Democratic Sentinel, Volume 19, Number 48, Rensselaer, Jasper County, 6 December 1895 — Page 6

AIM'S AFFAIRS

President Cleveland’s Message to Congress. MIS CURRENCY PLAN. Would Issue Bonds and Retire Greenbacks. Only Way to Break the “Endless Chaia" Strongly Favors the Gold Bttaiud, bnt Advocates Silver and Silver Certificates for Domestic Ex-change-Parity Must Be Preserved, and Temptation to Speculation Removed—Would Reduce Tax on National Bank Circulation Foreign Relations Reviewed. President Cleveland's message to the 'Fifty-fourth Congress was not transmitted until Tuesday forenoon, when it tras read before both House and Senate. It was of great length, over 20.0(X» words: C dealt exhaustively with all questions hit-h have arisen during the past year, •ml also with those of current interest. The message opens with a reference to the importance of our foreigu relations •mi the exigencies of the nationsi finances •t this time and the consequent determination of the President to confine his message to the subjects. The first subject of importance touched •pm U the disordered condition of affaire in China following upon the close

PRESIDENT CLEVELAND.

mi the war with Japan, the consequent weakening of the central authority of the government and the serious outbreaks of fibe old fanatical spirit against -foreigners is dismissed. The demands of-the United Slates and other powers for the 'punishment of the aggressors and the compliance of the Chinese Government ure related. as is the demand of the United States for a special commission to investigate the disturbances' where they Were first brought out.. “The energetic steps we have thus taken.” says the President, “are all the more likely to result in future safety to •nr citizens in China, because the imperial government is. I am persuaded, entirely convinced tha't we desire only the liberty and protection of our own citizens •nd redress for any wrongs that they may have suffered, and that we have no ulterior design* or objects, political or otherwise.”

Of the Waller incident the message •ays: “The customary cordial relations between this country' and France have been undisturbed with the exception that • full explanation of the treatment of Jean L. Waller by the expeditionary military authorities of France still remains to be given.” “The official record of the trial has been furnished this government,'.’ says the Message, “but the evidence adduced in •upport of the charges—which was not received by the French minister for foreign affairs till the first week in October—has thus far been withheld, the French Government taking the ground that its production in response to our demand ,would establish a had precedent. The efforts of our ambassador to procure it, however, though retarded by recent changes in the French ministry, have not been relaxed, and it is confidently expected that some satisfactory solution of the Matter will shortly be reached. Meanwhile, it appears that Mr. Waller's confinement has every alleviation which the state of his health and all the other circumstances of the case demand or permit.” The President points out as a pleasant contrast .the conclusion of a permanent treaty of arbitration between the two countries, and recommends the acceptance of the invitation to take part in the Paris exposition of 1900. Our relations with Germany, lie nays, are influenced by the “delusive doctrine tbat the internal development of a nation fa promoted and its wealth increased by a policy which is undertaking to reserve Its home markets for the exclusive use of Ita own producers, necessarily obstructs .their sales in foreign markets, and presents free access to the products of the World. The desire to retain trade in timejworn ruts, regardless of the inexorable Jlaws of new needs and changed conditions of demand and supply, and our own 'baiting tardiness to inviting a freer exjpbange of commodities and by this menus imperiling oar footing to the external markets naturally open to us, have created a situation somewhat injurious to American Import interests, not only in Germany, where they are perhaps most noticeable, but in adjacent countries. The effect of this, particularly on food Erodncts and also on our insurance comanies, is pointed out. The necessity for Open-handed fairness in dealing with oth«r nations is stated, hut it is argued that Jf necessary to provide restrictions similar to those from which we suffer in order to guard against unfair discrimination, the way to such a course is easy, but should not be lightly entered upon. The vexatious points of the Bering sea ffuestion are referred to and the failure of the arbitration tribunal to' provide a means of settlement are pointed out. The bisuffieieucy of the British patrol of (Bering Sea and the necessity for a more affective enforcements regulations have. It is said, been pdinfed out to the British Government, *if it"Ts hoped to save the ■eats from extinction. Of the proposal to pay Jl2s,oiX> to Great Britain in settlement of British claims for damages, Which was refused by the last Congress, the President reotanmends that it can •gain be ceasidered and sanctioned. If Ihia la refused we are bound by every WsmUteratiMi of honor and good faith, lie bays, to provide for a speedy settlement fcy arbitration. A treaty of arbitration Is, accordingly, to be laid before the Senate. An appropriation for the completion tof the Alaska !boundary survey, which follows the contour of the coast is earnestly recommended. The.importance of an international agreement as to the line of the Mist meridian, which forms the rest of the boundary, is dwelt upon. Attention is

