The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-12-08
PLAN OF A FlNANCIER
LYMAN }. CAGES SCHEME FOR REV.
SION OF CURRENCY LAWS.
Secretary of the Treasury's Annual
Report to Congress- RepIete with
Important Suggestions.
RADICAL RECOMMENDATIONS
STATES TREASURY NOTES,
For the Issue of Refunding Bonds
Payable i'm Gold, and for Changing
the National Bank System.
-~-
REASONS GIVEN At LENGTH
A
IMPORTANCE OF REFORMS URGED ON
MEMBERS OF CONGRESS-.
Receipts and Expenditures of the Gov.
ernment for the Fiscal Year
Ended June 80 Last.
For the Issue of Refunding Bonds
the National Bank System.
REASONS GIVEN At LENGTH
IMPORTANCE OF REFORMS URGED ON
MEMBERS OF CONGRESS-,
Receipts and Expenditures of the Cow
ernment for the Fiscal Year
Ended June 30 Last.
Special to the indianapolis Journal.

Special to the Indianapolis Journal.
WASHINGTON, Dec. 1.-THE first annual
report of Lyman j. Gage, secretary of the
treasury, was transmitted to Congress to-
day. Interest in the document centered in
the secretary's financial plan" the text of
which is given below. The report contains
a resume of the work of all the bureaus and
divisions in the Treasury Department,
synopses of which have already been print
ed. The secretary says the total receipts
for the year ended June 80, 1897, were $780,
37S 167, and the expenditures $44S, ,439 622 leav-
ing deficit for the year Of SIS, ,454. The
receipts for the year, however, exceeded
those for the year 1886 by $2O,911 759. The
customs, it is shown, yielded SIG, ,554, ,126 and
internal-revenue sources $146, S574. AS COM
pared with 1896, this is an increase in the
customs of $16,532,374 and in internal rev.
enue of 81, 342, 721
The secretary at some length argues the
need of a reform in the currency, and in
conclusion recommends the enactment of
legislation establishing a department of the
treasury to be designated as the issue and
redemption division, in which is to be de-
posted 1250OO,OO0 in gold to be used only
for redemption purposes, and all silver now
held in the treasury for redemption pur-
poses. and also all silver bought under the
act of 1890. He further recommends that
the sum of $500, 1000 in United States legal
tender notes be also deposited in this di-
vision, to be disbursed therefrom only on
the receipt of gold. 1t is also recommended
that provision be made for the issue of re-
funding loan ten-year 21s per cent. bonds,
payable in gold, in exchange for any part
or all of the outstanding loans of the
mends that national banks be au1norized,
with a minimum capital of $4,000 in places
having population of 1000 or less, and that
the rate of taxation on circulating notes Sc
cured by deposit of bonds be reduced to
one-half of per cent. per annum; also that
banks be permitted TO issue circulating
notes to the par value of the refunding
bonds deposited by them in the treasury,
and, further, that banks be allowed to de-
posit as security with the treasury green
backs, treasury notes or silver certificates
to a total amount of the $500, 600 900, against
which national bank notes shall be issued to
them to an equal amount After the banks
have deposited such bonds, greenbacks,
treasury notes and silver certificates to the
amount of so per cent of their capital they
shall be permitted to issue bank notes, in
addition to the 80 per cent thus provided,
to the extent of 25 per cent, for which the
banks assets shall be liable. He also rec
ommends that the guaranty of payment by
the government be extended to all c1rculat-
ing notes of the bank, whether issued
against deposited security or against assets.
TO secure the government against loss, If
any a tax of per cent. should be levied
on unsecured circulation to create a safety
fund to be invested by the controller in
United States bonds. In addition the gov
ernment should be further protected, the
secretary says, by having first lien on all
assets in case of failure of the issuing
bank. 1t is further recommended that all
notes be redeemed In the city of New York
and at other subtreasuries at the expense
of the banks, and that the issue of national
bank notes be restricted to the denomina-
ton of $40 and upward.