The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-12-04

OIL SHIPS IN which our products ana
manufactures may be transported. The
millions now paid to foreigners for
carrying American passengers and pro-
ducts across the sea should be turned
into American hands. Shipbuilding,
which has been protected to strangula-
ton, should be revived by the prospect
Of profitable employment for ships
when built and the American sailor
should be resurrected and agai,. take
his place, a sturdy and industrious Cit
izen in time of peace and patriotic
and safe defender of American inter-
ests in the day of conflict. The ancient
provision of cur law denying Ameri-
can registry TO ships built abroad and
owned by Americans appears in the
light of present conditions, not only to
be a failure for good at every point,
but to be nearer a relic of barbarism
than anything that exists under the
permission of a statute of the United
States. earnestly recommend its
prompt repeal
The Bond Issue.
During the last month the gold re-
serve in the treasury for the purpose.
of redeening the notes of the govern
ment circulation as money in the hands
of the people became so reduced and
its further depletion in the near fu-
ture seemed so certain that in the ex-
ercise of proper care for the public
welfare it became necessary to replen-
ish the reserve and thus maintain pop
ular faith in the ability and determina-
ton of the government to meet, as
agreed, its pecuniary obligations. 1t
would have been well if in this emer-
gency the authority had existed to is
sue the bonds Of the government bear
ing a. low rate of interest and not
maturing within a short period. But
the Congress, having failed to confer
such authority, resort was necessarily
had to the resumption act of 1875,
and, pursuant to its provisions, bonds
were issued drawing interest at the
rate of per cent per annum and ma
turing 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
premium received operated to reduce
the rate Of interest to be paid by the
government TO less than 8 per cent.
Nothing could be worse or further
removed from sensible finance than
the relations existing between the
currency the government has issued,
the gold held for its redemption, and
the means which must be resorted to
Lol fGlS purpose oI IepreIlSiIlIIS SuNal
redemption fund when Impaired.
Even if the claims upon this fund were
confined to the obligations originally
intended and if the redemption of
these obligations meant their cancel
la'tion, The fund would be very small.
But these obligations when received
and redeemed in gold are not can
celled but are reissued and may do
duty many times by way of drawing
gold from ffbsa tIsn.l ciJ1-y Thing wa have
an endless chain in operation con-
stantly depicting the treasurys gold
AMI never nearing a final rets. AS if
this was not bad enough we have by
statutory declaration THAT it is the
policy of the government to maintain
the parity between gold and silver
aided the force and momentum of this
eUhausttng process and added large
" to the currency obligations claim
ing this peculiar gold redemption.
Our small gold reserve is thus sub
ject to drain from every side, the de
mandS that increase cur danger also
increase the necessity of protecting
this reserve against depletion and it
is most unsatisfactory to know that
the protection afforded is only a tenn
porary pallistion. 1t is perfectly ana
palpably plain that the only way I'M
der present conditions by which this
reserve when dangerously depleted
can be replenished is through the issue
and sale of the bonds of the govern
ment for gold, and yet Congress has
not only thus far declined to author
ize the issue of the bonds best suited
to such a purpose but there seems a
disposition in some qsarters to deny
both tine necessity and power for the
issue of bonds at all. I cannot for
moment believe that any of our citi-
zens are deliberately willing that
their government should default in its
peCuniary obligations or that its finan-
cial operations should be reduced 60
q silver basis. At any rate, ! Should
not feel that my duty was done if [
omitted any effort [ could make to
avert such calamity. AS long, there
fore, as no provision is made for the
final redemption or the putting aside
of the currency obligations now used
to repeatedly and constantly draw
from the government its gold, and as
long as no better authority for bond
issues is allowed than at present ex-
lists, such authority Will be utilized
whenever and as often as it becomes
necessary to maintain a sufficient gold
reserve and abundant time to serve
the credit of our country and make
good the financial declarations of our
government
Banks and Currency.
Questions relating to our banks and
currency are closely connected with
the subject just referred to, and they
also present some unsatisfactory fea-
lures. Prominent among them are the
lack of elasticity in our currency cir
culation and its frequent concentra-
ton. in financial centers when it is
most needed in other parts of the
country. The absolute enforcement of
the government from the business 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 as means of securing a more
elastic currency and obviating other
objections to the present arrangement
OF bank circulation, the secretary OF
the treasury presents in his report a
scheme rectifying the present banking
laws and providing for the issue of
notes by state banks free
from taxation under certain limita-
tons. The secretary explains his
plan so plainly and its Advantages are
developed Dy him with such remark
able ciearneSS that any effors on my
part TO present argument IN its sup
port would be superfiuous. I shall,
therefore, content myself with an un-
qualified Endorsement, of the secre-
tary's proposed Changes in the law and
d brief and imperfect statement of
their prominent features.
Carlisie's Currency Plan.
It is proposed to repeal all laws pro-
viding for the deposit of United States
bonds as security for circu3ation; to
permit national banks to issue circu-
lating notes not exceeding in amount rs
per cent. OF their paid up and unim-
paired capital provided they deposit
with the government as a guarantee
fund in United States legal tender
notes, including treasury notes of 1890,
a sum of equal amount TO so per cent.
Of the notes they desire to issue, this
deposit to be maintained at all times;
but whenever any bank redres any
part Of its circulation, a proportionate