Indiana State Sentinel, Indianapolis, Marion County, 12 December 1894 — Page 9

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i SEGONO Pf ART. PAGfc iS 9 TO 12. ESTABLISHED 1822. INDIANAPOLIS, WEDNESDAY MORNING, DECEMBER 12, 189-TWELYE PAGES. ONE DOLLAR A YEAR.

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a I Details of Mr. Carlisle's Financial Scheme As Set Forth in His Annual Report. 11 BOND DEPOSIT As a Basis for Securing Bank Circulation. A Guarantee Fund Regarded as Important. Iro v 1 m Inn to Ilcqulre rtnel nllonnl Hank to Iledccm III Onu IVotes lit ' Iii Own Office Safety Fund The , Seereturj 's Views on the Tunllon ot Stute Jlunk Currency Yario"i Itecominrniliitioni Are Made. WASHINGTON; D. C, Iec. A. The anr.ual report of the secretary of the treasury on the state of the finances w;i3 Bent to congress to lay. It shjws that ; the revenues of the g ivernment from all j sources for the. fiscal year ended June 20. 1534, wore $372.S0',4t)S. aiJ the expenditures jlli.'iO.". C",S, whieh snows a deficit of ! $i5.S03,2o'. As compared with the liseal j year lM'.'t, the receipts for lb'M fell off $SS ,914J3. Intrir.g the year there was a decrease of $15.'j5',C71 in the ordinary expenditures of the governnn-nu The revenues for the current fiscal year are thus estimated upon the batis of existing laws: From customs J100.000.00 From internal revenue IC.ooO.ooO From miscellaneous f..uroi-s.... lö.nni.it(. Frim p-tal svfvice M. 4127,743 Total estimated revenues.. $lrll, 427,7 IS The ex pi miitu.vj for the same period nre estimate 1 as f -Hows: For the eivil establishment $ 91,230,000 For the inilitaiy establishment C1,2:AOno For the naval e.st.al la hme.it.. 22,f.ty,'"j') F.r the Tii liaa service Il,.o0,o0'' F..r i .-.:..r 1 40,00' V'"') For int rest ori the public debt. nLOOtUHM l-'or p.-.stal o.rvro V4.427.74S Total estimated expenditures, $444,127,7 IS, (t a. deficit ii S-o,oo'VjcO. It is estimated that uron the basis of existing la vs; tin i evenness of the povcrr. merit for the lis al yea. rf lS; wi'd be: Fn m customs JlSö.OOO.OOO From internal jevcruio l:i().nt',yoa From mL-ai-llaneoiLs sjurcos 15.0uM.oo I- i on. iosul urviee RCJ07, t07 Total estimated revenues. ..$470,907,407 I'nrrcncy Keforiu. In d:c.t-sms currency reform Mr. Carlisle says: On the liest day rf July last the t-tal cash la the tr-.i-ury. cxeludhofr current article, up to 1 ee. 1. am unted to 5,;i.s7;5.2i, was i;.;,:.i,2i, ar.-i 0:1 the Jirt day of November the total Cash. -x-chi'lV.'.-r cum r.t 11 toilities, hut including :!.:; in ",;,, v.: Jo'tM'-'J..!. showing a d--r.-is- of ?:),;i'J.t7. The yx, ss of exI -:i l.:a: s ,.v. r re- ipts dtirir.K tha lat li-'-al year w.s '."..200, an.l durii? the f.rt tt ce m-...:hs (if the prv-.-nt fi.-eal year J21.727.r:',7.!'2. U is i;ö: bt-Iievfd, however. that i.s diff -rc-neo) betve.-ia the receipts find expe-nditurea will continue in tlie same I'.--i irtlon un:i: the close of the yc.tr, und aecvdinTly. I have cstimat-d a deficiency of $2e.'?e'i,t"i0 al that time. Owins? to the lare i.nii TMii n ov raw fug:ir in anticij..t!on of the pussisre f :!ie tariff act of Au. 2', the d at Lea c llecitd ea that article, tip i) De e. 1, ttniou.ntel to only J:5,01,2.' ai.t, an 1, of nurs . nothing h is yet 1'Cen reali.ei from the tax on incomes;, as its aynir-nt, cannot ba legally enforced unril af: r July 1, K-7,. Uut th-re i reason to LcÜoye that the Imp rt f lo.ns of stiar nuist be resumed at an early da;.e and cotitin't.-d up n a scale which will yi:l 1 a larg? r -venue from that e -.urcc during the remainder of the year, ar.il i; U probihle, also, thtt nn account of the pomlües which may ha incurred f .r r. n-pi ym-.:it, v!:hin ten days afL.r July 1. a r-..ns; ! -rabie p.trt of the ir.coi.T tax will be realized in time to be available. Ample Iteveiiuc In TSme. My ori'.'"'i is that the laws now in force will yiell an ample revenue for the fiscal year as all th::r provisions wi'.I then be operative and the prospective im-I-roveinent ia the business of the country, if raa!:z.-d. will pre ally increase th? reRurce3 from which taxes are collected, and accf-rdlr.rr'.y a surplus of $28,S1 1,92') Is eLima:cd f -r ihat year. In my last aa iual report I called attention to the unsatisfactory condition of our financiil le-r.!arkn. especially to the isu? ond r-dmpriei of circnditlnc notes by th Kovernment, and th inability uf the Pecreiary of the treasury, under existing 1 t'.vrf, to make prompt and adequate Provision for the sup;orc ef the public credit. The exiMrin'-; rf th list year has c nfnnel an 1 siren !rthonn 1 the opinions then xpr.-i.-e.l, arwl I. therefore, req.ft fully but m -st carnesJy urse upon con-rress the r.ecvsslty f .r remedial legislation during the rres.-nt session. The well-known defects in fair financial tystem, an 1 the - riom nature of the evils threaten-' by the.n, have done more durin the last two years to Impair the credit of the government and the people t-f the Fr-it'd States at home and abroad, and to clifk our. industrial and commercial prrvros, than idl other things ccrnMne 1. and our first anl j-1 tinen duty Is to provide. If possible, s-ima effective xneth'xl for the prompt and Txrmaii"nt relief of the country from the eor.se-nu-noes of the present unvie r"liey. A Tripf statemr-nt of the practical and unavoidable results cf the exis-.lnp legislation will demonstrate its injurious effects upon our financial affairs ni"ro cle-irly than any arutnent tint could be etibrhitted. The FIrt Ilonil Jxane. The secrftiry then reviews the clreumFtances leading up to the fira $30.000,000 Issue of bords a. . means of replenishing the gold reserve, yibliiaff $:s.r,t)0,017, and l.ncroair the frei? g,ll in the treasury to J107,ilC,Vi2. The hwest point reached by the reserve since the resumption of fpre-ie payments wa.s on the 7th day of Au?ijt, 1sj4, when, by reason of withrlrawals" in the redemption of notes it was n-Ju'-e-l to $32.1SD."0'). After that date It was slowly replenished by voluntary exohtnifes of gold coin for United S:ate nor-j by balk and by s.nall receipts of gold in the payment of dues to the povernment untd the llth of November. 1S34, whn It reach'-1 the sum of $1t.fi7U74. In the meanrime. hoxever, th? frequent jrres r.ta ti m of notes for redemption in srf 1 1 ly individuals and i.asiituti oru not desiring i; fr xrt, ck-arly iaJicat.3 the existence

