Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1883-12-05

The National Banks.
Immediately associated with the financial
subject just discussed is the important ques-
ton, what legislation Is needed regarding the
national currency. The aggregate amount of
bonds now ON deposit In the treasury to sup
port the national bank circulation is about
$350,00O, 900. Nearly S200,000,000 of this
amount consists of per cents which, as al
ready stated, are payable at the pleasure of the
government and are Likely to be called in with
in less than four years, unless, meantime, the
surplus revenues shall be diminished. The prob
able effect Of such an extensive retirement
of the securities which are the basis of the
national bank circulation would be such a con-
traction Of the volume of the currency as to
produce grave commercial embarrassment.
How can the danger be obviated? The most
eHectual plan, and of whose adoption at the
earliest practical opportunity / shall heartily
approve, has already been indicated. If 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 disturbance; but if, on the
other hand, there shall be great delay i'll re-
ducing taxdtionIt 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
circulation IS now controlled. In my Judgment
the latter course is far preferable. | commend
| to your attention the very interesting and
thoughtful suggestions Oh this subject, which
appear in the secretary's report. The objec-
tions which he urges against the acceptance of
any other securities than the obligations of the
government itself as q foundation for the
national b&nk circulation, seem to
me insuperable. For adverting 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 and exChangeable upon specified
terms for those now outstanding. The other
course, which commends itself to my own judg-
ment rs the better, IS the enactment of law
repeating the tax on circulation and permitting
the banks to issue notes for an amount equal
to 9 per cent. of the market value instead of
as now the face value of the deposited bonds.
/ agree with the secretary in the belief that
the adoption of this plan will afford the ne
cessary relief.
The Trade Dollar.
The trade dollar was coined for the purpose
of traffic in countries where silver passed at its
value ascertained by it's weight and fneness.
1t never had legal tender quality. Large
numbers of these coins entered however, into
the volume of our currency by common con-
sent Their circulation 10 domestic trade has
now ceased, but as they have become disturb
ing element they should not be longer per-
mitted to embarrass our currency system. 1
recommend that provision be made for their
redemption by the treasury and mlnts as bull
lion at small percentage above the current
market prices of silver Of like fneness.
Consolidation of Customs Districts.
The secretary of the treasury advises a con-
solidation of certain of the customs districts of
the country and suggests that the President be
vested with euch power in relation thereto as
is now given him in regard to collectors of in
ternal revenue In section B, III of the revised
statutes The statistics on this subiec which
are contained in his report furnish Of them
selves a strong argument in defense Of his
VIE A IF
number of internal reTenue collection districts
was 126. By executive orders, dated June Is,
1888, 1 directed that certain of these districts
be consolidated. The result has been reduc-
ton of one-third of their number, which at
present is but SO.
The War Department.
From the report of the secretary of war it
will be seen that in only single instance has
there been any disturbance of the quiet condf-
ton of our Indian tribes A raid from Mexico
into 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 hereafter remain IN peaceable submission.
| again call your attention to the present
| condition of our extended sea coast, upon which
are So many large cities whose wealth and i'm
| poTtance to the country would in time of war
invite attack from modern armored ships,
! against which our existing defensive works
could give no adequate protection. Those
works we're built before the Introduction of
modern heavy rlhed guns INTO maritime war
fare, and if they are not put In efficient con-
dition we may easily be subjected to humiliation
by hostile power grea ty inferior to ourselves.
As germane to this subject call your atten-
! ton to the importance of pelfecting our sub
| marine torpedo defenses. - e- - - ~
| The board authorized by the last congress to
| report on the method which should be adopted
| for the manufacture of heavy ordnance
adapted to modern 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 disposed to provide suitable facilities and
| plans for the manufacture of such guns as are
now imperatively needed.
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 the inspection of the troops
| From the reports of these officers I am in
duced to believe that the encouragement Of the
state militia organization by the national gov
eminent would be followed by very gratifying
results and. would afford it in sudden emer-
! gencies the aid Of a, large body of volunteers,
educated in the performance of military duties.
The Navy.
The secretary of the navy reports that under
| the authority of the acts of August 5, 1882, and
| March 3, 1883, the work Of strengthening our
navy by the construction of modern vessels has
| been ausplclously begun. Three cruisers are in
progress of constructIon-the Chicago, of
4,5U0 tons displacement, and the Boston and
Atlanta, each of $500 tons. They are to be
built of steel with the tensile strength and due
tility prescribed by law and in combination of
speed, endurance and armament, are expected
to compare faYorably with the best unarmed
war vessels of other nations. A fourth vessel,
| the Dolphin, is to be constructed
of similar materials and is intended to
serve as a fleet dispatch boat The
double turretted monitors Puritan, Amphitrite,
and Terror have been launched on the Della
war River and contract has been made for
the supply of their machinery. A similar mont
tor, the Monadnock, has been launched in Cal
ifornia. The naval advisory board and the sec
rotary recommend the completion of the mont
tors, the construction of four gunboats, and
also of three additional steel vessels like the
Chicago, Boston, and Dolphin as an important
measure Of maritime defense. The Sec
rotary urges the immediate creation of
an interior fast line of water ways
across the peninsula of Florida, along
the coast from Florida to Hampton Roads, be-
tween Chesapeake Bay and the Delaware River
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