Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1883-12-05

Il
revenue may be wisely applied to the long neg
lected duty of rehab.litatIng our nation and pro-
viding fresh defenses for the protection of our
harbors. This is matter to which [ shall
again advert Immediately associated with the
financial subject just discussed, is the import
ant question what legislation is needed regard
ing The national currency? i he aggregate
amount Of bonds, now on deposit in the trea-
sury to support the national bank circulation is
about SS5u,0u0,s 90. Nearly 5000 O.0.o of
this amount consists OF three per cents. which
as already stated are payable at the
pleasure of the government, and are likely to be
cal ed in within less than four years. Unless
meantime the surplus revenue shall be di
unfinished the probable effect of such an exteu-
sive retirement of the securities, which are the
basls of the national bank circulation, would be
such a contraction of the volume of the currency
as to produce grave commercial embarrassment,
How can the dagger be obviated? The most
effectual plan and the one whose adop ion at the
earliest practicable opportunity l shall heartily
approve has already been indicated If the
revenues of the next four years should be kept
substantially commensurate with the expenses,
the volume of circulation will not be likely
to suffer auy material disturbance, but if on the
other hand there shall be great delay in reduc-
ing taxation it will become Necessary either to
substitute some of the other reforms of cure.
CT in place of the national bank notes so as to
their circulation is now controlled. In nv
Judgment the latter course is far preferable |
commend to your attention the very interesting
and thoughtful suggestions on this
subject, which appear in the secretary's
report. The Objections which
he urges against tie acceptance of any other Sc
curities than the obligations of the government
itself as a foundation for the national bank cir
culation seem to me insuperAhle for averting
the threatened contraction. Two courses have
heen suggested, either of which is probably
feasible. One is the Issuance of new bonds,
having many years TO run, bearing low tate of
interest and exchAngeable npoA specified terms
for those nov outstanding. The other course
which commends itself 10 my owa Judgment as
the bitter, is the enactment OF law repeating
the tax On circulation and permit
ting banks 20 issue notes
io4 dn amount equal to nine per cent. Of the
valu~, stead as of now the face value of depos-
tied bond. l agree with the secretary in the
belief that the adoption of this plan will afford
tho necessary relief. The trade dollar was coin
ed for the purpose of tariff IN countries where
silver passed at its value ascertaIned by its
weight and iineness. It never had a legal ten
der quality. Large Numbers of these coins en-
tered, however, into the volume oil our curfen-
cy by common consent. Their circulation in
domestic trade has now ceased and they have
become disturbing element, they should not be
TEN. | recommend that provisions be made for
their reception by the treasury and minis as
bullion at d small percentage above the current
market price of silver of ike fneness The
secretary of the treasury advises a consolidation
of certain of the customs districts of the coua-
Try and suggests that the president be vested
with euch power IN relation thereto as is now
given him in respect to collectors of the inter-
nal revenue (section 3.1' OF the revised
tatutes. The statistics on this subject which are
contained N his report furnish of themselves a
strong argu aent III defense OF his views ct
the adjournment Of cong ess the number Of in
ternal revenue collection districts was 1890
By eX cutive orders, dated June rs, 1855,
directed that certain of these districts be con-
sordated The result has been a reduction of
ore-third of their number which at present is
but eight, three.
From the report of the secretary of war it will
be seen that in only a single instance has their
been any disturbance of the quiet condition
of our Indian tribes. a raid
from Mexico into Arizona " small party of
Indians, which was pursued by Ger Crook in, 0
the mountainous regioas, from which it had
come. 1t is confidently hoped that serious
outbreaks will not again occur, and that the
Indian tribes which for many years disturbed
he west, Will hereafter remain IL peaceable sub
mission.
THE NAVY.
1 again call your attention to the present con-
dition of our extended sea coast, upon which
many large cities, whose wealth and i'm
portance to the country would in me
OF war invite attack from modern
armored s5ae, against which our
existing defensive works Ct aid give adequate
protection. Those works were built before the
introduction of h avy rifled guns into maritime
warfaee, and IT they not put in an efficient
condition ha Gubiaeta1 TO h,1rn l.
iation by hostile power greatly inferior to our
selves. As german to this subject l call your
attention to the importance of perfecting our
submarine torpedo defenses. The board au-
thorized by the last congress to report on the
method for the manufacture of
heavy ordnance and adapted to modern warfare
has visited the principal iron and steel works
in this country and i'll Europe. 1t is hoped that
its report will be soon made and that congress
will thereupon be disposed to provide suitable
facilities and plans fer the ma ufacLure of such
guns as are now imperatiyely neejed.
On several occasions during the past year officers
of the army have at the request of the state
authorities visited these military encampments
for the inspection of troops. ON the reports
of these officers, induced to believe that
the encouragement of the state militia organiza-
ton by the national government would be fol-
lowed by vers gratifying results and would af-
ford it IN sudden rgencies the aid of large
body of volunteers educated IN the performance
OF military duties.
The secretary OF the navy reports
that under the authority OF the
acts of August 5, 1882 and
March 9. 1888 the work of streagthsni our
navy bv the construction of modern gesseis has
been auspiciouslv begun. Three cruisers are in
| progress of construction. The hicago $500
tons displacement, and the Boston and Atlantic
| each OF 500 tons. They are to be built OF
| steel with the tensile stretch and duciity pre-
| scribed by law, and in combination of speed,
| pare favoIabIy with the best armed war vessels
OF other nations. A fourth vessel, the Dolphin,
| is TO be constructed Of similar material
and is intended to serve as feet dispatch boat
The double turreted monitors Puritan, AnphFitite
| and Terror have been launched on the Delaware
| river, d contract has been made for the sup
| ply of their machinery similar to each other
| The MonadnC ok has been launched in California
The naval advising board and the secretary
recommend the completion of the monitors
| The construction of four gunboats, and also o.
| three additional steel oats, like the Chicago
Boston and Dolphin is an important measure o.
material defense. Tie secretary urge!
| the immediate creat,n of an in
! terror fast line of water way
across the peninsula Of Florida along the coas
from Florida to Hampton roads, between tbs
Chesapeake bay and Delaware river, and through
Cape Cod. I feel bound to impress upon TIT
attention of congress the necessity of continued
progress in the construction of the navy. Thu
condition of the public treasury, as 1 have al