Connecticut western news., 1894-12-06

In the Aeht of present, ,oondftfonsn not only to bs failure for good nt every point but to bs neNrsr a relio of barbarian than anything that exists under the permlssion of statute of tho nited States. ear nestiy rscummsnd its prompt repeal.
 Thspfesadents ccmmen tson our finan- ciGi coutiition are ths most important part ot the msssagS and are as foliowu
 The Bond Issue.
 Duringthe iast month the gold rsserved in tho treasury for the purpose of redeem ing the noses of sths government oifcuist- inx In tho Aansis of tho people beoame 60 rsd ussd, and Its further depletion In the near future seemed 90 certain. that In the sxercise of propsr care for the public wei fare 1t became neoessary 10 replenish this reserve and thus maintain popular faith In the sbility and dessrmination of the Rovernmens to meet as axreed. It's pScu niary oblt rasiona
 ltswoufd hxvs been weii if in this enaer ssncy authority had eristed to issue the bonds of the government bearing low rate of interest and maturing within a short period but tho congress having fa1fed to confvr such uthority resort was necessarily had to the resumption acs of l876, and pursnAne toits provisions bonds wessdss0ed drawfng intorsst at the rate of 5 per cent pef- Aanum and maturing ten yeAra altar their issue, shat being the shortcst time authorized by tho act l am glad to say, however. that on the sale q thsss bpnds1Ae prsmium received opcr- AtSd to rsauessths' rste Of inesrsst so b. paid by th~Uossznmsne to lsss-shsn per @na
 Nothing roald be worse or further rs- moved from sensible finance than the relations sxissing between the currency the govsrnment has Issued. the gold held for its redemption and the means which must be rosofssd to for the purpose of xcpssutshtnesnsh redemption fund when simpaired, Even if tho clAima upon this fund wsss confined to tho obligations originally intended and if the rsdsm ption of these obligations meant their oAnoella- tion. the fund would be very small. But 'these obligations when received and rs- dsemsdtfn eold -ere not cancelled, but arc rsissusd and may do duty many tmcs by wny of drawing sgold from ths trsasury. Thus ws havs m endless chain In opera ton constantly depicting the treasuey's . gold and nevsr near final resS. As If shis was not bad enough. we have. by . ststutory dsriafatfon that it'is the policy of the Ro<Sfnfnsnt to maintain the parity ubeswesn gold and 'silvsr. aided the force nndrmomsntuns of this sxhauseing proc ess and added largely to the currency obligations claimin 2 shis peculiar gold re demption. Our smal gold reserve is thus sub. cot to drain from every side. Tho de nSarts thnt Increase our danger also in ofsass the necessity of protecting this TO ssrvsp sRainst tis pission. and 1t is' most un- sssisfaosury' to know that the protection afforded is only temporary palliation. Ia ly nd nlrn III lws Main hnk ha only way under present conditions by which sha reserve when danRsrously de pisted can be rcpienished is through the fssuea aunds sAfe of efreA bondz of the govern mem fur, gold. and yet con gross has not only shxa far deoifneds so nnehorize' shs fs. sue, of bonds best suited to such pur- pose. but there seems a disposition in some suarters to deny both the necessity and power for the Issue of bonds at all. Icanuot fur . moment believe that any or our Aoitirens aro- deliberately willing that thSss eovsynnss nt should defauH in ttes. .peounfary obifaasions or shsa irs man. .cfal- opsrutacns- should tbs, srsuucsd to 6 silver basis.
 duty was dons if I omitted any effort to xvsrs such . calamity. Az long therefore ss. no prUvtsfon is mxis' for the final re- | dsmpsson or the putting asids of the our renoy obligation now used to repeatsslly and Uunstansly draw from the govern .ments its gold and as long As no better authority for bond issuss Is allowed than at present. exists, such authority will be uffffxsd whenever and as often as 1t b.. comes .r>--.ssfy to maintain . suff1cieni | eolaf reserve. .aad in sbundant time to savsn tho credit of our country and make good tho financial dcclerssions of our gov srnmene
 State Bank ,Issues-
 ,Qusstions relating so our banks and | currency are closely connected with the subjsot just referred to. and they also | present. soma unsAtfsfaotory featurss | Prominent among them are tho lack of slassicity fn currency circulation and It's fuuusus concentration In financial con sers whom is, is uoss needSd In oshsr parts of ths country.
 The Absolute divorcement of the gov srnnnent from the business of banking is yiis fdsxr rs1Atfonship or tho government to the circulation of the currency of tho countey
 This. .oondisson cannot 'bs i'm sdfsseiy reschsd rbuessss sssp fh thas direction and as a meme of securing . moro sl sstic currency and obviating other objections 10 the present arrangemsnt of bank oir- cnfAtion, the secretary of the trsasury present tx Tn hfIreport a scheme for modi- fyfns present banking laws and pruvid | Ing for tksIssue of cfrcsf}asing notes by stasss hanks frse from ta1ation under OCT l sain limisations
 Il The secretary explains his plan 60 | plainly. and its advantages are developed l by hin With such remarkabl olenrness | tffnt any enort On my part to present ar | guInensi fn iss support would be superfiu- ous I shall therefore content myssft | wfsfr aA unqusAsfissf iindorssmsnt of the | sserSeayyes prop0se<ir changes in the law I and . brief and imperfect ssatemcnt of thsir. prominent features
 Isfs proposed to repeal all laws provid- ing for the deposit of United States bonds
 ns security for circulation; to permit na- tfonkf bAAfks to issuo circulating notes | not sisxoeSffng fn asnount75 DOT cent of
 tfeir paid up and unimpaired capital,
 provided they deposit with tho govern
 nnent aa guarantee fund la United
 States legal tender notes. including treas
 ury notes of iSso, e sum equal In amount
 to SD DOT cent of ths notes they desire to
 issue this deposit to be main tafned Ut ali
 times, bus whenever any bank rstires any
 psft of fts ciruulnticn . proportional part
 of Its guarantse fund shalI bs returned to
 1t; to permit the secretary of the treasury
 to prepare and keep on hand ready for
 Issue in case an increase In circulation iu l desired blank national bank notes for each
 bank having circulation. and to repeal
 me provisions of the present. law impos-
 iuE imitations and restrictions upon
 banks desiring to reduce or increase their
 aasnesss to bs design sted by it, and thai
 no fl xsd reserve need be main tainod on
 aocannt of deposits.
 Exemption From Taxation.
 | Another very important feature of this
 plan is the exemption of state banks from
 taxation by tho United States in case.
 whore 1t is shown to the sasisfaction ol
 tho seoretary of rhs trasury and comptrol
 Ter of the currency hy banks ciaiminr | such exern pfiexs that they have not hat