Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1898-12-15
CAGE ON CURRENCY.
The Secretary Of the Treasury
Makes His Annual Report.
MONEY CIRCULATING IN PORTO RICO.
Secretary Gage Condemns the Present
Financial system Of the United States
and Advocates a Hank Note
Currency In Ita Place.

| SPS""S' ~ sho "ouSC Vi representative
was made public yesterday. In tn
report Secretary Gage says: The rev
enues OF the government from al
sources for the fiscal wear ended Jun,
80, 1898, were S494, 1888. 95S. rs. The ex
penditures for the same period wer'
S532, 3si, s01. 80.
In discussing the question Of in
creasing the American mer chant ma
rine the secretary says:
War with Spain and the annexation Of tn,
Hawaiian archipelago which have changed
the political and commercial relations Of III,
United States not only with Cuba, Porto Rico
Hawaii and the Philippines, but also with thu
continents between which and North America
those islands are stepping stones require thu
prompt adoption Of an affirmative maritime
policy by the United States
The subject Of money in Porto Rico
is discussed at length. The secretary
says:
The existing currency Of that island consist,
Of silver coins known as pesos and centavos.
The coins bear no fixed relation to gold, not
being anywhere redeemable in the yellow coin.
1t is unnecessary here to point out at any
length the general evil results upon industry
and commerce Of currency medium so out Of
harmony with the wor DIS money as to induce
q widely huctua<ing rate OF exchange It is
highly important that American capital should
find no obstacles In It's transfer to and from
Porto Rico
1t is, therefore. suggested that, at the proper
time action be taken by congress to assimiate
the currency OF Porto Rico to that Of the
United States, so far and so rapidly as this can
be done without unduly disturbing existing
conditions and contract relations In Porto
Rico This. 1t is believed can be accomplished
by making customs dues in the island PAYABLE
In American money yet receiving the silver
pesos and centayos ut Il fixed relation to our
dollar
The subject of currency and bank
Ing is treated at length. The secretary
saws:
In submitting my report | feel 1t my duty to
Impress upon congress as best may the i'm
portant subject of currency and banking re-
form. With financial system condemned by
.he judgment OF me most experienced and wise
pom ~ nome ana ABROAD It's evils illustrated
III oaiiy BUSINESS ana emphasized In recurring
pahics we tail win an obtuse timidity, toface
W., ~, ons "u,un i'us' W iiie' anu rignty
eo''eu ucio'o 'huus.rS ana commerce can DC
established upon enduring conditions OF secu-
rity
.no a'tunien's aeainSo government issues OF
papor nioney as mea'um for commercial ex-
enanses luVc oeeh 'ui'y maze ana need not be
.opo".ou III uo'a,' i'S rig'u'eV' l's iallufe 10
hee. uelhanus whele uemanu Is most urgent
.nc uepenuehcy ol inc whole industrial struc'
'uio upon 'he sea'e VI 'ne revenue ana puDnc
eApoho.'urc-'hese ure Important INKS IN tnat
ena'' vi arRuihenp Inc menace 10 our domes-
VIZ aia'rs several tlmes recurring from
.l'ea'eheu cnange Ill 'he standard under which
thcy are carrlea on anu our foreign trade set
'iou nus ooch conpahloh evil perhaps the
Srea'er Vi 'he Two
The proposal to substitute bank issues for
government notes Is opposed with many honest
preludces and assaulted by bitter denuncations
The first arise from failure to comprehend
the true philosophy OF paper currency and
must be patiently considered The latter OBJ
scure the question by reckless statements,
that oil propositions for currency re-
form are bank cOnsplracies to exploit the peo-
pie
| shall not be outside OF my duty II venture
10 point out In at least one important respect.
the advantages to the poorer districts of the |
country of properly constituted bank curren- |
py. 1t may be done by fairly describing the
course Of the financial movement AS It now |
goes on and by presenting In contrast the
movement as it would 20 on under the condi-
tons advocated. 1t Is familiar fact that
In the period of harvesting and cron moving
the currency is strongly drawn from the
,enters to the country districts When this
movement Is over, the currency again tends to-
ward the centers The currency flows to the
,enter TO pay loans occasioned by its use and
other general Indebtedness and also IN Secure
the benefit of the country banker for n norton
,f his funds which in dun period woud other.
.,isa lie ,,nam,Io,od In ID, - ,,.
IVA ,,,,na,,a,, ~, ~ n,a a""u, 1' plosonN
A. oaal-,anaor no,as a a ,ss a.'no's en'.e,s
ia y, s",. ~, w. NV, ""' ,'oa'u,y no'o' -'n"'
=, ,os as os,h raaoa"s " MIN .no ,am ,e'os-
,an,,ons IL, 49, 'sso' mus 'o1enou W 'hc
.oann,, son ' Sa nonos vo"'o,s, " uoeonies
MO ~ ,o uupo'' Nh 'no lo'aV'oh VI
~, ,a.oa.oa , ~" WV, uopos,'S hay
:, ass w van s "o o "0'i as os one ucps'V
ho hns.oas oa" ~. 1900 y. ''VV'o% CUES ~
ma sma,,s ,,o aans,, 'pon wy jain oooss
rn,,a ~ Wv uepo,s "ovouh' Ny ~ much
nna w., ~ Do',o" nv" nas one'N against .nis
r s,'' wv n's .|e.M n,s "iso oe uepos'.cu In
a "e ,a'ne mum III Wnon o'sc !. ~ mere Trans
W "" "s1'uus o' II pe deposited Ia
,,' :, =, ,, ""u pau ~ 'ioney ny 'ne iehuing
- " Nv, ~ 49, sun 'l""s.u', me 'o'a' ueposi's
= "o "'' '"' '"""s "ro s"e''eu ny 'n's of'gIoal
'I H., asn, ~ at
~ ,a ,,'".on ,has .n's Expansive move
raa,. r,asa,a e,so''oou !uo'o from 'he view
.'u," " No'en,oo' 10 a. ioiows' oom-
,i,h H." ~, s,o,'su 'v,e"rig nousel statement
WIN 'uaV VI i've weeks ago IL appears that the
,ynanded bo,r Laws ~, N NV "na NV
nonn, q, ~, soo mn ,so TIM, WV su'p''s,ns
,Osits resulting from these two items pelnp No
ess than 66OOO,OJ0" 1t can be easily per.
eived that th, possibility Of increasing loans
gains, an inflow Of reserve funds in The pro-