Rensselaer Republican, Volume 28, Number 17, Rensselaer, Jasper County, 31 December 1896 — CARLISLE IS HOPEFUL [ARTICLE]

CARLISLE IS HOPEFUL

SECRETARY REVIEWS NATIONAL FINANCES. Despite a Deficit of #25,203,245 at Present and Larger DeficieffcieS Probable in 1897 and 1898, He Takes a Cheerful View. ‘V * ■. ' . : t«■ 1 C-’ Talks of Money. The annual report of the Secretary of the Treasury, as transmitted to Congress, deals extensively and in detail with the financial situation. Mr. Carlisle summarizes the condition of the treasury, and after reviewing his former recommendations for early and effective legislation to provide for the retirement of treasury notes, goes on to"say: “The maintenance df a., policy which necessarily imposes upon the government the burden of furnishing gold at the public expense to aill who may demand it for use or hoarding at holme, or for export to other countries, cannpt be justified upon any ground of expediency or sound financial principles, und even if the periodical and frequently recurring demands foi; gold did not weaken the foun-’ dafions of our entire currency system, thus imparing confidence and depressing business, it would nevertheless be the duty of ail who are charged with any degree of responsibility for the adoption of proper financial methods to insist upon the reformation of our laws on this subject at tile earliest possible (jay. “The issue and redemption of ’ circulating notes is not a proper function of the treasury department, or of any other department of the government. While the government has power to borrow money, it is not its duty to issue public obligations merely for the purpose of providing a paper currency for use in the transaction of business, nor has it the constitutional powers4>n to make its promise legal tender in the'-payment of private debts. The Secretary refers to the “peril” in which the entire financial system has been placed by the “constant agitation” of the currency and favors the retirement and cancellation of government notes. He says the people Jvill not consent to be taxed merely for the purpose of accumulating and holding a large and useless surplus in the treasury. lie claims that no system of coinage that can be devised will furnish the government with either gold or silver, unless it pays for it with means already collected by taxation, or by contracting an 'lndebtedness to be paid by the people in the future. He goes a't length into the subject of the demand and supply of money, the matter of imports and exports as affecting currency f .supplies, and the crops in Europe. The Secretary holds that without a reformation of our currency we cannot safely rely upon permanent accessions to our stock pf gold from abroad in settlement of trade balances in our favor. He refers to his recommendation 1 of last year the Secretary of the Treasury be ngthfirizofl to issue from time to time

bonds payable in (told and-to ox change them for,United States notes and treasury note's, and Again indorses that plan, but adds that it may be that so radical a measure would not receive the assent of Congress, in the present state of the public mind on the, subject, Mr. Carlisle renews his recommendations for'such amendments to the national banking laws as would permit, the issue of circulating notes equal in amount to the face value of the bonds deposited and reduce the tax t>n notes to one-fourth 6f l.per cent, per annum, and that authority be given to establish branch banks, for the transaction of till kinds of business now allowed, except the issue of circulating notes. No good reason now is perceived, he says, Why this limitation upon the required amount of capital should not be reduced to 825,000, without regard to population. He again refers to und renews Ids suggestion that the issue of United States noted, treasury notes and national "bank notes of lower denominations than ten dollars be prohibited in order to secure a large and more permanent use of silver coin and certificates. In closing he says: “For more than a century our tariff legislation has been designed, to a great extent, at least, to acomplish objects other than the raising of revende for public purposes. The protection of capital invested in our native industries and the of labor employed in tile United ; States against the competition of the products of foreign industries and foreign labor have been alleged as the paramount objects in many cases, and urged as a justification for the progressive increases of tariff taxes and commercial restrictions when revenue was not needed, or when the rates imposed were so high as to reduce tin* revenue. In other instances, revenue duties have been abolished in order that protective duties might be retained or in. -creased-, and tbe necessities of the government and just principles of taxation-have been subordinated to the demands “of special interests.”