The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1889-12-11

the Government offers a substantial ad-
vantage
The loaiug Of public funds to the banks,
without interest. upon the security Of
Government bonds, regard as sn 5uau-
thorized and dangerous expedient- It re-
suits in a temporary and unnatural IN
crease Of the banking capital of favored
localities, and eompels a cautious and
gradual recall Of the deposits to avoid
injury to the commercial interests. Il IS
not to be expected that the banks having
these deposits will sell their bonds to the
Treasury 50 long as the present highly
beneficial arrangement is continued
They now practically get interest both
upon the bonds and their proceeds. No
further use should be made Of this meth
cd of getting the surplus into circulation.
and the deposits outstanding should be
gradually withdrawn and applied TO the
purchase OF bonds It is fortunate that
such use can be made of the existing
surplus, and, for some time to come, Of
any casual surplus that may exist after
Congress has taken the necessary steps for
q reduction of the revenue. Such legis-
iation should be promptly bat very con-
siderately enacted
THE TARIFF CONSIDERED.
recommend a revision Of our Tariff
law, both in its administrative features
and in the schedules. The need Of the
former is generally conceded, and agree
ment upon the evils and inconvenienees
70 be remedied and the best methods for
their correction will probably not be diff
6eult. Uniformity Of valuation at ali cur
ports is essential, and effective measures
should be taken to secure il. It is equal
ly desirable that conflicting rates and
classi6eations should be promptly deci-
ded-
The preparation Of new schedule Of
customs duties Is matter Of great deli
eacy, because Of its direct effect upon the
business Of the country, and of great diff
ficulty by reason Of the wide divergence
of opinion as to the objects thai may be
properly promoted by such legislation.
Some disturbance Of business may per
haps result from the consideration Of this
subject by Congress, bat this temporary
i'll effect will be reduced to the minimum
by prompt action ard by the assurance
which the country already enjoys that
any necessary changes viii be so made
as TO not impair the just and reasonable
Protection Of our Home Industries.
The inequalities of the law should be
adjusted, but the Protective principle
should be maintained and fairly applied
to the products Of our farms as we'll as OF
our shops. These duties necessarily have
relation to other things beside the pub
lie revenues. We cannot limit their ef-
fects by fixing our eyes on the Public
Treasury alone They have direct re-
Iation to home production to work, to
wages, and to the commercial independ-
enee of our country, and the vie and
patriotic legislator should enlarge the
field Of his vision to include all Of these
The necessary reduction in our public
revenues can, am sure, be made with
cut making the smaller burden more on
erous than the larger by reason Of the
disabilities and limitations which the
process of reduction puts upon both cap
ital and labor. The free list can very
safely be extended by placing thereon ar
ticles that do not offer injurious competi-
ton to such domestic products as our
nome labor can supply. The removal of
the internal tax upon tobacco would re-
lieve an important agricultural product
from burden which was imposed only
because our revenue from customs duties
was insufficient for the public needs
II safe provision against fraud can be
devised, the removal Of the tax upon
spirits used in the arts and in manufact-
ures would also offer an unobjectionable
method Of reducing the surplus.
THE CIRCULATION OF MONEY.
Atable presented by the Secretary Of
the Treasury, showing the amour. of
money of all kinds in circulation each
year from 1878 to the present time, is Of
interest. 1t appears that the amount Of
National Bank notes in circulation has
decreased during that period sIl4, 100, ,729,
of which So, ,799, ,22e is ehargeable to the
last year The withdrawal of bank cir
culaton will necessarily continue under
existing conditions 1t is probable that
the adoption Of the suggestions made by
the comptroller of the currency, viz,
that the minimum deposit of bonds for
the establishment Of banks be reduced,
and that an issue Of notes 70 the par val
ne of the bonds De allowed, would help
TO maintain the bank circulation. But,
while this withdrawal OF bank notes has
been going on, there has been large in
crease in the amount of gold and silver
coin in circulation and in the issues OF
gold and silver certificates.
TIE SILVER COINAGE xoT An Evil
The evil sntieipations which have ac-
companied the coinage and use Of the
silver dollar have not been realized. As
coin it has not had general use, and
the Public Treasury has been compelled
TO store it. Bot this is manifestly owing
to the fact that its paper representative
is more conTenient. The general accept
ance and use Of the silver certificates
show that silver has not been otherwise
discredited. Some favorable conditions
have contributed to maintain this prac-
teal equality, in their commercial use,
between the gold and silver dollars. But
some of these are trade conditions that
statutory enaetmens do not control and
of the continuance of which we cannot
be certain.
| think it is clear that II We should
make the coinage Of silver at the present
ratio free, We must expect that the diff
ference in the bullion values of the gold
and silver dollar will be taken account Of
in commercial transactions, and | fear
the same result would follow any consid-
erable increase Of the present rate Of
coinage Such a result would be dis
creditable to our financial management
and disastrous to all business interests.
We should not tread the dangerous edge
Of such 4 peril And, indeed, nothing
more harmful could happen to the silver
interests. Anv safe legislation upou this