His guiding principle was stated, in the annual message, December 3, 1894, as follows: "The absolute divorcement of the Government from the business of banking is the ideal relationship of the Government to the circulation of the currency of the country." That ideal, however, is unattainable in any civilized country.

The only great state in which it has ever been actually adopted is China, and the results were not such as to commend the system.

The policy which yields the greatest practical benefits is that which makes it the duty of the Government to supervise and regulate the business of banking and to attend to currency supply; and the currency troubles of the American people were not removed until eventually their Government accepted and acted upon this view.
Not until his message of December 3, 1894, did President Cleveland make any recommendation going to the root of the trouble, which was, after all, the need of adequate provision for the currency supply.

In that message, he sketched a plan devised by Secretary Carlisle, allowing national banks to issue notes up to seventy-five per cent of their actual capital and providing also, under certain conditions, for the issue of circulating notes by state banks without taxation.

This plan, he said, "furnishes a basis for a very great improvement in our present banking and currency system." But in his subsequent messages, he kept urging that "the day of sensible and sound financial methods will not dawn upon us until our Government abandons the banking business." To effect this aim, he urged that all treasury notes should be "withdrawn from circulation and canceled," and he declared that he was "of opinion that we have placed too much stress upon the danger of contracting the currency." Such proposals addressed to a people agonized by actual scarcity of currency were utterly impracticable, nor from any point of view can they be pronounced to have been sound in the circumstances then existing.