and ' lam - newts of the . of as executive datyea» ‘ *Mu'di‘li'".lrl’.:: “" ill. 0 atrocities it fl V‘ ' materialism. f ‘Mi‘mm dealings with . mm and car peaceful relations with . at this time. additionally dem- Lm the advantage of consistently ad- hwiagte a are: but Just torsion honey. .faaajrsai envious or ambitions notional m . characterised by entire hon- :s‘uwm iti f the if . .' greoog‘n one on one impartiality of this, country, toward all torsion stateswas manifested bytho coin. ., “out requests! the Chinese and Jana» chase governments that the agents of the . United States should. within proper lim- ‘ it. afford protection tcths subjects of the alter during the suspension of diplomatic * , aliens duo to a state of war. This deli» data since was empted. and a misappre hansion which gave rise to the belief that ll affording this kindly unofficial protec- Isn our agents would exercise the same authority which the withdrawn agents of the bolligerente had exercised. was promptly corrected. Although the war be- tween China and Japan endangers no poi- lg of the United States. it deserves our , vest consideration byreason of its dis- ,gizbsoc'o of our growing commercial in- ] viuosts in the two countries and the in- sensed dangers which may result to our. ' . ,tiaens domiciled crsoicurning In the in- . . . tsrior of China. .. . Acting undera stipulation In our treaty with, Korea (the first concluded with a western power). i felt constrained at the . , nning of the controversy to tender . o cod offices to induce an amicable ar- ' rangoment of the initial difficulty grow- ing out of the Japanese demands for ad- ministrative reforms in Korea. but the - unhappy precipitation of actual hostilities defeated this kindly purpose. 7 Depicring the destructive war lietween the two most powerful of the eastern na- tiga and anxious that our commercial in- forests in these countries may be pre- served. indl'that the safety of our citizens there shall not be jeopardized. lwould , not hesitate to heed any intimation that our friendly aid for the honorable termi- nation of hostilities would be acceptable to‘both belligerents. The Sugar Differential. The German government has protected against that provision of the customs tariff act which imposes a discriminating duty of onetenth of 1 cent a pound on sugars coming from countries paying an export bounty thereon. claiming that tho v auction of such duty is in contravention 3c of articles 5 and ii of the treaty of 1823 7 , with Prussia . ' in the interests of the commerce of both 5. countries and to avoid even the accusation ‘ ‘of treaty violation 1 recommend thoro- peai of so much of the statute as Imposes that duty. and] invite attention to the report of the secretary of state containing a discussion of the questions raised by the German protests. ' Early in the present your an agreement was reached with Great Britain concerning instructions to be given to the naval com- manders of the two governments In Be~ ring sea and the contiguous north Pacific ocean for their guidance In the execution of the award of the Paris tribunal of ar- bitration and the enforcement of the reg' ulaflous thereinprescribed for the pro- tection of seal life In the waters mention- ed. An understanding has also been raaohed for the payment by the United . States of 3425.000 in full satisfaction of all claims which may be made by Great Britain for damages growing out of the controversy as to fur seals In Bering sea a the seizure of llritish vessels engaged in taking seal in these waters. Bince communicating the voluminous correspondence in regard to Hawaii and the action taken by the senate and house of representatives on certain questions submitted to the judgment and wider dia- oreticn of congress the organization of a government in place of tbeprovislonai ar- mament which followed the deposition of thoqueou has been announced. with evidence of its effective operation. The . ,rooognlticu usual in such cases has been . accorded the new government. ' ’ . Apart from the war in which theisland atapiro is engaged Japan attracts increac ilg attention in this country in her evi dent desire to cultivate more liberal in- tosucurso with us and to seek u r kindly aid in furtherance of‘her laudable desire I” complete autonomy in her domestic Blair! and full equality In the family of idiotic The Japanese empire of today lalwhnger the Japan of the past. and , if our relations with this progressive nation . ' should not be less broad and liberal than r those with other powers. The “comma Ins-Idem. ~ Prominent among the questions of the - m was the Blueflelda incident. In what tel-own as the Mosquito lndlsn strip. Wag on the Atlantic ocean and within the jurisdiction of Nicaragua By the meaty of ififlil between fireat liritain . pad hilaragua the former government or- prefly recognised the sovereignty of the lsthaever the