Butler citizen. [volume] (Butler, Pa.) 1877-1922, 1883-12-12
THE NATIONAL CURRENCY.

This is a matter to which | sha
again revert. Immediately associate
with the financial subject just discuss
ed is the important question, Wha
legislation is needed regarding Nation
al currency? The aggregate amour
of bonds now on deposit in the Treas
ury to support the National bank cir
culation is S350,OOO, 600. Nearl,
two hundred millions of this amour
consists of three per cents, which, a
already stated, are payable at the pleas
ure Of The Government and are likely
to be called in within less than fou
years unless the surplus revenues shall
be diminished.
| CONTRACTING THE CURRENCY
The probable effect of such an ex
i tensive retirement of the securities
which are the basis of the Nationa
| bank circulation would be such Goa
traction of the volumn of currency as
to produce grave commercial embar.
easements. How can the danger be
obviated? The most effectual plan,
and one whose adoption at the earliest
practicable oportunity | shall heartily
| approve, has already been indicated
If the revenues of the next four years
shall be kept substantially commensur.
ate with the expenses the volumn ot
circulation will not be likely to suffer
any material disturbance, but if 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 make impor-
tant changes in the laws by which
their circulation is now controlled.
THE LEGISLATION NEEDED.
In my Judgment the latter course is
far preferable commend to your at.
tention the very interesting and
thoughtful suggestions upon this sub
ject which appear in the Secretary S
report. The objections which be urges
against the acceptance of any other Sc.
curites than the obligations of the Gov.
ernment itself as a foundation for Ma.
tional bank circulation, seems to me in
superable.
THE TWO PLANS.
For averting the threatened contrac.
tion two courses have been suggested
either of which is probably feasible
One is the issuance of new bonds, hav.
ing many years to run bearing low
rate of interest exchangeable upon
specified terms of those now outstand-
ing. The other course which com
mends itself to my own judgment as
the better, is the enactment of law
repeating the tax on circulation ard
permitting 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.
l agree with the Secretary in the be.
lief that the adoption of this plan
would afford the necessary relief.
THE TRADE DOLLAR.
The trade dollar was coined for the
purpose of traffic in countries where
silver passed at it's value, as ascertain
ed by its weight and fineness Itnever
had a legal tender quality. Large
numbers of these coins entered, how
eyer, into the volume of our currency
By common consent their circulation
in domestic trade has now ceased and
they have thus become a disturbing
element and they should not be longer
permitted to embarrass our currency
system. | recommend that provision
for their reception by the Treasury and
the mints as bullion at small per
centage above the current market price
of silver for like fneness.
INDIAN RELATIONS
From the report of the Secretary OF
War it will be seen that in only a
single instance has there been any dis
turbance of the quiet condition of our
Indian tribes-a raid from Mexico to
Arizona by small party Of Indians,
which was pursued by General Crook
into the mountain regions from which
it 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 heareafter remain in peace
able submission.
GUNS AND TGRPEDOES.
AS german to this subject, call
your attention to the Importance OF
perfecting our submarine torpedo de-
fenses. The board authorized by the
last Congress to report on the method
which should be adopted for the manu-
facture of heavy ordnance adapted to
modern warfare has visisted the princi-
pal iron and steel works in this country
and in Europe 1t is hoped that its
report will be soon made and that Con
gress will thereupon be disposed to
provide suitable facilities and plans for
the manufacture of such guns as are
now temporarily needed
POSTAL AFFAIRS.
The report of the Postmaster Gen.
eral contains a gratifying exhibit of the
condition and prospects of the interest.
ing branch of the public service com,
mitted to his care. 1t appears that, on
June 30, 1888, the whole number Of
| p0St-olnceS was Al $50 OF Wnlcn ,632
were established during the previous
fiscal year.
The number of Offices operating under
the system of free delivery was 154
At these latter offices the postage on
local matter amounted to $4I9, ,523, ,032
sum exceeding by Sl05, 1S9, 40l the
entire cost of the carriers service of the
country. The rate of postage on drop
letters passing through these Offices is
now fixed by law at two cents per hal
ounce or fraction thereof.
ONE CENT POSTAGE.
In Offices where the carrier system
has not been established the rate is
only half as large. 1t will be remem
bered that in 1868, when free delivery
was first established by law, the uni
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