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

demption, which 10 has steadily and |
faithfully done, and which, under the |
authority now given. 10 will continue
70 do
The law which requires the govern.
mont. after having redeemed its United
States notes, TO pay them out again as
current funds, demands constant re.
pleuishment Of the gold reserve. This
II especially go In times OF business
panic and when the revenues are In
sufficient 20 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 It's bonded debt.
an during the administration OF my
predecessor. when e282. 1915. 400 OF ~
per cent bonds were issued aud sold and
the proceeds used 20 pay the expenses
of the government In excess OF the rev.
enues and sustain the gold reserve.
While it In true that the greater part or
the proceeds of these bonds were used
10 supply deficient revenues, 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. 900. 700
how will it be replenished except by
| selling more bondsi 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 60 prevent those recurring
drains upon the gold reserve? II no
further legislation is had and the policy
Of selling bonds 10 to be continued, then
congress should give the secretary OF the
treasury authority 90 sell bonds at long
or short periods. bearing q less rate OF
interest than is now authorized by law.
A. to United state. Note.
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 aud set
apart and only paid out In exchange for
gold. This IL an obvious duty.
II the holder OF the United States pre-
|
eminent he should not receive back
from the government a United States
note without paying gold in exchange
for IL. The reason for this Is made oil
the more apparent when the govern.
ment issues an interest bearing debt to
provide gold for the redemption Of
United States notes--a oninterest bear.
ing debt Surely 10 should not pay
| Aaf "A M
for gold. IL they are put out in any
other way, they return again to be fol.
lowed by another bond issue to redeem
the,n-anot her interest bearing debt to
redeem n noninterest bearing debt.
In my view IL is OF the utmost impor.
lance that the governments should DO
relieved from the burden Of providing
oil the gold required for exchanges and
1xS,nE ffHiSfsifS sI6iiiliy & Alone borne !
by the government without any OF the |
usual aud necessary banking powers TO |
helm itself. The banks do not feel the |
strain OF the 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.
ont reason, the signal Of danger or OF
security. This ought 60 be stopped II
we are co have an era OF prosperity ia
the country. With sufficient receipts
for the expenses OF the government we
may feel no immediate embarrassment
from our present currency. but the dan.
ger still exists, and will be ever present.
menacing us 30 long as the existing sys-
tenn continues Aud besides. IL 10 In
time Of adequate revenues and business
tranquility that the govern ment should
prepare for the worst We cannot avoid
without serious consequences the wise
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 o depleted gold reserve and
save rs from future embarrassment on
that account To this plan l invite
your careful consideration
concur with the secretary OF the
treasury In his recon mendation that
national banks be allowed 20 issue notes
| 20 the face value Of the bonds which
they have deposited for circulation, and
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 establish meus
of national banks with minimum cap.
ital of $4,000. This will enable the
smaller villages and agricultural regions
Of the country to be supplied with cur
rency TO meet their media
| / recommend that the issue or ma
tional bank notes be restricted to the
denomination of $40 and upwards. II
the suggestions have herein made shall
have the approval Of congress-. then l
would recommend that national banks
be required TO redeem their notes In
gold
NO CUBAN lNTERF E RENEE.