Pike County Democrat, Volume 26, Number 31, Petersburg, Pike County, 13 December 1895 — Page 7

The right of American consular officers in the Island to prefer protests and demauds m such oases having been questioned by the insular authority, their enjoyment of the privilege stipulated by treaty for the t onsuls of Germany. was claimed under the most favored nation provision of our own convention, and eras promptly recognized. THE MOKA CLAIM. The long-standing demand of Antonio Maximo Mora against bpain. has at last been settied by the payment on the 14th of September last, of the sum originally agreed upon in liquidation of the claim. Its distribution among the parties entitled to receive has proceeded as rapidly as the rights of those claiming the fund could be safely determined, f The enforcement of differential duties against products of this country exported to Cuba and **orto Rico prompted the immediate claim on our part to the benefit of the minimum traffic of Spain in return for the most favorable treatment permitted by our laws as regards the production of Spanish territories. A commercial arrangement was concluded In Jauuary last securing the treatment so claimed. VEXATIOUS PRACTICES. Vigorous protests against excessive fines Imposed on our^hlps and merchandise by the -customs officers of these islands for trivial errors have resulted la the remission of such fines in fnstanc* s where the equity of the complaint was apparent, though the vexatious practice has not been wholly discontinued. AFPA1KS IN T! BKEY. Occurrences in Turkey have continued to excite concern. The reported massacre of Christians in Armenia and the development there aud in other districts of a spirit of fanatic hostility to Christian influences, naturally. excited apprehension for the safety of the ‘devoted men and women, who. as dependants of the foreign missionary societies in the United States, reside in Turkey under the guarantee of law and usage, and in the legitimate performance of their educational and religious mission. No efforts have been spared in their behalf, and their protection in persou and property has been earnestly and vigorously enforced by every means within our power.

OUR NAVAL FORCE IN OTTOMAN WATERS. The presence of our naval vessels which are now in the vicinity of the disturbed localities affords opportunities to acquire a measure Of, familiarity with the condition of affairs and will enable us to take suitable steps for the protection of auy Interests of our coutrymen within reach of our ships that might be found imperiled. The Ottoman government has lately issued an Imperial trade exempting forover'from taxation an American college for girls at Scutari. Repeated assurances have also been obtained by our envoy at Constantinople that similar institutions maintained and administered by our countrymen shall be secured in the enjoyment of ail rights and that our citizens throughout the empire shall be protected. ‘ 1 SAFETY FOR AMERICAN REFUGEES. The government, hoover, in view of existing facts, is far from relying upon such chances a> the limit or its duty. Our minister has been vigilant and alert in affording all possible protection in Individual cases where danger threatened or safely Imperiled. We have sent ships as far toward the poiuts of actual disturbance as it is possible for them to go where they offer refuge to those obliged to ttee. and we have the'promise of other powers which have ships in the neighborhood, that our citizens as Well as theirs will be received and protected ou board these ships. On the demand of our minister orders have been Issue*! by the sultan that Turkish soldiers shall guard and escort to the coast American refugees, and these orders have been earned out. and our latest intelligence gives assurance of the present personal safety of our citizens and missionaries. Though thus far no lives of American citizens have been saerltied. there can be no doubt that serious loss ami destruction of property have result*'*! from riotous conflicts ami attacks. By treaty several of the most powerful European powers have secured a right and have assumed a duty not only in behalf of their own citizens und in furtherance of their own interests, but as agents of the Christian world. Their right is to enforce such conduct of the Turkish government as will restrain fanatical brulaiity. and their duty is to interfere and to insure against such dreadful occurrence ill Turkey as lately shocked civilization. This powers declare this right and this duty to be theirs alone, and it is earnestly hoped that prompt and effective action of their part w ill not be delayed. The new consulates at Krzercuni and Hnrpoot, for which appropriation is asked, have been provisionally tilled by trusted employes of the department of state. These appointees, though now In Turkey, have not yet received their exequature. , IMPROVEMENT IN THR.COXSCLAR SERVICE. In view of the growth of our interests in for- I eign countries and the encouraging prospects for a general expansion of our commerce, the question of an improvement in the consular service hits Increased in importance and urgency. Though there is no doubt that the great body of consular oftl es are rendering valuabfe services to the trade und industries of the country, the need of some plan of aptwiutmeut and control which w;ould tend to secure a higher average of efficiency can uot be denied. The importance of the subject has led the executive to oonsider what steps might properly be taken without additional legislation to answer the need of a better system of consular Appointments. The matter having been committed to the consideration of the secretary of state, in pursuance of his lecommendations, an executive order was issued on the 20 th Of September, IfWf*. by the terms of which it is provided that after that date any vacancy in a consulate or commercial agency with an annual salary or compensation from official fees of not more than 12.500, or less than Il.tXiO, should be tilled either by transferor promotion from some other position under the state department of a character teudtng to qualify the Incumbent for the position to be tilled. or by the appointment of a person not under the department of state, but having previously served thereunder and shown this capacity and titness for consular duty, or by the appointment of a person who. having been selected by the president and sent to a board for examination, is found, upou such examination, to be qualitied for the position. Pasts which pay less than $1,000, lelng usually on account of their small compensation tilled by selection from residents of the locality, it was not deemed practicable to put them under the new system. In execution of the executive order referred to, the secretary of state has designated as a hoard to conduct the prescribed examinations the third assistant secretary of state, the solicitor of the department of state and the chief of the consular bureau, and has specified the subjects to which such examinations shall re