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of a feeling cf uneasiness in the public mind, w ' forcipn exchange was almost constantly at or near a rate which made i: more profitable to export gold than to purchase tilis. and censrejuendy withdrawals for shipment were daily threatened. In addition to these causes of anxiety, the vast accumulate jn cf money at our linanc ial centers and the perioral depression in business which prevailed ia this country, had so reduced the rates of discouat that the inducement to keeni funds abroad, where better investments could be made, were mu--h greater than in ordinary times, and this, together with the ether facts stated, made it hiphly impruient to n??l?ct any precaution which appeared necessary to insure the safety rf our financial position. Therefore. th s -cotid issue of $"0,000,000 was decided upon. For this issue, proposals for which were issued last month, 4; hi Is were received, amounting to $17ü,S3H.O30. nearly all of whi.-h were at rat's whi h would yield to the investor 3 p:-r cmt. rr 1--SS. One bid f t the wh.-.Ie sum of $30.upon the basis of 2.S7S per cent., and heirer t!ie mist a 1 vanrapius offer for the givtrnment that was made either singly or l y apurrepating the separate bils, wa3 aeeepte.1. and tHo proceed of the sale, J3S,.VS.Ü'iO, have renly all b'.n pii l into the treasury according to the terms of the .ale. Negotiation of I.onn. On this subject the secretary says: Tha transaction justifies the opinion that a 2'i per cent, bond, having1 a reasoraV.e time to run, could rrobaWy have been sold at par, and certainly a 3 pr cent, bond could have been disposed of at or above that rate. As the authority ti isu3 and sell bnds already exists, and tli ; present state of our financial lepislaüj.a compels its oecasijhal exercise, I repeat the recommendation made in my lat annual report that, in the interest cf the government and peej.e, power be conferred upon the secretary of the treasury to neK .Mate loans at a low.-r rate of interest ar.d for a shorter time than are now allow? J. The existence of such authority, i.tsrea 1 of incrr asuip the probabilities cf a frenuent resort to that means of ra'.sinp m nt y, wuid have thu ontrary erTect, because when it is known that the secretary of the treasury is clothed with ample power and facilities to procure m.-ans f the maintenance of ih- reserve puV.ie con-

i i li lence in the ability of the government a I meet promptly all demands upon it will be much stronger than under present circumstances. lreenl System npfective. "Under our present currency system, ro far as it consists of notes issued by the United States government, the volume- of circulation was inter..'.: d to be, and is, in fact, unehanpable. It is unalterably fixed at a certain amount, and no matter how great the emergency may be, it can be neither enlarp d nor diminished. The only prt of the currency p...-.-essi:isy in any degree the quality of elasticity is thtt issued by the nat; m il banking associations, and it is now generally conceded, I believe, that in this particular, at 1 ast. it has failed to meet the requirements of the situation at some r.f the nnst cri.ieal ptriods in business affairs of the country. Its failure is credible, in my opinion, to three principal causes: (1) To the iarpe volume of United Slates currency of various kinds kept constantly outs". indi.ag, m eking the contraction cr expansion o" the- comparatively small national bank circulation less effective than it would, o:h rwi-o have been. (2) Ti;:- dilliculiy end d hy in pivcairing, and. to some extent. Li r, -tirinp circulation. (3) And. mainly, the provisions of the law which rcrjuire the d p sit of United Slates bonds ta scour? oireuhtm and r-strict the issue cf notes to t3 per cent, r.f the pir value rf til? bonds. With ?tiOO,(Mo,ooo in United States notes, treasury notes of 1st!), silver certificates und cold certificates, besides about S'i2.".onf,0'ri in pold and silver ee.ins, constantly outstanding, none of which can be lawlully retired by the government without tlie subtlti?:ioii of other currency iii its pi ire, the national bank notes, which amount to only ?2-l7,.'iO.,,.iO. or about 12 per cent. C'f the wli io, c;m not exert a. very effective influence uinei the volume of outstanding currency at any time, and epe.iilly at times when lari contractions r expansions nre most needed, but tlie greatest dirüculiws .are enoountored, and the national banking syste.n as now organized is least cff.'ctive. when the business of the country demands quick expansions of the currency to meet sudden emergencies. Aiuillirr 4 Its t rucl ion. In addition to existing obstructions to the prompt increase and deerea.se of circulation, H).- ninth section, of the act or July 12, 12, which provides for the extension of the corporate ixistence of national banks, expressly prohibits them from retiring their notes to a greater amount than 3,ii(),0'0 in the aggregate Ier nunth and advocates that no bank which made a deposit of lawful money In order to withdraw it.s circulation hall bo permitted to make any increase in its circulation f. .r a period of sixmonths thereafter. These provisions are so manifestly in contliet with the dictates of sound policy that they require n.i comment. So long as there tire in circulation, under the authority of the government, two relm unequal in value, but equal in l pal tender qualities, every consideration of pool faith and sound policy requires the prunpt redemption rf the notes on presentation in the kind of coin demanded by the holder, and the constant observance of such administrative methods as may be necessary to preserve the purchasing power of the icss valuable metal. This is essential to the continued circulation of our standard silver dollar, and their paper representatives nt par, and to abandon this policy without substituting a better one in Its place would not only fail to cure many of the evils now existing, but would entail upon the people of the country additional and greater ones. Three Feature. This situation is the necessary result of three features of our currency lei-lat ten, and it emu t be permanently avMJ-J or even temporarily improved without material changes in our laws redatinp to thit s'ibjivt. This? feit tires are: (1) The circuliti nt of United Stttes notes as currency and their curr-nt redemption in coin en deimnJ. (2) The compulsory r;i-?ue of such notes after redemption. (-1) The excessive accumulation and