Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1897-12-13

questions above party prejudice Be
ginning with the subject OF the
finances the president says that while
the full effect of the legislation of the
extra session has not yet been realized
what it has already accomplished as
sures us of it's fitness and wisdom.
To test it's permanent value further
time will be required and the people,
satisfied with it's operation and results
thus far, are in no mind to withhold
from it fair trial. The next question
pressing for consideration is that of
the currency. With the great re-
sources of the government and with
the honorable example of the past be-
fore us we ought, he says, not to hest
tate to enter upon a currency revision
which will make our demand Obliga-
ton less onerous to the government
and relieve our financial laws from am
biguity and doubt. The evil of the
present system is found in the great
cost to the government of maintaining
at parity with gold our different forms
of money, and the experience of the
past four years has demonstrated that
this is not only an expensive charge
upon the government but a dangerous
menace to the national credit. 1t is
manifest that we must devise some
plan to protect the government against
bond issues for repeated redemptions.
We have $900,000,000 of currency
which the government by solemn en-
4411~1 - OF
par and nobody is obliged to redeem in
gold but the government, which must
borrow the gold. The law which re-
Quires the payment out of the treasury
of redeemed United States notes de-
mands a constant replenishment of the
gold reserve, especially in times of
panic and of insufficient revenue, and
curing the preceding administration
$262, 1926, 400 Az per cent. bonds were
issued and sold to sustain the gold re-
serve and pay the expenses OF the
government in excess of the revenue.
While it is true that a greater part of
this was used to supply deficient rev.
enues, a considerable portion was re-
CURED to maintain the gold reserve.
If no further legislation is to be had to
correct this, and the policy of selling
bonds is to be continued, then con-
gress 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. The president says: ct
earnestly recommend, as soon as the
receipts of the government are quite
sufficient to pay all expenses of the
government, that when any United
States notes are presented for redemp-
ton in gold, such notes shall be kept
and set apart and only paid out in ex-
change for GOLD. This is an obvious
duty. If the holder of United States
notes prefers the gold and gets it
from the government he should not re-
ceive them back from the government
of the United States without paying
gold in exchange for them" That
amounts, in the presidents mind, to
giving an Understanding debt,
government bond, for non-interest
bearing debt, United States note.
hC SONSIuIISnC SlOulQ U0 relieved
from the burden of providing all the
gold required for exchanges and ex-
ports. This ought to be stopped
With an era of prosperity and sufficient
receipts we may feel no immediate en-
barrassment, but the danger will be
ever present, he declares. The presi-
dent invites careful consideration for
the detailed plan of the secretary of the
treasury to protect the gold reserve.
He concurs with him in the recon-
mendation that national banks be al
lowed to issue notes to the face value
of their bonds deposited; that the cir
culating tax be reduced to one-half of
one per cent, and that national bank
may be established with capital