also called to the unsatisfactory condition of tbe boundaries with Canada in the great lakes and the necessity for ■ joint commission on the .subject. The Venezuela Controversy. Of Venezuela, the message simply states that a statement of the interest and policy of the United Slates regarding the boundary dispute was sent to Great Britain in July last “The general conclusions therein reached and formulated,” says the President, “are in substance that the traditional and established policy of the Government is firmly opposed to forcible increase by any European power of its territorial possessions on this continent; that this policy is as well founded in principle as it is strongly supported by numerous precedents; that as a eonseqncnee the United States is bound to protest against the enlargement of the area of British ■ Guiana in derogation of the rights and against the will of Venezuela; that, considering the disparity in strength of Great Britain and Venezuela, the territorial dispute between them can be reasonably settled only by friendly and impartial arbitration, and that the resort to such arbitration should include the whole controversy, and it is not satisfied if one of the powers concerned be permitted to draw an arbitrary line through the territory in debate and declare that it will submit to arbitration only the jiortion lying on one side of it. In view of these conclusions. the dispatch in question called j upon the British Government for a defi- , nite answer to the question whether it would or would not submit the territorial j controversy between itself and Venezue- • la in its entirety to impartial arbitra- : tion. The answer of the British Govern- ] ment has not been received, but is expected shortly, when further communication j on the subject will probably be made to the Congress. Hawaii is dismissed with a reference to. the uprising last January, the demands made upon the Hawaiian Government for the rights of American citizens concerned therein, and the demand for the recall of Minister Thurston. The padrone system is denounced as responsible for such manifestations against helpless aliens as the lynching of Italians in Colorado. Congratulations are offered on our good relations with Japan, in view of her vast gains in greatness. Unimportant references are made to our relations with Mexico. Nicaragua and Russia. The recommendation-for an abandonment of the Samoan agreement is renewed. Of Cuba the President says the United States must preserve international faith, whatever the sympathy of our citizens with the insurgents. He continues: “Though neither the warmth of our people’s sympathy with the Cuban insurgents nor our loss or material damage consequent upon the futile endeavors thus far made to restore peace and order, nor any shock our humane sensibilities may have received from the cruelties which appear to especially characterize this sanguinary and fiercely conducted war, have in the least shaken the determination of the Government to honestly fulfill every international obligation, yet it is to be earnestly hoped on every ground that the devastation of armed conflict may speedily be stayed and order and quiet restored to the distracted island, bringing in their train the activity and thrift of peaceful pursuits."

The Alliaticft incident and Spain’s disavowal of it and assurances of a non-re-currence of similar interferences are stated. Thi> President then expresses his regret that the Turkish Govennuenf should have i thwarted the purpose to send to the dis- | ttirbed quarter of the empire the United •States consul at Sivns in order to iuvesti- 1 gate and report. Every effort, lie says, is put forth to insure the safety of American citizens and the United states minister is alert. But, he goes on, several of the most powerful European powers have assumed a duty ns agents of the Christian world in Turkey to restrain fanatical brutality. and "it is earnestly hoped that prompt and effective action on their part will not be delayed.” The message recommends at length an improvement in the consular service by some plan of appointment and control. Delicate Financial Situation. Fully half the message is devoted to a discussion of the financial situation. “By command of the people,” the message says, "a customs revenue system designed for the prbtection and benefit of favored classes at the expense of tno great mass of our countrymen, and which, while inefficient for the purpose of revenue, curtailed our trade relations and impeded our entrance‘to the markets of the world, has been superseded by a tariff policy which in principle is based upon a denial of the right of the government to obstruct the avenues to our people's cheap living or lessen their comfort and contentment, for the sake til' according especial advantages to favorites, and which, while encouraging our intercourse ami trade with other nations, recognizes the fact that American self-reliance, thrift and ingenuity can build tip our country’s industry and develop its resources more surely than enervating paternalist)?.''' But this and the repeal of .the silverpurchase law, it is.said, fall far short of curing the financial evils from which we suffer. A lengthy review follows of the growth of our currency, especially the United States notes and treasury notes, and the consequent endless drain on the gold reserve of the treasury. “. The President,'states that “among the causes for this . constant and uniform shrinkage in this fund may be mentioned the great falling off of exports under the operation of the tariff law until recently in force, which crippled our exchange of commodities with foreign nations and necessitated to some, extent.the payment of our balances in gold; the unnatural infusion of silver into our currency, and the increasing agitation for its free and unlimited coinage, which have created apprehension as to our disposition or ability to continue gold payments; the consequent hoarding of gold at.home and the stoppage of investments of foreign capital as well as the return our securities already sold abr aitfal' and the high rate of foreign excitative, which induced the shipment of our gold to be drawn against as a matter of speculation.” Dealings with Bohd Syndicate. The history of the various bbnd transactions which have been resorted to in order to replenish the gold reserve is re-, viewed umßthe Constant subsequent fallings off pointed 'but, Qf the lttst transaction with ithe syndicate thtk President says: “The performance of tfeis contract not only restored the reserve, but cheeked for a time the withdrawals of gold ami brought on a period of restored .confidence and such peace and quiet in business circles as were jtf. the greatest possible value to every interest that affects our people. I have never had the slightest- misgiving concerning'‘the wisdom or propriety of this arrangement, and am quite willing to answer for my full share of responsibility for its promotion. I believe It averted a disaster, the imminence of tvhich was fortunately not at the time generally understood by our people.” We at'e now. the President says, nearly where we started and nearly all of the gold withdrawn has been paid out on United States notes, which still remain uncanceled. Therefore, he says, “I am convinced the .only thorough and practicable remedy for our troubles is found in the retirement and cancellation of our United States notes, commonly called greenbacks, and the outstanding treasury notes issued by the government in pay-