It is not assumed that this system will prove .« full measure of consular reform. It is quite probable that actual experience will show particulars iu which the order already issued may be amended. j— OFFICIAL LIGATION RESIDENCES. I am thoroughly convinced that in addition to their salaries, our ambassadors and ministers at foreign countries should be provided by the government with official residences. The salaries of these officers are comparatively .small, and in most cases insufficient to pay. with other necessary expenses, the cost of, maintaining household establishments in keeping with their important and delicate functions. The usefulness of a nation's diplomatic representative undeniably depends much upon the appropriateness of his surroundings, and ■ a country like ours, while avoiding unnecessary glitter and show, should be certain that it does not suffer in its relation with foreign nations through parsimouy and shabbisessin its diplomatic outfit. These considerations and the other advantages of having fixed and somewhat permanent locations for our ■embassies would abundantly justify the moderate expenditure necessary to carry out this suggestion. _ Domestic Affairs. THE FINANCIAL SITUATION. As we turn from a review of our foreign relations to the contemplation of our national financial situation, we are Immediately aware that we approach a subject of domestic eoncern more important than any other that can engage our attention, and one at present in such a perplexing and delicate predicament as to require prompt and wise treatment. We may well be encouraged to earnest effort in this direction when we teoali the steps already taken toward improving our economic wnd financial situation, and when we appreciate how well the way has been prepared for ^further progress by an aroused and intelligent ipopular interest in these subjects. *ly command of the people, a customs revenue system, designed for the protection and benefit of favored classes at'the expense of the jrreat mass of our country meu, and which, while inefficient tor the purpose of revenue, .curtailed.our trade relations and impeded our .entrance to the markets of the world, has been isuperceded by a tariff poliev whieh in princljple is based upon a denial of the right U>f the government to obstruct the avenues to tour people's cheap living of lessen their comfort and contentment, lor the sake of according esoeciai advantages to favorites, and which, while encouraging our intercourse and trade with other nations, recognit.es the fact that American self-reliance, thrift and ingenuity ©an build up our country’s industries and develop its resources more surely than enervating paternalism. vtmi. or TBI SILVEB-FURCHASI LAW. The compulsory purchase and coinage of silver by the government uneheeked and unregulated by business conditions and heedless of currency needs,whieh fof more than fifteen diluted ^our^lrouiatlng _ medium,under. abroad In our financial

