The herald., 1894-12-04

should be turned into American hands.
Shipbuiding, which has beea pro-
tected to strangulation, shoald be
revived by the prospect OF profit
able employment for chips when
built and the American sailor should be
reasurrected and again take his place as
a steady and industrious citizen in time
OF peace and q patriotic aad safe de-
fender OF American interests in the day
OF conflict. The ancient provi-
sion OF our law denying Aweri.
can rsgietry to ships built
abroad aud owned by Americans,
tions not only to be q failure for good at
every point, but to be nearer relic of
barbarian than anything that exists
under the permission of a statute OF the
| United States. | earnestly recommend
Its prompt repeal.
BOND ISSUES.
During the last month the gold re-
served in the treasury for the purpose OF
redeeming the notss OF the government
circulating ss money in the hands OF
the people, became so reduced and its
further depletion in the near future
seemed go certain, that in the exercise
of proper care for the public welfare, it
became necessary to replenish the re-
serve and thus maintain popular faith
in the ability aud determination OF the
government to meet, as agreed, its
pecuniary obligations. 1t would have
been we'll il, in this emergency, the
authority had existed to issue the bonds
OF government, bearing a low rate OF
interest and maturing within q short
period.
But the congress having failed to
confer such authority, resort was neoes-
sarilv had to the sumption act of
1875, and pursuant to its provisions,
bonds were issued drawing interest at
the ra Q Of FIVE per cent per Rnnum and
maturing ten years after their issue,
that being the shortest time authorized
by the act. am glad to say, however,
that on the Gale OF these bonds, the pre-
MUM received operated to reduce the
rate OF interest to be paid by the govern
ment less than three per cent.
Nothing could be worse or further
removed from sensible finance, than the
currency the government has issued,
demption, and the means which
must be resorted to for the purpose of
replenishing such redemption fund
when impaired. Even if the olailns upon
this fund we're confined to the obliga-
tions originally inrended, and if the re.
demption OF these obligations meant
their cancellation, the fund would be
very small. But these obligations when
received and redeemed in gold are not
cancelled, but are reissued and may do
duty many times by way of drawing
gold from the treasury. We have an
endless chain in operation, constantly
depicting the treasury's gold and never
near a final rest.
As il this were not bad enough. we
have by statutory declaration that
it is the policy of the government
to maintain the parity between gold and
silver and the force and momentum OF
this exhsustng process has added large
ly to the currencv obligations claiming
this peculiar gold redemption. Our
small gold reserve il thus subject to
drain from every side. The de-
mands that increase our dam
ger. also increase the necessity
of protecting this reserve against
depletion, and it Is most unsatisfac-
tory to know that the protection af-
forded is only temporary pslliation.
II is perfectly and palpably plain that
the only way under present r~sdjticns
by which this reserve, when danger
, onsly depleted can be replenished, 10
through the iseue and GALE of bonds OF the
government for gold, and yet congress
has not only thus far declined to author
ize the issue OF bonds best suited to such
purpose, but there seems disposition
in some quarters to deny both the neces-
sitv and power for the issue
of bonds at all. l cannot for q moment
believe that anv Of our citizens
are deliberately willing that their gov
srnment should default in its peeuniary
obligations. or that its financial opera
tions should be reduced to silver basis.
Az any rate | should not feel that nv
duty WAS done il omitted
any effort I could make to avert
such calamity. AS long. therefore,
az no PROV ion is made for the
final redemption OF the putting aside
of the currency obligation now used to
repeatedly and constantly draw from
the government its gold, and as long az
no better authority for bond issue 10
allowed than at present exists, such
authority will bs utilized whenever and
as often as is becomes necessary to
maintain a sufficient gold reserve and in
abundant time to save the credit of Onr
country and make good the financial
declarations of our government.
BANKING AND CURRENCY.
Questions relating to our banks and
currency are closely connected with the
subject just referred TO, and also
present some unsatisfactory features.
Prominent among them arc thu lack of
elasticity in our currency circulation,
and it's frequent concentration In finan-
cal centers when it is most needed in
other partu of the country. The abso-
lutte enforcement of the governments
from the business OF banking, is the
ideal relationship of the government
!, to the circulation OF the currency
of the country. This condition
! cannot be Immediately resched, but 10
step in that direction, and as means
. OF securing a more elastic currency and
obviating other objections to the
present arrangement of bank circu-
: lation the secretary OF the treas
ury presents in his report
q scheme modifying the present bank
ing laws and providing for the issuing
of circulating notes oy state banks, free
from taxation under certain limitations.
The secretary ex plains his plan 30 plain-
iy, and it's advantages are de-
veloped by him with such re-
markable clearness that any effort on
my part to present an argument in its
support would BIZ euperfuous. / shall
therefore consent myself with an un-
qualified Endorsements of the secretary's
proposed changes in the law and q brief