Lincoln County leader. [volume] (Toledo, Lincoln County, Or.) 1893-1987, 1897-12-14

bonds were used to supply deficient reve-
nues, a considerable portion was required
to maintain the gold reserve.
R~epIenishing the Gold Reserve.
With our revenues equal to our expenses,
there would be no deficit requiring the is
uance of bonds. But if the gold reserve
falls below 500, 900, 600, how will 1t be re-
plenished except by selling more bonds?
Is there any other way practicable under
existing law? The serious question then
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 provide other means
to prevent these recurring drains upon the
gold reserve? If 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
a less rate of interest than is now author
lied by law. | 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 and are redeemed in gold,
such notes shall be kept and only paid out
~ NANAAoAl6S " oiA AllAo ~ ga NASNS
duty. If the holder of the United States note
prefers gold 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 gov
m issues an Understanding debt
to provide gold for the redemption Of
United States notes-a Notwithstanding
debt. Surely 1t should not pay them out
again except on demand and for gold. If
they are put out in any other way they
may return again to be followed by an
other bond issue to redeem them-another
Understanding debt to redeem a nom
Understanding debt.
In my view. it is of the utmost import
ance that the government should be re-
lieved from the business of providing for
all the gold required for exchange or eX-
port. This responsibility is alone borne
by the government without any of the
usual and necessary banking power 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 Sc
curity. This ought to be stopped.
III 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 danger still
exists, and will be ever present, menacing
us as long as the existing system con-
tinues. And, besides, it is In times of
adequate revenues and business tran
quillity that the government should pre-
pare for the worst. We cannot avoid,
without serious consequences, the wise
consideration and prompt solution of this
question.
Plan of Secretary Gage.
The secretary of the treasury has out
lined a plan in great letail TOR the pur-
pose of removing threatened recurrence
of a depleted gold reserve and saving us
from future embarrassment on that ac-
count. To this plan l invite your care
ful consideration l concur with the Sec
rotary of the treasury in his recommended
ton hat national banks be allowed to
issue notes to the face value of the
bonds which they deposited for clrcula-
ton, and that the tax on circulating
notes. secured by the deposit of such
bonds, be reduced to one-half of one per
cent per annum. l also join him in
recommending that authority be given for
the establishment of national banks with
a minimum capital CT $25, 600. This will
the smaller villages and agricul-
tural regions of the country to be sup
Piled with currency to meet their de-
mands. | recommend that the issue of
bank notes be restricted to the
denomination of $40 and upwards. If the
suggestions l AVE herein made shall
have the approval of congress, Their /
would recommend that national banks be
required to redeem their notes in gold.