ability, ud at last culminated in distress and panto at home has. been recently stopped by the repeal of the laws which forced this reekleas scheme upon the country. The things thus accomplished, notwithstanding their extreme importance and beneOcient effects, fait far short of curing the monetary evils from which we suffer as u result of long indulgence in illadvised financial expedients. THE UUEENUACK CCMWtf. The currency denominated United States note*, aad commonly known as greenbacks, was issued in large volume during the late civil war, and intended originally to meet the exigencies of that period. U will be seen by a reference to the debates in congress at the time the laws were passed authorizing the issue of these notes, that their advocates declared they were intended for only temporary use and to meet the emergency of war. In almost, if not all. the laws relating to them seme provision was tnaue contemplating their voluntary or compulsory retirement. A large quantity of them, however, were kept on foot and mingled with the currency of the country so that at the close of the year 1371 they amounted to 838l.Wd.W3. Immediately after that date, and in January. lftTs, a law was passed providing for the resumption of specie payments by which the secretary of the treasury was required whenever additional circulation was issued to national bunks to retire United States notes equal in amount to 80 per cent, of such additional national bank circulation until such notes were reduced to i8U0.U0o.U00. This tawrfurther provided that on aud after the 1st dta. of January. 187$. the United States notes then outstanding should be redeemed in coin, and in order to provide and prepare for such redemption the secretary of the treasury was authorized not only to use any surplus revenue of the government, but to issue bonds of the United States and dispose of them for coin, and to use the proceeds for the purposes contemplated by the statute. In May, 1878. and before the date thus appointed for the redemption aud retirement of these notes, another statue was passed forbidding their further cancellation aud fetiremeut. Some of them had. however, beeu previously redeemed and cancelled upon the issue of adi ditional national nauk circulation, as permitted by the law of 1873. so that the amount outstanding at the time of the passage of the act 1 forbidding their further retirement was #848.681.01*1 The law oT 1818 did not stop at distinct prohibition, but cont-amed. in addition, the following express provision: ‘•And when any of said notes may be redeemed or be received into the treasury, under any law. from any source whatever, and shall belong to the United States, they shall not be retired, cancelled, or destroyed, but they shall be reissued aud paid out again and kept lu circulation.’' This was the condition of affairs on the 1st day of January. 187$, which had been fixed upon four years before as the date for entering upon the redemption and retirement of all these notes, aud for which such abundant means had been provided. The government was put in the anomalous situation of owing to the holders of it* uotes debts payable in gold on demand which could neither be retired by receiving such uotes in exchange of obligations due the government nor cancelled by actual payment in gold, it was forced to redeem w ithout redemption and to pay without acquittance. . THE GOLD RESERVE.

There has been issued and sold t&VSOO.OiXk of the bonds authorized by the resumption act of 1875. the proceeds of which, together with other gold in the treasury, created a gold fund deemed sufficient to meet the demands which might be made upon it for the redemption of j the outstanding ignited States notes. This fund, together with Such other gold as might be from time to time in the treasury available for the same purpose, has been since called our gold reserve, apd #100.CH>*.U00 has been regarded as an adequate amount to accomplish its object. This fund amounted on the 1st da. of January, 1879. to #114.198,138. and though thereafter constantly fluctuating, j it did not fail below that sum in July. t89i. In ] 1893. for the tirst time since its. establishment, ' this reserve amounted to less than floo.OoO.Oud. containing at that dat * only $97,011,330. In the meantime, and in July. 1890. an act had been passed directing larger monthly governmental purchases of silver than had been required under previous laws, and providing that in payment for such silver treasury notes of the United States, should be issued, payable on deuiaud. in gold or silver coin, at the discre-' tion of the secretary of the treasury, it was however declared in the act to be the established policy of the United States to maintain the two metals on a parity with each other upon the present legal ratio, or such ratio as may be provided by law. In view of this declaration it was not deemed permissible for the secretary of the treasury to exercise the discretion in terms confered on him by refusing to pay gold on these notes when demanded, because by such discriml* j nation in favor of the gold dollar, the so-called ; parity of the two metals would be destroyed, and grave aud dangerous consequences would : Iks precipitated by affirming or accentual* | ing the constantly widening disparity betweeu J their aetual»values under the ex sting ratio. It thus resulted that the treasury notes issued ! iu oayment of silver purchases under the law j of 1890 were necessarily treate l as gold obliga- j tipns. at the option of the holder. These notes, on the first day of November, ! 1898. when the law compelling the monthly pur- i chase of silver was repeated, amounted to more i than $155,000.0 0. The notes of this o< sc iption now outstanding, added to the United “^states j notes still undiminished by redemption or can- i collation, constitute a volume of gold obliga-] tions amounting tb nearly fiOOdM).' •>>. These obligations are the instruments which, ever , since we have had a gold reserve, have been i used to deplete it. This reserve, as has been stated, had fasten in April. l8t»8, to fib',011.330. It has from that time to the present, with very few and unimportant upward movements steadily decreased. except as it has been temporarily replenished by the sale of burls. Among the causes for this constant and uniform shrinking in this fund may be mentioned the great, j falling off of exports im ivr the operation of the tariff law until recently in force, which crippled our exchange of commodities with fortga nations and necessitated to some extent the payment of our balances in gold; the unnatural infusion of silver into our currency, and the increase in agitation fqr 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 of our securities already sold abroad, and the high rate of foreign exchange. which induced the shipment of our gold to be drawn agaiust, as a matter of - peculation. > DEPLETION OF THE REVENUE. In consequence of these conditions the gold reserve, on the 1st day of February. 181*4. was reduced to ?8v43s.377. having lost more than 331,000.000 during the preceding nine months, or siuoe April. 1893. lis replenishment being necessary, and no other manner of accomplishing it beipg possible, resort was had to the issue and sale of ‘bonds provided for by the resumption act of 1873.