i ment of silver purchases under the act ; of 1880.” I believe this could be quite readily accomplished by the exchange of these notes for United States bonds of small as well as large denominations, bearing a low rate of interest. They should be longterm bonds, thus increasing their desirability as investments, and because their payment could be well postponed to s period far removed from present financial burdens and perplexities, when, with increased prosperity and resources,’ they would be more easily met. To further insure the cancellation of these notes and also provide a way by which gold may be added to our currency in lieu of them, a feature in the pian should be an authority given to the Secretary of the Treasury to dispose of the bonds abroad for gold if necessary to complete the contemplated redemption and cancellation, permitting him to use the proceeds of such bonds to take up and cancel any of the notes that may be in the treasury or that may be received by the Government on any account. The increase of our bonded debt involved would he amply compensated by renewed activity in all business circles, restored confiih nee at home, reinstated faith in our Monetary strength abroad and stimuli!;! m of every interest and industry that would follow the cancellation of the gold-demand obligations. In any event, tiie bonds proposed would stand for the extinguishment of a troublesome indebtedness. while in the path we now follow there lurks the menace of unending lamds, with cur indebtedness still undischarged and aggravated in every feature. The obligations necessary to fund this indebtedness would not equal in amount those from which we have been relieved since 1884 by anticipation and payment beyond the requirements of the sinking fund out of mir surplus revenue. The currency withdrawn by the retiremi at of the United States notes and tr< usury notes, amounting to probably less than $480,(XX),000 might he supplied by Mich gold as would be used in their retirement or by an increase in the circulation of our national banks. Though the aggregate capital of those now in existence nr. omits to more than $604,000,000, their outstanding circulation, based on bond security, amounts to only about $190,000,OOtt. They are authorized to issue notes amounting to 90 per cent of the bonds deposited to secure their circulation, but in no event beyond the amount of their capital stock, and they are .obliged to pay 1 per cent tax on the circulation they-is-sue.

I think they should be allowed to issue circulation equal to the par value of the bonds they deposit to secure it, and that the tax on their circulation should be reduced one-fourth of 1 per cent., which would meet all the expense Government incurs on their account. In addition they should be allowed to substitute or deposit, in lieu of the bonds now required as security for their circulation, those which would be issued for the purpose of retiring the United States notes and treasury notes.

The banks already existing, if they di sireil, could issue circulation in addition to that already outstanding, amounting to $478,000,000, which would nearly or quite equal the currency proposed to lie cancelled. At any rute, I should confidently expect to see the existing nationill banks, or others to be organized, avail themselves of the proposed encouragements to issue circulation, and promptly til! any vacuum and supply every currency heed. It has always seemed to me that the provisions of law regarding the capital of national banks which operate as a limitation to their location fail to make proper compensation for the suppression of State bunks, which came near to the people in all sections of the country and readily furnished them with banking accommodations and facilities. Any inconvenience or embarrassment arising front these restrictions on the location of national banks might well be remedied by better adapting the present system to the creation of banks in smaller communities or by permitting banks of large capital to establish branches in such localities as would serve the people—so regulated and restrained as to secure their safe and conservative control and mil ini getnon t.

But there might not be the necessity for sudi an addition to the currency by new issues of bank circulation as at first glance is indicated. If we should be relieved from maintaining a gold reserve under conditions that constitute it the barometer of our solvency, and if our treasury should no longer be the foolish purveyor of gold for nations abroad, or for speculation and hoarding by our citizeus at home, I should expect to see gold resume its natural and normal functions in the business affairs of the country and cease to be an object attracting the timid watch of our people and exciting their sensitive imaginations. Silver Coinaec.