coinage of silver, and the issue of notes and certificates against it upon a rati) which greatly overvalues that metal, as compared with the standard unit of value ia this and other prlrHpal commercial countries. Frequent issues-of bonds f r the purpose of procuring pold, which cannot be kept aftt r it has b -en obtained, will certainly cause increase,! distrust among people of other countries, and not only swell the volums of our securities returning from abroid for sale or redemption, but Increase the withdrawal of foreign capital heretofore inv"t5td In our domestic enterprises. Ordinarily, when thn 13 no distrust of our currency or other discourvcing- influence, a considerable part of the Interest and dividends earned by foreign capital in this country U annually or sumi-anatul-ly reinvested here, and this, together with the fact that undr normal conditions the balancd of trade is in our fiver, enables our people t) meet their oblipa'dons abraad, without reducing their stock of mney at home. ldut when distrust arises, either as to our ability to pay or as to tb? value of the money with which we intend to pay, the f relga capitalist not only eases to reinvest, but jroce-'ds to withdraw all his mon-y by disposinr? of his American securities in order to protect both capital and income agiinst thr.atenel depreciation. Thra are lut two ways in which this withdrawal can be affected ne for our people to export and cell their com

modities !n foreign markets to a sutTiei'nt amount to create a balance of credit in their favor, the amount to be withdrawn, and the other to ship gold, that b 'iag the only money ns? agnized ia the settlement cf internatianil balances. Hut, independently of these const !erati on?, cur own people have a clear rit-iit to demand a sound an 1 stable currency for use in the transaction tf their bu.-ines3 at h-.me, while their partly comnviviil ivlations with the people of ether canal -s, upon whom the producers Of exportable commodities are eompell.-d to rely for the consumption of their surplus, can not be profitably maintained unless they are always in a c 'nlition to pay for what thy buy in as goal money as they receive for what they svll. We can not. therefore, preserve our trade relatim3 with best customers for our surplus products unless we m.-intaia a monetary system substantially in accord with theirs, and until they manifest, a disposition to co-operate with us in effecting a change upon terms j;:st an 1 fair to all cur interests, we ought to continue cur ad

hesion to the gold stand lrd of alne. with as large a use rf silver as is consistent with the strict maintenance f that peliey. Mennee to the Cold Heservc. Fincc tha resumption cf specie payments, rn the 1st day of January, 1S79, United States legal tender n 1l and treasury notes issued under the act of July 14, ls:-0. have btH-n redeemed in g !d to th atnmt of $2tiO.0(:0,C0'), and all th. notes so retleemed have been re L-stJi d. ni are n -w outstanding. Tney are a constant menace to the gold leserve, and no sOiani of linancial r:fcrm can bo complete or efiectu.d which docs not ptovidc, at least, f r their gradual eliminatij.i fr:m our currency system. To continue tia-lr i-dc:r.pt!..n und reissue lit dor pre.-en: o r.lid rs e.-dang-ra the entire volume of cur currency, discredit the oulifiati j:is of the government an 1 people, increases the public debj and s-rieudy embarrasses the adannistrati in cf our financial affairs. Whiie no proposition tboutd bo entertained that will have a tendency to degrade the currency, or in any degree impair public confidence in its safety, I am convinced that the interests of the country require such changes in our Iegi.-la-tiun as will discharge the government entirely from the business of issuing or reissuing circulating notes, and thus relieve its fiscal department of the periodical demands uio:i its resources, which, under the existing system, nw-t continue to disturb the financial and general business affaird of the people. It is not the capitalL-t alone whose interests are affected by the use or threatened use of a depreciated and lluetuating currency and the con-eq jont derangement and diminution of business. A paralysis of business, whatever may Le its ciu.se, strikes first the weage-earner, then the man f moderate means: and lastly the capitalist who has accumulate 1 a surplus store of poods or money. Arbitrary regulation of the volume of circulation to be lo-ot outstanding iswholly iticonsisient with the maintenance of a healthy linan i ll condition, and is the exoivlse of a fun ii, ;i widen doo.s not pr peily belong to the p. ivernment of the Unite 1 States rr any cole;pullic authority. Its effect is to f,!.e paper currency upon the peel le v, h- n it is not needed, aid deprive them of is when it is iieel-d. thus establishing and maintaining an improper and unwa--ranted connection between the gove'iment and the private business affairs rf its citizens and making their ue v-si'id p.oseomion lar-r,Iy dependent upon the jade:iiviit rr c.ipti.v rf a sup-ri-.r hath rity having no interest in the transactions, except, perh tps, a partisan interest, not ia harmony with see. nd fis.-.il arranc;emrn'.s. ii:t.ii-m op 'in: sc iini: Soerc-tnrj- C'h rlile! IM an for Ileforiu f the "iirr-iey Sj lem. In vi w of t!i? f'r.goh g consideration!-, and in my others thrt might be urged in fiv -r of a a-, rgini-'. ui a:id rcfoien t eJ ,n of our pipr carrchey systeni. I hive rr -pared the oulli'dogs of u plan wiiic'i, ia my opinion, will relieve th pm'ernaienl tj an extent fr m t'ae b;:rl cs re vv i;np .sod up .11 at, s-. ure within a re-sonibK-time a sife and elastic naii.mil and state bie.k curiency, and result uliimit ly in the permanent retirement of United States legal tender notes of b th classvs. It i-, in brief, as f .Hows: 1. ltepeit all la .vs requiring or av.th rlzIng the dep sie f f Unhid istits b.ioii as security f -r c if. til it: :i. 2. Penult nati nal b't.ks to isue notes t an iiiiiuiK I;. t exc-idhig 7". per centum of theic paid-up a:il uaorpehod capital, but n iuiie euh htr.k b-. fore receiving notes in deposit a giifraaiee land, cendsting of l.'nited Siap-s lerl tender note, Including treasury n etes of l'-aa, ti the amount of öi t'-r cent. ujon the ceroid itl.'hg notes outsta.idi.nr, t be nnhitihie! at all tine's, and wh. -never a bank ledro.its ciivul ition in we.-d.