The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-12-05

sxpsrfsncs OF the rass year Gas CON
frnaed and strengthened sne opinions tnen
expressed. and tserefsrs respectfully but
rnoTt eagnsstfv urge urop congress tne
necessity for remedial Legislation dErsng
ftz r.rsseut session. TIE wsli-knoEn de-
fects in ogr financial system. and the
serious nature Of the evils threatened oy
their. have done more durfng the LAST
twenty years 70 inpaif ths cres -
the governs ent and the people o.
the United States ~ home snd
abroad. snd to check our industrial
and commercial progress. than al os1er
things com bined and our frat and Tslsinsss
dnty is 70 provide. If possible, some effect
i've method for the prompt and rersnAnsns
relief Of the country from the consequence
OF the present unwisa policy A ortef
statement OF the practical and unavolo-
able results OF the existing legislation viii
dsnonstrats its injurious effects apon our
financial affairs more clearly THAI any
argument thai could be submitted.
POURING vATER Inro THE TREASURY SIEVE.
The secretary then reviews the circun-
stances leading up 70 ths frst $59VoO,eao
issue of bonds as q means Of repienishing
the gold reserve. realizing s5s.eoO.SiT and
increasing The free gold in the treasury 70
tl07. 80, sJ2 and ssys:
ssThelowsst point reached by the reserve
since the rssum ptlon Of specie payment
was on the tn day Of August, feets. when,
by reason OF Withdrawals and the re-
dsmption OF notes. Is Was reduced 10
352 lse. 800 After that ID Was slowly re-
plenIskred by voluntary exchanges OF god
coin for United States notes b the banks
and by small receipts of gold In the pay
meat OF duties 10 the government, until
the I4sh of November, iss4s when II
reached the sum OF $6l SIS. 374. In the
msantime. however. the frequent presenta-
ton of notes for redemption in gold by
individuals and Institutions not desiring
Ia for export clearly indicated she existenee
of feeling Of uneasIness IN the pubic
mind, while foreign exchange was almost
constantly at or near q rate which made
IL more profitable TO export gold than 20
purchase bills, and consequently with
drawals for shipment were daily threat
sned. In addition 20 these causes OF
anxiety. the vast accumulation of money
af our financial centers and the general
depression IN business which prevailed IN
this country 80 reduced the rates of dis
count that the inaucement 10 keep funds
abroad, where better Investments could be
mads. were much greater than In ordinary
times. and this. together with the other
facts stated, made IL highly lmprudent to
neglect any preeaution which appeared
necessary to insure the safety OF our imam
ciaI position. Therefors the second issue
of &c, goo coo was decided upon. For tais
fssae proposals for which were issued last
month, 4s6 bids were reesived. amounting
10 ti7s. So. 900. nearly all OF which we're st
rates which would yield 10 the investor
Per cent. or less. One bid was for the
whole $50 Oo0, 90, upon the basis Of 2s7S
per cent, and, being the most sdyanta-
ssous offer for the governments that Was
made either singiy or By aggregating the
separate bids. was accepted and the pro-
eeeds OF the sale, Sc. So, 500 have nearly
~ Ia ma. anA A
10 the terms of the sale.
BOND ISSUE LAW sExpED.
ssThs transactions justified the opinion
that ~ per cent bonds. having O reasona-
bic time 30 run, could probably have been
sold ut par. and certainly that per cent
bonds could have been disposed of at or
above that rate. Az the authority to issue
and sell bonds already exists, and the
present state Of our financial legislation
compsls Its occasional exercise, I repeat
the Recommendation made in my last an
nual report. that, In the interest Of the
government and the people, power be con-
ferred upon the secretary OF the treasury
to negotiate loans at . lower rate OF inter-
est and for Q shorter time than 10 now
allowed. The sxisteucs Of such authority.
instead of increasing the probabilities Of a
frequent resora TO that means of raising
money, would have the contrary effect. be-
cause, when 10 IL known that the secretary
of the treasury Is clothed with ample
power and facilities to procure means FOR
the maintenance Of the reserve, public
eonndsucs I'm the ability Of the govern
fnent 10 meet promptly all demands upon
IL viii be much stronger than under pres
snt circumstances. Beside. a policy of
limiting the governments to the sale OF
bonds bearing rate Of interest wholly In
consistent With the existing stats OF the
public credits, and having longer time to
has "a A. Al
date Of its Issue, cannot be justified upon
any grounds of eapedisnoy or principle.
The Law should be so amended as TO con-
form TO the conditions and requirement..
of public credit and service at the present
time. and earnestly hope that congress
will take early and favorabls action upon
this subject.
nEEKcTs III TIE CURRENCY SYSTEM.
$50 long as there are In circulation IN
coins, unequal ia value but squsi in legal
tender qualities. every consideration OF
good faith and sound policy requires the
prompt redemption Of the notes on pres
rntAtion in the kind OF coin demanded by
the holder. and the constant observance OF
such adm Illustrative methods ss may be
necessary TO preserve the purchasing
power Of the less valuable metal. This is
essential 20 the continued circulation of
cur standard silver dollars aud their paper
representatives ~ Tag. and 10 abandon
this policy, without submitting a better
Que IN it's place. would not only fail TO cure
any Of the evils now existing, but would
entail upon the people of The country ad-
diflonal and greater ones. This situation
In the direct result of the features of our
currency legislation, and lt cannot be per
msnsntiy avoided or even temporarily i'm
proved without material changes In our
laws relating TO that subject These feat
nrse aFes
Ell TIE circulation of United states notes a.
eafrSney. aud tasiE redemption in coin GA de-
mAai.
- The compulsory reissue OF such notes
after redemption
- 1hs excessive accumulation and eoinsre
OF silver, aud tas issus OF Rogss and certificates
sgs4nst "a upon ratio which greatly oveYNAluaz
the amount ss compared with ghs standard
onii 81 value In tais Aad other principal eoan.
usA
"FreQuen, issues Of bonds Tor the pur-
pose Of procuring gold, which cannot be
kept after IL has been ohtsiued. wal car
tAiniy cause increased atstrusg nrnonr our
own people as veil IS among ahe people 81
other countries. ana nos onsy s~eti thm
volume Of our securities returned fron
abroad for ssls or redemption. boa increase
ths withdrawal Of foreign capital hereto
fore Invested in our domestic enteruriss%.
Ordinarily. when there ~ no distrust az
our currency ar other Gtscouraxiag ia
fiusnce, $ considerable part Of the interest
and dividends earned by foreign cap
ital in this country - AnnuaIy
or substantially invested. and this, To-
gsth~r vita the fact that under normal
conditions the balance Of trade 70 in our
favor. enables our people so meet oar
obligations abroad utthoutreineiu their
stock OF monev at home. But when
dsstf1st arises either as - car ability 60