I do not overlook the fact that the cancellation of the treasury notes issued under the silver-purchasing act of 1890 would leave the treasury in the actual ownership of sufficient silver, including seigniorage, to coin nearly $178,000,000 standard dollars. It is worthy of consideration whether this might not, from time to time, be converted into dollars or fractional coin and slowly put into circuit; : ion, as in the judgment of the Secretary of the Treasury the necessities of the country should require. Whatever is attempted should be entered upon fully appreciating the fact that by careless, easy descent we have reached a dangerous depth; our ascent will not be accomplished without laborious toil and struggl e We shall be wise if we realize that we are financially ill and that our restoration to health may require heroic treatment and unpleasant remedies. In the present stage of our difficulty it is not easy to understand how the amount of our revenue receipts directly affects it. The important question is not the quantity of money received in revenue payments, but’the kind of money we maintain and our ability to continue in sound financial condition. We are considering the Government’s holdings of gold as related to the soundness of our money and as affecting our national credit and monetary strength. If the gold reserve had never been impaired; if no bonds had been issued to replenish it; if there had been no question concerning our ability to continue gold payments; if cur revenues were now paid in gold, and if we could look to our gold receipts as a means of maintaining a safe reserve, the amount of our revenues would be an influential factor iu the problem. But unfortunately all the circumstances that might lend weight to this consideration are entirely lacking.

No Gold from Revenues. In our present predicament no gold is received in payment of revenue charges, nor would there be if the revenues were increased. The receipts of the treasury, when not in silver certificates, consist of United States notes and treasury notes issued for silver purchases. These forms of money are only useful to the Government in paying its current, ordinary expenses, and its quantity in Government possession does not in the least contribute toward giving us that kind lof safe financial standing or condition which is built on gold alone. If it is said that these notes, if held by the Government, can be used to obtain gold for our reserve, the answer is easy. The people draw gold from the treasury on demand upon United States notes and treasury notes, but the proposition that the treasury can on demand draw gold from the people upon them would be re-

p,v rded in these days with wonder and ! amusement. And even if this could be j done, there is nothing to prevent th nse | thus parting with their gold from regnin- | ing it the next day or the next hour by 1 the presentation of the notes they receiv- : ed in exchange for it. The secretary of ! the treasury might use such not taken i from a surplus revenue to buy gold in tbe market. Of course he could do this withI out paying a premium. Private holders of gold, and. unlike the Government, having no parity to maintain, would not j be restrained from making the best bargain possible when they furnished gold j to the treasury; but the moment the sec- ; rotary of the treasury bought gold on any 1 terms above par he would establish a general and universal premium upon it, ! thus breaking down the parity between ; gold and silver which the Government is : pledged to maintain, and opening the j way to new and serious complications. | Meantime the premium would not remain ! stationary, and the absurd spectacle might be presented of a dealer selling gold to the Government, and with United States or treasury notes in hand immediately clamoring for its return and a resale at a higher premium. It may be claimed that a large revenue and redundant receipts might favorably affect the situation under discussion by affording an opportunity of retaining these notes in the treasury when received, and thus preventing their presentation for gold. Such retention, to be useful, ought to be at least measurably permanent; and this is precisely what is prohibited, so far as L nited States notes are concerned, by the law of 1878 forbidding their further retirement. That statute, in so many words, provides that these notes, when received into the treasury and belonging >to the United States, shall be “paid out again and kept in circulation.” It will, moreover, he readily seen that the Government could not refuse to pay out United States notes and treasury notes in current transactions when demanded, and insist on paying out silver alone and still Maintain the parity between that metal and the currency representing gold. Besides, the accumulation in the treasury of currency of any kind exacted from the people through taxation is justly regarded as an evil and it cannot proceed far without vigorous protest against an unjustifiable retention of money from the business of the country and a denunciation of a scheme of taxation which proves itself to be unjust when it takes from the earnings and income of the citizens money so much in excess of the needs of government support that large sums gathered and kept in the treasury. Such a condition has heretofore, in times of surplus revenue, led the Government to restore currency to the people by the purchase of its unmatured bonds at a large premium and by a large increase of its deposits in national banks, and we easily remember that the abuse of treasury accumulation has furnished a most persuasive argument in favor of legislation radically reducing our tariff taxation.