-, or in part, its guarantee fund shdl be returned t it in preporiion tJ the am mat of notes retired. U. ll.t lin the pr-ov:-1on of th? luv miking st je'Kholders ii.dividu ill v li ible, and provide that the ein ul.it i on notes shall constitute a fust l.eti up-ja all the. assets of tih' ba:K. 4. Impose on half of 1 per cent, per annum, payable semi-annually, up,o the average cmount f notes in circalatLon to delray the expenses of priming notes, ofilcial sup.-i visi ; eancellati-.u, t-;e. f. No natioml bmk ncte ta be of less denoininati n than $p and ail n tics of the same den-.nilnirion to b? uniform in d -Sign, bat banks d-:-iring t redeem their notes in gold may have th-m made piyable in that coin, the secretary cf the treasury to have authority to prepare and keep on hand ready for issue up n application a reserve of blank ntli nal batik uO'-i for each bankin; lion. ssociati-vi having .ci.-o-uli-C. Require each national bank association to r. eh em i"s no-.es nt its own oiHce. or at Its own ctlicial agencies, t-j be d.-ig-natel by it. 7. To provide a safety fund for the immediate red.nmtion f the circulating ;we.of failed hanks. Impair a -tax up in ill : average circulation of each bank until th fand amounts to 3 pr cent, of the total circulation outstanding. Require each new bmk and each bank taking out additional circulation, to deposit its proper proportion of this fund before receiving no-s. When a bank fails its pituuntec find. h"'.d on deposit, shall be paid into the safety fund and used :n the redemption of its notes, ar.d if this fund shall be Impaired hy the redemption rf th?. notes of fa Ural national banks, and the immediate available cash asets of such b.mk-i ore insuttu-i m'to re-establish the fund, It shall at once be made pootI by pro rata ass.essm .nts up n the other banks, according to the amouwts cf their outstanding clrcui ati n, but there shall be a firt lien up m ail the assets of failed binks to rumbur.-e the contributing banks. The safety fund may be invested in outstanding United .States bonds having the longest time to run, th bonds and the Interest lipon them to be held as part of the fund, and sold wlvn necessary tf redeem notes of failed bank?. , 8. Repeal the provisions of the reorganization anil ex U-nrc.oii aet of July 12, lell, imp' sing limitations upon the reduction and Increase t-f national bank circulation. 9. Repeal all rrovisior.s of the law re quiring banks to keep a reserve otx aeoount of deposits. 10. The t;ei rotary of the treasury may, in his discretion, use any surplus revenue of the United States In the redemption and retirement of United States legal tender notes?, but such redemptions shall not In the aggregate exceed an amount e-p.nl to 70 per cent, of the additional circulation Uiken out by the national and state banks under the system herein proposed. 11. Circulation notes issued by a banking cororation, duly erganizoil under the. laws of any state, and whla transacts

no other than a banking business, shall be exempt from taxation under the laws of the United States, when it Is shown to tire satisfaction of the secretary of the treasury and the controller of the currency (!):hat such bank has at no time hid outstanding its circulttion notes in excess f 75 per centum of Its paid up and unimpaired capital; (2) that Its stockhdnVrs are individually liable for the redemption of its circulating note's to the full extent of their ownership of stock; (Z) tlict the circulating notes1 constitute by. law a first lien upn all thi assets of the bank; (4) that, the btnk at all times keeps the guarantee fund in the United States bgil tender notes, Including treasury notes of isdo. equal to .10 per centum of its outstanding circuliting notes; and (3) that it has promptly redeemed Its in .des on demand at it.s principal office, or at on? or more of lt3 branch ofilces, If It has branches. 12. The secretary of the treasury may, under prooor rules and regulations, to be established by him, permit state banks to pnv-nre and use ju in.3 preparation of their notes, the distinctive piper use! in printing United States securities; but no state- bonk shall print or engrave Its notes in similitude cf a Unite! States note, cr certificate, or national bank note.

TIII2 SriCItllTAHV'S VIEWS. 111 Rennen for Advocating; the Troloo I Change. Whatever may be tiie objections to the i'iue and circulation of United States legal t lrd r paper, up r. either constitutional or financiil grounds, it has become so incorporated into our currency system and constitutes so large a part of our active circulation thit i: could not be suddenly with-c'rav.-n without produeing, in tlie present state of cur laws, cor.siJcralle disturbance in in? fiscal operations of the government, as well as the husi.'ess of the people, and, f.itref iv, tli ej plan ltcvv suggested provides f t its gr adu ü retirement by the us? of sui this revenues lieieafter received, a process which will probably require several years f r its co.rr-lction. As these notes can not be retired until other forms of curren. y t) an equal amount luve taken their 1 1 ic th-er-? would be neither a forced eontracti.ei n-r opiien n cf the circulation on account of the change. As th? plan .suggested proposes to exempt th" government of the United States fr an ail liability for the redemption of nati ri.il bittk notes, and plaee the sole resp.'i esi! lüty up.n the Links themseives, a guarantee fund cf n t I ss titan CO per centum upon the outstanding' circulation is regarded as a very proper and necessary tenure of the system. In my opinion the inip i-i.ion of a tax by the federal government. i:poa the use rf circulating notes lawfully issued by state banks is an unjustifi-ab!-. if not an unconstitutional, intorfere.i.e with the authority of the sever d states; l ait its validity has been judicially sustained, and, as it does not appear to be pr.aeti , aole to repeal it absolutely at this iim- k is prop ised to avoid its prohibitory i ff et by exempting from taxation the notes of such banking ins.itutiot.s as may be organize 1 and cei-idu ted under condili :is whi eh will amply protect the hollers of their paper. While direct governmental supci i-i :i is r.3t, and ougiit not to be, pt-evi l I for, te.e requirement that a bank, iti t ruer to set ure exmipti m from taxation, must se.tisfy te.e secretary of the treasury ..