Democratic Northwest. [volume] (Napoleon, Ohio) 1869-1894, 1883-12-06
rHE xArroxAL CURRENCY.

THE NATIONAL CURRENCY.
This Is matter 10 which shall again revert.
ImmejIalely associated with the financial sub
tect Just discussed Is the important question,
What legislation Is needed regarding National
currcncyl The aggregate amount OF bonds
now on deposit in tho Treasury To support the
National bank circulation "a Sl.3l. .U0o,DJo.
Nearly two hundred millions OF this aLnount
consists OF three per cents, which, as already
stated, are payable at the pleasure OF the Gov
ernment and are likely To be calledin within
less than four years unless the surplus rev.
enues shall be diminished.
CONTRACTING .lR CURRENCY.
The probable effect OF such an extensive
retirement of the securities which are tho
be such contraction Of the volume OF cur
rency as TO produce grave commercial embar-
rassmeuts. How can the danger be obviaied2
The most effectual plan. and one whose adop-
tion at the earliest practicable opportunity
shall heartily approve, has already been indi-
Gated. III the revenues of the next four years
shall be kept substantially commensurate
with the expenses the volume of circulation
will not be likely to suffer any material dis
turbance, but IL, ON the other hand, there
shall be great delay In reducing taxation it
will become necessary either TO substitute
some other form OF currency in place OF the
National bank notes, or to make important
changes in the laws by which their eircula-
tion is now controlled.
THE LEGISLATION NEEDED.
In my Judgment the latter course Is far
very interesting and thoughtful suggestions
upon this subject which appear in the Secre-
tary's report. The objections which he urges
against the acceptance of any other securities
as foundation for National bank circuia-
tion, seem to me insuperable.
THE TWO PLANS.
For averting the threatened contraction TWO
courses have been suggested, either OF which
is probably feasible. one Is the issuance of
new bonds, having many years to run, bearing
low rate of interest exchangeable upon
specified terms OF those now outstanding The
other course which commends itself to my own
Judgment as the better, is the enactment of
law repeating the tax on circulation and per
mittinR the banks to issue notes for an amount
equal to ninety per cent. OF the market value,
instead as of now, the face value of their
deposited bonds. agree with the Secretary
in the belief that the adoption of this plan
would afford the necessary relief.
THE TRADE DOLLAR.
The trade dollar was coined for the purpose
OF traihc in countries where silver passed at
its value, as ascertained by its weight and fine
ness. 1t never had legal tender quality.
Large numbers of these coins entered, how
ever, into the volume of our currency. By
common consent their circulation in domestic
trade has now ceased and they have thus be-
come disturbing element and they should
not De longer permitted to em6arrass our cur
rency system. / recommend that provision
for their reception by tho Treasury and the
mints as bullion at a small per centage above
the current market price of silver OF like fine
ness.
CONSOLIDATING CUSTOMS DISTRICTS.
The Secretary of the Treasury advises the
consolidation of certain of the customs dis
tricts of the country and suggests that the
President be vested with such power in rela-
ton thereto as Is now given him in respect to
Collectors of Internal Revenue by section 3141
of the revised statutes. The statutes on this
subject, which are contained in his report,
furnished of themselves strong argument in
dafanSa nf his yfay IN n
Congress the number of Internal Revenue
collection districts was l,260. By executive
orders dated June 25, 1888, decided that GER
tain of these districts be consolidated The
result has been reduction OF one-third their
number, which at present is but $50.
INDIAN RELATIONS.
From the report Of the Secretary OF War IL
will be seen that in only single instance has
there been any disturbance of the quiet con-
dition of our Indian tribes-a raid from Mexi-
co TO- Arizona by small party of Indians,
which was pursued by General Crook into the
mountain regions from which 1t had come.
1t is confidently hoped that serious outbreaks
will not again occur and that the Indian
tribes which have for SO many years disturbed
the West will hereafter remain In peaceable
submission.
DEFENsELEss SEA COASTS.
again call your attention to the present
condition of our extended sea coast, upon
which are SO many large cities whose wealth
and Importance to the country would in time
"
mored ships against which our existing de-
fensive works could give no adequate protec-
ton. Those works were built before the in
PRODUCTION of modern heavy rified guns into
maritime warfare, and if they are not put in
an efficient condition we may easily be sub
jected to humiliation by hostile power
greatly inferior to ourselves.
GUNS AND ToRPEDOES.
As german to this subject, l call your at
tention to the importance of perfectfhg our
submarine torpedo defenses. The board au-
thorized by the last Congress to report on the
method which should be adopted for the man.
ern warfare has visited the principal iron and
steel works in this country and in Europe.
1t is hoped that its report will be soon made
and that Congress will thereupon be dis
posed to provide suitable facilities and
plans for the manufacture of such
guns as are now temporarily needed
ENCOURAGING STATE MILITIA.
On several occasions during the past year
officers of the army have, at the request Of the
State authorities, visited their military en-
campments for inspection of the troops. From
iieve that the anssa e Be-
militia organization by the National Govern.
ment would be followed by very gratifying re
suits and would afford it in sudden emergen
cies the aid of large body of volunteers edu
Gated in the performance of military duties.
STRENGTHENING THE NAVY.
The Secretary of the Navy reports that un
der the authority of the laws of August IS
| 1882 and March 8, 1888, the work of strength
| ening our navy by the construction of mOderr
vessels has been auspiciously begun. Three
cruisers are in process of constructiOn-tht
Chicago, of $500 tons displacement and the
Boston and Atlanro, each of 2,5OO tons. They
are to be built Of steel with the tensile strength
and ductility prescribed by law. and in combi
nation of speed, endurance and armament are
expected to compare favOrably with the bes
unarmed war vessels of other nations. A
fourth vessel, the Dolphin. is to be. construct
| ed of similar material and is intended to serve
as q feet dispatch boat
| The double turreted monitors Puritan
| Amphitrite and Terror have been launched
on the Delaware River and a contract ha
| A similar monitor, the Monadnock, has beer
| launched in California. The Naval Advisory
Board and the Secretary recommend the com
pletion of the monitors, the construction o.
| four gunboats and also of three additiona
| steel vessels like the Chicago, Boston ant
Dolphin.
| COAST CANALS.
As an important measure of material de
| fense the Secretary urges also the immediate
| creation of an interior coast line of water
ways across the peninsula of Florida, along
| the coast from Florida to Hampton roads, be
tween the Chesapeake Bay and the Delaware
river, and through Cape Cod. .s
BETTER NAVY NEEDED.
/ feel bound to impress upon the attention
Of Congress the necessity of continuing pro
gress in the reconstruction of the navy. The
condition of the public Treasury, as have al
ready intimated, makes the present an aus
picious time for putting this branch of the
service in state of efficiency. 1t is no part
of policy to create navy able to cope with
| that of the other great powers of the world.
We have no wish for foreign conquest and
the peace which we have long enjoyed is in nc
seeming danger of interruption, but that oui
naval strength should be made adequate fol
the denfense of our harbors. the protection oi
our commercial interests and the maintenance
of our national honor is a proposition from
| which no patriotic citizen can withhold his as
sent.
| S POSTAL AFFAIRS.
| The report of the Postmaster General con
| tains a gratifying exhibit of the condition
| and prospects of the interesting branch of the
public service committed to his care. 1t ap