The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1894-12-04

The following summary We SIP IRON
the North American:
About three. fourths Of the Presidents
message consists OF q very good digest Of
the accompanying department reportA The
remaining fourth Is given to brief recon-
mendatlons that new battle ships and
torpedo boats be authorized that foreign
built ships purchased by Americans be adj
mittsd to American register; that the DIFF
ferential duty on refined sugar be abol-
ished. and that Iron and coal be admitted
free Of duty; and last and Inost important
the President discusses the currency
question and sketches the proposed
amendment OF the laws relating to bank
ing and currency. The sound business
men Of the country will agree with the
President that tho government be divor-
ced from the business Of bank OF is5ue
as soon as practicable. Tho schsme sub.
mltted by the Secretary looks to the
withdrawal of the government from the
banking business. QIt would not be pos
haustiveiy In single article. nor until
the proposed plan shall ba submitted In
detail.
This may be said. however. even In the
absence Of details. The plan 10 to cha nge
the basis OF national banking from b onds
deposited with the Comptroller of tho
Currency to seventy-tve per cent. OF the
capital and assets OF banks. provided
they deposit thirty per cent OF their cir.
culating notes with the Comptroller In
legal tender notes. This Ia the q guarantee
fund, and In the case OF the failure OF any
bank to redeem Its Issues they are not to
be redeemed at par from this consolidat-
ed fund. Should 1t require more than the
" mar "a of huu tfr
redeem Its notes. the impairment OF the
consolidated fund is to Do recouped from
the available cash assets of the bank. In
case suon assets should not be sufficient
to recoup the guarantee fund. the other
banks are to be assessed pro rata to cover
the deficit. The asses sments SO made
are to constitute a list lien upon the as.
sets and stock OF the failed bank in favor
of the banks assessed. 1t Is prupo sed to
continue the Individual liability OF the
stockholders OF the failed bank, the stock
to be reek oned as assets.
No national bank Is to issue notes OF a
denomination Than ten dollars. ALI notes
are to be furnished by tho government
and the cost dcfrayed out OF fund to be
created by q tax Of perhaps one-nalf OF
one per cont upon the average am cunt OF
notes In circulation All banks to be re-
CURED 10 redeem their Issues ut their own
counters, or ut such branch Offices as they
may establish. such banks may Increase
their Issues by Increasing their capital and
their deposits OF legal tender notes ac-
cordlng to the demand for currency.
They may also decrease their circulat ion
upon showing prescribed, In which case
their deposit of thilty per cent to secure
circulation may be reduced in like pro-
portion.
The plan provides for the abolition OF
United States taxes on tho issues Of State
banks upon showing that such banks
| have not q circulation In EXCESS OF the re.
| quired seveuty-iive per cent. OF their y Id
IA nd N nl.tF
stockholders are Individually liable for
| the redemption OF their circulating notes
| to the full amount OF their stock tnat un'
der State law the notes OF such banks are
made first lion upon their nssets; and
that they have II guarantee fund in United
! States legal tender notes equal to thirty
| per cent. of their outstanding circulation,
and that they have promptly redeemed
| their Issues when presented ut theiI
| counters.
The defect in this provision for State
bank issues is the failure to provide uni
form circulating note to be furnished by
the Comptroller of the currency on the
terms prescribed for national banks. A
yet more serious defect Is that s tat,
banks, as such, are recognized in any way
as providers Of currency. Lot all bank
| Issues be or national character and give
the whole matter OF surveillance into the
hands OF the Secretary of the Treasury.
This scheme has merits. and 1t can very
properly 20 into the hands OF q Com.
| mlbelOu COHblltubtu Oh
and iinanclers for consideration. AS tn err,
is Il question as to what constitutes tn,
assets OF bank, and what assets ar,
proper as q basis of general credit M
scheme can be accepted u ntil practiceC
mon of affairs shall have examined
thoroughly.
The President recon mends the proyl
sion OF battle ships and torpedo boat g.
giving as q reason that the plants o
ships armor are OF great cost and to doom
them to idleness involves great loss t
owners and to orkmen employed. Blu
he recommends also, the admission d
foreign bottoms to American register. ap
pRrently oblivious to the fact that plan
that can turn out "a iirst.class m odern bat
tie ship probably costs nearly as much as
an armor-piate mill. while 1t employs
more men than any armor Plate mill. l
1s 5ometlmes proper for even o Presiden
Of the United States 10 be consistent. A
least he should not recommend the puI
chase OF ships abroad as a measure OF or
couragoment to American shipbullding
MIR. Cleveland ought to have avoided s
serious a blunder as that.
In asking Congress to put an end to tn,
"cndless chain" which, under the REDEEM D
tion law. provides for the constant drail
of gold from the Treasury the Presiden
muntty. His sharp hint to Congress 70
some action that Will enable the Secretar,
to replenish the gold reserve ought to Gu
OF all debate OF the right or policy of TIL
sharpest reouke will pierce the hide of tn
average Congressman from Texas. A
that he says about the default OF the Koy
ernment in It's pecuniary obligations, {
the danger OF getting upon a silver basl
is to the point but uni ortunatsly, a IN
jUrity OF his party in Congress do not car
copper about defaults or a silver basil
AT least the majority are in favor OF u
silver basis.
As to the suggestion that the tariff b
tinkered some more, we doubt IL the Sen
ate will accept and act upon It, and Ii
any cuse, 1t must be regarded as wanto
and unwarrantsd by any act OF tile gensI
al public. The message gives no poslttv
clue tc the Presidential mind as regard
several matters that have considerub
exercised the uinds of the American pc
pie. His reference to the war In the Ea
Is 80 coy that one begins to wonder
MIR. Gresham really consult lied his princl
pal at all in his prefer OF friendly offices
This silence indicates that the Presldeu
is about to test the patience of Congre
by Withholding the facts until resol
ton OF inquiry shall be forwarded fro
the Capitol to the White House.
The Hawaiian episode receives brie
paragraph, yet Hawaii has become Ii
public, and the fact might interest ii
President OF the greatest Republic OIL Il
globe. And we need not be surpriss
whom Mr.. Cleveland proposes to give /
what we go long and diligently sought
tho south Pacilic-a place OF call and
coal in Samoa, All toget her, 1t must
suspected that the resident has. afi
due deiiberatlon. concl uded to recogni
the old suytng-''leas asst said, 50 o nest mt
ded."