THE SALK OF BONOS. Fifty millions of these bonds were sold, yielding $5s.633,S?5.7l, which was added to the reserve fund of gold then on baud. As a result of this operation this reserve, which had suffered constant and large withdrawals in the meantime. stood, on the 6th day of March. 1894. at the sum of $197,446,803. Its depletion was. however. immediately thereafter so accelerated that, on the 30th day of June, 1894, it had fallen to $61,873,035, thus losing by withdrawals more than $4^,000.000 in five months, and dropping slightly below its situation when the sale of $.0,000,000 in bonds was Effected for its replenishment. This depressed condition grew worse, and on the 34th day of November, 1891. our gold reserve had been reduced to $57,069,011. A SKCOND BOND SALK. It beoame necessary to again strengthen it. This was done bv another sale of; bonds amounting to $50,000,000, from which there was realized $58,538,: 00 with which the fund was increased to $111,143,031 on the 4th day of December, lt>9l. Again disappointment awaited the anxious hope for relief. There was not even a lull in the exasperating withdrawals of gold. On the contrary, they grew larger and more persistent than ever. Between the 4th day of December. 1894, and early in February, 1895, a period of scarcely more than two mouths after the second reinforcement of our gold reserve by the sale of bonds, it had lost by such withdrawals more than $69,009,000, and had fallen to $41,340,181. Nearlv $45,000,000 had been withdrawn within the month immediately preceding this situation. In anticipation of impending trouble, I had ou the 28th day of January. 1895. addressed a communication to the congress fully setting forth our difficulties and dangerous position, and earnestly recommending that authority be riven the secretary of the treashry to issue bonds bearing a low rate of interest, payable by their terms in gold, for the purpose of maintaining a sufficient gold reserve, and also for the redemption and cancellation of outstanding United States notes and the treasury notes issued for the purchase of silver under the law of 1890. This recommendation did not, however, meet with legislative approval. In February, 1895, therefore, the situation was exceedingly critical. With a reserve perilously low and a refusal of congressional aid. everything indicated that the end of gold payments by the government was imminent. The results of prior bond issues had been exceedingly unsatisfactory and the large withdrawals of gold immediately succeeding their public sale in open market gave rise to a reasonable . suspicion that a large part of the gold paid into j the treasury upon such sales was promptly I drawn out again bv the presentation United

; States notes or treasury votes and found its «ajr to the hands of those who had only tern* gorarlly parted with U in the purchase at / TBS THIRD BOHp RAUL In this emergency, and In view of its sur- | rounding perplexities, it became entirely ap~ j parent to those upon whom the struggle for L safety was devolved, not only that our void reI serve must for the third time iu less than thirteen months be restored by another issue and ! sale of bonds bearing a high rate of interest ! and badly suited to the purpose, but that a ' plan must be adopted for their disposition, promising better results than those realised on previous sales. An agreement was therefore made with a number of ttuandlers and bankers whereby it was stipulated that bonds deI scribed in the resumption act of 187&, Kyabte in coin thirty years after their date. I arlng interest at the rate of 4 per cent, per annum, and amounting to about fftl.OuO.duO. should be exchanged for go.d, receireable by weight amounting to a little more than ttb.000.000. THE SYNDICATE AGREEMENT.

