The star. (Reynoldsville, Pa.) 1892-1946, 1897-12-08

of Its bonded debt, as during the ad-
ninistration of my predecessor, when
s262. .315,400 of four and q half per cent.
bonds were issued and sold and the
proceeds used to pay the expenses of
the government In excess of revenues
| and sustain tn gold reserve. While IT
is true that the greater part of the
proceeds of these bonds were used to
supply deficient receipts. consider
able portion was required to maintain
| the gold reserve.
with our reserve equal to our ex-
penses. there would be no deficit re-
| puiring the issuance of bonds. But II
| the gold reserve falls below 100000,
| 900, how will 1t be replenished 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 ana
| supply the needed gold, or shall we
provide other means to prevent these
| recurring drains upon the gold re-
serve? 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 authorized by law.
AN OBVIOUS DUTY.
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 redemption I'm gold and are redeem
ed I'm gold, such notes shall be kept
and set apart, and only paid out in ex-
l F..., ts. nj M
duty. If the holder of the United
States note prefers the gold and gets
| IL from the government. he should not
receive back from the government a
| United States note without paying gold
| for II 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 non-interest-
| bearing debt. Surely IL should not
pay them out again except on demand
and for gold. II they are put out I'm
any other way. they may return again
to be followed by another bond issue
| to redeem them-an interest-bearing
| debt to redeem a misunderstanding
debt
In my view It Is the utmost import
| ance that the government should be
relieved of the burden of providing all
| the gold required for exchanges and
export. This responsibility Is alone
borne by the government without any
| of the usual and necessary powers to
help itself. The banks do not feel the
strain of 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.
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 embarrass'
ment from our present currency; but
the danger still exists and will be evei
present menacing us as long as the ex'
isting system continues. And besides
II Is in time of adequate revenues ant
business tranquility that the govern
ment should prepare for the worst
We cannot avoid without serious con
sequences the wise consideration anC
prompt solution of this question.
CAGES PLAN INDORSED.
The secretary of the treasury has
outlined n plan in great detail for ths
purpose of removing the threatened
recurrence of depleted gold reserve
and save us from future embarrass'
ment.ment. To this plan invite youl
careful consideration.
/ concur with the secretary of the
| trt asury In his recommendation thai
| the national banks be allowed to issu,
notes to the face value OF the bonds
which they have deposited for circula
ticn. and that the tax on circulating
notes secured by deposit of such bonds
be reduced to ore-half of one per cent
per annum. ! also join him In recon-
mending that authority be given tol
| IN q nf hnn nlf
with a minimum capital of $4,000. Thi,
will enable the smaller villages and ag
ricultural regions of the country TO b,
supplied with currency to meet theil
needs.
I recommend that the issue of ma.
tional bank notes be restricted to tn,
denomination of $40 and upward. i
the suggestion / have herein mad,
shall have the approval of Congress,
then l would recommend that natlona
banks be required to redeem theil
notes In gold.
THE CUBAN QUESTION.
The most important problem will
which this government is now called
uron to deal pertaining to its foreign
relations concerns it's duty towar,
Spain and the Cuban insurrection
Problems and conditions more or les
In common with those now existin,
have confronted this government a
various times in the past. The stor,
of Cuba for many years has been on
of unrest; growing dissent; an effor
toward a large enjoyment of libert,
and self-control: Of organized resist
ance to the mother country; of de
preston after distress and warfare
and of Intellectual settlement, to be fol
lowed by renewed revolt. For no en-
during period since the enfranchise
nent Of the continental possessions o
Spain in the western continent has tn
condition of Cuba OF the policy O
Spain toward Cuba not caused con
Germ to the United States.
The prospect from time to time tina
the weakness of Spain's hold upon tn
island and the political vicissitude
and embarrassments of the home gov
ernment might lead to the transfer @
Cuba to a continent power called forth
between 1928 and 1860. various EN-
phatic declarations of. the policy of tn
United States to permit no disturb
ance Of Cuba's connection with Spair
unless In the direction of independence
OF acquisition by us through purchase
nor has there been any change of thi
declared policy since upon the part q
! the government. The revolution whic
| began I'm 1868 lasted for feu vaaro da