-.id th e tuptr. H'-r of t;ie curri'ncy tiiat it his ecmriiel wiei rdl the cei.litions impos d. will entol'- th s r oiiicials ta adopt .uch inrt'.sures as may be. necessary in each ease to seetiro every material fact involved in t'.i ieq iiry. It will he il's:rvcd" that the plan Fubmiitel j.ropo-es the repeal of all provisions of xistinti laws -which require national banks to hold a fixed reserve a gains t de:osi:, und, us this is a depirtuie from the piaetiee which has prevailed continuously for more than thirty years, it is proper to state, briefly the reasons wider. have prompted me to ma so 'ibis suggo? if -n. When the na:i it il banking system w..s originally aura rie'd. it was regarded by many as a doubtful experiment at first and various pe. e au ti nary rest fiction were imposed f r the security oZ tlie note-holders and .le .-it. -iv, which practical experience has since shown to bo unnecessary, and. sometimes harmful. Among these are the roquircmnts that bonis shall be deposited secure ;n) per cent, of their par value in t ircul.-it ing notes and that a fixed reserve, v.'ri ii cann t le lawfully diminished, sh.ll b? ledd on account of deposits. TP" co:i-equetio of this last requirement is that wh-'-n a ba.nl; stands in need of nl) its resu:ves, it cannot use them without viohitinrr the law. The neofssliy for holding a sufficient reserve :igii;i-i deposits Is not quesitmid. an I, in fact, the business of re-e---iing deposit anil discounting paper oimht never to be conducted without it, but it should le bell for actual use when the ova-ion arises, and then not made legally inncoessible at the very time when it was theoretically supposed to be beneficial in sustaining the credit of the. bank and n If oeding relief to Its customers. Under the present law, when a bank finds its rc-erve in danger of reda -ti"ii below the legal requirements, on aeco.int of che demands of its depositors, it is compelled at orve to call in its loans, thereby increasing the distrust and arrqavating the situation, which a j adioioiis use of th reserve would have relieved, and, besides, at s-uc h times, in otoii-r to protect the reserve, which is then practically useless for ail practical purposes, chining house certificates, vari u.s forms of time checks and bilia end other devices of doubtful legality are habitually ies rt 1 to for the purpose of siq plying circulation to take the place of the lawful money lying idle in the vaults of the banks. To provide for a reserve which cannot bj utilized at a time of the greatest strin geticy and distrust without incurring the peniltis of forfeiture affords a most striking illustration of the impolicy of legir '.at iv? htert'erenc with the natural low of trade and finance. It is not the duty or province of the government to eeitrol or regulate the private affairs of th? po-rle. except f.r cert i in well defined purposes, and as the custody fiul use of fundi Klc.gaig t dipe-tOrs are nutters wbo-h affect only the Interests of the un mediate parties, they should be left to th ir own judgment and discretion. Th duty of the government, so far .14 dt has any duty in the premises, is simply to provide that all the currency issue.! under auth'-r'uy Is sudhi 'mly secured topi"? vent its 1 i or d.pieclation in the hinds of th people who are comp.-lled to receive and py It out In the trans ictlon of busilrü.i; but ,a bank Is not dependent upon the i-' vernri-mt for euthority to receive deposits and its us? for tint purpose by the publio is as purely voluntary as th? credit exttided to any other corporation or t a private individual. livery prudently m.mig"d bank, if leJi f to conduct its own deposit and discount business in the mmmr most advantage jus ta its own intre.sts, anel the interests of Its depositors, will keep oa hind a rem 'hibl? reserve to meet not only all the ordinary demands upon tt, hut to provide far such emergencies as are liable to occur in the community where it Is locitd; but It ought not to b? prohibited by law from using such reserve for the oily purposes It was design?'! to accomplish. The requirement that the btnks shall pay th ir own oblipitions Imposes upon them no greater hardship than is imposed by luv upon every other business and financiil institution In the country, and the only argument thit can be plausibly urged against it in the eis? of the banks Is thit as the government has undertaken through their agency to secure a sound circuliting med. urn. It should pledge its cred.t to keep it pood under all circumstances. The conclusive answer to this Is that th" government has d'sehtrged Its whole duty in the nutter when it has, by Its ler i.-l ;ti -a. prodded such safeguards as will, with honest and competent mangehieat, euarant-.e the ü.retv of the lautes

issued by it3 authority, and this Is one of tha results which th? pressed plan i3 Intended to accomplish. . In order to provide a wide field for the i active circulation of our stiver coin3 and certificates, which now constitute about one-fifth of" the entire volume of our car-

rency, and to protect tha treasury as far 1 as possible against the accumulation of ; certificates returned in payment of cu3- i toms and other dues to the government, j ir. is proposed that no national bank note of less denomination than $10 shall be Issued. The bank notes under denominations now outstanding amount to $C3.2."8,949. and there are also in circulation $04,41S.SSI in old United States legal tender notes in codenominatJon-i less than 510, Ji;o,9'J3.tt.-.S in treasury notes of 1SD0, and $131,047,574 in silver certificates, making in the aggregate J31S.618.9S3 in small notes, or only about JlD.OMaJOO less than the entire issue cf silver certificates. The fact that out circulating medium is composed of so many different kinds of currency would seem to require the enactment of such legisLition as will provide a place in which each can be sife-ly and conveniently used, and as this can be done without discriminating against any of them, it ought not -to be omitted from any plan which proposes permanent charges in the system. Policy of Other Conntrlen. The policy of various other countries in this respect appears to have enabled them to avoid the dtfflculties encountered here in the attempt to keep less valuable coins and their representatives in circulation without derangement of the currency cr d.sturuanee of the public finances. Great Rrltain. with $353.000,000 in gold and only $112,000.000 in silver, none of which is full legal tender, authorizes the issue of no -note of a less denomination than, 5. equal to $24.03; France, Belgium a-n,l I:aly wkh S'.OoO.OOO in gold and S.dS,30'.0oo in legal tinder silver, issue na no.e-, or a less denomination than 20 francs .c- yjt. x ir.