Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1894-12-03

est possible liberty 70 our cltlZeus
in the ownership and navigation OF
ships in which our products and
manufactures may be transported.
The ancient provision of our law deny
ing American registry to ships built
abroad and owned by Americans APP
pears in the light of present conditions
not only to be q failure for good at
every point, but to be nearer relic OF
barbarism than any thing that exists
under the permission of statute ofthe
United States. Earnestly recommend
its prompt repeal.
During the last month the gold re
served in the Treasury for the purpose
of redeeming the notes OF the govern
ment circulating as moneyin the hands
of the people became SO reduced, and
its further depletion in the near future
seemed so certain, that in the exercise
of proper care for the public welfare 1t
became necessary to replenish this re-
serve and thus maintain popular faith
in the ability and determination of the
government to meet, as agreed, its Pc
cuniary obligations. 1t would have
been well if in this emergency authority
had existed to issue the bonds OF the
government bearing low rate OF inter-
est and maturing within short period.
But the Congress having failed to con-
fer such authority resort was necessarily
had to the resumption act of 1873, and
pursuant TO its provisions bonds were
issued drawing interest at The rate of D
per cent. per annum and maturing ten
wears after their issue, that being the
shortest time authorized by the act. !
am glad TO say, however, that on the
sale of these bonds the premium re-
ceiyed operated TO reduce the rate Of
interest 10 be paid by the government
to less than three per cent.
Nothing could be worse or further
removed from sensible finance than The
relations existing between the currency
the government has issued, the gold
held for its redemption and the means
which must be resorted to for the pur-
pose of replenishiDg such redemption
fund, when impaired. Even if the
claims upon this fund were confined to
Che obligations originally intended, and
if the redemption Of these obligations
meant their cancellation, the fund
would be very small. But these obi
cations when received and redeemed in
gold are not cancelled but are re-issued
and may do duty many times by way
of drawing gold from the Treasury.
Thus we have an endless chain in ope
ration constantly depicting the Treas
ury's gold and never near final rest.
As if this were not bad enough W,
have by statutory declaration that
it is the policy of the government
to maintain the parity between gold
and silver, aided the force and momen-
tum Of this exhausting process, and
added largely to the currency obliga-
tons claiming this peculiar gold re-
demption. Our small gold reserve is
thus subject to drain from every side.
The demands that increase our danger
also increase the necessity of protecting
this reserve against depletion, and it is
most unsatisfactory to know that the
protection afforded is only a temporary
palliation. 1t is perfectly aud palpably
plain that the only way under present
conditions by which this reserve when
dangerously depleted can be replenist-
ed is through the issue and sale of the
bonds OF the government for gold; and
yet Congress has not only thus far de-
clined to authorize the issue of bonds
best suited to such a purpose, but there
seems a disposition in some quarters to
deny both the necessity and power for
the issue of bonds at all. AS long
! therefore as no provision is made for
the final redemption or the putting
aside of the currency obligation now
used to repeatedly and constantly draw
from the government its gold, and as
long as no better authority for bond is
sues is allowed than at present exists,
such authority will be utilized when
ever and as often as it becomes neces-
sary 10 maintain a sufficient gold re-
serve and in abundent time to save the
credit Of our country and make good
the financial declarations of our gov.
eminent.
Questions relating to our banks and
currency are closely connected with
the subject just referred to and they
also present some Unsatisfactory fea-
lures. The Secretary of the Treasury
presents in his report a scheme
modifying present banking laws
and providing for the issue of
circulating notes by State banks free
from taxation under certain limitations.
The secretary explains his plan so
plainly that shall content myself with
an unqualified endorsement of the Sec
retary's proposed changes in the law
and brief and imperfect statement
of their prominent features: 1t is
proposed to repeal all laws provid-
ing for the deposit of U. S. bonds as
security for circulation; to permit
national banks to issue circulating notes
not exceeding in amount rs per cent.
of their paid up and unimpaired capital
provided they deposit with the govern
ment, as guarantee fund, in U. S.
legal tender notes, including treasury
notes of 1890, sum equal in amount to
80 per cent. of the notes they desire to
issue, this deposit to be maintained at
all times, but whenever any bank re-
tires any part of its circulation
a proportional part of its guar
antee fund shall be returned to
it; to permit the secretary of |
the treasury to prepare and keep on
hand ready for issue in case an increas
in circulation is desired blank national
bank notes for each bank having cir
culation and to repeal the provisions
of the present law imposing limitations
and restrictions upon banks desiring to I