strip. and a limited form of at! government wd guaranteed to tho ‘, Imuito ludianl. to be exercised accord- = «milieu name. for theme-lies sad . dwellers within Its limits. The so eailtd active government. which grew to b y made up of aliens. for many ’ years sled the sovereignty of Nicara- gua ever the strip and claimed the right a maintain therein a practically lode 7 ”lent municipal government. i lflly in the past year efforts of Nice to maintain sovereignty over the motto territory led to serious disturb files. saiuicotlag in the suppression of is native government and the attempted Istttotloa of as impracticable composite . ' y is which filcarsgcs and * Wis were to participate Fail- wasfeiicwod by an insurrection which a tins schthed Nicer-sass rule. ex- hsrefilesrs and restoring the old This in turn gave piaee “it'll lasagna ' . - the ai’loc ‘l’niereste loos , learagus o t ess masset ‘ lonely American and the com. . that union for some time has ' “still ushledy ircntrolisd by our j . wasaaect for that reason shsls I fishtial sovereignty of lites- evsrstisiulpertear partof tissue ”"ssnsnosiescae. and darlsgpsrt ‘fietwaaf our naval ships have multinational ferihspretee fight“ . it a 1’... Uniwd Mead Ia . gist that In the midssct “daemon inglf ‘ Amerl "ofiiccrs. while hotly pursued by infuriated of . . . ;_ ‘illds~' at. ccntribc largely to the m. ties of more our consequences and to the ”.th of quiet and order. .I ”v there happened a meet grave and Irritat- ailzra of Nicaraguan lustics An citisen named Wilson. residing at llama. la the Mosquito territory. was murdered by one Argusllo. the acting governor of the town. After some delay the murderer was demands it is claimed t t his recapture has been impossible by, ’ n of his flight beyond Nicaragusn’jn " cticn. The government of Salvador having been overthrown by an abrupt popular outbreak. certain of Its military and civil " insurgents. sought refuge on board the United States wa'shlp ilennlngtcn. then lying in a Salvadorenn port. Although the practice of asylum is not favored by this government. yet in view of the im- minent peril which threatened the fugi- tivea‘and solely from considerations of humanity. they were allowed shelter by our naval commander. and when after- ward demanded nndco our treaty of extra- dition with Salvador for trial on charges of mdrder, arson and robberyl directed that such of them as had not voluntarily left the ship be conveyed to one of our nearest parts where a hearing could be had before a judicial officeriu compliance with the tarsus ‘cf the treaty. On their arrival at San Francisco such a proceeding was promptly institutedliefore the United States district judge. who held that'tlic acts constituting the alleged offenses were political and discharged all the accused except, one Cienfuegos. who was held for an attempt to murder. Thereupon l was constrained to direct his release. for the reason that an attempt tolnurder was not one of the crimes charged against him and upon which his surrender to the Sal. vadorcan authorities had been demanded. The Morn Clair-i. .Tbe Mora case. referred to in my last annual message, remains unsettled. From the diplomatic correspondence on this subject. which has been laid before the senate. it will be seen that this govern- ment has offered to conclude aconvention with Spain for disposal by arbitration of outstanding claims between the two coun tries. except the More claim. which. hav- ing been long ago adjusted. now only awaits payment as stipulated. and of course it could not beincluded in the pro posed convention. it was hoped that this offer Would remove. parliamentary obsta cles encountered by the Spanish govern ment in providing payment of the More indemnity. i regret to say that no defi» nlte reply to this offer has yet'been made. and-all efforts to secure paymoutof this settled claim have been unavailing. in my last annual message i referred briefly to the unsatisfactory state of af- fairs in Samoa under the operation of the Berlin treaty as slgnaily illustrating the- impolicy of entangling alliances with for sign powers. and on May ll. INN. In re sponse to a resolution of the manic. isent a special message and documents to that body on the some subgect. which empba» sized my previously expressed opinions Later occurrences. the correspondence In regard to which will be laid before con gross. further demonstrate that the gov- ernment which was devised by the tbrce powers and forced upon the Samoans against their inveterate hostility can be maintained only by the continued pres once of foreign military force and at no small sacrifice of life and "unsure The suppression of the hintnafa lnsur notion ly the powers and the subsequent banishment. ef the leader and ll other chiefs. as recited In my last message. did not bring lasting peace to the islands. i'iirviiidiilile uprisings continued. and