Gulf Coast breeze. [volume] (Crawfordville, Fla.) 1897-19??, 1897-12-10

faithfully done, and which, under the
sushority now given. IL will continue
20 do
The law which requires the govern.
mont. after having redeemed Its United
States notes, Co pay them out again rs
current funds, demands constant re.
plenishment Of the gold reserve. This
II especially 90 In times OF business
panic and when che revenues are III.
sufficient TO meet the expenses OF the
government At such times the gov.
srnment has no other way TO supply its
deficit and maintain redemption but
through the increase Of It's bonded debt,
40 during the administration OF my
predecessor, when e282. 81 o. 400 OF ~
per cent bonds were issued and sold and
the proceeds used 20 pay the expenses
OF the government In excess OF the rev.
onues and sustain the gold reserve.
While 10 In true that the greater part OF
the proceeds OF these bonds were used
10 supply deficient revenues, q consid.
cradle portion was required to maintain
the gold reserve
With our revenues equal TO our ex.
penses. there would be no deficit requir.
ing the issuance OF bonds. But IL the
gold reserve falls below 500. 600. 700
how will IL DO 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 pur.
sued In the past; that Is, that when the
government reserve reaches the point OF
danger. issue more bonds aud supply
the needed gold. or shall we provide
other means TO prevent those recurring
drains upon the gold reserve? II no
further Legislation Is had aud the policy
Of selling bonds 10 TO be continued, then
congress should give the secretary OF the
treasury authority to sell bonds at long
or short periods. bearing q less rate OF
interest than is now authorized by law.
AZ Co Unitsd state. Notes.
I 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
United States notes are presented for re.
demption in gold aud 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.
II the holder of the United States pre-
fers the gold and gets IL from the gov.
|
from the government q United States
note without paying gold In exchange
for IL. The reason for this is made oil
tho more apparent " hen the govern.
ment issues an Interest bearing debt to
provide gold for the redemption OF
United States notes-a nonipterest bear.
ing debt. Surely IL should not pay
them out again except on demand aud
for gold. II they are put out in any
other way, they return again TO be fol.
lowed by another bond issue to redeem
them-another interest bearing debt to
redeem q noninterest bearing debt.
In my view It is Of the utmost impor.
lance that the governments should be
relieved from the burden OF providing.
all the gold seaatFsA fog exchanges and
export This responsibility 10 alone boone
by the govern ment without any Of the
usual aud necessary banking powers to
help itself. The banks do not feel the
strain Of tho gold redemption. The
whole strain rests upon the government
aud 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 Il
we are to have an era of prosperity in
|
for the expenses OF the government we
may feel no immediate embarrassment
from our present currency, but the dan.
ger still exists. aud will be ever present.
menacing us so long as the existing sys.
tenn continues Aud besides. it Is in
time Of adequate revenues and business
tranquility that the government should
prepare for the worst. We cannot avoid
/ x8ts arta ma "A xnrt ian
consideration aud prompt solution OF
this question.
The secretary OF the treasury has out
lined plan In great detail for the pur.
pose Of removing the threatened recur-
renee of depleted gold reserve aud
save rs from future embarrassment on
that account To this plan I invite
your careful consideration
concur with the secretary OF the
treasury In his recon mendation that
national banks be allowed to issue notes
to the face value Of tho bonds which
they have deposited for circulation, aud
that the tax on circulating notes SO.
cured by deposit OF such bonds be re-
duced one. half OF per cent per annum.
/ also Join him In recommending that
authority be given for the establishment
OF national banks with q minimum cap.
ital Of $25, 900. This will enable the
smaller villages and agricultural regions
Of she country to be supplied with cur.
renoy TO meet their needa
recommend that the issue OF M.
tional bank notes be restricted to the
denomination Of $40 aud upwarda II
the suggestions have herein made shall
have the approval OF congress, then I
would recommend that national banks
be required to redeem their notes in
gold
NO CUBAN INTERFERENCE.