Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1894-12-07
THE MESSAGE.


l i nave made IN anOther portion OF 'hi. NNA-
munication that the additional duty OF one
/ tenth of a cent per pouni laid uron sugar
! imported from countries paving hounty on
4 us export. be abroyaic :. II seems TO me
that exceedingly important considerations
point to the propriety OF this amendment.
With the aiv-nt Of new tartn policy
Z not only calculated TO relieve tho con-
/ sinners OF our Land IN the cost OF thelr
| daily life but to invite a better develop
| ment of American thrift and create
| for ne closer and more profitable COM
| ,ncrcial relations with the r'st OF the
world, II follow as logical and i'm
perative necessity that we should ut
once remove the chiet IL not the only
! obstacle which has So long prevented our
participation in the foreign carrying trade
| Of the ssa-a tariff built upon the theory
| that II IL well to cheek imports AMI that a
! home market should bound the industry and
| effort OF American registry to vess 'ls built
abroad though owned and nnvgated hy our
| people, thus exhibiting a willingness to
| abandon all contest for the advantages OF
| American trinso 'nanir carriage. Our
new tariff policy. Quilt 5pon the theory that
IL is wellto encourage such importations az
! our people need. and that our products and
| manufactures should nni markets in every
part OF the habitable globe, is consistently
| supplemented by the greatest possible lib-
erty TO our citizens III the ownership and
| navigation OF ships in which our products
| and manu- lectures may be transported. The
millions now paid to foreigners for car
rying American passengers and prod
ucts across the sea should he turned
| into American hands. Shiphutding, which
has been protected to strIngulaton, should
be revived 10y the prospect OF profitable en-
/ ployment for ships when hult. an the
American sailor should be resurrsctel and
again take his place a sturdy an industr-
| Lei. -, Il, a toll
rnd safe defender Of American interests In
| The day of conflict.
! The ancient provision OF our law denying
| American registry to ships built abroad and
owned by Americans, appears in the light OF
! present conditions not only to be failure
| for cool at every point but to be nearer a
! relic OF barbarsm than anything that exists
under the permission OF statute OF the
United States. | earnestly recommend its
prompt repeal.
THE FOND ISSUE.
During the last month the gold reserved
| In the Treasury for the purpose OF redeem
| ing the notes Of the Govern uent circulating
as money in the han Is OF the people became
80 reduced, and its further depletion in tho
| near future seemed so certain, that in tho
/ exercise OF proper care for the pupitc wei
fare, it became necessary TO replenish this
! reserve l0l tnuS lutlnNhlll HOpuIhl lhlAl III
| the ability and determination OF the Govern
ment to meet, as agreed, its pecuniary o5ll-
cations.
Ii would have npen well, il in this emer-
grncv authority had existed to issue the
bonds Of the Government bearing n low rate
OF interest and maturing within short
period but the Congress having fnilel 10
confer such authority, resort was necessarily
! had to the resumption act of 1878. an pur-
! to ito DFOvigInOa honda lSsn1l
| drawing interest at the rate OF five per cent.
! per annum and maturing ten years 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
premiums received operated 10 reIure the
rate OF interest to be paid blythe Government
! to less than three per cent.
| cannot for q moment believe that any OF
our citizens are deliberately willing that
their Government should default in ts Pc
| cuniary obligations or that its financial Oper-
| atoms should be re iucel to u silver basis.
At any rate should not feel that my duty
WAS done IL / omitted any effort | could
make to avert such II calamity. As long
therefore rs no provision Ia ma 10 for the
final redemption or the putting aside OF the
currency obligation now used to repeat
eddy and constantly draw from the Govern
ment Its gold, and rs long rs no better au-
present exists, such authority will be utilizel
whenever and as often rs 1t becomes necss'
sary TO maintain n sufficient gold reserve
and In abundant time to save the credit Of
our country and make good the financial
declarations OF our Government.
DIVORCE GOVERNMENT AND RANKS.
The absolute enforcement oNthe Govern
ment from the business Of banking is the
ideal relationship Of the Government to the
circulation of the currency OF the country
This condition cannot DO mslately
reached bur rs n stop in that direction AM
as means OF securing "A mora elastic cur
rency and obviating other objections to the
present arran cement OF bank circulation
the Secretary OF the Treasury presents II
his report a scheme mo ifying present bank
ing laws and providing for the issue OF cir
cuating notes by State banks, free from tax
alton under certain limitations
The Secretary explains his plan so plainly
and Its advantages ara developed by hin
with such remarkable cearness, that an,
effort on my part to present argument IN III
support would be superhuous. / shall
therefore, content myself with an unauall
fed Endorsement OF the Secretary's pro
posed changes in tho law and q briet ant
imperfect stateCe emit OF their prominent fea
turNs.
1t Is proposed to repeal all laws provdinl
for the deposit OF United States bonds as So
curity for circulation TO permit Nationa
banks to issue circulating notes not OK
ceeding In amount savanty-nva per cent 0
their paid-up AMI unimpared capital, pro
vided they deposit with the Government q
a guarantee fund, In United States legal
tender notes, including Treasury notes o
1890, n sum equal in amount to thirty pa
cent OF the notes they so desire 10 issue
this deposit to be maintained at all times, bu
whenever any bank retlres any part 0
Its circulation proportional part OF 1t
guarantee funl shall be returned 10 Il L
permit the Secretary OF the Treasury to pre-
pare and keep on hand ready for issue, II
case an increase in circulation Is desired
blank National bank notes for each banl
having circulation, and 10 repeal tho provl
sions of the present law imposing Limitations
and restrictions upon banks desiring to re
duce or increase their circulation-thus per
hitting such increase or reduction within
the limit of seventy-hve per cent OF capita
to bequickly made as emergencies arise
In addition to the guarantee fund re
quired, It Is proposed to provide safet,
fund for the immediate redemption OF thu
circulating notes OF failed banks, by impos
ing a small annual tax, say one-half OF on
per cent. upon the average circulation 0
each bank until the fund amounts to five pc
cent. OF the total circulation outstanding
When bank fails its guarantee fund Is t.
be paid into this safety fund and its note
are to be redeemed in the first instanc
from such safety fund thus augmented
and impairment of such fund caused
thereby to be made good from tn
) immediate available cash assets OF SAT-
bank. and IL these should belnsufiicent sue
impairment to be made good by pro rata al
sessment among the other banks, their cor
tributions constituting u first lien upon tn
assess OF the failed bank in favor OF the con
tributing banks. As further security II 1
contemplated that the existing provision i1S
Ing the individual liability OF stockholders
TO be retained and the banks indebtedness