The San Francisco call., 1897-12-07


The serious question then is, shall we con.
tlnue the policy that has been pursued in the
past; tnat 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 legisla
tion 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 less
fate OF interest than is now auth orized by law
earnestly recommend as soon as the re-
celpts OF the Government are quite sufficient
TO pay all the expenses of the Government
that when any of the United States noles are
presented for redemption and are redeemed
IN gold, such 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 State note prefers the gold and gets It
nom the Government, he should 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-bear-
Ing debt to provide gold for the redemption
OF United States rotes-a non-interest bearing
debt Surely, il should not pay them out again
except on demand and for gold. Ifthey are put
out IN any other way they may return again
10 be followed by another bond issue TO re-
deem them-anOther interest-bearing debt to
redeem a Misunderstanding debt
In my view it is
approves thes Plan OF the utmost i'm
e. secrtarA Gage. portance that the
Government should
be relieved from the business of providing for
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 strain of the gold re-
demption. 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 of security.
This ought to be stopped. If we are to have
an era of prosperity in the country, with suff-
cient receipts for the expenses OF the Govern
ment We may feel no immediate embarrass-
ment from our present currency: but the dan
ger :ti.l exists and viii be ever present, men,
acing US long as the existing system con-
uEues. And, besides, it is in times of ade-
quate revenues and business tranquility that
he Govern ment 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 outlined q
plan in great detail for the purpose OF remov-
ing threatened recurrence of a depleted gold
reserve and save Us rom future en- barrass-
ment on that account To this plan 1 invite
your careful consideration.
concur with the Secretary of the Treasury
N his recommendation hat national banks be
allowed to issue notes TO the face value of the
bonds which they have deposited, for circula-
tion, and that the tax on circulating notes
secured by 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 r minimum capital OF $Z5, 900. This Will
ena bic the smaller villages and agricultural
regions OF the country to be supplied with cur
rency to meet their needs.
recommend that the Issue of national bank
notes be restricted to the denomination OF ten
dollars and upward. If tire suggestions l have
herein made shall have the approval of Con-
gress, then I would recommend that national
banks be required to redeem their notes in
gold.
The most import
Give Spain a Chance tant prob EN- with
to Pacify Cuba. C this Gov
ernment is now
called upon TO deal, pertaining to its foreign
relations, concerns its duty toward Spain and
the Cuban insurrection. Problems and con-
ditions more less In common with those
now existing have confronted this Govern
ment at various times in the past. The story
of Cuba for many years been one of I'M
rest, growing discontent; an effort toward the
larger enjoyment of liberty and sel:-control;
of organized resistance to the mother coun-
try of depression after distress and warfare,
and of Intellectual settlement TO be followed
by renewed revolt. For no enduring period
since the enfranchise OF the continental
possessions OF Span II the Western Continent
h as the condition OF Cuba or the policy of
Spain toward Cuba not caused concern 10 the
United States.
The prospect from time to time that the
weakness OF Spain's hold upon the island and
the political vicissitudes and embarrassments
of home government might lead TO the trans
fer OF Cuba to a continental power, called
forth, between 1923 ana 1860, various en-
phatic declarations of the policy of the United
States to permit no disturbance of Cuba's con-
nection with Spain unless in the direction of
independence, or acquisition by the United
States through purch ese; nor has there been
any change of this declared policy since upon
the part OF the Government
The revolution which began in 1868 lasted
Tor ten years despite the strenuous efforts .of
the successive peninsu!ar governments to sup
press II. Then, now, the Government OF
the United States testified It's grave concern
ana offered its aid to put an end to bloodshed
IN cuba. The overIures made by General
1Faht were refused and the war dragged on,
entalIlng great loss OF life and treasure and
increased injury 10 American interests, be-
sldes throwing enhanced burdens OF neutral
- "Poh ms UoNeFnment. III 1878 peace Was
brought about by the truce OF Zanjon OBJ
tained by negotiations between the Spanish
commander, Martinez de Campos, ard the in
surgent leaders.
Inc present insurrection broke out in Feb
ruary, 1898. 1t is not my purpose at this time
10 fecail It's remarkable increase or to charac-
eeINe iIs tenacious resistance against the enor-
nous lorees maSsed against it by Spain. The
revolt and the efforts TO subdue # ca arried de-
struclioA 10 every quarter of the island, de-
Veloping wide proportions and deIying the
enoris OF Spain for It's suppression. The civil
lzed code OF war has been disregarded, no less
SO by the spaniards than by the Cubsns.
The existing conditions cannot but fill this
Government and ths American neonie ,vttb
the gravest apprehension. There is no desire
on the part OF our people to profit by the mis-
fortunes OF Spain; we have only the desire to
see the Cubans prosperous and contented. en-.
joying that measure OF self-control which is