finally a rel l‘lllou broke out in tbecapltai island. l'polu. headed in Anna. the west ern district. by the younger ’l'ainasesc. and in More the eastern district. by other leaders. The insurgents ravaged the coun try and fought the government's troops up to the very doors of Apia The king again appealed tothe powers for help. and the combined llritisb and “promo naval forces reduced the famous to apparent snhjol‘tlnn. not. however. without consid arable lms to the natives A few days later Tamasoso and his adherents. fearing the ships and the marines. professed sub mission. The present government has utterly failed to correct. if indeed It has not og gravated. the very evils It was intended to prevent. it has not stimulated our mllll nurse with the islands. ilur partial; atlon In Its establishes-at against the yvlsbes o: the author was in plain defiance of lbs conservative teachings and wsinlngs cf the wise and patriotic men who laid the foundations of our free institutions. and I Invite an expression of the Judgment of congress on the propriety of stops being taken by this government looking to the withdrawal from lie engagements with the other powers on some reasonable terms not prejudicial to any of.our cxisl Ing rights Treasury item-ipt-. The secretary of the treasury report that the rsripts'of the government from all solirms of revenue during the fiscal year ending June :lu. ism. sinnuutmi ti: t:l71.l«l2.lim.-:ll. and Its i'lpqliilliiifus o. Hi'ldiib‘u'Fb-‘i s7. leaving a deficit of in l.~ sotlslllll as ‘i‘bcrs was adecreose of : if». ii:.;‘,ll7i.llli in Hill ordinary ux’pcnlssnf the government. as compared with the fiscal year lullli. 'I‘berewss collected from customs full. Rimbaud: and from Internal revenue l“?,iilil,~iili.'iil. The balance of lbs III mine for the year. sniountliia to iliiimib Milli. wasdorlvsd from the sales or land- aud other sources. The value of our total dutisbls Inlpllris amounted to trill. “Milan. being it Ill. comma loss during the warming year. and the Importailims free of duty limos-ii ad to tiliil.7ilb.hllil. being till. 5 Hum les- thae during the preceding year. The to eeipta from customs were ililhllluml -I lose. and from internal revenue times i. him. it? less than In ilillll. The total tax collected from distilled spirits was reassurance; on rascals." use subunit “sputum”. and on let Midi iiutsutil. ”Lilifiiiofii. tiur annals of merchandise. dcrnssiir ad foreign. amounted during the yen: to Ml‘.IiIl.lil':. being an increase over the Weeding year of "also. in he total amount of gold exported dor ing the floral you was illi.sfls.lilll. as against illilldillll. iii during the fiscal year Into. The amount Imported was m. till. i Ill. as against iridium during the previous year. The imports of silver were increases. see the exports were m. “but. r1 chased from of hits to not faeiodsdin ; ,. treat ury holdings. was twill)!“ ._ or its." pseespitje. upon an estimated pop» Elation of. elitist“. At the dots thsrewos held In the treasury d hul- iion amountingto “Mill." .ss. and silver bullion which was purchased at s cm Of "97.771088. The purchase of silver bullion under the act of July It. 1800. mused on the first day of November. infill. and up to that time there had been purchased during the fiscal year 11.917.- 058.78 fine ounces at a cost of is.flo,~ 521.1%. an average cost of $0.73i8 per fine mes total amount of silver pur- the time that law took effect until the repeal of its purchasing clause. on the date but mentioned. was loud“.- 682.hll finesouuces. which‘cost ilhh.iiill.‘ 002.25. the average price per line ounce being 30.92244. ' The total amount of standard silver dollars coined at the mints of the United States since the passage of the act of Feb. 23. 1873. is $i2l.77fl.-iilll. of which $78.. 100. 739 were coined under the provisions of that act. ”8.531.143 under the provl alone of the not of July ll. i800. and ’5.* 078.472 under the not providing for the coinage of trade dollar bullion. The Army. ‘ From the report of the secretary of war it appears that the strength of the army on Sept. :10. Hill, was 2.th ofllcers and 25, 7nd enlisted men. apparently a very slight decrease com pared with the previous year. the actual effective force has been increased to the her. ' . sss circulation. at equivalent of nearly two regiments through the reorganization of the system of recruiting. and the consequent release to regimental duty of the large force of men hitherto serving at the recruiting depots. The abolition of these depots. It is predicted. will furthermore effect an mnual reduction approximating $250. 