The Providence news. (Providence [R.I.]) 1891-1906, 1894-12-03

tne report ana SurgchtOlS tucy make are
worthy OF careful consideration.
The Tariff.
The tariff act passed at the last session Of
the congress needs important amendments, IL
10 is to be executed effectively and with GER
tainty. In addition DO such necessary amend
ments rs will not change rates of duty. ann
still very decidedly in favor of putting coal
and iron upon the free list.
So far 20 the sugar schedule is concerned,
would be glad, under existing aggravations. 10
see every particle OF diferential duty I'm refine
sugar stricken out Of our tariff law. IL,
with sll the faver now accorded the sugar re-
fining interest in our tariff laws il still Ian
guishes to the extent OF closed rehnorles, and
thousands Of discharged wsrkingmen, it
would seem TO present hopeless case for rea
sonable legislative aid.
whatever else is done OF omitted, earnestly
repeat the recommendation that the additional
duty OF l-l0th Of a cent per pound, laid upon
bounty on its export, be abrogated. II seems
70 me that exceedingly important considsra
tions point TO the propriety OF This amendment
Plea For Free Ships.
A refusal 10 allow American registry to ves-
sells built abroad, though owned and nsvigated
by our people, exhibited willingness to
abandon all contest for the advantages Of
American trans-oceanic carriage.
The millions now paid TO foreigners for
carrying American passengers and products
across the seas should be turned into Amor-
can hands. Chip building, which has been pro-
tected TO straRgulstion, should be revived by
the prospect Of profitable employment OF ships
when built, and the American sailor should DO
resurrected ana again take his place--a sturdy
and industrious citizen in time of peace and
safe defender of American interests in the day
of conAict.
The Bond Issue.
During the last month the gold reserved in
the treasury for the purpose OF redeoming the
notes of the government circulating rs money
In the hands of the people became so reduced
that IL became necessary 10 replenish this re-
serve, and thus maintain popular faith in the
ability and determination of the government
to meet, as agreed, its pecuniary oil legations.
1t would have been well II in this emergency,
authority had existed TO Issue the bonds Of
the government bearing a low rate Of interest
and maturing within a short period
But the congress having failed to ocnfer suoh
authority resort was necessarily had TO the re-
sumption act of 1875, and, pursuant 10 its pro-
visions, bonds were is'aed drawing interest al
per cent pr annum and maturing 10
years after their issue. / am glad to say that
on the sale Of these bonds the premium re-
osived operated 10 reduce the rate Of interest
10 be paid by the government TO less than per
cent
Itisperfecty II and pslpably plain that the
only way under present conditions BY which
this reserve, when dangerously depleted, can
be replenished. Is throuph the issue and sale Of
the bonds of the government for goId and vet
congress has not only thus far declined to au
thorize the Issue Of bonds best suited to such
purpose, but there seems a disposition in some
quarters 10 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 re.
pestedly and constantly draw from the gov
ernment its gold, and as long as no better
authority for bond issues Is allowed than at
present exists, such authority will be utilized
whenever and as often as il becomes nAces-
sary to maintain "A suiiicient gold reserve, and
In time TO save the credit of our country and
make good the financial depl0tions of our gov
ernment.
Questions relating 20 our banks and cur
rency are closely connected with the subject
just referred TO and they also present some
unsatisfactory features.
II is proposed TO repeal all laws providing
for the deposit OF United States bonds as -.
curity for circulation !. TO permit national
banks to issue circulating notes not exceeding
in amount 70 per cent OF thoir paid-up and un-
impaired capital, provided they deposit
with the government, guarantee
fund, in United States legal tender
notes, including treasury notes of 1890, a
sum equal In amount to 80 Per cent Of the ne 3 :
they desire TO issue, this deposit TO be nam
tanned at all times, but whenever any bank re-
tires any part o. its circulation proportional
part Of les guarantee fund shall be returned to
II; 10 permit ne secretary of the treasury 10
prepare and k ep on hand ready for issue in
case increase in circulation Is desired,
blank national bank notes for each bank
having circul alton and TO repe al the proviscn n
Of the pl esent law imposing limitations and re-
strictions upon banks desiring 10 reduce or in
crease their circulation, thus permitting such
increase or reduction within the limit of IS per
4. s..l.l.
cies arise.
Another very important feature of this plan
is the exemption of state banks from taxation
by the ted States in cases where it is
shown 10 the satisfaction of the secre-
tary OF the treasury and comptroller
OF the currency, by banks claiming such
exemption, that they have not had out
standing their circulating notes ex-
ceeding rs per cent of their paid-up and unim-
paired capital that their stockholders are in
dividually liable for tire ,odemption OF their
circulating notes to tho fun extent OF their
ownership of stock; that the liability of SAID
banks upon their circulating notes consti-
tutes under their state law first lien
hpon their assets; that such banks have kept
and maintained guarantee fu q " United
States legal tender notes, including treasury
notes of 1890, equal to 80 per cent Of their out
standing circulation notes, and that such
banks have promptly redeemed their circu
lating notes when presented at their principal
or branch Offices
II is quite likely tuat this scheme may be
usefully amended in some OF its details bli
am satisfied it furnishes a basis for very
great improvement in our present banlkin.
and currency ~ stem.
conclude this communication, fully appr
ciating that the responsibility for all legisl
ton affecting the people Of the United Stat,
rests upon their representatives in congre
and assuring them that, whether in accord
ance with recommendations l have made or
not, L shall be glad to cooperate in perfecting
any legislation that tends TO the prosperity
and welfare Of our country.
GROVER CLEVELAND.
nrnNnl NnnnC