Evening star. [volume] (Washington, D.C.) 1854-1972, 1886-12-16
REDUCING THE SURPLUS.
He EXPLAINS TO A STAR REPORTER WHAT HE FRO
POSES TO ACCOMPLISH BY THE BILL HE INTRO
DCCED MONDAY.

DCCED MONDAY.
Mr.. Hewitt introduced an ingenious financial
proposition in the House Monday. The bill pro-
videS means OF reducing the surplus in the
Treasury, and gives security for national bank cir
culation, which will prevent the contraction OF
currency.
The bill is the result of long and careful study,
said Mr. Hewitt, in explanation of the measure TO
STAR reporter to-day. SIT is not hastily con-
ceived plan. Its purpose is, first, to provide an
outlet for the accommodating surplus in the Treas
ury II the revenues OF the government are not re-
duced. 1t is the part of statesmen, l think, when
there is as now, so much division and uncertainty
to provide against the contingency OF the failure
OF legislation. II the revenues are not reduced the
To correct this the bill authorizes the Secretary 10
use this surplus to prepay the interest on the gov
ing the interest OF all the bonds to three per cent
II is mere business proposition. II business
house has out interest bearing securities. and
wants to pay off all the interest at once, they ar
range with their creditors for discount. Now, l
want to apply the same business principles TO the
g9Ternmenf; BY paving at once the government
three per cent. The tax payers will be relieved
Just JUST this much, and the interest on the
per cent. The fact that the interest above this
amount Will be stamped across the face of the
bonds, or If they are coupons they shall be cut on
ana coupons OF the lower rate substituted.
Now as second proposition these bonds may be
deposited in the treasury to secure national bank
circulation. The banks can buy these bonds In
the market to replace the 3 per cents that have
been called. Their interest being reduced they
Will not command such premium as they now
DO. IL is probable that per cents having ten
years 10 run, would command a small premium.
10 overcome this propose to allow the national
banks 10 Issue TO par upon these bonds. This
thihk VIII about make up the difference of the pre-
MUM
Now 1t may only properly be asked suppose the
hondholders refuse to accept the prepayment OF
the interest This IS provided against in the bill
by the provision that the Secretary OF the Treas
ury deposit the surplus in banks upon security
ednesS
think it will be found that the bill meets all
the requirements of the case. Ii Will prevent the
confirmation OF the currency and put the surplus
tended as an expeuient IL the revenues OF the gov
eminent are not reduced. II would not be OF 30
much value IL the tariff were reduced, but 1t
would even then be serviceable.
Mrs. Cleveland and the w. C. II. U.
A young Ladies' Christian Temperance Union
was organized in Scranton, Pa, Tuesday. The
president of the organization, Mrs. ID. ". Swan,
has received a letter from President Clegeland's
wife concerning the alleged protest OF st. Louis
women against the use or wines at gathering at
the house of Cabinet officer at Washington. Mrs.
Cleveland writes:
Temperance Union in your city has been received.
Allow me to thank you for Its contents. Since my
return from New York have been unable to look
over all the mail received In my absence. So far
nothing has come TO my notice from the 81. Louis
division OF your organization. am inclined TO
possibly by menewspaper to injure the Women S
CHRISTIAN Temperance Union"