Oakes weekly Republican. (Oakes, Dickey County, D.T. [i.e. N.D.]) 1883-1898, 1894-12-07
PRESIDENTS MESSAGE
MR.. CLEVELAND PRESENTS HIS
VIEWS TO CONGRESS.

ment of the Currency System Elucidated.
WASHINGTON, Dec. 3. - Congress
convened at noon. The first business
was of course the reading of the presi-
dents message, very long document,
but devoted mostly to review of the
reports of cabinet officers and the ap-
proval of their recommendations.
The report of the treasury depart
ment shows a deficit fer the past year
of so, 900, 900, and the estimated deficit
for this year is $20,000,O00.
The three battalion formation is
recommended for the army. No
increase in the present legal
strength is thought necessary, however.
An additional judge of the circuit court
of appeals for each district is recon-
mended i'll order to facilitate the bust
ness of the courts Federal prisons are
also strongly recommended.
The deficit in the postotfice depart
ment is nearly ten millions. The pres
ident recommends change in the law
relating to second class matter (period-
icalsl by which the vast mass OF yellow
backed literature shall be made to pay
at least as much as standard bound pub
locations. This and few minor changes
would be sufficient to overcome the
deficiency.
The recommendations of the secre-
tary Of the navy for new battle ships
and torpedo boats are approved.
Reviewing the report of the secretary
Of the interior the president urges the
better protection of timber, and court
where contested land cases can be sent
for final adjudication. Regarding al
lotment of lands to the Indians the
president says:
In the light of experience, and consider
ing the uncertainty of the Indian situation
and its eNigencies in the future, l am not
only disposed to be very cautious in max
ing allotments, but incline to agree with
the secretary of the interior in the opinion
that when allotments are made the bal
ance of reservation land remaining after
allotment, instead of being bought by the
government from the Indians and opened
for settlement with such scandals and I'M
fair practices as seem unavoidable, should
remain for a time at least as common land
or be sold by the government on behalf of
the Indians in an orderly way and at fixed
prices to be determined by its location
and desirability, and that the proceeds
less expenses should be held in trust for
the benefit of the Indian ppoprietors.
Great progress is reported i'll the sci
entitic experiments Of the department
of agriculture, and still greater results
are looked for.
The strike commissions report is
recommended to the careful attention
of congress, but no special suggestions
are made.
The only suggestions regarding the
tariff are that iron ore and coal go OH
the free list and that the differential
on sugar be abolished.
In regard to the currency scheme of
which much has been said the presi-
dent has the following:
The absolute enforcement of the busi-
ness of banking is the ideal relationship
Of the government to the circulation of
the currency of the country
| This condition cannot be Immediately
reached, but as step in that direction
and as a means Of securing more elastic
currency and obviating other objections
to the present arrangement of bank circu-
lation, the secretary of the treasury pre-
sents 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
and its advantages are developed by him
with such remarkable clearness that any
effort on my part to present argument in
its support would be superfuous. shall
therefore content myself with
An Unqualified Endorsement
of the secretary's proposed changes in the
law and a brief and imperfect statement of
their prominent features. 1t is proposed
to repeal all laws providing for the de-
posit of United States bonds as security
for circulation; to permit national banks
! to issue circulating notes not exceeding in
, amount IS per cent of their paid up and
unimpaired capital provided they deposit
with the government as n guarantee fund
in United States legal tender notes, not
including treasury notes of 1890, sum
equal in amount to 30 per cent of the
notes they desire to issue, this deposit to
be maintained at all times; but whenever
any bank retires any part of its circula-
tion, proportionate part of it's guaran.
tee fund shall be returned to
it; to permit the secretary
of treasury prepare and keep on hand
ready for issue, in case on increase in cir
culation is desired, blank national bank
notes for each bank having circulation,
and to repeal the provisions of the present
law imposing limitations and restrictions
upon banks desiring to reduce or increase
their rcirculation-thus permitting such in
crease or reduction within the limit of Is
per cent of capital to be quickly made as
emergencies arise.
A Safety Fund.
In addition to the guarantee fund re-
| quired, it is proposed to provide a safety
fund for the immediate redemption of the
circulating notes of failed banks by impos-
ing II small annual tax, soy one half
of per cent, upon the average circula-
1 tion of each bank until the fund amounts
to per cent of the total circulation out
standing. When u bank fails it's guaran-
tee fund is to be paid into this safety fund
and its notes are to be redeemed in the
| first instance from such safety fund thus
augmented-any impairment of such fund
caused thereby to be made good from the
Immediately available cash assets of said
bank, and if these should be insufficient,
such impairment to be made good by pro
rata assessment among the other banks,
their contributions constitutinga first lien
| upon the assets of failed bank against con
tributing banks.
| AS further security it is contemplated
that the existing provision fixing the indi-
vidual liability of stockholders is to be re-
tanned and the banks indebtedness ON
account of its circulating notes is to be
made u first lien on all its assets.
| 1t is quite likely that this scheme can be
usefully amended in some of its details;
but am satisfied it furnishes basis for a
very great improvement in our present
banking and currency system.