Perhaps it is suppsed that sufficient revenue receipts would in a sentimental way improve the situation, by inspiring confidence in our solvency and allaying the feur of pecuniary exhaustion. And yet. through all our struggles to maintain our gold reserve, there never has been any apprehension ns to our ready ability to pay our way with such money ns wo had; and the question whether or not our current receipts met our current expenses has not entered into the estimate of our solvency. Of course, the general state of our funds, exclusive of gold, was entirely immaterial to the foreign creditor and investor. His debt could only be paid in gold, and his only concern was our ability to keep on hand that kind of money. On July 1, 1892, more than a year and a half before the first bonds were issued to replenish the gold reserve, there was a net balance in the treasury, exclusive of such reserve, of less than $13.000,000; but the gold reserve amounted to more than $114,000,000, which was jjm, quieting feature of the situation. It was when the stock of gold began rapidly to fall that fright supervened and our securities held abroad were returned for sale and debts owed' abroad were pressed for payment. In the meantime, extensive shipments of gold and other unfavorable indications caused restlessness and fright among our people at home. Thereupon the general state of our funds, exclusive of gold, became also immaterial to them, and they, too, drew gold from the treasury for hoarding against all contingencies. This is plainly shown by the large increase in the proportion of gold withdrawn which was retained by our own people as time and threatening incidents progressed. During the fiscal year ending June 30,1894, nearly $S. r >.000,000 in gold was withdrawn from the treasury and about $77,(M1,000 was sent abroad, while during the fiscal year ending June 30, 1895, over $117,000,000 was drawn out, of which only about $06,000,000 was shipped, leaving the large balance of such withdrawals to be accounted for by domestic hoarding.

Increased Revenues No Remedy.

Inasmuch as the withdrawal of our gold lias resulted largely from fright, there is nothipg apparent that will prevent its continuance or recurrence with its natural consequences, except such a change in our financial methods as will reassure the frightened and make the' desire for gold less intense. It is not clear how an increase in revenue, unless it be in gold, can satisfy those whose only anxiety is to gain gold from the Government’s store. It cannot, therefore, be safe to rely upon increased revenues as a cure for our present troubles. It is possible that the suggestion of increased revenue as a remedy for the difficulties we are considering may have originated in an intimation or distinct allegation tnat the bonds which have been issued ostensibly to replenish our gold reserve were really issued to supply insufficient revenue. Nothing can be further from the truth. Bonds were issued to obtain gold for the maintenance of our national credit. has been shown the gold thus obtained has been drawn again from the treasury upon United States notes and treasury notes. This operation would have been promptly prevented, if possible, but these notes having thus been passed to the treasury they became the money of the Government, like any other ordinary Government funds, and there was nothing to do but to use them in paying Government expenses when needed. At no time when bonds have been issued has there been any consideration of the question of paying the expenses of Government with their proceeds.- At the time of each bond issue we had a safe surplus in the treasury for ordinary operations, exclusive- of the gold in our reserve. In February, 1894, when the first issue of bonds was made, such surplus amounted to over $18,000,000; in November, when the second issue was made, it amounted to more than $42,000,000, and in February, 1895, when bonds for the third time were issued, such surjdus amounted to $98,072,420.30. Besides all this, the Secretary of the Treasury had no authority whatever to issue bonds to increase the ordinary revenues or pay current expenses. I cannot but think there has been some confusion of ideas regarding the effects of the issue of bonds and the results of the withdrawal of gold. It was the latter process and not the former that by substituting in the treasury United States notes and treasury notes for gold increased by their amount the money which was in the first instance subject to ordinary government expenditure. Although the law compelling an increased purchase of silver by the Government was passed on

the 14th day of July, 1890, withdrawals of gold from the treasury upon the notes given in payment on such purchases did not begin until October, 1891. Immediately following that date the withdrawals upon both these notes and United States notes increased very largely, and have continued to such an extent that since the passage of that law there has been more than thirteen times as much gold taken out of the treasury upon United States notes and treasury notes issued for silver purchases as was thus withdrawn during the eleven and a half years immediately prior thereto and after the first day of January, 1879, when specie payments were resumed. It is neither unfair nor unjust to charge a large share of our present financial perplexities and dangers to the operation of the laws of 1878 and 1890 compelling the purchase of silver by the Government, which not only furnishes a new treasury obligation upon which its gold could be withdrawn, but so increased the fear of an overwhelming flood of silver and a forced descent to silver payments that even the repeal of these laws did not entirely cure the evils of their existence. Free Silver Coinage. While I was endeavoring to make a plain statement of the disordered condition of our currency and the present dangers menacing our prosperity and to suggest a way which leads to a safer financial system, I have constantly had in mind the fact that many of my countrymen, whose sincerity I do not doubt, insist that the cure for the ills now threatening us may be found in the single and simple remedy of the free coinage of silver. They contend that our mints shall be at once thrown open to the free, unlimited and independent coinage'of both gold and silver dollars, of full legal tender quality, regardless of the action of any other Government and in full view of the fact that the ratio between the metals which they suggest calls for 100 cents’ worth of goiil in the gold dollar at the present standard, and only 50 cents in intrinsic worth of silver in the silver dollar.