This gold was to be delivered in such installments as WMiUd complete its delivery within six months from the date of the contract, and at least one-half of the amount was to be furnished from abroad. It w as also agreed by those supplying this gold that during the continuance of the contract they would by every rncaus in their power protect the government against gold withdrawals. The contract also provided if congress would authorize the issue <>f bonds, payable bv their terms in gold and bearing interest at the rate of 3 per cent per annum, might within ten daya be substituted at par for the 4-per-cent, bonds described in the agreement. On the day this contract was made its terms were communicated to congress by special executive message, in which it was stated that more than sixteen millions of dollars would be saved to the government if gold bonds, bearing 3 per cent., were authorized to be substituted for those mentioned in the contract The congress haring declined to grant the necessary authority to secure this saving, the contract, unmodified, was carritd out resulting in a gold reserve amounting to $167 £71,239 on the 8th day of July, 1893. The performance of this contract not only restored the reserve, but checked 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 of the greatest possible value to every Interest that affects our people. 1 have never had the slightest misgiving concerning the wisdom or propriety of this arrangment. and am quite willing to answer for my full share of responsibility for its promotion. Thouuh the contract mentioned stayed for a time the .tide of gold withdrawal. Us good results could not be permanent. Recent withdrawals have reduced the reserves from »10?,&71.230 on the 6th day of July. I89-. to *79.333,96*3. How long it will remain large enough to render its increase unnecessary isjMtly matter of conjecture, though quite large withdrawals for shipment In the immediate future are predicted in well-informed quartern About $16,000. 00* has been withdrawn during the month of November. ARK NEA&LT WHERE WK STARTED. The foregoing statements of events and conditions ^evelopes the fact that after increasing our interest-bearing bonded indebtedness mbre thau $162,000,000 to save our gold reserve, we are nearly where we started, having now in such reserve $07,333,966. as against $6>,438.377 In February. 1894. when the first bonds were issue i. Though the amount of gold drawn from the treasury appears to be very large, as gathered from the facts and figures herein present, it actually was much larger, considerable sums having been acquired by the treasury within the several periods stated without the issue of bonds. THE WITHDRAWALS OF GOLD. On the 28th of January. 1895, it was reported by the secremry of the treasury that more than $172'00.060 of gold had been withdrawn for hoarding or shipment during the year preceding. He now reports that from January 1, 1879, to July 14. 1890. a period of more than eleven years, only a little over $28,000,000 was withdrawn, and that between July 14. 1890, the date of the passage of the law for un increased purchase of silver, and the 1st day of December, 1895, or within less than five and a half years, there was withdrawn nearly $375,000,000. making the total of more than $403MX>.000 drawn from the treasury In gold since January 1. 1879, the date fixed in 1875 for the retirement of the United States notes.

THOSE GOLD-RAIDING NOTES. Nearly «S27.000,000 of the gold thus withdrawn has been paid out on these United States notes, and yet every one of the $ 16.000,000 is still uneancelled and ready to do service in future gold depletions. More than 878,OX) 000 in gold has. sinf,e their creation in 18SO. boon ont fro-ii the treasury upon the notes tr'ven on the purchase t>f silver by the govejrnn^t and yet the whoile, amomniuK to OV.iwt •' cent a little more than #16.000.000, which h**ve been retired by exchanges for silver at the request of the holders, remains outstanding and prepared to join their older arid more experienced allies iu future raids upon the treasury's gold reserve. In other words, the government has paid in gold more than mne-tenths of the United Sstutes notes, aud still owes them all. It has paiu iu gold about oue-h tlf of its notes given tor saver purchases without extinguishing bv such pa\ uieut one dollar of these notes. When aaded to all this we are reminded that to carry on this astounding Uuanciai scheme the government has incurred a bonded indebtedness of Sto.oO'.Ooo iu establishing a gold i ©serve, aud of jldn.titj.lud iu efforts to maintain it. that uu a.nuuual interest charge on such bonded indebtedness is more than *11.UOO.OOO, that a coatinuance in our present course may result in further bond issues, and that we have suffered or are threatened with ad this lor the sake of supplying gold for foreign shipment or facilitating its hoarding at home, a situation is exhibited which certainly ought to arrest attention and provoke immediate legislative relief. 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 iu payment of silver purchases under the act of 1690 REMEDIAL LEGISLATION SUGGESTED. I believe this could be quite readily accomplished by the change of the notes for United states bonds of small as well as large denominations, bearing a low rate of interest. They should be long-term bonds, thus increasing their desirability as investments, and because their payment could.be well postponed to a* period far removed from present tiuancial burdens and perplexities, when, with increased burdens and perplextttes, prosperity and resources, they would be more easily met. To further insure the cancellation of these notes, and also provide a way in which gold mav be added to our currency in lieu of them, a feature in the plan should bean authority uiv en to the secretary of the treasury to dispose of the bonds abroad for gold, if necessary. to complete the contemplate,t 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 in this plan would be amply compensated by renewed activity and enterprise in all business eire es. the restored confidence at, home, the reinstated faith in our monetary abroad* a.ud tbo stimulation of every interest and iudustry that would follow the cancelation of the gold-demand obligations now afflicting us. , in any event the bonds proposed would stand for the extinguishment of a troublesome indebtedness while in the path we now follow there lurks the menace of unending bonds with our indebtedness still undischarged and aggravated in every feature. The obligations necessary to find 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 our surplus revenues. The currency withdrawn by the retirement of ; the United states’notesand treasury notes i amounting to probably loss than |m00i\w 0, 1 might be suppiied by such gold as would be used in their retirement or by an increase in circulation of our national banks. Though the aggregate capital of those now in existence i amounts to more than $061,000.000, their outI standing circulation based on bond securities 1 amounts to only about #190,000.000. They are authorized to issue notes amounting to 90 per cent, of the bonds deposited to secure their circulation. but in ao event beyond the amount of their capital stock, and they are obliged to pay the 1 per cent, tax on the circulation they issue, INCREASED NATIONAL BANK CIRCULATION. I think they ought to 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 to onefourth of one per cent., which would undoubtedly meet all the expenses the government incurs on their account In addition they should be allowed to substitute or deposit in lieu of I the bonds now required as security for their I circulation those which would be issued for the I purpose of retiring the United States notes | and treasury notes. The banks already existing, if they desired to avail themselves of the S provisions of law thus modified, could issue cirI dilation in addition to that .already outstanding i amounting to *478.000,009, which would nearly ! or quite equal the currency proposed to be I cancelled. At any rate 1 should confidently I expect to see the existing national banks or ; others to be organized avail themselves of the ; proposed encouragements to issue circulation and promptly fill any vacuum and supply every i currency note. It has always seemed tome ■ that the provisions of law regarding the cap - tal of national banks which operate as a limii tattoo to their location tails to make proper

