People's Pilot, Volume 4, Number 24, Rensselaer, Jasper County, 30 November 1894 — FROM WASHINGTON. [ARTICLE]

FROM WASHINGTON.

An Interesting Batch of Xcwi Front the Capitol. From our Regular Correspondent. Washington. Nov. 23.1894. There are the most radical differences of opinion as to what should be done to improve our financial system, but public opinion, as represented in Washington, is practically unanimous as to the necessity for some change that will free the UnUed States treasury from the domina lion of the class known best as “Wall street bankers,” although all its members are not Wall street men. This domination was never more manifest than during the present week, in connection with the $50,000,000 eond issue. Although President Cleveland was assured by these bankers before the bond issue was announceu that the> would furnish the gold for the purchase of the bonds from their own supply, they have broken their words and have drawn the gold from l-ho treasury which wdl be required to make tne erst payment of 2<* per cent on bonds, and there is every i j.-. u to believe that the other ent will also come out of

• -usury vaults, unless the *<.!).lustration has the nerve to ►•x.wcise the right reserved in its call for bids for the bonds, and decline to sell the bonds to those who propose to pay for them with treasury gold. But in that case the issue would be likely to fall far below $30,000,OiJO. as there are not likely to be many bidders outside of this clique of bankers. If the bonds are sold to them the only possi bie excuse for issuing them—to strengthen the gold reserve—will cease to exist, as the gold reserve will not be materially strengthened. • • • This question of strengthening the gold reserve is giving the administration no end us trouble. Among the propositions which have been made is one to require a certain percentage of customs duties to be paid in gold, but it is difficult to see what good that would do. It would only give the importers the trouble of getting gold for greenbacks from the treasury in order to pay it into the Custom Houses, and in the end the treasury gold would not be increased. The weak spot in the system is the ease with which greenbacks (treasury notes) may be exchanged for gold.' Whatever change is finally adopted in our financial system many who have carefully studied the matter are of the opinion that something should be done at once to make the redemption of treasury notos so troublesome that it would not pay bankers to present them except upon extraordinary occasions, and that would make it practically impossible to make a profit by having treasury notes redeemed and exporting the gold. To those who arc afraid that such regulations and restrictions would result in injuring the national credit it is only necessary to say that similar regulations and restrictions exist in European countries without injuring their credit. Everybody of any prominence in Washington is talking finance and everything points to its being the livest public question now before the country. It may be that something will eventually come out of all the talk. • • • A series of important confer-

ences of prominent democratic Senators and Representatives have taken place this week in New York. The fact that they were secret and that they were held in New York has added to the interest displayed in Washington. One of the first results was the starting of numerous rumors, one of the most interesting of which was, that these conferences were held for the purpose of perfecting arrange ments to make a fight upon President Cleveland in the ranks of hi§ own party. This rumor gained considerable credence from the fact that all those who attended the conferences were anti-Cleveland democrats; also, from hints dropped by those connected with the administration, that Mr. Cleveland had reason to expect that an attempt would be made to split his party at the coming session of Congress.

“Grover Cleveland it certainly a lucky man,” said a Senator when the news that Japan had politely declined Mr. Cleveland’s offer to act as mediator in bringing the war with China to an end was received in Washington. “Now, [ do not pretend,” he continued, “to be sufficiently up iu Constitutional law to sa> whether Mr. Cleveland did or did not exceed his authority in offering to act as mediator; but I know that some very shrewd Constitutional lawyers in both •Senate and House were preparing to make things very lively lor Mr. Clevelond because of his having made the offer, and I unow, further that those members of his own party who are bt-st qualified to defend him had made up their minds to keep their mouths closed. Now, it is a regular piece of Cleveland luck that Japan has declined the otfer. That knocks the bottom out ox the whole business. Of course there will be some speeches made on the subject, but it will be impossible to interest the public in an incident that is closed.”