000 in the direct expenditiireaibesldes pro, muting generally the health. morals and discipline of the troops. Though the forces of the department of the east have been somewhat increased. more than three-fourths of the army is .still stationed west of the Mississippi. This carefully matured policy. which so cures the best and greatest service in the interests of the general welfare from the small force comprising our regular army. should not be thoughtlessiy embarrassed by the creation of new and unnecessary posts through sets of congress to gratify the ambitions or Interests of localities. While the maximum legal strength of the army is :25. 000 men. the effective strength. through various causes. is but little over 20,000 men. The purpose of congress does not. therefore. seem to be fully attained by the existing condition. it bile no considerable increase in the army Is. in my judgment. demanded by recent events. the policy of decorum forti- ficatIon. In the prosecution of which we have been steadily engaged for coins years, has so‘far developed as to suggest that the effective strength of the army be now made at least or full to the legal strength. Measures taken by the department during the year. as indicated. have already con- siderably augmrnted the effective force. and the secretary of war presents a plan. which i recommend to the consideration of congress. to attain the desired end. it is hardly necessary to recall the‘ fact that in obedience to the commands of the constitution and the laws. and for the purpose of protecting the property of the lfnlted States. aiding the process of feds cral courts and removing lawlessobstruc tions to the performance by the govern meat of Its legitimate functions. it be» came necessary In various localities dur ing the year to eliiploy a considerable por- tion of the regular troops. The duty was discharged promptly. courngmusly and with marked discretion by fileollicers and men. and the most gratifying proof was thus afforded that the army deserves that complete confidence in its olllvlency and discipline which the country has at all timed manifested. The skill and Industry of our ordnance officers and inventors have. it is believed. overcome the mechanical obstacles which have heretofore delayed the armament of our coasts. and this great national under- taking upon which we have entered may now proceed as rapidly as congress shall determine. With a supply of finished guns of large caliber already on bond. to which addition should now rapidly fol low. the wisdom of providing carriages and elnplaccmsnts for their mount cannot be too strongly urged. The total enrollment of the militia of the moral states is II7,ri:lll officers and chillies! men. an increase of 6.343. a recognition of the long and distin- gul-bod military services and faithful dis charge of delicate and responsible civil duties by Major General John hi Soho field. new the general commanding the army. it is suggested to congress that the temporary revival of the grade of lieuten- ant general in his behalf would be Most and gracious act and would permit his re tlremsat. now hear at hsnd. with rank be fitting his merits. Tito [Department of Justice. The report of the attorney general notes the gratifying progress made by the so. prams calm In overcoming the arrears oi Its business and in reaching a condition in which it will be able to dispose of cases as they arise without any unreason- able dclay. This result Is of course very largely due to the successful working of the plan inaugurating circuit courts of appeals. . flight years age In my annual mmagc i urged upon the congress as strongly as ”cold the location and construction of two prisons for the oonilnemsnt of lfnltcd States prisoners. A similar recommends lien has been made from time toiims since. and a few years ago a law was passed providing for the selection of sites for three such institutions. .‘l'c appropri- ation has. however. been made to carry the not into effect. and theold and dis creditable condition still exists. The Post-slice "apartment. The report of the postmaster general presents a comprehensive statement of the operational the pcstolllce department tor the last fiscal year. The revs-Int- el the department during the year amounted to t7h.lisll.47ll,oi and the ssmdvtum to landfills. lb, The transactions of the ptlstsl service Indicate with limousine certainly the fluctuations in the business of the root» try. lnsemuuh. lherefuro. as business complications continued to exist through- out the last year to on cnlmesson extent. It Is not surprising that the defieienvpef menus to meet the expenditures of the nosedive depsri meat. which was uiimst ad in advance at about “000.000. should Ioerrseded by nearly "drama. The so Although this is‘ 2: . dam My ass _ ~ ywi . growth and seeds of the cousin. as. that the deficiency ls ,nsstsr or less loony year. depending up no the volume of receipts. . The postmaster general states that this Mini-mo is possessor: and might boob. at once if the law regulating rates open mail matter of the wooed class was modified. The rats received for the Iransv mission of this mend