Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1897-12-16
IT COSTS A BIG PILE.
Estimates of $462,647, 1886 to Run
the Government for 1899.
PART OF SECRETARY CAGES REPORT.
The Amount Called for Exceeds the
Appropriations for 1S0S by About
So, Plan for Cur
rcncy Reform

Washington, Dec z. - Secretary
Gage transmitted to congress the esti-
mates of appropriations required for
the service of the fiscal year ending
June 80, 1899. The total amount called
for by the estimates is $462, GAY ,SS5,
which is about $32, 100000 in excess of
the appropriations for 1898, including
deficiencies and miscellaneous and
about $41,O00,00O more than the esti-
mates for 1898. The recapitulation by
titles is as follows, cents omitted.
Estimates for 1900.
Legislative establishment, 81, 4G5. 532; ex-
"ecutlye establishment, $40 OPS asa. judicial
ssta olshment, $685., 500; foreign intercourse,
81 49,, +2S: military establishment $24.62O.-
Sanairs, %5a5,6u; pensions, $141 PSI, $50; pub
nc work, $I3,36i, 1884, postal service Sc, O4S lip:
anisGGe!ianeous $S5,lS, 402; permanent an
total, $l62,647S S5 '--''''''--'' 0'a"a
These amounts include estimates for
TiVers and harbors, $4S, 72S, 100 and fortifica-
tons and other works Of defense. s13S78 XII
Ine detaiis OF which already have been
The Currency.
Secretary Gage calls attention to what he
Terms the menace to the public credit oc-
casioned by the continued use of ths Ia roe
volume OF demand liabilities, represented
a
me enormous depreciation in the CONNER
Gal value Of silver as compared with gold
eas greatly Increased the financial respon-
Aaollitles, and all the logical conseouences
of the fact should be boldly faced,
Son1merGe and industry, sensitive to all
onfaVorable events, and watchful with
anxiety against dangers as yet unseen
need for their full recovery from PAST re,
Verses enaa t ana depression renewed conf
oence that the governments finances are
10 be firmly placed on stronger and more
enduring foundations than now exist AS
long as the government shall operate to
any important extent in supplying the cur
rency of the country by the direct issues
OF notes and by maintaining, through its
sAyer money, so long will all our trade
and industries remain in a state of de-
pehSdency upon the financial wisdom, fore
sight and courage of congress. This forced
dependency on the one part begets CORE
spending responsibility on the other.
The advantages of a strong position in
the national treasury, with its accompany
ing benefits to all commercial interests
and great reinforcement to the public
credit, can, | believe, be secured without
any unsettling legislation in a manner
easy to be comprehended by all and with
small cost to the people.
The recommendations | make must he
construed as tentative steps in direction
winch. II consistently pursued, will ulti-
desirable rather than as being in them
selves hnal measures to that end. The con-
altlon of the treasury in it's relation to de-
steps be taken. The one may be large re-
enforcement of the permanent gold re-
reduction in the Objectionable form of La
5ilities: The latter is. in my opinion, the
more desirable.
Recomme dat iOns.
First. l recommend that proper legisla-
ton be enacted which will establish SEN
arate and apart from the ordinary opera
lions of the treasury as they relate to rev
enue and expenditures, department to be
o. he 1
demption division. To this division the
sum of $l25'OOO,OOO in gold should be set
over from the general fund In the treasury,
and all the silver dollars now held for re-
'demption of silver certificates, and all the
silver bullion and dollars coined therefrom,
bought under the act of 1880, should be
passed to the same account. Further that
the sum of 100000 in the legal tender notes
of the United States known a 5 greenbacks
De collected as hereinafter described and
deposited in the said issue and redemption
division, to be diSbursed therefrom only
upon the receipt in exchange therefor of
an equivalent amount of gold coin. Such
gold, when so secured, to be held in said
fund.
Second. recommend that provision be
made. for the issue of refunding loan bonds,
payable after ten years at the pleasure
OF the government, such bonds to bear in
gold coin; and that the secretary of the
treasury be authorized to issue such bonds
ana receive IN payment therefor, with an
equitable allowance for the difference in
interest, and part or all of the outstanding
loans of the United States which mature
1S04, 1907 and 1925.
Would Strengthen Our Credit.
The advantage involved in the proposed
action lies in this: 1t removes an am
ambiguity which affects unfaVorably the
government credit. The word coin now
used to express the obligation in the public
understood by the more discrimina ting
public creditor to mean gold COIN and the
solemn act OF congress piedging the main
tenance of silver coin upon a parity with
gold coin makes II impossible to construe
the the. word n %coin,n as therein used, to
equivalent. Yet as this is a conclusion of
logic rather than clear statement of fact.
the simpler or more humble Investors or
Would-be investors in the public debt re
confused and doubtful, and the public cred
it is the weaker therefor. To refund our
outstanding bonds now payable in coin int O
bonds payable in gold would strengthen
and confirm the public credit and put us
IN position to command the markets Of
advantageous terms
Bank Note Circulation,
To accomplish the objects herein sup
Gested without contracting the circulat ton
some other form of paper money must be
erwise be occasioned. The national bank
note now familiar to our people is the
EeauiSSi ana most pfactlcal agent to ac-
SonIplish that object, and under reason
able conditions it will be found responsive
TO the call: The complaint uttered against
the national bank act as it now stands is
not directed toward the method OF bank
organization or the absolute safety guar
anteed to the noteholder. 1t is directed
toward those restrictions it embodies
Nnlch result in It's failure to ACCOMPLISH
the iull benefit it ought 10 carry. The re-
Qulrement oil the law now makes IL limos
slble TO organize bank with q canital Of
less than SoO,UUO, no matter how small the
place IN which II is to be located or how
restricted the volume of business there to
De transacted. Because of that with tbe
added expense OF taxation, both nationaI
&nd local, many communities are denrived
of the aid OF banks OF issue and bnrGeneG
with onerous rates of exchange and inter
est charges In order to obviate to as great
an extent as possible those objections and
business conditions l recommend thar IT. he
amended IN the following particulars:
First Permit national banks 10 he or
s....i...a VII d min. -. ~ Ds OI-