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

March 8, 1888, can be definitely ascertained
portion at least of this surplus
revenue may be wisely applied to the leng neg
lecied duty of rehabllitaung our nation and pro-
viding fresh defenses for the protection of our
harbors. This is matter to which l 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? The aggregate
amount of bonds, now on deposit in the trea-
sury to support the national bank circulation is
about S55U, 100000. Nearly 5000. lO0nU 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
minished the probable effect of such an exten-
sive retirement of the securities, which are the
basis of the national bank circulation would be
such contraction of the volume of the currency
as to produce grave commercial embarrassment
How can the danger be obviated? The most
effectual plan and the one whose adoption at the
earliest practicable opportunity / 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 any material disturbance, butt if on the
other hand there shall be great delay in reduc-
ing taxation IL will become necessary either to
substitute some of the other reforms of curreu-
cy in place of the national bank notes so as to
make an important change in the laws by which
their circulation is now controlled. In my
| Judgment the latter course is far preferable. 1
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 the acceptance of any other Sc
curities than the obligations of the government
itself as foundation for the national bank cir
culation seem to me insuperable 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 and exchangeable upoa specified terms
for those now outstanding. The other course
which commends itself to my own Judgment as
the better, is the enactment of law repeating
the tax circulation and permit
ting banks to issue notes
tor an amount equal to nine per cent. of the
value, stead as of now the face value of depos-
tied bonds. l agree with the secretary in the
belief that the adoption of this plan will afford
the 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 hneness. 1t never had a legal ten
der quality. Large numbers of these coins en-
tered, however, into the volume of our curren-
cy by common consent. Their circulation in
domestic trade has now ceased and they have
longer permitted to embarrass our currency sys-
tenn. recommend that provisions be made for
their reception by the treasury and minis as
bullion at a small percentage above the current
market price of silver of like fneness. The
secretary of the treasury advises consolidation
of certain of the customs districts of the coun-
try and suggests that the president be vested
with such power in relation thereto as is now
given him in respect to collectors of the inter-
nal revenue (section Sill of the revised
statutes. The statistics this subject which are
contained in his report furnish of themselves
strong argu olent in defense Of his views. At
the adjournment of congress the number of in
tarnal revenue collection districts was 1850.
By executive orders, dated June rs, 1885,
directed that certain of these districts be con-
solidated. The result has been reduction of
one-third of their number which at present is
but eighty three.
From the report of the secretary OF war it will
be seen that in only 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 Gen. Crook int o
the mountainous regions, 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
the west, will hereafter remain in peaceable sub
mission.
THE NAVY.
l again call your attention to the present con-
dition of our extended sea coast, upon which
are so many large cities, whose wealth and i'm
portance to the country would in time
Of war invite attack from modern
armored ships, against which our
existing defensive works C, uld give no adequate
protection. Those works were built before the
introduction of heavy rifed guns into maritime
6Ipfh how ,rt r,t1f, 60
condition, we may easily be subjected to humil-
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 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
authorities visited these military encampments
for the inspection Of troops. From the reports
of these officers, am induced to believe that
the encouragement of the state militia organiza-
ton by the national government would be fol-
lowed by very gratifying results and would af-
ford it in sudden emergencies the aid of a large
body of volunteers educated III the performance
of military duties.
The secretary OF the navy reports
that under the authority of the
acts of August 5, 1882 and
March 8. 1883, the work of strengthening our
navy by the construction of modern vessels has
been auspiciouslv begun. Three cruisers are in
progress OF construction. The Chicago. $500
tons displacement, and the Boston and Atlantic
| each of 2,50J tons. They are to be built of
steel with The tensile stretch and ductility pre-
scribed by law, and in combination of speed
endurance and armament are expected to com
pare favoIably with the best armed war vessels
of other nations. 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, Amphritite
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 Monadnock has been launched in California
The naval adyieing beard and the secretary
recommend the completion of the monitors.
The construction of four gunboats, and also of
three additional steel boats, like the Chicago,
Boston and Dolphin is an important measure of
material defense. The secretary urges
the immediate create of an in
| terror fast line of water ways
across the peninsula of florida along the coast
| from Florioa to Hampton roads, between the
Chesapeake bay and Delaware river, and through
| Cape Cod. I feel bound to impress upon the
attention of congress the necessity of continued