El Paso daily herald. (El Paso, Tex.) 1881-1901, 1899-12-05
MESSAGE CONTINUED

MESSAGE CONTINUED
with respect to cash on hand aud the
favorable showing made by the reve-
uues have made it possible for the
secretary of the treasury to take &C
tion under the provisions of section
1854 revisedista tutes, relating to the
sinking fund. Receipts exceeded ex-
penditures for the first five months of
the current fiscal year by $13, ,413, $780,
81, and as mention ed above, the secretary
of the treasury estimates that there
will be surplus of approximately S40,
600, 900 at he end of the year. Under
such conditions it was deemed advis-
able and proper to resume compliance
fund law, which for eight. years have
been done because of deficiencies in
the revenues. The treasury depart
ment therefore offered to purchase
during November S25 600, 600 of the
five per cent loan of 1904 or the per
cent funded loan of 1907, at the our
rent market price. The amount offer
ed and purchased during November
was S1S, ,408, 600. The premium paid by
the government on such purchases was
So, 263, 521 and the net saving interest
was about S21 1855, ,OOO- The subject of
this operation was sufficient to induce
the government to continue the offer
to purchase bonds to and including
the 23rd day OF Decem mber, instant. un-
less the remainder of the 1925, 600, 600
called for should be presented in the
meantime for redemption.
LARGER VOLUME OF MONEY NEEDED
Increased activity in industry. with
its welcome attendants, larger en-
ployment for labor and higher wages
gives to the body of the people larger
power to absorb the circulating me-
dunn. 1t is further true tina. year by
year with larger areas OF l.nd under
cultivation, the increasing volume of
agricultural products, cotton, corn and
wheat, calls for a larger volume of
money supply. This is especially so at
the crop harvesting and crop moving
period.
In it's earlier hiet,ry the nation. l
banking act see emed to prove reaeou-
able avenue through which eaG:ul
additions to the circulation. couli from
time to time be made. Changing con-
ditions have apparently rendered it
now imperative to that end. The
high margin in bond securities, re-
quired, resulting from large premiums
the market, or the tax on note issues,
or both operating tog ether, appear to
be the influences which impair its pub
lie utility. The attention of congress
is respectfully invited to this public
matter with the view of as
certaining whether or not
such reasonable notifications
can be made in the national banking
act as will render its service in the par
sive to the peoples needs. I again
urge tha. the national banks be au-
thorized to organize with a capital of
S25 900.
THE GOLD STANDARD.
l urgently recommend that, to sup
port the existing gold standard and to
maintain 1.-The parity in value of the coin
age of the two metals (gold and silver
and the equal power Of every dollar at
all times in the mark ct and in the u W.
mert OF debts" the secretary of the
with the duty to sell United
Sta tes bonds and to employ such other
effective means as may be necessary to
these ends. The authority should in
clude the power to sell bonds on long
and short time, as conditions may re-
quire, and should provide for rate of
interest lower than that fixed oy the
act Of January IA, 1875. While there
Is now no commercial frig BIT. which with
the con trary such widespread confidence
that gold seeks the treasury demand
ing paper money in ex-
things point to the present as
the most fitting time to
make adequate provision to insure the |
continuance of the gold standard and |
of public confidence in the ability and |
purpose of the government to meet all |
its oblie cations in the money which the 1
civilized world recognizes as the |
best.
MAINTAINING THE PARITY.
The financial transactions of the
government are conducted upon q gold |
basis. We receive gold when we sell |
U nited States bonds and use gold for |
their payment. We are maiuta ming
the parity of all the money issued or
coined by authority of the government.
We are doing these things with the
means at hand. Happily, at the pres
been done in the past, however, AM
may have to be done in the future. 1t
provide at once the best
means to meet the emergency
" hen it arises, AMI the best means are
those which are the most certain
ahu OCouoIulCnl. uOSo now duGQOrlZeQ
have the virtue of neither directness
nor economy. We have already inti-
mated one of the causes of our financial
position and embarrassment during
The years 1898, 1894. 1895 and 1896.
Dur receipts now equal our expendi-
jures: deficient revenues no longer
create alarm. Let US remove the only
'emaining cause by conferring the full
md necessary power on the secretary
If the treasury aud impose upon him
he duty to uphold the present gold
,tandard and ho of L