Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1897-12-07

current FUNDS, demands q constant re-
Punishment of the gold reserve. This
is especially so in times Of business
panic and when the revenues are in
sufficient to meet the expenses OF the
government. AT such times the gov
eminent 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 1922, 315, 400 of
Az per cent. bonds were issued and sold
and the proceeds used to pay the ex-
penses of the government, in excess Of
the revenues, and sustain the gold re-
serve. While it is true that the greater
part of the proceeds of these bonds
were used to supply deficient receipts,
considerable portion was required to
maintain the gold reserve.
Without revenues equal to our ex-
penses, there would be no deficit re-
Quiring the issuance of bonds. But if
the gold reserve falls below 100000
coo how will it 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 and
SUPPLY THE NEEDED GOLD,
or shall We provide other means to pre-
vent these recurring drains upon the
gold reserve? 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 au
thority to sell bonds at long or short
periods, bearing a less rate of interest
than is now authorized by law.
l 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 Unit
ed States notes are presented for re-
demption in gold, and are redeemable
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 gold, and gets it from The
government, he should not receive hack
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 govern
ment issues an interest-bearing debt to
provide gold for the redemption of
United States notes-a non-interest-
bearing debt. Surely, it should not pay
them out again except on demand and
for gold. If they are put out in any
other way they may return again, to be
followed by another bond issue to re-
deem them-an interest-bearing debt to
redeem a misunderstanding debt.
In my view, it is of the utmost I'M
portance 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 banking 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 embarrassment
for our present currency; but the dan
ger still exists, and will be ever pres
ent, menacing us, SO long as the ex-
listing system continues. And, besides.
it is in times of adequate revenues and
business tranquility, that the govern
ment should prepare for the worst
We cannot avoid, with serious conse-
quences, 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 removing the threatened re-
currence of a depleted gold reserve and
save us from future embarrassment on
that account. To this plan l invite
your careful consideration.
l concur with the Secretary of the
Treasury in his recommendation that
the national banks be allowed to issue
notes to the
FACE VALUE OF THE BONDS
which they have deposited for circula-
ton, 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 recon-
mending that authority be given for the
establishment of national banks with a
minimum capital of S25, 600. This will
enable the smaller villages and agricul-
tural regions of the country to be sup
piled with currency to meet their needs.
l recommend that the issue of nation
al bank notes be restricted to the de-
nomination of ten dollars and upwards.
If the suggestions l have herein made
shall have the approval of Congress
then I would recommend that national
banks be required to redeem their notes
in gold.