New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-01-03
LEGISLATION THAT is PRACTICABLE
VIEWS OF REPUBLICANS LEADER THE PREsl-
DENTS RECOMMENDATION CONCERN
ING GREENBACKS

Washington Jan ? (SpccaD.-In conversation
with a Tribune correspondent yesterday on the
subject of currency reform. Republican VINO IL
among the most influential leaders OF the majority
in the House OF Representatives. and whose views
on financial subjects held In high respect by
most members OF that BODY, irrespective Oh parry
talked as follows:
at will not be practicable in my opinion, to en-
act any general measure OF currency reform In
this Congress- and merely academic discussion
OF the subject is thing which think should be
deprecated and. If possible, avoided. or course,
something may be said in favor Of It as a means OF
educating public sentiment but under existing cir
cumstances that would not outweigh the considera-
lions against It,"
What sort Of legislation the subject do you
think would be practicable" asked the CORE
spondent.
Well, II the Committee on Banking and Currency
would bring in separate bills to carry out the
recommendations OF the President relating to the
National banking system-reducng tho tax on Ma
tional bank circulation. authorizing the issue OF
circulating notes In amounts equal 10 the par value
OF the bonds deposited to secure such notes, au-
thorizng the establishment of National banks with
small capital In the smaller towns in order 10 pro-
vide for wider distribution of banking facilities
for the benefit of smaller communities. and re-
s,rlctlng the issue OF National bank notes to de-
nominations of $40 and upward and requiring them
10 be redeemed in gold-I think the House would
pass them without any great difficulty, and | be-
llevc they would also pass the Senate"
What about the Presidents recommendation In
regard to the greenbacks?'
1T seems TO me that ii is generally misunder-
stood and 1t is certainly misrepresented by the
free trade press as well by free traders In Con-
gress The President recommends. as soon as the
receipts OF tho Government are quite sufficient TO
pay all the expenses OF the Government, that when
any OF the United States notes are presented for
1,ta In,
such notes shall he kept and set apart, and only
paid out in exchange for gold To carry out that
recommendation is only 10 embody In law what was
virtually the practice OF the Treasury Department
from 1879 to 1893, during which period the receipts
of the Government were quite sufficient pay all
the expenses OF the Government. In my opinion
the Secretary OF the Treasury now possesses all
the discretionary authority necessary TO do that so
long as the working cash balance In the Treasury
is sufficient to pay all current expenses. For ex-
ample. since July the Treasury has redeemed
about sis0O00c0 OF legal tenders with gold coin.
The available cash balance. exclusive of the legal
gold reserve OF $loo.0Wooo. amounts to about $780,
100000 OF which about $1,000 900 Is in legal tenders
With such a cash balance, one even half
large the Secretary OF the Treasury would be fully
justified I'm my opinion II he should set apart, on
the books OF the Treasury Department. the sum OF
SsGOc 600 in legal-tendcr notes, and have It under
stood that no part OF II should be paid out except
mlnistrative act, warranted by the discretionary
authority with which the Secretary OF the Treasury
f. clothed by law. The President simply recon-
mends that the Secretary shall not only be per-
mittcd but required, exercise this authority
The carrying out OF this policy whenever and
long as the receipts OF the Government were suin-
Client TO pay its current expenses would not In the
least contract the currency affect the amount of
money in circulation. An available cash balance of
s4O00o0 Is all that the National Treasury needs
aside from the gold reserve. which ought TO be kept
at about sl50OO0.OO until after the Treasury notes
OF 1890 have been retired. A big cash balance is al
ways n temptation to improvidence In appropra-
lions and expenditures"
How soon. in your opinion can the Treasury
notes b. retired and cancelled"
Il hope we shall have the last Of them with
In the next four years But there is another piece
OF legislation which ought TO be enacted and
which In my Judgment. will be absolutely neces-
sary II the Presidents recommendation I'm regard
10 the United States notes is adopted The Secre-
tary Of the Treasury ought 10 be authorized and
required. In OF any temporary deficiency OF
revenue. TO Issue Treasury certificates OF indebt-
edness bearing a low rate OF interest and redeem
able within limited period-say three years-to
seem probable that he would be compelled 10 exer-
else the authority in the near future and II is to
be hoped OF course. that emergency may never
arise TO compel u, but the power Ia one that ought
to exist in every Government, and which does
LIST in most Governments except our own | hope
10 see such Legislation enacted before the expira-
What do you think Of the plan to retire and
cancel the RreenbackH?
Il regard II as wholly mpracticable. and for that
son az which IA IL not only unpront bile In,