class matter is 1 cent per pound. while the cost of such transmission to the government is eight times that amount. In the general terms of the law this rate covers newspapers and periodicals. The extensions of the meaning of these terms from time totinie have admitted to the privileges intended or legitimate newspapers and periodicals surprising reign of publications and fed abuses the cost of which amount in the aggregate to the total deficiency of the postofiice department. The total number of postodicos in the United States on the liflth day of June. 189i. was Iiil. 805. an increaseof l. 408 over the preceding year. (if these 3,428 were presidential. an Increase in that class of flu over the preceding year. Six hundred and ten cities and towns are provided with free delivery. Ninety- threo other cities and towns entitled to this service under the law have not been accorded it on account of Insufficient funds The expense of free delivery for the current fiscal year will be more than tls. 300. 000. and under existing legisla- tion this item of expenditure is subject to constant increase. The estimated cost of rural free delivery generally is so very large that it ought not tobeconsidercd in the present condition of affairs. During the year Hill) additional demesv tic money order offices were established. Thatotal amt-‘7: "~‘-“" so inspect souresr of timber supply. Tar lsoisxs. ~Thoughtheecncltiou cf the ladisns shows a steady and healthy progress. their situation is not satisfac- Iory at all point. dome of them to when allotmeateotiaadi have been made are found to be unable or disinclined to follow agricultural pursuits or to other- wise beneficially manage their land. This Is. especially true of the Cheyennss and Annabess. who. as It appears by reports of their agent. have In many instances never been located upon their allotments. and In some cases do- not even know where their allotments are. l’sssloas.—-At the close of the last he cal year. on the 80th day of June. 1894. there were 96in)“ persons on our pension rolls. being a net increase of 8.6m: over the number reported at the end of the previous year. The total‘ amount expended for pen- slcns during the year was “39.804.481.05. Civil flies-vices Reform. The advantages to the public service of an adherence to the principles of civil service reform are constantly more an parent. and nothing is so encouraging to those in official life who honestly desire good government as the Increasing appre~ elation by our people of these advantages. A vast majority of the voters of the land are ready to insist that the time and at- tention of those they select to perform for them important public duties should not be distracted by doling out minor offices. and they are growing to be unanimous in regarding party organization as some— thing that should be used in establishing party principles instead of dictating the distribution of public placesas rewards of partisan activity. I link. 81““; when” “.m- w 'rsnvev'vmfi‘ iffifi close of the year was 19.264. There were ll.ll(ll.llil money orders Issued during the year. being an increase over the pro ceding year of 994.300. The value of those orders amounted to ililrl. 7b:l.57il.tfl. an increase of 311.217. Halli. There were also issued during the year postal notes amounting to undid-034.55. The number of letters and packages mailed during the year for special deliv- ery was 3.438.970.‘ The special delivery stamps used upon these letters and pack ages amounted to $1li:l,llil7. The mes sengers' fees paid for their delivery amounted to $2lii.20il.70. leaving a bal ance in favor of the government of $82.- 457. 30. There are now connected with the postoflloc establishment 32mm employees who are in the classified service. This in‘ eludes many who have been classified up on the suggestion of the postmaster gen- eral. He states that another year's expo» rlence at the head of the department serves only to strengthen the conviction as to the excellent working of the civil service law in this branch of the public service. Thr Navy Department. Attention is called to the report of the secretary of the am y. which shows very gratifying progress in the construction of ships for our new navy. All the vessels new building. including the three torpedo boats authorized at the last session of congress. and excepting the first class battleship lows. will probably be com plated during the coming fiscal year. The e~timotcs for the increase of the navy for the year cndingJuue till, lrlllli, are large. hilt they include practically the entire, sum necessary to complete and equip all the now-ships not now In com mission so that. unless new ships are au- thorized. llm appropriations for the naval service for the fiscal year ending June 30. hill. should fail fin-low the estimates for the coming year by at least $2,000,000. The secretary presents with