The times., 1897-12-07

used to supply deficient revenues, con
siderable portion was required to maintain
the gold Ieserve.
The sale Of Bonds
With ouT revenues equal TO our expenses,
there wedld he no deficit requiring the
issuance oi bonds. But If Che gold reserve
falls below $lGO, 900, 900, now viii il be
replenished except by selling more bonds?
Is there any other way practieable under
existing law" The serious question then
is, shall we continue the policy that has
been i'uIsued 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 provide other means to
prevent these recurring drains upon he gold
reser"e2 lr no further legislation is had
and the policy of selling bonds is TO he con-
tinued, thfn Congress should give the
Secretar. Ct the Treasury authority TO
sell bonds at long or short periods, bearing
a less rate Of interest than is now author
lied by law
i earnestly recommend as soon as the
receipts of the Government are quite SUI
ficient tc pay al the expenses OF the Coy
ernmt 1T, that when any of the United
States notcs are pres ented for redemption in
gold and are redeemed in gold such noses
shall be kept ard set apart, and only pa d
out in exchange for g6!a. This is an OBJ
vious duty. If the holder Of the Ualted
States uote prefers the gold n nd gets 1t from
the Government, lie should not reeei -e
back from the Government a United states
note without paying gold in exchl lge
for it The reason for this is made all
the more apparent when the Government
issues an interest bearing debt to provide
gold for tia" redemption of United states
notes-a -inteTest-bearing debt. Surely
it should not paythem cut again except IN
demand, and FOL gold. If they are put
ont in any other way. they may ret,irn
again to be followed by another bond issue
to redeem them another interest bearing
debt to redeem non-interest- bearing .,ebt.
In my view, it is OF the utmost import
ancc 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 ,iov-
eminent without any of tue usual and
necessary banking powers to heIp itself
The banks do not feed tile strain of gold
redemption. The whole strain rests Upon
the Government and the size Of the enld
reserve in the Treasury has come to he,
with or without reason. the signal Of
danger or OF security. This ought to be
stopped.
Secretary Cages Plan.
If We are 10 have an era of prosperity
in the country, with sufficient receipts for
the expenses OF the Government, we may
feel no immediate embarrassment from our
present currency; but the danger still eN-
lists aRd VIII be ever present menacing
us So long az the existing system con
tinues. And besides it is ia times OF ade-
quate revenues and business tranquility
That the Government should prepare for the
worst. We cannot avoid without serious
Consequences the wise consideration aud
prompt solution of this question.
The Secretary of thc Treasury has OUT
lined plan la great detail, for the purpose
of removing the threatened recurrence OF a
depleted gold reserve and save US crJm
future embarrassment GA that account To
this plan l invite your careful consider
ton.
l concur With the Secretary Of the Treas
ury in his recommendation that national
banks be allowed To issue notes to the face
value uf the bonds which they have lie
Nosited for circulation, and that the tax
on circulating notes secured by deposit Of
such bonds be reduced to onehalf Of enc
Fer cent per aunum. l also Join nin in
recommending that authority be given FOR
the establishment of national banks with
a minimum capital OF $4,000. This viii
enable the smaller villages aud agricultural
regions of the country to be supplied with
currency 20 meet their needs.
/ recommend that tile issue OF National
bank notes DC restricted 70 the denom!n1-
ton OF ter dollars and upwards II the
suggestions | hive herein made shal II have
the approval or Congress, then l would
recommend that National hanks be re-
quired TO redeem their notes in gold.