that
Is when the, gold reserve reaches the
point OF danger, issue more bonds and
supply the needed gold, or shall we pro-
vide other means to prevent these re-
curing drains upon the gold reserve.
If no further explanation is had and
the policy of selling bonds is to be con-
|
secretary of the treasury authority to
sell bonds at short periods bearing a
less rate of interest than is now author
lied by law. I earnestly recommend as
soon as the receipts or the government
are quite sufficient to pay the expenses
OF the government, that when any Of
the United States notes are presented
for redemption in gold, such notes shall
| he ,,tx ~ ot1t
In exchange for gold This is an obvi-
| Gus 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 a
United states note without paying gold
In exchange for it. The reason for
this is made all the more apparent
when the government isues an interest
bearing debt to provide gold for the re-
demptioh Of United States notes-a
non-interest bearing debt Surely it
should not pay them out again except
on demand and for gold. II they are
put out in any other way, they return
again to be followed by another bond
issue to redeem them another interest
bearing debt to redeem a non-interest-
bearing debt
In my view 1t is of the utmost inn
portance that the government should
be relieved from the burden Of privi-
lege to all the gold required for ex-
changes and export. This responsibility
Is alone borne by the government with
out any of the usual and necessary
banking powers to help itself. The
banks do not feel the strain of gold re-
demption. 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 sig
nal Of danger or of security This
ought to be stopped.
II we are to have am era of prospect
ty in the country with sufficient re-
ceipts for the expenses of the govern
ment, we may feel no Immediate en-
barrassment from our present condi-
ton, but the danger still exists and
will be ever fnehacing us so long as the
existing system continues. And be-
sides. 1t is in times of adequate reve-
nues and business tranquility that the
government should prepare for the
worst We cannot avoid without seri-
Gus consequences the wise consdera-
ton and prompt solution of this ques-
ton.
The Secretary's Plan.
The secretary of the treasury has
outlined a plan in great detail for the
purpose of removing the threatened re-
, currence of depleted gold reserve and
save us from future embarrassment on
that account. To this plan I invite
your careful consideration.
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 circllatins
notes secured by pepost of such bonds
, be reduced to one-half of one per cent
, per annum. I also join him in recon.
mending that authority be given fol
J the establishment of national banks OF
: minimum capital stock of $25 900
This will enable the smaller villa ges
: and agricultural regions of the country
, to be supplied with currency to meet
: their needs.
/ recommend that the issue of ma
tional bank notes be restricted to the
: denomination of ten dollars and up
wards. If the suggestions I have hereir
: made shall have the approval of con
gress then 1 would recommend that ma.
tional banks be required to redeem theii
|. notes in gold.
Cuba.
} The most important problem with
I which this government is now called
upon to deal pertaining to its foreign
relations concerns it's duty toward
Spain and the Cuban Instruction
Problems and conditions more OF less
lin common with those now existing
have confronted this government at va
rious times in the past. The story Of
Cuba for many years has been one Of
unrest, growing discomfort, an effort to.
ward larger enjoyment of liberty ant
lself-control; of organized resistance t.
. the mother country; of depression aftel