The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1888-04-03
the NATIONAL CAPITAL.
Secretary FaIrchlld's Explanation of
the Bond Purchases Last Year.

the Bond Purchases Last Year.
German Aggression In Samoa as
Regarded at Washington.
President Cleveland Prepares the
Way for Gen. Terry's Retirement.
WASHINGTON, April 2.7Secretary Fair
child sent to the House today his reply to
the resolution adopted February Z, asking
for information in regard to the purchase Of
bonds in August and September, 1887, and
the subsequent policy increasing the depos-
its of public funds in the National banks.
He says, ''The policy of endeavoring to in
crease the number of National bank deposit
tories and the amount deposited In the same
was adopted about October 8, 1887, after the
purchase Of bonds"
In response to an inquiry as TO the reasons
for changing the policy first adopted TO wit;
The purchase of bonds, he says: There
was no change in policy. The bonds were
purchased in obedience to the Revised Stat
utes to meet the Isinking fund requirements
for the fiscal year ending June 30, 1888. The
reason for endeavoring to Increase the
amount of deposits in the National banks
was, that the full amount of bonds author
lied and required by law to be purchased for
the sinking fund during the fiscal year end
ing June 80, 1888, had been purchased al
ready prior to October s. 1887, and there was
in the Judgment of the department, no an
doubted, lawful power, except In the increase
of deposits in National bank repositories, to
avert the dangers which threatened the
country, because taxation in excess OF the
needs of the government was rapidly taking
circulating media from the channels of busi-
ness and locking them up in the vaults OF the
treasury. Twelve years ago but few banks
were allowed fixed balances. The practice
was for the treasurer to draw against his
balance whenever tfunds were needed. In
consequence, the balances were not uniform,
but fuctuated from 60 per cent to par of the
face value of the security.
About October. 1885, the practice became
quite general to allow fixed balance equal
to 90 per cent of the face value of United
States per cent. bonds and somewhat
smaller amount of Al and per cent. bonds
This rule was changed in 1887 and balauce
equal to par was allowed on the per cents.
Later in October, in view of the stringency
of the money market and and the amount Of
surplus IN the treasury, and as an induce
ment to the banks to become repositories
the rule was again changed and a balance
allowed equal to ITO per cent OF the, face
value of per cents. and par value OF A per
cents, whenever a sufficient margin re-
manned to cover the largest deposit likely TO
be received in any one day.
The plumber of national banks designated
since Oct. 7, 1887, is So. The number desig,,
mated prior to Oct. 7. 1887, that have ayalled
themselves of the increased rate is l23. The
increased percentage of deposits allowed has
somewhat diminished the circulation OF ma
tional bank notes, probably not more than
four or five millions. In my Judgment tne
increase of deposits has resulted in large
increase in the money supply available for
the business of the country, for the time be-
ing averted serious financial distress, and
neither increased nor diminished, perma-
neLtly, the circulating medium OF the coun--
try. BY the use Of all lawful powers and
expedients, this department. during the past |
year. has earnestly and anxiously strlven to
avert dangers and difficulties which cannot
be cured or long prevented from working
great harm no matter what devices are at
tempted unless the revenues OF the govern
ment are so reduced as nearly to equal the
ordinary and necessary expenditures"
our Relations with Samoa.
The official. correspondence between the |
United States and Germany growing out |
of the recent troubles in the Samoan Islands
shows that the government has scrupulousiy
refrained from increasing its prestige and
influence in the islands by ayailing itself of
the unnistakable friendship which the ma
tives entertained for this country. On the
contrary, the United States have used their
good Offices to preserve the autonomy Of the
islands without any further consideration
than that of protection to American in
terests. Further than that we have not
gone. :,
ton at Berlin, alludes to the action of Germa-
ny in beginning hostilities against King
Molietoa, which he alleges were instituted
six days before any notification was given TO
the United States.
Mr.. Bayard's letter concludes in these
words: I'm the opinion of this government
the course taken by Germany in respect to
Samoa cannot be regarded as having been
marked by that just consideration which the
ancient friendship between the United
States and Germany entities this government
to expect, and that the present condition OF
affairs in the islands cannot, In view, OF the
circumstances under which it was brought |
about and is still maintained, be regarded |
by the United States as satisfactory"
Permission Is given to Minister Pendlet0n |
in the letter to communicate Mr.. Bayard's |
views to Prince Bismarck.
General Terry's Retirement.
The President today detailed an army re-
firing board, composed of Major General |
JOuu III. OCuOuclus DllSdQtCl 0tACAdAo DSA-
nett and Macfeeln, Col Baxter and Major |
Greeneaf TO meet in Washington. Wednes- |
day next to examine Major General Alfred |
II. Terry for retirement.
Laboring with the Senators.
About 150 woman suffragists assembled in |
the ladies' reception room of the Senate at
a. M, where they were given an audience by |
the Senate committee on woman suffrage. |
Miss Anthony, Mrs. Stanton, Mrs. Shattuck,
Mrs. Grath of Norway, Miss Trigg of Fin |
land, Mrs. Chant Of England, Mrs. Julia |
Ward Howe. Mrs. Merrick of Louisiana, |
Mrs. Keeferd of Toronto, and Miss Willard, |
in turn addressed the committee In favor of |
woman suffrage. The remarks were steno-
graphically reported, and will probably be |
printed as public document for distribu- |
ton.
Notes.
The public debt less cash in the treasury, |