-a ue.iunu.-uuon man o irancs fa.se.) ; Holland, with J27.SM.W) Ln gold nd JÖH.400.00') in legal tender silver, issues ttfJ.Vj) an no paper be.ow 2. l'ionns ($10.03); Spain, with $lo.ooo,e00 in gold and it?.; eon ena in legal tender sliver, issues nothing below 2 pesetas ($4.72); Denmark. Sweden and Xorway, with $2S.0O0,0oO in pold and $12100.000 ia limited legal tender silver, have no paper under 10 crowns $2.Cs). and Austria-Hungary', with $130.000.0m) in gold and $Sl,O'A),00t) in legal tender silver, is praduy retiring all notes under 10 crowns Xone cf thesi? countries have any paper based exclusively upon silver, as we have, and consequently ail payments made in sums les. than the denominations of notes mentioned must be male in actual coin which would not be the case here if the recommendation now made should be complied with. Our stock of full legal tender silver cans is larger in proportion to the stock of gold than in any of the countries named, except Holland, .Spain and Belgium, and yet we continua to obstruct their circulation by the issue of small Unite! States notes an l hank 'notes, which serve the purposes of the? people in their daily transactions no better than the coins or certificates based on them. Th? experience rf this country under the act of Feb. S, 1K74. which limited silver certificates to denominations cf $10 and over, and under the act of Aug. 4. Ins;, which removed that restriction, justifies the belief that tlie change now- proposed would, result in a greitly increase! use of silver coins and certificates, and they would be much Lss likely to return to and remain in th i treasury than at present. At the tini" of the passage of the act hat referred to permitting the issue of silver dollars, not represented by certificates, in denominations of 1, $2 and $5 standard silver d .liars had accuniuhtv-il in the treasury to the amount of $s3.!3c,SS'. althougiit the total amount up to that date was only $2.:..fil3.2Si. Within four mi-nths after that date, although in the meantime the coinage was progressing at the usual rate, the amount of free silver held in the treasury was reduced to $71, 259.r.uS. anl it continued to decreas?, on account of the demand for small certificates, ut; il it became so reduced that further is--.ues of cert ill Mte.s ha! to be limited, practically to the current coinage tf the dollars. SOMH TAH IFF rOIVTFHS. The Seeretnry Ilellcven In a. I.nvr for tlie Mulmes. On the subject of revenue reform the secretary says: If this country is to utilize to the fullest extent the opportunltic'S offered by Its geographical position, natural resources and the mechanical skill and commercial enterprise, of its people, it must adhere steadfastly and aggressively to the revenue policy inaugurated by the present congress at Its last session. The reduction of taxation to the lowest point compatible with the collection of a revenue sufficient to maintain an efficient public service is a duty which, upon the plainest principles of justice, every government owes to Its citizens under all circumstances; but when the taxation Is Imposed In such form rr at such rates as to increase the cost of living and obstruct the processes of industry and trade, this duty becomes etill moro imperative, and a failure to discharge it when the power exists is a gross violation of the public trust and confidence. For many years our tariff laws have been framed upon the theory thit the wealth of the country could be increased by imposing burdens upon the people, and that the prosperity of our industries could be promoted by increasing the oet cf production, and the result has been that the net profits of labor and capital cenistamly diminished until Lhoy reached a po'nt which made further development of our resources almost impossible. Rut little opportunity was afforded f r the extension of our manufacturing and mechanical Industries, or for the growth of our trade- at home or abroad, and thus th; farmers and other producers of the country were confronted by a situation which compelled them to receive diminished reward?" for increased production. A chin go was demanded by every considerition of public duty and private interest, and, although the recent lcgislition did n t accomplish all that was expected or desired, it inaugurated a policy which it is hoped and believed will ultimately result ia a gf'ot improvement in our l.ndustritl condition and a corresponding enlirponient of our internitionil and internal commerces. In the prosecution of this policy no temporary check or apparent diversion of the public mind to other subjects should be permitted to diminish our confidence in our lin il success or weaken our determination to maintain a consistent advocacy of its cliims to th favorable cniisdderxtiin of the people. On the contrary, reverses should stimulate increased efforts, and every movement hereafter mach should b3 a step forward in the direction of freer trade and a more equal distribution of the rewards of industry. The raw material used in the production of commodities for the uso cf th people in their homes and in their various Industrial pursuits ehould be free from taxation, ln order that the burdens of labor may be lightened, the opportunities for employment increased and the necessaries of life made more abundant and loss expensive. If our industries are to be profitably conducted, reduced cost of production must precedi or -accompany reduced prices of the finished product, and as cheap commodities increised consumption, the interests of all claso" will be promoted by removing th? ob-hructi on3 which deny cur skilled laborers and artisans access to the world's store of raw materials. The late act, while It places upon the free list a considerable part of most Import raw ma.erials used ln our manufacture, left iron and lead ores and bituminous coal, together with several other articles of less consequence, still dutiable, thus not only falling to put In force a consistent system of revenue reform, but leav-

ing some of our most valuable industries at a great disadvantage compared with their rivals differently located. There are other defects consisting of ambiguous plvraseolnpy in some of the para- j graphs, and inconsistent and excessive !