compensation for the suppression of lS*U banks which came near to the people la aU sections of the oountryand readily furnished these with (. Any Inconvenience or embarrassment arising from 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 aa would serve the people, so regulated and restrained as to secure their safe sad conservative control and management. But there might not be the necessity for such an addition to the currency by new issues of bank elreulntlon ns at first f ianoa is indicated, if we should be relieved rom 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 tor nations abroad or for speculation and hoarding by<our citizens at ! home. I should expect to see gold resume its | natural and normai functions In the business affairs of the country, and cease to be an obiect attracting the timid watch of our -people and exciting their sensitive imagination.

THE Sit VKH SEIUNIURAUK I do not overlook the fact that the cancellation of the treasury notes issued under the sil-ver-purchasing act of IHSO would leave the treasury in the actual ownership of sufficient silver, including selguior-ge. to coin nearly il7s,U)0.uub in standard dollars. It is worthy of consideration whether this might not. from tune to ' time, be converted iuto dollars or fractional coin, and slowly put into circulation, us in the judgment of the secretary of the treasury, the necessities of the country should reuutre. NOT a QUESTION OF yVAKTITY. BCT KIND. In the present stage of our ditBcuity it is not easy to understand the extent to which 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 aud our ability to continue in sound financial condition. We are considering the government holding of gold as related to the soundness and -as affecting our national credit and our monetary strength. If our gold reserve had never been impaired; if no bonds had been issued to replenish; if there bad been no fear aud timtdity concerning our ability to continue gold payment: If any part of our revenues were now paid in gold, aud if we could look to our golu receipts as a means of maintaining a safe re serve, the amount of our revenaes would be an influential factor in the problem. But. unfortunately. all the circumstances that might lend weight to this consideration are entirely lacking. In our present predicament no gold la received by the government 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 uuantity in government possession does no£ in the least contribute toward giving us thsyt-kind of safe financial standing or condition which is built ou gold alone. If it is said that those notes if held by the government can be used to obtain goid 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 DTopesition that the treasury can on demand draw goid from the people upon thernwould be regarded in these days with wonder and amusement, and even if this could be done there is nothing to prevent those thus parting with their goid from regaining it by the next day or the next hour by the presentation of the notes they received in exchange for it The secretary of the treasury might use such cotes taken from a surplus revenue to buy gold in the market Of course he couid not do this without paying a premium. Private holders of gold, unlike the government, having no purity to maintain, would not be restrained trout making the best bargain possible when they furnisheu gold to the treasury; but the moment the secretary of tue treasury bought gold ou any terms above par, he would establish a general and universal premium upon it. thus breaking down the parity-betweeu gout and silver, wmeh the government is pledged to maintain, aud opening the way to new and serious complications. ;- In the meantime the premium would not remain stationary and the absurd spectacle might be presented pi a dealer selling gold to the government and with United States notes or treasury notes in his huud immediately clamoring for its return and a re-saK' at a higner premium. It may be claimed that a large revenue and reduced receipts might favorably affect the situatio.i under discussion by affording an opportunity of retaining these notes in the treasury when received, and thus preventing their presentation for goid. such retention to be useful ought to be at least measurably permaaeut. aud this is precisely wuat is prohibited so far as United States notes are concerned by the law of 1878 forbidding their future retirement. NO FEARS OF OUS SOLVENCY. Perhaps it is supposed that suifieieat revenue receipts would, in a sentimental way, improve the situation by inspiring confidence in our solvency and allaying the fear of pecuniary exhaustion, and yet all through our struggle to maintain our gold reserve there never has been any apprehension us to our ready ability to pay our way with such money as we had. and the question whether or not our current receipts met our current expenses 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 couid only be paid in gold, aud his only concern was our ability to keep ou haud that kind of money. On July 1.185W. more than a year and a half before the first bonds were issued, to repl tush the gold reserve, there was a net balance in the treasury, exclusive of such reserve, of less than $13,C00,U00. but the gold reserve amounted to more than $Ut,' t'0,0d), which was the quieting feature of the situation. It was when the stock of gold beaan rapidly to fall that fright supervened, and oar securities held abroad were returned for su;e. 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. THE HOARDING OF GOLD. %

