The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-12-08
ONE FORM OF CURRENCY
AND THIS TO EMBRACE MA
TIONAL BANK NOTES.
Banks to Be Allowed to Issue an
Amount Fully Up to Their Bond
Deposit, and Further Amount
Equal to Twenty-Five Per Cent
of Assets.


$3.50, 3S7, 1879; the expenditures for the
same period were $44S, 439, 622.9O, show
ing a deficit of SIS, 052, 45441.
AS compared with the fiscal year 1896
the receipts for 1897 increased $2O.911,-
75911
There was an increase of $13594, 713.49
in the ordinary expenditures.
The secretary gives a table showing
the estimated amount of money out
side the treasury to be s1,706, 1872, 904,
which he estimates is $23.29 per capita
of the population of the United States.
A table is given Of the receipts from
internal revenue taxes showing a de-
crease of $211, 022 from last years fig
ureS.
An analysis of the exports show that
those of the products of agricultural
decreased from 7S per cent to &c per
cent, while manufactures increased
from 10 per cent to 26 per cent. A note
is made of the fact that silver has be-
come one of the most important items
for export.
The number of immigrants arriving
is given at go, 1882, which is the smallest
number since 1879. OF this number 1880
We're refused admission to the country.
The appropriation of loco is urged
to provide a vessel for service on the
Yukon river next spring. The secre-
taIy says it could be built on the
Puget Sound in sections and put to-
gether and equipped at st. Michaels.
The record of the life saving service
! is given briefly showing that in 500 dis
asters during the year, involving the
i lives of 4,445 persons, only % were lost,
and that out of 81, $685. $40 worth of prop
erty involved 1921, 175 was saved.
| The report closes with an exhaustive
review of the currency question with
recommendations.
After detailing the evils of the pres
! ent system, according to his view, the
secretary offers the following recon-
| mendations, of which he says:
The recommendations 1 make must
| be construed as tentative steps in a di-
i rection which, if consistently pursued,
will ultimately lead to conditions the
oretically desirable rather than as be-
! ing in themselves final measures to
| that end. The condition of the treasury
in its relation to demand obligations
| requires that one or two steps be taken.
The one may be a large reinforcement
of the permanent gold reserve; the
other may be by an important reduc-
ton in the Objectionable form of bills.
The latter is, in my opinion, the more
desirable.
ISSUE AND REDEMPTION.
'First-I recommend that proper
legislation be enacted which will es-
tablish, separate and apart from the
ordinary operations Of the treasury as
they relate to revenue and eXpendi-
lures, a department. to be designated
and known as the issue and redemp-
ton division. To this division the sum
of $125, 600 in gold should be set over
from the general fund in the treasury
to be used only for redemption pur-
poses, and all the silver dollars now
held for redemption of silver certifi-
Gates, and all the silver bullion and
dollars coined therefrom, bought I'M
der the act of 1885, should be passed
to the same account. Further, that
the sum of 5000, 600, coo in the legal ten
der notes of the United States known
as greenbacks be collected. as herein
after described, and deposited in the
said issue and redemption division, tt
be disbursed therefrom only through
receipt in exchange therefor of ar
equivalent amount of gold coin. Sucl
gold, when so secured to be held il
said division as part of the genera
redemption fund.
REFUNDING LOAN BONDS.
vision be made for the issue of re
funding loan bonds, payable after tel
years at the pleasure of the govern
ment, such bonds to bear interest a
the rate of 21a per cent per annun
payable, principal and interest, IN golC
coin: and that the secretary of thu
treasury be authorized to issue sucl
bonds and receive in payment there
for, with an equitable allowance fo
; the difference in interest, any part o.
all of the outstanding loans of tn,
United States which mature by thei
terms of payment in the years 1904
1907 and 1925"
THE WORD COIN"
, Continuing, he says: The advan
tage involved in the proposed actor
lies in this: 1t removes an ambiguit!
from our contract obligations-an am
biguity which affects unfavoraply tn,
government credit. The word coin,
now used to express the obligation il
the public debt, is an ambiguous word
1t is no doubt understood by the NOR,
discriminating public creditor to NEAR
gold coin, and the solemn act of con
gress pledging the maintenance Of sll
Yer coin upon a parity with gold coli
makes it possible to construe the wore
COIN as therein used, to mean any
thing other than gold or its full equiv
alent. Yet as this is a conclusion o
logic rather than a clear statement O
fact, the simpler and more humble in
vestors or would-be investors in tn
; public debt are confused and doubtful
/ and the public credit is the weake
therefor
The secretary then goes on to shov
that the course suggested has a pre-
; cedent in the act of congress of 1865
,, pledging the government to the pay
) ment Of ell interest bearing obliga
tons in coin or its equivalent
READY PAPER MONEY.
He adds: ITO accomplish the OBJ
jects herein suggested without con
tracing the circulation, some cthe
form of paper money must be above
to fill the vacuum which would other
wise be occasioned. The national ban
note now familiar to our people is tn
readiest and most practical agent t
S accomplish that object, and under ca
sonable conditions it will be found re
i SponSive to the call"
: To obviate the difficulties in the wa
of this method of supplying the defici
S ency, he recommends the followin
S changes in the national banking law:
CHANGES SUGGESTED.
First.-Permit national banks to b
ORGANIZED with a minimum capital c