Crawford avalanche. (Grayling, Mich.) 1879-19??, 1897-12-23

M.klNLEY's ADVICE TO CON-
oREss HIGHLY COMMENDED.
A strong, Calm and Forceful Utter
ance on the Currency, Cuban and
Other Questions Now Before the
Country-His Views Are Sound.


the Treasury on the currency question
are the chief subject of discussion In
Washington this week. And Il may be
added that the comment upon them Is
extremely favorable. Aside from a
few people who are determined not to
be satisfied with anything the Presi-
dent does, the expression. of views
upon his message and recommended
tions was favorable in character and
the commentator of his attitude on
leading questions was in such clear
and vigorous terms as to leave no
doubt that the hands of President Nc
ISinley are being cordially upheld by
the people of the United States ire
spective of party.
The Currency Question.
On the currency question the clear
cut concise and pointed recommenda-
lions are received with marked favor.
The President recommends In brief,
that so soon as the revenues OF the
government equal the expenditures a
new system be adopted by which all
United States notes which are redeem
ed in gold shall be set aside as
separate fund and not reissued except
for gold. This process would break
the so-called endless chain" by which
the gold has been on former oc-
casions pumped out of the Treasury.
The greenbacks are upon their face re-
| deemable in gold upon presentation,
while the declaration of Congress that
| the policy of the Government Is TO
maintain all of its currency ut par with
gold has been looked upon as Indirect
ly at least bringing the notes issued
| under the so-called Sherman act with
| in that category. The law as 1t now
| stands requires that greenbacks, when
redeemed in gold shall be reissued by
| the Government in current business
| transactions and this Of course makes
| II practicable to use them again Tor
| drawing more gold out Of the Treasury,
| thus they become what is popularity
known as the endless chain for the con-
slant Withdrawals Of gold.
Should the Presidents recommenda-
ton be adopted those notes which are
redeemed in gold would not be reissued
and thus the opportunity for continued
Withdrawals of gold would soon cease.
The criticism which is made by those
desiring to criticise this proposition is
that It would result in contraction of
the currency because those notes thus
redeemed and retained in the Treasury
would not again 60 into circulation and
thus the circulating medium of the
country be practically reduced to that
extent. This objection Is met however
by n further recommendation by the
President that the national banks be
permitted to issue currency up to the
par value of the bonds deposited as Sc
curity for their circulation instead or
90 per cent. of their face value as at
present: also that the government tax
upon national bank circulation be re-
duced to one-half of one per cent. in
stead Of one per cent. as at present.
1t is believed that this, If adopted,
would lead the national banks to in
crease their currency TO greater en-
tent than the reduction in currency
which might come from the retention
OF the United States notes redeemed in
gold. The national banks at present
utilize as n basis for their currency
less than one-half of the government
bonds outstanding.
1t would thus, in case Of an increased
demand for currency, be practicable
for them to increase very materially the
amount of their currency. Up to this
time they have utilized only n small pro-
norton of the bonds available for that
purpose because of the fact that there
is not sufficient profit In the Issuance
| of their notes to warrant such action
and if the Presidents recommendations
are carried out and they are permitted
| to issue notes up to the par value of
the bonds and the tax upon their cur
| rency is reduced it is believed that II
will certainly add to the currency of
the country more than any reduction
which would follow the retention in the
treasury of the United States notes re-
deemed in gold. The President also
recommends that the banks themselves
be required to redeem their own notes
in gold. Thus, by the, gradual retire
ment of those obligations of the Gov.
eminent upon which gold can constant
! ly be demanded and making the obliga
tons Of the banks payable by those
, banks in gold, the foundation is laid
for gradual transfer to the banks OF
the burden of supplying the gold de
manded by the country.
! This general proposition which lays
the foundation for a final retirement
of the gold demand obligations ant
transfer of this burden to the bank:
rs Is the case in other parts of tho
world, Is looked upon as a simple, plair
, and easy beginning of system which
will gradually and finally bring the de
sired result and do so In n way which
will not disturb business conditions OF
require radical action in the way of M
increase in the interest bearing obliga
tons Of the Government. This view Of
! the Presidents proposition renders 1
: generally acceptable and results in fav
orable comment from not only member,
of his party. but large element o.
those composing the opposition parties
The Cuban Question.
The Presidents expressions upon tn,
Cuban question are also earnestly an,
warmly commended by members of al
parties. The present sentiment upol
this subject compared with that of |
) | few months ago Is strongly marked
9 | and is high Endorsement of tue cours,
, | of the President which he took imme
| diately after his Inauguration I'm tn,