Thereupon the general state of our funds, exclusive of gold, became also immaterial to them, aud 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 30,1»94. nearly $*5,000,000 in gold was withdrawn from the treasury and about *77.000.000 was sent abroad while during the fiscal year ending June 30.1895. over *117> 000,000 was drawn out, of which only *66,000.000 was shipped, leaving a large balance of such withdrawals to be accounted for by domestic hoarding. : PLENTY OF MONEY FOR CURRENT EXPENSES. At no time when bonds have been issued has there been any consideration of the question of paying the expenses of the government with their proceeds. Tnere was no necessity to consider that question.. At the time of each bond issue we had a safe surplus in the treasury for ordinary operations exclusive of the gold in our reserves In February. 18SW, when the first issue of our bonds was made such surptus amounted to over #18.000,000. In November, when the second issue was made, it amounted to over IC.000.000, and in February, 1896, when bonds for the third time were issued, such surplus amonted to more than *l<»,000,000. It now amounts to J08.072.tl0.30. Besides ail this the secretary of the treasury had no authority whatever to issue bonds to increase the ordinary revenue or pay current expenses. I can not 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 tbe treasury United States notes and treasury notes for gold increased by their amount the monev which was in the first instance subject to ordinary government expenditure. WHEN THE WITHDRAWALS BEGAN. 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 purch isos did not begin until October. 1891. Immediately following thataiate the withdrawals upon both these notes and United States notes increased very largely, aud 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 th§ 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 1st day of January, 1879, when specie payments were resumed. CHAKGKABl.K TO THE SILVER-PURCHASE LAWS. 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 aud 1890, compelling the purchase of silver bv the government, which not ouly furnished a new treasury obligation upon whloh its gold could be withdrawn, but so increased the leaof 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. AS TO FREE COINAGE OF SILVER. While I have endeavored to make a plain statement of this, 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 notdoubi. insist that the cure for the now

threatening us may ha grand la Che single and aim pie remedy of the free eobnee of stiver. Tbey contend that oar mints shall he at ones thrown open to the free, on limited and independent coinage of both gold and slhrer dollars of fall legal-tender quality regardless of the action of any other government and la full view of the fact that the ratio between the 'metals which they suggest calls for one hundred cents' worth of gold la the gold dollar at the present standard and only fifty rents in In Intrinsic worth of silver tn the silver dollar, were there Infinitely stronger reasons than can be adduced lor hoping that such action would secure for us a bimetallic currency moving on lines of parity, an exoerimeat an novel and haxardous as thus proposed might well stagger those who believe that stability Is an Imperative condition of sound money. No government, no human ceotrlvance eg act of legislation, has ever been able to bold the two metals together tn free coinage at a ratio appreciable diflerent from that which is established in the markets of the world. A HAZARDOUS UPEHlUOt. Those who believe that our independent free coinage of silver at an artificial ratio with gold of 16 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 teaching of the wisest statesmen and economists of the world, both in the ! past and present, and. what Is far more con- \ elusive, they run counter to oar own actual ex- i perleuces. Twice in our earlier history our law-makers, in attempting to establish a bi- I metallic currency, undertook free coinage up- ! on a ratio which accidentally varied from the actual relative value 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 nndervalued tn the ratio gradually and surely disappeared from our circulation and went to other countries where their real value j was better recognized. Acts of congress were impotent to create equality where natural causes decreed even a slight inequality. Twice in our reoent history we have signally fallcdto raise bv 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 624.000,000 In the purchase of silver bullion for coinage. The act or July 24.1880, 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 51.000.008 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 eongress 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 sttll fresh In our memory. IS THK UIIHT or PAST EXPXKIX.NCE.

