The Portland daily press., 1897-12-07

having redeemed its United States notes
GO pay them out again as current funds,
anu demands constant replenishment
9L Gfle goIu reserve. This Is especially SO
IN tlnes OF business panic and when the
revenues are insufficient to meet the eX
penses OF the government. At such times
tne government has no other way to sup
ply It's deficit and maintain redemption
but through the increase of it's bonded
DEBT, as during the administration of nv
predecessor when $262, 3l5, 400 of four and
a half per cent bonds were issued and
sold ana the proceeds used to pay the ex-
penses of the government in excess of the
revenues and sustain the gold reserve.
While 1t is true that the greater part of
the proceeds of these bonds was used to
supply deficient revenues, q considerable
portion was required to maintain the gold
reserve.
With our revenues equal to our ex-
penses, there would be no deficit requir-
ing the issuance of bonds. But if the
gold reserve falls below 500, 0O0.O00 how
Will 1t be replenished except by selling
more bonds? Is there any other way
practicable under existing law? The seri-
GUS 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 dancer, issue more
bonds and supply the needed gold or shall
we provide other means to prevent these
recurring drains upon the gold reserve?
Ii no fu rther 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 short or long periods bearing a less rate
of interest than is now authorized by law
THE PRESIDENTS RECOMMENDA.
TION.
II
receipts of the government are quite
sufficient to pay all the expenses of the
government that If any of the United
States notes are presented for redemption
in gold and are redeemed in gold such
notes shall be kept and set apart ana only
paid out in exchange fer gold. This is
an obvious duty. Ii the holder of the
United States note prefers the gold and
gets 1t from the government, he should
not receive back from the government
United States note without paying gold
III 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 non-interest
bearing 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
followed by another issue to redeem them
another interest bearing debt to redeem
non-interest bearing debt.
In my view, 1t is of the utmost i'm
portance that the government should be
relieved from the burden of providing all
the gold required for exchanges and ex-
port. 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
in Of NIT ho ,hol
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 danger or of security. This
ought to be 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, but the danger
still exists and will be ever present,
menacing us so long as the existing sys.
tenn continues. And besides, it is in
times 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 reour-
renee of depleted gold reserve and saving
us from future embarrassment on that
account To this plan l invite your care
full consideration. l concur with the
Secretary of the Treasury in his recon-
mendation that national banks be allowed
to issue notes TO the face value of the
bonds which they have deposited for
circulation and that the tax on circula-
tion notes secured by deposit of such
bonds be reduced to one half of one per
Lao IAfra hi
recommending that authority be given
for the establishment of national banks
OF minimum capital stock of $25, ,000
This will enable the smaller villages and
agricultural regions of the country to
be supplied with currency to meet their
needs.
recommend that the issue of national
bank notes be restricted to the denomina-
ton of ten dollars and upwards. If the
suggestions l have herein made shall have
the approval of Congress, then l would
recommend that national banks be re.
quired to redeem their notes in gold.
THE CUBAN SITUATION.
The most important problem with
which this government is now called
upon to deal pertaining to it's foreign re-
lafions concerns it's duty toward Spain
and conditions more or less in common
with those now existing have confronted
this government at various times in the
past The story of Cuba for many years
has been one of unrest, growing uiscon-
tent an effort toward larger enjoyment
of liberty and self control; of organized
resistance to the mother country; of de-
preston after distress and warfare, and of
Intellectual settlement to be followed by
renewed revolt. For no enduring period
since the enfranchisement of the CONT
mental possessions OF Spain in the western
continent has the condition of Cuba or
the policy of Spain toward Cuba not
caused concern to the United States. The
prospect from time to time that the weak
ness of Spain's hold upon the island and
the present. vicissitudes and embarrass-
ments of the home government might lead
to the transfer of Cuba to continental
power called forth, between 1928 and 1860,
various emphatic declarations of the
policy of the United States TO permit no
disturbance of Cuba's connection with
Spain unless in the direction of indie
pendence or acquisition by us through
purchase; nor has there been any change
of this declared policy since upon the
part of the government