much ear~ Deafness a plea for the authorisation of three additional battleships and 10 or 12 torpedo boats While the unarmorod ves- sels heretofore authorized. Including those new nearing completion. will constitute a fleet which. if is believed. is sufficient for ordinary cruising purposes in time of mace. we have now completed and in process of construl'fiun but four first class battleships and but few fflrlltiilt) boats. If we are to have a new for warlike opera tlons. offensive and defensive. we certain- ly ought to increasi- bulb the number of battleships and torpedo boats. The manufacture of armor requires ex~ pensive plant and the aggregation of many skilled workmen All the armor necessary 'to complete the vessels new building will be delivered before the lst of June next. if no new contracts are given out. contractoremiist disband their workmen. and their plants must lie idle. Battleships authorised at this time would not well under way until late In the corn ng fiscal year. and at least ll b. years from the date of the contract would he required for their completion. The score tary states that not more than lb per cent of the cost of such ships need be included in the appropriations for the coming year I recommend that provision be made for the construction of additional battle ships and torpedo boats. The secretary recouiuiends the manu- facture not only of a reserve supply of ordnance and ordnance material for ships of the navy. but also a supply for the our lllary Ileot Guns and their appurtenances should be providid and iii-pt on hand for both these purposes. We have out today a single gun that could be put upon the ships Paris or Sew York of the international navigation mmpauy or any other ship of our reserve navy I feel It mv imperative duty to call at tention to the recommendation of the sec rotary in regard In the personnel of the line of the navy ’i‘be stagnation of pro motion in this. the leal branch of the service. Is so great as to seriously Impalr its efficiency. 1 consider It cf Ibo utmost Impotence that the young and middle aged officers should. before lbs eve of retirement. be permitted to reach a gradeontltiing than: to active and Important duty.- The interior imminent. The report of the secretary of the late rlcr eshlidts the situation of the numerous and interesting branches of the public service nnocted with his department. lmhlmfi this report and the valuable momma atiuns ol‘ the seen-tary to the careful attention or the magma. The public . and tilqlillili us during the year amounted to in. lmi. lilo ;? acres. In eluding memos of Indian lands It Is estimated that the public domain still raliialulng amounts too little more then tillii,llill,lliltl acres. excluding. how ever. claret L'llii.liilfl.ililfl sesssiu Ala-Ila as well as mililsry reservations and railroad and other selections of loads yet dasdllidl- outed. 'f‘llv. Miriam-«l fully Indorss the rear oinmsndatlun of the secretary that ads: seats he provided for ear for» i r w..- ,7-.. ._.._—rvn.s. 'wvvr'val ssr not to be longer without a national board of health or national health officer charged with no other duties than such as pertain to the protection of our country from the invasion of pestilence and disease. Tariff Amendments. The tariff not passed at the last session of the congress needs important amend- ments If it is to be executed edectively and with certainty. In addition to such necessary amendments as will not change rates of duty 1 am still very decidedly in favor of patting coal and iron upon the free list.‘ So for as the sugar schedule is con- cerned. i would be glad. under existing aggravations. to see every particlelof dif‘ ferentlal duty in favor of refined sugar stricken out of our tariff law. if with all the favor new accorded the sugar refining interest in our tariff laws it still lan- gulsbes to the extent of closed refineries and thousands of discharged workmen. it would seem to present a hopeless case for reasonable legislative aid. Whatever else is done or omitted. l earnestly repeat here the recommendation I have made in an other portion of this communication that the additional duty of onetenth of a cent per pound. laid upon sugar imported from countries paying a bounty on in export. be abrogated. With the advent of a new tariff policy not only calculated to relieve the consum- era of our land In the cost of their daily life. but to invite a better development of American thrift and create for us closer and more profitable commercial relations with the rest of the world. it follows as a logical and imperative nccsslty that .we should at once reinovo the chief. if not the only. olrslacle which has so long pre- vented our participation in the foreign carrying trade of the sea A tariff built upon the theory that it is well to check Imports. and that a home market should bound the industry and effort of