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 50 per cent, between gold and silver at our present ratio, nor is there in 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 our 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 targe contraction of our circulating medium and a shrinkage in the real value and monetary efficiency of alt other forms of currency as they settled to the level of silver monometallism. Everyone who receives a fixed salary and every worker for wages would find the dollar in his hand ruthles-ly scaled down to the point of bitter disappointment If not to pinchiug privation. A change in our standard to stiver 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 useful than the entire volume of currency, and is safely capable of almost indefinite expansion to meet the growth of trade auil enterprise. In a self-invited struggle through darkness and uncertainty, our humiliation would be increased by the consciousness that we had parted company with ail the enlightened and progressive nations of the world, and were i desperately and hopelessly striving to meet ; the stress .of modern commerce and eompeti- ; tiou with a debased and unsuitable curreucy. and in association with the few weak and laggard nations which have silver alone as their standard of value. All history warns us against rash experiments which threaten violent changes in our monetary standard aud the degradation of our currency. NATIONAL FINANCIAL HONOR INVOLVE!*. Our country's indebtedness, whether owing by the government or existing between individuals. has been contracted with reference40 our present standard. To decree by act of congress that these debts hall be payable in less valuable dollars than those within the contemplation aud intention of the parties when contracted would operate tq transfer, by the fiat of taw and without compensation, an amount of property and a volume of rights and inters ests almost incalculable. Those who advocate a blind and headlong plunge to free coinage in the name of bimetallism, and professing the belief, contrary to all experience, that we couid thus establish a double standard and a concurrent circulation of both uietais 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 nc .v possible, or at least that within the independent reach of any siugle nation however powerful that nation may be. While the value of gold as a standard is steadied by almost universal commercial and business u-e. it does not despise silver nor seek its banishment. Wherever this standard is maintained. there by its side, in free and unquestioned circulation. is found a volume of stiver currency, so retimes equalling, and sometimes even exceeding it In amount, both maintained ai a parity notwithstanding a depreciation or flu .dilation in the intrinsic value of silver. STANOAKl) MUST RE FIXER ANRCERTAIN. There is a vast difference between a standard ! of value and a currency for monetary use. The , standard must necessarily by fixed and cer- ; tain. The currency may be in diverse 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 curreucy 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 indisspensible to broad and growing commercial transactions and so well substituted for the actual use of money. If affixed and staple standard is maintained such as the magnitude and safety of our commercial transactions and business require, the use of raouey itself is conveniently minim

I have ventured to express myself on these subjects with earnestness and plainness of speech because I can not 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 a multitude of my countrymen, a serious menance to our prosperity 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 whq press this scheme that I have imperfectly but with real submitted my thoughts upon this momentous subject. I can not refrain from begging them to re-examine their views and beliefs in the light of patriots, j reason and familiar experience, and to weigh again and again the consequences of such legislation as their efforts have invited. In conclusion, 1 especially eptreat 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 which my . i judgment approves. I desire, however, to as- | i sure the congress that I am prepared to ©o- j operate with them in perfecting any other measure promising thorough and practical re- ! lief, and that I will gladlv labor with them in every patriotic endeavor to further the interi ests and guard the welfare of our countrymen, whom in our respective places of duty we have undertaken to serre. Groves Cleveland. Executive Mansion. Dec. 8,1895. Where Things Wilt Keep. In the polar regions seal oil isbnried in the ground in bags of skin. Meat is heaped upon platforms built among trees, which are peeled of bark in order to keep bears from climbing .33 them. Little sticks with sharp points upward are buried in the ice to distract the attention of the bears from the provisions overhead. Another kind of storehouse is in the shape of a strong pen,the main supports of which are standing trees, with brush and logs piled on top to keep oat wild animals. During the salmon-catching season m arctic Alaska the heads of the fish are ent off and pat into a hole in the ground. When they are half putrefied they are dug up and eaten, being esteemed a great delicacy.

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