Herald and tribune. [volume] (Jonesborough, Tenn.) 1869-current, 1894-12-12
THE PRESIDENTS MESSAGE.
Business PrOstratlOn IgnOred..A Flimsy
State Paper.

Business PrOstratiOn IgnOred..A Fllmsy
State Paper.
The President has not heard Of the
elections last month, or considered 1t
dignified to take no notice of an at
tempt by the people to reverse the course
Of their Government. Whatever he
would have recommended two months
ago, or year ago, he new recommends
with studied disregard of public opin.
ion. True, his important recommends
tions are briefly stated, and at the end
OF message which is almost wholly
occupied with the multitudinous de-
tails of administration. But what in
auence he has is exerted to renew tariff
agitation and to favor q reconstruction
of the monetary system. With stolid
indifference to the popular decision, he
proposes to thrust upon the country
the very theories and measures which
the recent elections have condemned.
In effect, his message is q new declara-
ton Of war against depressed industries
and trade.
The new tariff, he states, "needs i'm
portant amendments, y" and he is 'still
very decidedly in favor of putting coal
and iron on the free list, and argues
at length against protection to Ameri-
can shipbuilding. He would be glad,
under existing aggravations, to see
every particle of differental duties in
favor of refined sugar stricken out of
our tariff law, and urges with especial
earnestness the repeal of the extra duty
on bounty paid sugar, against which
Germany protests. This part of the
message will be heartily approved by
those who realize how Government has
been dishonored by the sugar scandal.
But, with deficit confronting him,
the President has only free coal and
iron to propose, and refuses to consider
any change tending to enlarge revenue
BY reviving industry. West Virginia,
Pennsylvania, New Jersey, and Ohio
have expressed their opinion about free
coal and iron 80 clearly that Congress
hears, ii the President does not.
The much heralded proposal to re-
construct the currency proves, upon ex-
animation, to be little better than a
thinly disguised plan to revive the old
Democratic State bank system. Ac-
cording TO the Presidents recommen.
dation, both State and National banks
are to be allowed to issue notes without
deposits OF bonds, to an amount not ex-
ceeding rs per cent. of their capital,
upon depositing as guarantee fund in
legal tenders or new Treasury notes 80
per cent. of their circulation, and max
ing their liabilities on notes first lien
upon their assets, with individual liza
bility of stockholders. But the Presi-
dents statement does not provide for
State banks the tax of half of 1 per
cent. for safety fund. or the other tax
of half Of per cent. for expenses and
official supervision, which it requires
of National banks, and these two items
would make difference of per cent.
in profits on circulation in favor of
State banks. Nor does the Presidents
scheme restrict State Bank issues to
notes Of $40 or over, which restriction
would 60 far to render National bank
circulation improbable. Moreover, all
National banks are to be subject to as
sessments pro rata in case one Of them
fails aud its guarantee fund does not
meet its note liability, risk which
would prove extremely dangerous, but
no such provision Is proposed as to
State banks. 1t may be that the Presi-
dent has not fully or carefully set forth
the plan he favors, but it differs in es-
sential points, and in the wrong direc-
ton, from either the Baltimore plan or
the one proposed by Mr.. Rhodes, re-
tanning all the defects of either, and
seems extremely intended to break
down National banks and substitute
Democratic State banking by surrep-
titious process.
The Presidents recapitulation of De-
partment reports and recommendations
is clear and extended, but embraces few
new points of Importance. 1t is note
worthy that he barely mentions the
Hawaiian subject, which Americans
can not remember without blush, but
gives at some length reasons for with
drawal from engagements with other
powers in the matter of Samoa. The
Nicaragua incident Is treated, and the
payment Of $3.50, 900 to Great Britain
on account of seal claims is recon-
mended. Treasury receipts for the cur
rent year are estimated at S424, ,427. .74S,
aud expenses at just $40, 900, 900 more,
an estimate which is sanguine enough,
to say the least, as the total revenue
for the last three months under the new
law has been only $64, 500, 900. In
strong and highly creditable paragraph,
the President states the necessity of is.
suing bonds to meet the existing deficit,
and, while urging better provision for
that purpose, declares that bonds will
be issued under the old law whenever
and as often as 1t becomes necessary to
maintain a sufficient gold reserve, and
to save the credit Of our country"
Many will find it strange that the
President does not urge important
economies in expeuditure hut reconn-