The weekly register. [volume] (Point Pleasant, Va. [W. Va.]) 1862-1909, 1897-12-08
CURRENCY FIRST TREATED.
United States Notes Should Be Ex-
changed For Gold Only.
CUBAN QUESTION DISCUSSED.
Tor varioa. Reasons the chief E1ecu-
tive Considers the Recognition OF
BeiHeereney OF Insurgents As
Unvise At Present.

Washington, Dec. 6.-Presfdent MIC
KtnIey's first message to the Fifty-hfth
congress, which was convened in both
branches, is substantially as follows:
10 the Senate and House OF Representa-
tives:
1t gives me pleasure to extend greeting
TO the nfty-nfth congress assembled in reg
ular session at the seat OF government.
sentatfves 1 have been associated In the
legislative service
Their meeting occurs under felicttous con-
dItions Justifying sincere congratulation
and calling for grateful acknowledge
ment to a benedcient Providence.
A matter of genuine satisfaction Is the
growing feeling OF fraternal regard and
unihcatIon OF all sections OF our country
the incompleteness of which has too long
delayed realization of the highest blessings
of the Union. The public questions which
either partisanshIp, prejudice of former sec
tional differences They AFFECT every part
of our common country alike
Tarin legislation having been settled by
next pressing for consideration Is that OF
the currency.
The work OF putting our finances upon q
sound basis. difficult 1t may seem, Will
appear easier when recall the financial
operations of the government since 1855
ON the Both day of June of that year we
had outstanding demand liabilities in the
sum of ST2S, SOS, 447.41. On the LIST of jan
uary 1879, these liabilities had been re-
duced TO $443, $3.50, 1855.
The interest bearing debt OF the United
States on the LIST day OF December, 1897,
was SS4T, 1856, 620 The government money
now outstanding dec IL consists of $685.
6S1, O16 of United States notes, S1OI, 80
of treasury notes issued by authority OF
the law OF $780, 1884 ,063,504 of silver GER
tidcates and $61, 2S0, 761 of standard silver
dollars.
The brief review of what was accomplish
ed from the close OF the war to 1898 makes
unreasonable and Eroundless any distrust
either OF our financial ability or soundness;
while the situation from 1893 to 1877 must
admonish congress of the Immediate neces-
sity of so legisIating to make the return
OF the condition then prevailing inlpossi-
Die.
Currency Remedy.
There are many plans proposed as a rem
edy for the evil Before we can find the
true remedy we must appreciate the real
evil.
The evil of the present system Is found
In the great cost to the government OF
maintaining the parity OF our different
forms OF money, that Is, keeping all OF them
at par with gold
We surely cannot be longer needless of
the burden this imposes upon the people,
while the past four years have demonstrated
that IL 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 issued for repeated redemptons. We
must either curtai the opportunity for spec
ulatIon, made easy by the multiplied re-
demptions OF our demand obligations, or IN
crease the gold reserve for their redemp-
tion. We have S9OO,Ooo,OO0 of currency
which the government by solemn enact
ment has undertaken to keep at par with
gold Nobody is obliged to redeem in gold
but the government
The banks are not required to redeem In
gold. The government Is obliged to keep
equal with gold all its outstanding curren-
CIV and coin obligations, while its debts are
not required to be paid In gold.
40 Fixed Gold Revenue
The government without any fixed gold
revenue is pledged to maintain gold re-
demptIon, which 1t has steadily and faith
fully done and which under the authority
now given 1t will continue to do so.
The law which requires the government
after having redeemed its United States
notes to pay them out again as current
funds demands a constant replenishment
of the gold reserve. This is especially SO
In the of business panic and when the
revenues are insufficient to meet the expen-
ces of the government AT such times the
government has no other way to supply It's
deficit and maintain redemption but through
the increase of its bonded debt, as during
the administration of my predecessor when
$500 315, 400 OF four and half per cent.
bonds were issued.
with our revenues equal to our expenses,
there would be no deficit requiring the Is
suAnce of bonds But II the gold reserve
falls below 500, OO0, 600, how Will 1t be re-
plenIshed except by selling more bonds!
Is there any other way practicable under
existing law?
II 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 ut long
or short periods, bearing less rate of In
terest than is now authorized by law.
Exchange Notes For Gold.
earnestly recommend as soon as the re-
ceipts of the government are quite sud1-
cient to pay all the penses OF the gov
eminent, and that when any of the United
states notes presented for redemption
In gold and redeemed In gold, such
notes shall be kept and set apart, and only
paid out In exchange for gold. This Is an
obvious duty.
IL the holder of the United
States note prefer the gold and gets 1t from
the government. he should not receive back
from the government United States note
without paying gold in exchange for it
The T-aason for this Is made all the more
apnarent when the government issued an
interest bearing debt to provide gold for
the redemption of United States nOtes-a
non-interest bearing debt. Surely 1t should
not pay them out again except on demand
and for gold. II they are put out in any
other way they may return again and be
followed by another bond issue to redeem
them-another Interest bearing debt to re-
deem a noninterest bearing debt.
In my view 1t Is of the most Importance
that the government should be relieved
from 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 banking powers to help itself.
The banks do not feel the strain of gold
redemption The whole strain rests upon
the government.
1 concur with the secretary of the treas
ury in his recommendation NJ that national
banks be allowed to Issue notes to the face
value OF the bonds which theS have depos-
tied for circulation. and that the tax on
circulating notes secured by deposit of such
bonds be reduced to one-half OF one per
cent per annum
I also join him in recommending that
authority be given for the establishment of
national banks with the minimum capital
OF $4,000. This will enable the smaller
villages and agricultural regions of the
country TO be supplied with currency to
meet their needs.
I recommend that the Issue of national
bank notes be restricted to the denomlna-
tion OF ten dollars and upward.
II these suggestions have the approval
of congress then I would recommend that
national banks be required to redeem their
notes in gold.
The Cuban Question.
The most important problem with which
this government is now called upon TO
deal pertaining to its foreign relations con