The Chipley banner. (Chipley, Washington County, Fla.) 1893-1943, 1897-12-18

government without any fixsd cola
revenue Is pledged to maintain cola ~.
aemption, which IL has steadilv ara
.nthn uiy done, and which. under the
sea.nority now given. 1t will continue
Inc law which requires the govern.
S %en', after having redeemed it's u nited
SeaVes notes. to pay them out again as
oIrrens funds, demands a constant re.
Piehisnment OF the gold reserve. This
especially 80 in times of business
panic and when the revenues are in.
suMcient to meet the expenses of the
government At such times the GOV.
eminent has no other way to SUNNY a.
oenolt and maintain redemntIon hnt
tnrough the increase OF its bonded debt'
as during the administration ~ NV
predecessor, when $2e2 9l6 400 Of AZ
Per cent ponds were issued and sold and
.ae proceeds used to pay the expenses
Vi ene government in excess Of the rev.
e e and sustain the gold reserve.
WINE 1t is true that the greater part Of
the proceeds Of these bonds were used
70 supply deficient revenues, q consid.
cradle portion was required to maintain
the gold reserve
with our revenues equal to our ex .
penses. there would be no deficit reouir.
ing the issuance OF bonds. But IL the
gold reserve falls below 500. 600. BOO
how will 1t be replenished except by
selling more bondsp Is there any other
way practicable under existing Iawi
Inc serious question then is, shall we
continue the policy that has been pur.
sued III the past; that is, that when the
government reserve reaches the point of
danger, issue more bonds aud supply
the needed gold, or shall we provide
other means to prevent those recurring
drains upon the gold reserve? II no
further legislation is had and the policy
OF selling bonds is to be continued, then
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.
As to United Stats, Note.
earnestly recommend as soon as the
receipts Of the government are quite
sufficient to pay all the expenses of the
government that when any of the
United States notes are presented for re.
demption in gold aud are redeemed in
gold, such notes shall be kept and set
apart and only paid out in exchange for
gold This is an obvious duty. .
II the holder Of the United States pre-.
fers the gold and gets it from the gov.
eminent he should not receive back
from the government United States
note without paying gold in exchange
for it. The reason for this is made all
the more apparent when the govern.
ment issues an interest bearing debt to
provide gold for the redemption OF
United States notes-a noninterest bear
ing debt. Surely il should not pay
them out again except on demand aud
for gold. II they are put out in any
other way, they retucn again to be fol.
lowed by another bond issue to redeem
them-another interest bearing debt to
redeem a noninterest bearing debt.
In my view il is of the utmost impor.
lance that the government should be
relieved from the burden OF providing
all the gold required for exchanges and
export. This responsibility is alone bone
by the government without any OF the
usual and necessary banking powers to
help itself. The banks do not feel the
strain of the gold redemption. The
whole strain rests upon the government
and the size Of the gold reserve in the
treasury has come to be with, or with.
out reason, the signal Of danger or OF
security. This ought to be stopped II
we are to 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 dan.
ger still exists, and will be ever present.
inenacing us so long as the existing sys-
TEN continues And besides. 1t is in
time OF adequate revenues and business
tranquility that the government should
prepare for the worst We cannot avoid
without serious consequences the wise
consideration and prompt solution OF
this question.
The secretary Of the treasury has out
lined plan in great detail for the pur.
pose of removing the threatened recur.
renee of depleted gold reserve and
save us from future embarrassment Oh
that account. To this plan l 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
thew have deposited for circulation, and
that the tax on circulating notes Sc
cured by deposit of such bonds be re-
duced one. half OF per cent per annum.
| also Join him in recommending that
authority be given for the establishment
of national banks with minimum cap
ital OF $4,000. This will enable the
smaller villages and agricultural regions
of the country to be supplied with cur
rency TO meet their needs
recommend that the issue OF ma
tional bank notes be restricted to the
den omination Of SO and upwards u
the suggestions have herein made snail
have the approval OF congress. then
would recommend that national banks
be required to redeem their notes IN
gold
NO CUBAN INTERFERENCE.
ZAH-