The Caucasian. (Clinton, N.C.) 188?-1913, 1897-12-16
ilCKINLErS MESSAGE To CONGRESS-. his VIEWS
ON PUBLIC QUESTIONS.

reserve. While 1t is true that the
greater part of the proceeds of these
were used to supply def cint revenues.
a considerable portion was reonired
10 MAINTAIN the gold reserve.
with our revenues equal to our
expenses, there would be no deficit
requiring the issuance of bonds. But
II the gold reserve falls below $780,
600 900; how will it be replenished
except by selling more bondse Is
there any other way practicable un-
der existing law7 The question then
Is, shall we continue the policy that
mas been pursued In the past; that 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 IL 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 author
lied by law.
GOLD FOR UNITED STATES NOTES
BOTH GOING AND COMING.
81 earnestly recommended, as soon
as the receipts of the government
are quite sufficient to pay all the ex-
penses of the government, that when
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, and only
paid out in exchange for gold. This
Is an obvious duty. If the holder OF
the United States note prefers the
geld and gets it from the govern
ment he should not receive back
from the government United States
note without paying gold in exchange
for it. The reason for this is made
all the more apparent when the gov
ernmept issues an interest-bearine
debt to provide gold for the redemp
tiOn of United States notes. non.
interest bearing debenture-and
should not pay them out again ex
cept on demand, and for gold. Il
they are put in any other way they
would return again to be followed
by another bond issue to redeem
them another interest bearing deb
to redeem non-interest bearing
debt.
| THE BANKS SHOULD BEAR SOME Ol
THE BURDEN.
'In my view, it is of the utmos
importance that the government
should be relieved from the burder
of providing all the gold required fo
exchanges and export. This respon
sibility is alone borne by the govern
ment without any necessary backing
powers to help its relief. The bank
do not feel the strain of gold redemp
ton. The whole strain rests upor
the government and the size of tn,
gold reserve in the Treasury ha
come to be, with or without reason
the signal of danger or of security
This ought to be stopped. If We ar
to have an era of prosperity in tn
country, with sufficient receipts 70
the expenses of the government, "
may feel no immediate embarrass
ment from our present currency, bu
the danger still exists and will be ey
er present, menacing US SO long q
the existing system continues. An
, besides, it is in times of adequat
revenues and business tranquilit
that the government should prep&r
, for the worst. We cannot avoi
! without serious consequences Il,
: wise consideration and prompt solv
,, tion of this question.
' THE SECRETARY OF THE TREASURY
, PLAN.
5 The Secretary of the Treasury ba
o outlined a plan in great detail, fo
Q the purpose of removing that recul
. renee of a depleted gold reserve, an
: save US from future embarrassn 81
on that account. To this plan ! II
n vite your careful consideration.
: 81 concur with the Secretary Of th
y Treasury in this recommendatio
= that national banks be allowed to il
r sue notes to the face value Cf th
o bonds which they have deposit tc
s circulation, and that the tax OF 81
r culatipg notes secured by deposit {
y such bonds be reduced to one-laif {
q
l. him in recommending that authcrit
It be given for the establishment of Il,
J. tional banks with a minimum cap
tai of $25, 900. This will enable ii
: smaller villages and agricultural r
:. giors of the country to be supple
- with currency to meet their needs.
y 81 recommend that the issue I
~ national bank notes be restrictt
D. to the denomination of ten dolla
> and upwards. If the suggestions
y have herein made shall have the q
= proval of Congress, then l would re
70 70 ommend that national banks be r
e uuired to redeem their notes in gold
A. CUBA.
h Turning to foreign affairs, Il
m President svotes a great part of b
le message to a consideration of Il
in Cuban question, which he says is Il
TO most important problem with whl'
d. this government Is now called up,
S, to deal pertaining to its foreign l
to lations. The story Of Cuba has f
in many years been one of unrest Al
nd for no enduring period has it ceas
n to cause concern to the United State
is Briefly summarizing the history
no the former outbreaks and the ps
he played by General Grant in the Is
Id war, the President coming down
Id the present insurrection, speaks
ily it's remark able increase, its tenacio
IN. existence against the enormous f
ill ces massed by Spain, the widespre
destruction of property, and the
~ regard of the civilized code of v
its no less by the Spaniards than by
,ut Cubsns. He says:
, a "The existing conditions canr
Did but fill this government, and
at American people with the grav
len apprehension. There is no desire
eet the part of our people to profit
Al e. &c Saa;u W. h g