Were there infinitely stronger reasons than can be adduced for hoping that such action would secure for us a bimetallic currency moving on lines of parity, an experiment so novel and hazardous as that proposed might well stagger those who believe that stability is an imperative condition of 6ound money. No government, ho human contrivance or act of legislation has ever been able to hold the two metals together in free coinage at a ratio appreciably different from that which is established in the markets of the world. Those who believe that our independent free coinage of silver at an artificial ratio with gold of Iff to 1 would restore the parity between the metals, and consequently between the coins, oppose an unsupported and improbable theory to the general belief and practice of other nations, and to the teachings of the wisest statesmen and economists of the world, both in the past and present, and, what is far more conclusive, they run counter to their own actual experiences. Twice in our earlier history our lawmakers, in attempting to establish a bimetallic; currency, undertook free coinage upon a ratio which accidentally varied from the actual relative values of the two metals not more than 3 per cent. In both cases, notwithstanding greater difficulties and cost of transportation than now exist, the coins whose intrinsic worth was undervalued in the ratio gradually and surely disappeared from our circulation and went to other countries, where their real value was better recognized. Acts of Congress were impotent to create equality where natural causes decreed even a slight inequality. Twice in our recent history we have signally failed to raise by legislation the value of silver. Under an act of Congress passed in 1878 the Government was required for more than twelve years to expend annually at least $24,000,000 in the purchase of silver bullion for coinage. The act of July 14, 1890, in a still bolder effort, increased the amount of silver the Government was compelled to purchase, and forced it to become the buyer annually of 54,000,000 ounces, or practically the entire product of our mines. Under both laws silver rapidly and steadily declined in value. The prophecy, and the expressed hope and expectation of those in the Congress who led in the passage of the last-mentioned act, that it would re-establish and maintain the former parity between the two metals are still fresh in our memory. In the light of these experiences, which accord with the experiences of other nations, there is certainly no secure ground for the belief that an act of Congress could now bridge an inequality of 5(3 per cent, between gold and silver at our present ratio, nor is there the least possibility that our country, which has less than one-seventh of the silver money in the world, could by its action alone raise not only onr own but all silver to its lost ratio with gold. Our attempt to accomplish this by the free coinage of silver at a ratio differing widely from actual relative values would be the signal for the complete departure of gold from our circulation, the immediate and large contraction of our circulating medium, and a shrinkage in the real value and monetary efficiency of all other forms of currency as they settled to the level of silver monometallism. Every one who receives a fixed salary and every worker for wages would find the dollar in his hand ruthlessly scaled down to the point of bitter disappointment if not to pinching privation. A change in our standard to silver monometallism would also bring on a collapse of the entire system of credit which, when based on a standard which is recognized and adopted by the world of business, is many times more potent and useful than the entire volume of currency and is safely capable of almost indefinite expansion to meet the growth of trade and enterprise. Ih a self-invited struggle through darkness and uncertainty our humiliation would be increased by the consciousness that we had parted company with all the enlightened and progressive nations of the world, and were desperately and hopelessly striving to meet the stress of modern commerce and competition with a debased and unsuitable currency, and in association with the few weak and laggard nations which have silver alone as their standard of value. Warned by History, All history warus us against rash experiments which threaten violent changes in our monetary standard and the degradation of our currency. The past is full of lessons teaching not only the economic dangers, but the national immorality that follows in the train of such experiments. I will not believe that American people can be persuaded after sober deliberation to jeopardize their nation’s prestige aud proud standing by encouraging financial nostrums, nor that they will yield to the false allurements of cheap money, when they realize that it must result in the weakening of that financial integrity and rectitude which thus far in our history has been so devotedly cherished as one of the traits of true Americanism. Our country’s indebtedness, whether owing by the Government or existing between individuals, has been contracted with reference to our present standard. To decree by act of congress that these debts shall be payable in less valuable dollars than those within the contemplation and intention of the parties when contracted, would operate to transfer by the fiat of law and without compensation an amount of'property and a volume of rights and interests almost incalculable. Those who advocate a blind and head-

