Los Angeles herald., 1891-12-10

believe that people so strong and
prosperous 90 ours will promote such
q policy. The producers of silver ere
entitled to Just consideration, but they
should not forget that the government
is now buying and putting out OF the
market what is the equivalent OF the en-
tire product OF our silver mines. This
is more than they themselves thought
of asking few years ago. believe 1t
is the earnest desire of great majority
of the people, as it is mine, that
fell coin use shall be made of silver just
as soon as the cooperation of the other
nations can be secured and ratio fixed
that will give circulation eqtally to gold
and silver. The business of the world
demands the use of both metals, but
do not see any prospect of gain but
much of loss by giving up the present
system, in which full use is made OF
gold and large use OF silver for one in
which silver alone will circulate. Such
an event would be at once fatal to the
further progress of theEilver agreement.
BIMETALIsM DESIRED.
Bimetalism is the desired END, and
the true friends of silver will be careful
MOTTO override gold and bring in silver
monometalism with its necessary at
tendant, the loss of our gold to Europe.
j have endeavored by the use of Off
cial aud unofficial agencies 30 keep a
| close observation Of the state of public
sentiment in Europe upon this question,
and have not found it to be such as to
lgjustify me in proposing an international
conference. There is, however, l am
| sure, a growing sentiment in Europe in
favor of the larger use of silver, and
know Of no more effectual way of pro-
noting this sentiment than by accumu-
latng gold here. A scarcity of gold in
the European reserves will be the most
persuasive argument for the use of sill
yer. The exports of gold to Europe,
which began in February last and con-
tinued until the close of July, aggre-
gated over SIC, 900, 900.
The netloss of gold during the fiscal
year was nearly $6S, 100000. That no
serious monetary disturbance resulted
was most gratifying, and gave to Europe
fresh evidence of the strength and sta
bility of our financial institutions.
With the movement of crops the out
flow of gold was speedily stopped and q
return set in. Up to December 1st we
had recovered of our gold loss at the
port of New York $27 ,S54 900, and it is
confidently expected that during the
winter and spring this aggregate will be
steadily and largely increased.
REDUCTION OF THE SURPLUS.
The presence of large cash surplus
in the treasury has for many years been
the subject of much unfavorable criti
cism and has furnished an argument tt
those who have desired to place the
tariff upon purely revenue basis. Il
was agreed by all that the Withdrawal
from circulation of so large an amount
of money was an embarrassment to the
business of the country and made nee
essary the intervention of the depart
ment at intervals to avoid a threatened
monetary paralysis. The surplus or
March 1. 1899, was $1S3, 1927 ,190.29. The
policy of applying this surplus to the
redemption OF the Understanding
securities of the United States was
thought to be preferable to that oi
depositing it without interest in selected
national banks. There have beer
redeemed since date last mentioned O
interest-bearing securities $3.50, ,079, $50
resulting in a reduction of the annua
interest charge of $11 .6S3, ,675. Tht
money which had been deposited il
| UdH luLGT6St is OoluR ETdOu
withdrawn and used in the redemption
of bonds. The result of this policy, of tn,
silver legislation and of the refunding o
the AZ per cent bonds has been large
increase of the money in circulation. A,
the date last named the circulation was
$23.03 per capita, while on the I st day
OF December, 1891, it had increased to
$24. 3e per capita.
The offer of the secretary of the treas
ury to the holders of the AZ per cent
bonds to extend the time of redemption
at the option of the government at an
interest of per cent was accepted by
the holders of about one-half thu
amount and the unextended bonds are
beingeTedeemed on presentation.
MILITARY MATTERS.
The report of the secretary of war ex-
hibits the results of an intelligent, pro
gressive and business-like administra
tion of department which has been tot
much regarded as one of mere routine
The separation of Secretary Proctor
from the department by reason of hi
| appointm as senator from the state
of Vermont, is source OF great regret
to me and his colleagues, and | am sure
it will be to all those who have had bus.
mess with the department while under
his charge. In the administration oil
army affairs some especially good work
has been accomplished. The efforts O.
the secretary to reduce the percentage
of desertions by removing the causes
that promoted it have been so successful
as to enable him to report for the last
year lower percentage of desertior
than has been before reached in the
history of the army. The resulting
money saving is considerable, but the
improvement in the morals OF enlisted
men is the most valuable incident of the
reforms which have been brought about
by this result.
The work OF securing sites for shore
batteries for harbor defenses and the
manufacture of guns, ETC., of high power
has made good progress during the year
| The preliminary work of tests, which go
long delayed start, is now out of the
way. Some guns have been completed,
and with an enlarged shop and more
complete equipment at Watervliet the
army will soon be abreast of the navy
in gun construction. Whatever unavoid
able causes of delay may arise, there
should be none from delayed or insult
ficient appropriations. We shall thus
be greatly embarrassed for the proper
distribution and use of naval vessels un.
til adequate shore defenses are provided
for our harbors. l concur in the recon-
mendation OF the secretary that the
three battalion organizations be adopted