rates of duty in s ome of the schedule?, a correction of which would be in harmony with a policy of progressive reform, up :i a basis of equal justice to producers and consumers, and would not a fT ect the revenue to any considerable extent. Advantage should be promptly taken rf every opportunity to remove all these objectionable features from the act. in order that our legislation may be mad? t conform, as speedily as possible, to the pledges given to the people and to the demands of public sentiment on this subject. crniiRXcv iiiifoum sciikme. Tlie Plan .Advocated hy Carlisle CntiMCft Comment. WASHINGTON'. Dee. 7. Mr. Carlisle's plan of currency reform is naturally attracting great attention in and out of con- i press. Mr. Carlisle, it is expected, will ' next lM.irif1.iv nrin.-.a" l.-.f.-,r.- i.- le-e... r.-.-- 1 TTU 1 1 eA On binlHncr an.! niri-ünv - nri-re.. ' any questions that may be asked in far- 1 ther explanation of his proposition and to assist in the rrei.i ration of bin covering his views on the subject, which will soon be introduced by Chairman Springe-r While Mr. Carlisle's plan is ftvorably commented on by many prominent members of both houses, there are others whise opinions are of value whi argue that the plan proposed by Comptroller Kekets in his annual report has superior merit and when thoroughly known will meet with general approval. A prominent senatc r who Li rec- grdzed authority on all financial questions explained to a representative of the Associated Press his views. lie said: "Mr. Carlisle's plar.s of currency reform, when applied to practice, will produce the following result: Taking for the purpose of illustration the example of a bank having $100,000 capital, such a bank would be entitled to issue notes up to the limit of $73,000 (73 per cent, of capital), but before doing so must deposit 'legal tender' notes to the amount of $22,500 (30 per cent, of circulation). This, in eftVct, would be equivalent to a net issue of $52,50 circulation by the bank, or $73,000 received in notc3 from the government minus $22,500 in notes deposited with the government. Upon this $52,000 of currency, Ihe bank would earn its profits, provided it. could keep them in circulation, after deducting costs of redemption, tax for 'safety funds' and tax for administration of comptroller's bureau. "As a plan for relieving the general government from tho burden and charge of redeeming United States notes it would, accoreling to the secretary's estimate, result in securing the temporary deposit of $223,000,000 of these notes with the, government, if all the national and state banks now in existence should take out circulation to the full amount proposed. "Ret us see bow this result would be arrived at. The present capital of all national banks in existence is. about $VJS000,000. If to this is added $..32.000,000 as the capital of .state banks availing themselves of the privilege, a total capital of ?l.ooo,0,)0,000 would be bad as the ba-ls upon which to issue currency. Assuming that all the banks possessing this capital issued currency up to tlie full limt of 75 per cent., we will have an isto of bank currency to the amount of $7..0.(iOO,oov). Against this legal tenders to the amount of SO per cent, of circulation must be deposited, or $l,L'ö,Ooo.O00. "What will be the effect of this upon tho voulme of money in circulation? "Add bank notes issued, $750.ooo.OoO, less national bank currency retired, $172,000,000; legal tenders deposited and withdrawn f.-o.n circulation. $225.0' -0,000 ; total, $3!7.ooo.ooo ; not increase in circulation, $115 ,- Oiio.nii.i "Assuming that this increase could be kept in circulation, withdrawal of 225.('00.090 of United States n t s is eft' -ctel temporarily; bat as th-re are ?4fi$.C0O,(i'.H ' f these altogether outstandi: g, there would still remain outstanding the major porti m of the moss, or about $243.ooq .000; to harass the treisury by presentation for redemption in pold. If the $50,000.000 is not kept ia circulation, tho amount of legal, tenders 'released by redemption of circulation' woulJ be actild to the large? sum not fun 1cd. Again, if the lgal tcni-rs deposited by the banks is to he used for redeinoti jn of these notes on presentation there would be no difficulty in procuring any amount of them by presenting bank notes. Comptroller Eckels gives but few figures on which lo has? computation fir his plan. "In this feature therefore there is neither expansion nor contraction of the currency, simply the exchange cf one kind of currency for another, just as pood, but for the purpose and with the effect of entirely relieving tlie government of tiie burden and cost of current redemption durirp the e-x-istcn.-e cf the bank receiving and issuing the same. "Under this branch of the comptroller's plan with Jhe present capital of National banks (viz. $t...s.0o0.000 $::34,00o,ix0 cf 1-gal tenders would immediately be retired and withdrawn from the possibility of being redeemed in gold by th" general government while a banking capital of $l,oo0.000.000 would serve as the lu-is for retiring the tnitre issue both of Unit, d .States notes and Sherman act notes, amounting together to about SIOS.000,000. While under the secretary's plan a capital of ?l,ön0,0e0 would effect a withdrawal according to hiown estimate of only $225.000,0-10. Should tho hank notes issu d against 'legal tenders' be made available for lawful money reserve against deposits as are- now the legal tenders, this would operate to withhold them from redemption by the banks. "Passing to the. other feiture of Mr. Uckels's recommend it i'n it is found that A btnk with $10O,0"'O capital could also isbuj as much as $50.000 of safety fund notes, constituting a first lien upon its assets, and upon the liability of its shirehold.-rs. and redeemable upon the failure of the hank promptly out of a 'safety fund.' created by a light tax upon all th? banks issuing this kind ot circulation. It is upon this class of notes that the bank would make a profit, which would be a clear one over and above the light expanses f r cost of redemption and taxation for the safety fund, cost of operating the comptroller's bureiu. It is !n this class of currency pl-o thit tho 'elasticity would be f mml, for each bank could Issue either none at all or as much as 50 per cent, of its capital." I'rourram Aureed I inn. A program far speedy considers t loan of the financial plan proposed by the president and Secretary Carlisle was arranged by the house committee on banking and currency today. Thro? resolutions were passed. Tlie first specifies that the financial plm, as outline by the president and th? secretary of the treasury, shall b? taken up next Monday, and thit Seeretary Carllsle and Comptroller of the Currency Kekel.s be i ivit"! . b:f.r? th? committee at 10 a. nt. Monday and thit the h-3ri;igs close on Saturday, Dec. 15. There was little division of sentimont as to tlie hearings and no vote of s'gnTiear-ce wis tak 'n. Thi sentiment among the democrats was for proceeding as fist as possible and reporting a bill before the holidays. A see'onel resolution authorized Chilrman Springer to Invit? persons before the committee! next week to give their lews. This excited some comment. Mr. Walker moved indefinite postponement of the proposition on the ground tht there had already been "too much ta.k" in the committee. The resolution was carried, however, although Messrs. Walker and Johnson, republicans, opposed !t. A third resolution was adopted authorizing a call of the committee at any time, and nuking five a quorum. This is to prevent delays

in the spoony preparation of a bill. Ths meeting dlsci-osed thit there would b? no factious opposition from th? republican towards getting a bill before the house. I.nroj- for h n i:ia4lc Currency.