long plunge to free coinage in the name of bimetallism and professing the belief contrary to all experience that we could thus establish a doable standard and a concurrent circulation of both metals in our coinage are certainly reckoning from a cloudy standpoint. Our present standard of value is the standard of the civilized world, and permits the only bimetallism now possible, or at least that is within the independent reach of any single nation, however powerful that nation may be. While the value of gold as a standard is steadied by almost universal commercial and business men. it does not despise silver nor seek its banishment Wherever there is at its side in free and unquestioned circulation a volume of silver currency sometimes equaling, sometimes even exceeding it in amount, both are maintained at a parity notwithstanding a depreciation or fluctuation in the intrinsic value of silver. There is a vast difference between a standard of value and a currency of monetary use. The standard must necessarily be fixed and certain. The currency may be in divers forms and of various Kinds. No silver-standard country has a gold currency in circulation, but an enlightened and wise system of finance secures the benefits of both gold and silver as currency and circulating medium by keeping the standard stable and all other currency at par with it. Such a system and such a standard also give free scope for the use and expansion of safe and conservative' credit, so indispensable to broad and growing commercial transactions and so well substituted for the actual use of money. * If n fixed and stable standard is maintained. such as the magnitude and safety of our commercial transactions and business require, the use of money itself js conveniently minimized. Every dollar of fixed and stable value has, through the agency of confident credit, an astonishing capacity of multiplying itself in financial work. Every unstable aud fluctuating dollar fails as a basis of credit, and in its use begets gambling, speculation and undermines the foundations of honest enterprise.

I have ventured to express myself on this subject with earnestness and plainness of speech because I cannot rid myself of the belief that there lurks in the proposition for the free Coinage of silver, so strongly approved and so enthusiastically advocated by the multitude of my countrymen, a serious menace to our pros perity and an insidious temptation of our people to wander from the allegiance they owe to public and private integrity. It is because I do not distrust the good faith and sincerity of those who press this scheme that I have imperfectly, but with zeal, submitted my thoughts upon this momentous subject. I cannot refrain from begging them to re examine their views and beliefs in the light of patriotic reason and familiar experience and to weigh again and again the consequence of* such legislation as their efforts have invited. Even the continued agitation of the subject adds greatly to the difficulties of a dangerous financial situation already forced upon us. In conclusion, I especially entreat,the people’s representatives in the Congress, who are charged with .the responsibility of inaugurating measures for the safety and prosperity of our common country, to promptly and effectively consider the ills of our critical financial plight. I have suggested a remedy wlifcli my judgment approves. I desire, however, to assure the Congress that I am prepared to co-operate with them in perfecting any other measure promising thorough and practical relief and that I will gladly labor with them in every patriotic endeavor to further the interests and guard the welfare of our countrymen whom in our respective places of duty we have undertaken to serve.

TOO MUCH FOR THE ’CROWD.

The Western Man’s Yarn Knocked His Auditors Cold, “Speaking of hair restorers,” said the Western member, glancing at the baldheaded man, “puts me in mind of a time when I would have been willing to give a couple of years of luy life for something of that kind. In the winter of ’7O 1 was with a party of prospectors in the Sierras. There were three of us, an English professor, a Harvard graduate and myself. Snow began to fall soon after we got into the foot hills, and we stopped at a log shanty built by some one who had been there before us. As we had provisions for two weeks, we were not alarmed, when it became apparent that we were snowbound, but at the end of that time the situation took on another aspect - . We shot a deer, after great toil and perseverance, but our efforts ta secure other game were unsuccessful, and we were rapidly approaching a starving condition.

“When there was very little left to eat but one piece of apple, we built a figure-four trop to catch a ‘snow shoe.’ A ‘snow shoe’ is a hare with large, flat feet that look like snow shoes. Well, the morning after the trap was set we gathered about it, and were delighted to observe that the snow was covered with foot prints of the animal we desired to capture. Visions of a prospective stew arose in our minds, and we looked on in breathless suspense, while the Harvard graduate knelt by the side of the trap and cautiously peered under its edge. Then he arose. He did not speak, but his face told a tale of terrible disappointment. He gazed at the box a moment, and, with a mighty kick, sent it flying in six different directions. The splinters fell to the ground, but bounding away amid the wreck was a large, fat ‘snow shoe,’ and he didn’t stop. The Harvard man had not seen the white animal in the trap, and our last hope was gone. It had the bait.” “Well?” said the fat man, inquiringly. “Well, what?” “Why. I thought you were going to say something about hair restorers.” “Oh, I was about to add that I w T ould have sacrificed two years of my existence to have had that hare in my possession again.” A heavy silence fell over the crowd. The Western man's tale had rendered them speechless.

Welding Lead.

According to the Revue Industrielle, M. Blondell has introduced a new method of uniting lead to lead. The two surfaces to be joined are scraped cleaD and a thin layer of lead amalgam is interposed between them. An ordinary soldering iron is then passed over the line of junction, and the'mercury of the thin sheet of lead leaves the finely divided lead to fuse and unite the two surfaces. It is not how much we have, but how much we enjoy that makes happiness.