Ameri- can producers. was flfly supplemented by a refusal to allow American registry to ves- sels built abroad. though owned and navi- gated by our people. Uur new tariff pol» icy is consistently supplemented by the greatest possible liliorty to our citizens in the ownership and navigation of ships in which our products and manufactures may be transported. The ancient provision of our law deny- ing American registry to ships built abroad land owned by Americans appears in the light of present conditions not only to be a failure for good at every point. but to be nearer a relic of barbarism than any thing that exists undo! the permission of a statute of the l'nited States. i earnestly recommend its prompt repeal. ... The “and IMIit‘. During the last month the gold re served in the treasnrg for the purpose of redeeming the notes of the government circulating as money In the bands of the people become so reduced. and Its further depletion In the near future seemed so certain. that in the exercise of proper care for the public welfare it became necessary to replenish this nrservu and thus main tain popular falib In the i Ity and do termination of the govern out to meet. as agreed. Its pecuniary obligations it would have been well if In this am- ergency authority had existed to issue the bonds of the goiernment bearing a low rafoof interest and maturing within a short period. but the congress having failed to confer such authority. resort was necessarily bad to the resumption act of info. and pursuant tolls provisions bonds were issued drawing interest at the rate at .3 per cent per itfifiillli and motoring ten years after their Issue. that being Ibe shortest time authorized by the out. i am glad to say. howl-var. that on the sale of these bonds tho premium f'ililtilt'ml oporrtt ed to reduce the rate "I interest to be paid by the government. tolvss than is liilyoilnt. Nothing could be Warm or further ro- niovsd from silliailllc finance than the re lations existing between the currency the government has Issued. the gold field for Its redemption and the means which must be "ported to for the p..rposooi replenish- Ing such redernptloil land when Im paired. liven if the claims upon this fund were confined to the obligations originally in: tended and if the redemption of these obligations meant their cancellation. the fund would be very small. lint these obligations when received and redeemed in gold are not canceled. but are reissued and may do duty many times by way of drawing gold from the treasury. Thus we have an endless chain In operation constantly depleting tbs treasury‘s gold and never near a llnal rest. As If this was not bad enough. we have. by a stem tory declaration that It Is the policy of the government to Iiiltlilfltlft the parity be tween go-‘d and al'iBl'. aided the force and momentum if this exlnuisilnu procm and added lamely to tbl‘ currencw‘ obliges lions claiming this peculiar void redeiilp tion. (.iur small god reserve is tlius sub loot tollrsln from every side The dc recalls that Increase our dancer also in. crease the merit.“ of prob-cling this re solve against dummies. and It Is nest “satisfactory to from . list the plate. lion i cannot for a moment believe. . ‘ , of our citizens are delihorstsly‘ ruling that their government should Mal. bid its pecuniary obligations or that in new ciai operations should he reduced to a\ silver basis. At any rate. lshouid not fast that my duty was done if I omitted any. odort i could m’ske toavsrt such a cola-«'3 Ity. As long therefore as no provision is? made for the final redemption or the puts ting aside of the currency obligation new. used to repeatedly as constantly draw“ from the government gold. and saloag as no better authority for bond issues is? allowed than at present exists. such au- thority will be utilized whenever and as; often as it becomes necessary to maintain " a sufficient gold reserve. and in abundant time to save tiie credit of our country and make ‘good the finanilal declarations of. our government. Questions relating to our banks and currency are closely connected with the subject jest referred to. and they also present some unsatisfactory featurea‘ Prominent among. them are the lack of elasticity in our currency simulation and its frequent concentration in financial centers when it is most needed in other parts of the country. IIltistc Bank leans-s. The absolute divorcement of the gov- ernment from the business of banking is the ideal lationshlp of the government] to the of ulation of the currency of the country. This ndition cannot be immediately reached but as a step in that direction and a means of securing a more elastic currency and obviating other objections to the empanrraessuxxn M sonogram... mrfise‘oRHrbetfi treasury pro- sente in his report a scheme modifying present banking laws and providing for the issue of circulating notes