CHICAGO. Dec. 7. The gentlemen, of the Sunset club sat down to dinner last night at the Grand Pacific. Secretary rost Introduced Mr. id. S. Ric?y, ex-comp-tr.'ller of the treasury, as chairman of the after-dinntr financial discussion. In taking the clnir Mr. Laeey, who is now president of the Rankers' national bank, outlined whit he considered to be the most needed of refo-ms in the fln.tr.eiil system. Ha se.il that the currency e-f this country lacked tla-stlcity, and draw a o.mpirisoa betve-ii the system hi vogu in Oanadi and thit of the United States, with the comparisen in ft vor of the Canadian system. In the Canadian bonks it was state! that there was the p wer to issue notes at any time to nv-et an emergency, these n otes being wit -idea wn when the nw-essity f or their existence hid pass d. Mr. Iaeey .-- ,11 thit in the parle of l-::i, the ability Canad:n banks to Ls-m; n 'tes to meet an e-rgeii' y enibb-d diem, to do much, ieve tli? ftr'.n.-'ency in tho Chicago to r imrxet. V no:i tnese notes had tr.eir purpose they were returne.1 served and pissed out of existence "1; empowering banks to issu notes," or' 'current Vhatnireven either redundancy stringency. Mr. MolTiitln I'lin. DENVE'l, Dec. 7. David II. Moffat, president of the First national bank, prop ses the following plan to stop the withdrawal of geld from tie trei.-ury; "Let the government Issue $5oa.00'0.O'i ) in bonds, bearing 2'j per cent, interest, ar.,1 sell them to national banks at pir, amend the nati r.al bank law s the-e bends may be use-d as the basis f circulation and let the benk.s be allowed to Issu against thc-m at par thir 'wa circulaiir. notes, which shall be legil tender, in no ienomination less ihaii $10. Also repeal the tax 'ii national bank cireulatloa, whicii would in effect raise the interest cn the government b-nls to 3 p-r cent. In taking up ail the bills cf smaller denondr.aricn than $19 silver will be put ia circulation as change." RESULT OF A MOCK MARRIAGE. Method of C. W. Jacobs Wlio Warn Thought for n Time to lie ritzrl. MILWAUKEE, Dec. 5.-C. W. 'Jacobs, un ler arrest here for his participation in a mock marriage, ts nit l'itzei. th? Set. Louis insurance swindler. Jacobs wa un-'bld to get a divorce frjin his P gal wife in Kansas City, yet wanted to marry Mrs. Buck of CiOcaco. ilis.ipparp-1. ti-adi-rn his wife te believe he had been kill-l. Mrs. Huck re-fiis-l to live with lorn until he had secured a divorce, so he trot a c ,py of the Oklahoma, territory curt papers and forge i a juiitrment of divorce. Fearing discovery if he had a minister to marry b m. lie conceived tha plan cf a mac's iremniy. The police have release 1 Jacobs, Mrs. liuek anl Harvey, the bogus preacher. The Heeord f Jneolm. f'HIC.UP). Fee. 5. Ir. Charles W. Jaeob who was i.iivstel in Milwaukee while attempting to many Mrs. Helen Luck of Chicago by an allet-ed in nek ceremony, has. according to the ju;ice of tin city, a glitt'Ttng r-eorl. Jacobs sceuivd his diploma from a Cincinnati medical colletre and practiced uvvpeiiej in inali.a. nii'l Kansas City. While In the latter city several years al;o married the d.tnghtor of Millionaire Cavil Skelt n and. it Is claimed, made an un-siicc--sful nt tempt last siunnrr to secure a divorce tin J.icuPVs favorit plan for obtaining nioie y was, it is said, the offering of $.0 worth of woik for a depsit ot $5. but the trans ictlon Invariably enJ.il, tli police soy, when he rocctvd the deposit. He was als) known as a dealer in diamonds which business wa camel on without the ail of diamonds. Jacobs is a'.s saiJ to have receive;! a lre contribution from western fanners through divers and questionable schemes. The theory that he is the missing l'itzel. confederate, ef the insurance swindler. iL li. Holmes, is given no credence here. SnlncrllitTn, Attention! r.efore renewing your subscription read our offer on pope 5. Itcad every word of It. . PUGS GOT PROTECTION. l'rir.e FlRlileri nntl I'rfiirh flnll Helped'' the Xew York Police. NEW YORK, lore. 6. Today wan a red le-tter day in the history of the Lxow committee. A new urc of revenue to the police was develop.id. Frank W. Sanger, the theatrical manager, testified that during the sparring exhibition given by Corbett at the Madison Square garden. Brady, Corbett's mannrer. drew $X0 from the boxotiice to pay f r police protection. Hraly. who was placed upon tho stand, after much hesitation, admitted mat Saiojei-'a let;t Imonv was eoi-rect. 1-eter, however, Mr. llraiy dvitiel that he had ever personally paid tli money for police protection. 11 said that Vrc.il-r Muldoon had aprted to see that the police would not Interfere with the match for 25 per cent, of the rata receipts. Tha subjeet of the French ball was nrxt t.aken up. The otticersi denied bavin; paid money for police protection. Some of the former clilcrri of the ball and) some of the HttHelieS Hill ll'lploJeS totd t!fTeTnt s p. r; .. howev. r. The hnow coinmitt" dipped Into i'.II the naughtiness of th French ball, und some cf Uie country mem-lwL-rs of tilt? committed Kiemtvl very much siioe-Ued nt the u'-counts given. Put these statements were emphatically denied by the official of Cercle ,. L'llarmonle, the society which has the French Palls ln rharjfe. According to their Nlatemer. ts, there was no high kicking, and the Lall would compare favorably with any of the social events gieii by any of the fraternal, benevolent or charitable organizations of New York City. At th? cios? of his examination Mr. Ooff asktd for an adjournment until next Tuesday to p ii pare fcr Ins next witness. See ritKc " Subscribers to The Weekly Sentinel would do well to read our great offer oa page 5. He sure you read it. PLOT TO STEAL REHAN'S STATUE. Detectives Guarding the Dlfr Silver linage. CHICAGO. Dec. 5,-Tiio silver statue of the actress Ada Itehan la under Kuard of half a dozen detectives t,lay as the result of the discovery of a plot to steal the valuable imate. The ttatue has li'fn on exhibition at the tetail store of Carson, Pierre, Scott ?i Cc, and recently a man representing himself fs an employe of the Montana silver statoe compan.'. owners of the !ttue. cal'.e-l at the stoie und secured the address of the night w.Uehman. Last ni?ht after closing Pours the rain presentei to the nifiht watchman an order sienej by the Ment ma con pa "J' saylnff that eneral M anager lllrri'ce ot the company was d-a l and askel that the stat te be delivered to th- bearer. The watchman refused to honor the order deiilte the man's protesta and the detectives who are Working on the cse claim that a wvlbphnuel conspiracy had be. n Lai 1 to sied the statue an i after melting Jt down to dispose of the filver. Subnorihe ow. Uy subscribing now for The Indianapolis Stat? Sentinel lor on? yeir you ar? entitled to toe benefits of our great offer oa page 5. Iteid it carefully. Delimiter Tnit Indicted. KKW YORK, roee. 4. The cas of John H. Tait, paying teller of the Chemical national bank, an allege! defaulter to the amount of $15.5', was load he tore the InitPl States joand jury taday, all efforts to pottle having faded.