The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-12-07

steadily and faithfully done and which, un-
der the authority now given, ii will con-
tinue to do.
The law which requires the government,
after having redeemed its United States
notes, to pay them out again as current
funds, demands constant replenishment of
the gold reserve. This is especially so in
times of business panic and when the rev.
enues are insufficient to meet the expenses
of the government AT such times the gov
ernment has no other way to supply its
deficit and maintain redemption bit
through the increase of it's bonded debt, as,
during the administration OF my predeces-
sor when 1852 315, 400 of 41s per cent. bonds
were issued and sold and the proceeds used
to pay the expenses of the government in
excess of the revenues, and sustain the
gold reserve. While it is true that the
greater part of the proceeds of these bonds
were used to supply deficient revenues, a
considerable portion was required to main
tain the gold reserve.
With our revenues equal to our expenses,
there would be no deficit requiring the Is
falls below $100000,000, how will it be re-
plenished. except by selling more bonds?
the existing law? The Serious question
then, is, shall we continue the policy that
has been pursued in the. past-that is.
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 legisia-
tiOn is had and the policy of selling bonds
is to be continued, then Congress should
give the secretary OF the treasury author
bearing a less rate of interest than is now
authorized by law.
I earnestly recommend as soon as the re-
ceipts of the government are quite sutfi-
cient to pay all the expenses of the gov
ernment, that when any of the United
States notes, are presented for redemption
notes shall be kept and set apart and only
paid out in exchange for gold. This is an
obvious duty. If the holder of the United
States note prefers the gold, and gets it
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 government issues an
interest-bearing debt to provide gold for
the redemption of United States notes-a
noninterest- hearing debt. Surely, it 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 fol-
lowed by another bond issue to redeem
them-another interest-bearing debt TO re-
deem a noninteresting- bearing debt.
In my view it is of the utmost impor
tance that the government should be re-
lieved from the burden of providing all the
This responsibility is alone borne 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 without reason, the signal of
stopped.
If 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 bu6 the danger still ex-
lists and will be ever present, menacing us
so long as the existing system continues.
And, besides, it is in times of adequate rev.
enues and business tranquility that the
government should prepare for the worst.
We cannot avoid without serious conse-
quences the wise consideration and prompt
solution of this question.
The secretary of the treasury has out
lined plan for the purpose of removing
the threatened recurrence of a depleted
gold reserve, and save us from future en-
barrassment on that account. To this plan
I invite your careful consideration.
l concur with the secretary of the treas
ury in his recommendation that national
value of the bonds which they have depos-
tied for circulation, and that the tax on
circulating notes. secured by deposit of
such bonds, be reduced to one-half of / per
cent. per annum. also join him in recon-
mending that authority be given for the
establishment of national banks with min
imum capital of $4,000. This will enable
the smaller villages and agricultural re-
gionS of the country to be supplied with
currency to meet their needs.
/ recommend that the issue Of national
bank notes be restricted to the denomi-
nation of $40 and upward If the sugges-
tionS / have herein made shall have the
approval of Congress, then would recon-
mend that national banks be required to
redeem their notes in gold