Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1897-12-14
GAGE N !. T. CURRENCY | I
Annual Report of the Secretary Of
the Treasury Is Presented
to Congress.
CURRENCY REFORM the CHIEF QUESTION

Recon- mcndntion.M Made to strength
g. en- the ACKNOWLEDGEMENTS New
Department Proposed - FavOrs' n
New bond 1ssue-Dank Note Circn-
lntion and Other Propositions. -
Washington, Dec. 8. = The annual
report of the secretary OF the treasury.
sent to congress Tuesday, shows that
the total receipts forsthe year ended
June 30, 1897, were $3.50, 37S, 1G7, and the
expenditures $44s,439,622, leaving de-
ficit of $1s,052, 454., The receipts of the
year, however, exceeded those for the
year 1896 by $20,911,759. 545 ss
The customs, it is shown, yielded.
$176,554,126. and internal revenue
sources $146,6ss,574. AS compared with
1896 this is an increase in thecustoms
of $1G,532,374 and internal revenu4
$4,342. 721.
The Currency.
Secretary Gage calls attention to what he
terms the menace to the public credit oc-
casioned by the continued use Of the large
volume Of demand liabilities, represented
by the legal tender notes." and says that
cial value Of silver as compared with gold
has greatly increased the financial respon-
sibiltties Of the government In it's demand
liabilities, and all the logical consequences
Of the fact should be boldly faced.
The advantages Of strong position in
the national treasury. with it's accompany
ing benefits to all commercial interests
and great reinforcement to the public
credit, can. believe. be secured without
any unsettling legislation In a manner
easy to be comprehended by all and with
small cost to the people.
The recommendations make must be
construed as tentative steps in direction
which. IT consistently pursued, will ulti-
mately lead to conditions theoretically
desirable rather than as being in them
selves final measures to that end. The con-
dition OF the treasury in its relation to de-
mand obligations requires that one Of two
steps be taken. The one may be large re-
enforcement OF the permanent gold re-
serve; the other may be by an important
reduction In the Objectionable form of liza
bilities. The latter Is. in my opinion. the
more desirable.
concentrations.
First. recommend that proper legisla-
ton be enacted which will stablish, sep
arate and apart from the ordinary opera
tons Of the treasury as they, relate to rev.
enue and expenditures, department to be
designated and known as the issue and re-
demption division. To this division the
sum Of $125.0O 900 in gold should be set
over from the general fund in the treasury,
to be used only for redemption purposes.
and all the silver dollars now held for re-
demption Of silver certificates, and all the
silver bullion and dollars coined therefrom,
bought under the act of 1890, should be
passed to the same account. Further that
the sum of $2O0,0O0,00O in the legal tel.der
notes of the United States known as .een-
backs be collected as hereinafter described
and deposited in the said issue and re-
demption division. to be disbursed there
from only upon the receipt in exchange
therefor of an equivalent. amount of gold
coin. Such gold, when so secured, to be
held in said division as part Of the general
redemption fund.-
Second. I recommend that provision be
made for the issue Of refunding loan bonds.
payable after ten years at the pleasure
of the government. such bonds to bear in
terest at, the rate of az per cent. per an
mum. payable, principal and interest. in
gold coin: and that the secretary of the
treasury be authorized to issue such bonds
and receive In payment therefor, with an
equitable allowance for the difference in
interest, and part or all Of the outstanding
oans of the United States which mature
by their terms Of payment in the years
1904. 1907 and 1928.
Would Strengthen Our Credit.
The advantage involved in the proposed
action lies in this: 1t removes an am
biguity from our contract obligations-an
ambiguity which affects unfavorably the
government credit. The word "coin," now
used to expresa the obligation in the public
debt, is an ambiguous word. 1t is no doubt
understood by the more discriminating
public creditor to mean gold coin, and the
solemn act OF congress pledging the main
tenance Of silver coin upon a parity with
gold coin makes it impossible to const:ue
the word 'cOfn." as therein used, to
mean anything other than gold or its full
equivalent. Yet as this is a conclusion OF
logic rather than clear statement of fact,
the simpler O.: more humble investors or
would-be investors in the public debt are
confused and doubtful. and the public cred
it is the weaker therefor. To refund our
outstanding bonds now payable in coin in to
bonds, payable IN gold would strengthen
and confirm the public credit and put us
in position to command the markets OF
the world for our securities on the most
advantageous terms.
Bank Note Circulation.
To accomplish the objects herein suc-
gested without contracting the circuia ton
some other form OF paper money must he
allowed to I'LL the vacuum which would 9th
erwise be occasioned. The national bank
note now familiar to our people is the
readiest and most practical agent to &C.
COApAiSA .Nuoe OOJSSSs5S anu ul1USCh reason.
ables conditions 1t will be found responsive
to the call The complaintsuttered against
the national bank act as It now stands is
not directed toward the method Of bank
organization or the absolute safety guar
anteed to the noteholdcr. It Is #directed
toward those restrictions at embodies.
which result in its failure to accomplish
the full benefit st ought i carry. The re-
5Quirement of the law now makes # impos-
ssible to organize q bank with sascaptai OF
less than $4,000. no matter how small the
place. In which 1t Is to he located or how
restricted the volume or business there ia
be transacted. Because offthat. with the
added expense Of taxation!; both nationa]
SandJocal. many communities are deprived
of the aid Of banks Of issue and burt7ened
with onerous rates Of exchange and inter
est charges. In order to obviate to as great
an, extent as possible those objections and
make the act more harmonious with proper
business conditions recommend that It be
amended in the following IA rticulars: a.
First. Permit national banks to be or.
ganized with a minimum capital Of $25,OM
In any place having population OF 1900
Inhabitants or less ~