by state banks free from taxation under certain limitations. ' The secretary explains his plan so plainly, and its advantages are developed by him with such remarkable olearnese. that any effort on my part to present ar‘ gument in its support would be superflu- ous. ‘ shall therefore content myself with an unqualified lndoreemcnt of the secretary‘s proposed changes in the law and a brief and imperfect statement of their prominent features. it is proposed to repeal all laws provid« ing for the deposit of United States bonds as security for circulation; to permit na— tional banks to issue simulating notes not exceeding in amount 75 per cent of their paid up and unimpaired capital. provided they deposit with the govern- ment as a guarantee fund in United States legal tender notes, including treas- ury notes of 1590. a sum equal in amount to do per cent of the notes they desire to issue. this deposit to be maintained at all times. but whenever any bank retires any sort of its circulation is proportional part i its guarantee fund shall be returned to it; to permit the secretary of the treasury to prepare and keep on hand ready for ie- sue ln case an increase in circulation is desired blank national banknotee for each bank having circulation. and to repeal the provisions of the present law imposing limitations and restrictions upon banks desiring to reduce or increase their circu- lation. thus permitting such increase or reduction within the limit of 7.3 per cent of capital to be quickly made as emor goncics arise. in addition to the guarantee fund re- quired. it is proposed to provide a safety fund for the immediate redemption of the circulating notes of failed banks. by im- posing a small annual tax. say one half of I per cant. open the average circulation of each bank until the fund amounts to 5 per cent of the total circulation outstand ing. When a bank falls. its guarantee fund is to be paid into this safety fund. and Its notes are to be redeemed in the first instance from such safety fund thus augmentcduany impairment of such fund caused thereby to be made good from the immediately available cash assets of said bank. and if these should be insufficient such impairment to be made good by pro rats assessment among the other banks. their contributions constituting a first lien upon the assets of the failed bank in favor of the contributing banks. As a further security it is contemplated that the existing provision xxing the lndivi~ dual liability of stockholders is to be re- taincd. and the bank’s lndobttmass on account of its circulating note‘i Is to be made a first lien on all its assets. For the purpose of meeting the expense of printing notes. offlclai supervision. cancellation and other like charges there; shall be imposed a tax of. soy. one-half of l per cent per annum upon the average aluount of notes in circulation. it is further provided that there shall be no national bank nuts! issued of a less denomination than rill; that each na tional bank. except In case of a failed hank. shall redeem or retire its notes in the first instance at Its own office or at agencies to be designated by it. and that no fixed rcmrve need be maintained on account of deposits. llscm ption il'rorn Taxation. Another very important feature of this plan is the exemption of state banks from taxation by the l'nltcii States in cases where it is shown to the satisfaction of the secretary of the treasury and comp: trailer of the currencv by banks claim- Ing sucb exmnpticn that they have not bad untsflluding theif' circulating notes exceeding 1.“: per centof their paid up and, Iinlitrpulroii capital; that their stockholdv are are individually liable for the redoing tion of their circulating notes to the full extent 6: their ownership of stock: that the liability of said banks upon their cir- culating notes constitutes under their state law a first lien upon their assets; that such books have kept and main» tamed a guarantee fund in l’nitad ritatos legal tender notes. including treasury notes of law. equal to all per cent of their outstanding circulating notes and that such banks have prcmpily redeemed their circulating notes when presented at their principal or branch oillres. It Is quite likely that this scheme may be usefully amended In some of Its do. tells. but I am sailsflod it furnishes a basis for a vsrv grssl Improvement In our present banking and currency system. funneled" this communication fully up proclailng ilrit tile reapous blllty for all legislation allucllng the people of the United Mares rcsls upon their represent otlvss In file congress and nesurlugibelu that. whether in confidence with rsuuiil mandatioml have illittll' or not. lshall be glad to cooperate In perteotlng any. legislation that lends lo the. prosperity and welfare of our couritr . lil‘iilti‘ru U itiiflutlll). Incentive Mansion. llsc. ll.
Norwalk Chronicler