DREAMS AND THEIR CAUSE.

dome Explanation of Onr Carious Experiences Wliiie Sleeping. The causes and classification of dreams Is a subject that, although it has been discussed from time immemorial, seems to be as little understood, beyond a certain point, as it was ages ago. At the hypnotic congress, held in Paris recently, much time was spent in considering this question, and though some interesting theories were brought forth the savants were but little wiser when the discussion ended than when It began. A compatriot of Ibsen. Dr. Mourley Void, professor of the University of Christiania, gave the result of numerous experiments made upon himself and others who had lent themselves to the cause of science in. trying to ascertain the dividing line between the rolo played in dreams by the cutaneous and muscular senses and between the true images of the day and the phantoms of the night. You rarely dream, this savant says, that you are lying down, but generally that you are standing or sitting in a way corresponding to the position of the member which makes its impress sion upon the mind. Eor example, if one dreams that he is standing on tiptoe, it will be found that his toes are pressing hard against the footboard of the bed. Dreams of walking, running, dancing and the like are always pro duced by the position of the feet. Another of this doctor’s theories is that when we dream our minds to a certain extent become as they were when we were children. In support of this he says that when a dreamer with half-awakened sense sees bi 3 band before him he instinctively begins to count his fingers. This is because the dormant senses reduces the sleeper’s mind to a childish state of* feebleness, and It is In infancy that our first lessons in computation begin upon our fingers. The visual impressions of the day form another class of dreams. Dr. Mourley Void is of the opinion that happy days are followed by pleasant dreams, and vice versa. Everyone knows, however, that this is not always the case. At the conclusion of the learned Norwegian’s address one of the oldest of his listeners—one of the most celebrated physicians in Paris—remarked-to a colleague that if one has bad dreams It is because of indigestion or too much clothes on the bed or too little air in the room or because his wife snores or.because he Is lying in an uncomfortable position, and that with proper precautions there should be only pleasant dreams or none at all.—New York World.

Colors Used by the Ancients.

Few colors were employed beside Indigo and purple, and these were obtained for the most part from the vegetable kingdom; but their purity was so great that they have kept well to our times, after having undergone for centuries the action of the air and the sun. This fact is particularly remarkable in the Egyptian tombs; the stone has been disintegrated by weathering, while the colors have been preserved. The color that we met most frequently Is a mixture of a reddish-brown oxide of iron and clay, known under . the name of Pompeiian red. JThis color, which has resisted for four thousand, years the sun of Egypt and the action of the air, Is equally proof against acids. The Egyptians reduced it by rubbing between stones under water to a degree of fineness that we cannot obtain nowadays by chemical precipitation. An equally precious yellow pigment, also much used, was formed of a natural oxide of iron mixed with much clay, chalk and water, and browned by the action of the heat; the mixture of the two colors gives orange. For this yellow color, gold bronze or gold leaf was also employed. For blue, they used a glass colored with copper minerals; this pigment was not less permanent than the preceding, even acids 'having very little effect upon It. The artists regarded their colors as Imperishable.

A Nation of Whistlers.

We Americans are probably the greatest whistlers in the world. There are apparently two reasons for this. One is that we are the most nervous of people—we have got to be doing something, we can’t go down stolidly at our work like Europeans or sit silent and contemplative, so we work off our fidgets with whistling. The other reason is that we are really a cheerful and expressive people, In spite of all that has ever been said to the contrary. The national whistling habit has resulted In the production of a great number of really skillful and musical whistlers. With one consideration and another, there is a tremendous amount of whistling. It seems cheerful, and sometimes, to the whistler, it Is. really cheerful; but only to the whistler; that’s the trouble; a man may work off his own nervousness in this way, but he inflicts it on all who hear him; for an ordinary whistler’s performance gives absolutely no pleasure to any one but himself.

Art[?] Measures.

Lettres de cachet signify literally letters sealed with a little seal. Before the year 1790 they could be obtained for a consideration from the head of the French police, anil ware an arbitrary authority for imprisoning any one against whom they were directed. Many prisoners were sent to the ttastlle by means of these instruments of private spite.

Of Another Kind.

Crlmsonbeak—“There’s a man who has done some good work on the links.” Yeast—“He doesn’t look like a golf player.” Crimsonbeak—“He's not. He manufactures sausages.”—Yonkers Statesman.

Practical.

“Would you oblige,” said the reporter who gets novel interviews, “by telling me what book helped you most In life?" After a thoughtful pause the great man answered: “My bank book.”— Boston Gazette.

Musical Women of Japan.

The chief exponents of music in Japan are women. Most men would consider that they were making themselves ridiculous by singing or playing In so* ciety. .