The times. (Owosso, Mich.) 1882-1897, 1894-12-07

Whatevcr clsc ID done or omitted l earnestly
repeat hero tho Recommendation 1 have made
In another portion OF this communication, that
the additional duty o. lilo OF ccns por pound
lald upon sugar imported from countries pay
ing pouaty ON its export DO abrogated 10
seems TO DO that cEceo lingly important con-
slderatlons point to tho propriety OF this
amendment
An Argument for FREQ ships.
Win tho advent OF now tariff policy not
only calculated TO relieve tho consumers OF our
land In the cost OF their daily life. but TO In
VITO u Detter Development OF American tnrlit
ana create Tor as closer and more prontaple
commercial relations with tho rest OF tho
world, II follows as Z logical and Imperative
necessity that wo should nc once remove tho
ehiet Il not the only obstacle when mas SO
long prevented our participation In the foreign
carrying trade or tho sen. tariff built upon
tho theory that IL is well 10 cheek imports and
that home market should bound tho industry
and effort OF American producers, was fifty
supplemented by refusal TO allow American
registry to vessels built abroad though owned
Willingness TO aba adon all contest for tho
advantages OF American trans-oceanic
carriage Our new tariff policy, built
encourage such importatlons as our people
need and that our products and manufactures
should lind markets in every part OF the habit
able globe, IS consistently supplemented by
tho greatest possible liberty to our citizens IN
tho ownership and navigation OF ships in which
our products and manufactures may be trans
ported Tho millions now paid TO foreigners
Tor carrying American passengers and products
across tho sea should be turned into American
hands Ship building, which has been pro-
tectod to strangulation, should be revived by
tho prospect OF profitable employment for
ships whom built, and the American sailor
should be resurrected and again take his place.
"a sturdy and Industrious citizen in time OF
peace, and patriotic and safe defender or
American interests in tho day OF conflict.
Should BE Repealed.
The ancient provision OF our law denying
American registry TO ships built abroad and
owned by Americans appears in tho light or
present conditions not only to be failure for
good at every point. but TO be nearer q relic OF
barbarism than anything that exists under
tho permission Of statute OF tho United
States. Earnestly recommend its prompt re-
peal.
Tho Issue OF Bonds.
During the last month the gold reserved In
the treasury for tho purpose OF redeeming the
notes OF tho government circulating as money
and its further depletion In the near future
seemed so certain that In tho exercise OF
proper care for the. public welfare it became
necessary to roplenish tho reserve and thus
maintain popular faith in the ability and de-
termination OF tho government to meet, as
agreed. its pecuniary obligations. IL would
have been we'll IL in this emergency authority
had existed to issue bonds OF tho gov
ernnent bearing low rate Of inter-
est and maturing within q short period,
but the congress having failed TO confer such
authority resort was necessarily had TO the
resumption act OF 1879, and pur uant to its pro-
the rate Of per cent. per annum- and matur-
ing ten years after their issue. inst 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 re-
ducc tho rate OF interest to be paid by the gov
ernIlcnt to loss than3 per cent
Cause or Depletion OF tho Reserve. n
Nothing could be worse or further removed
from sensible finance than tho relations OK
listing between the currency the government
has issued, tho gold held for it's redemption
and the means which must be resorted to for
the purpose OF replcpishing such redemption
fund when impaired Eyen IL the claims upon
this fund were confined to tho obligations
originally iltondod and IL tho redemption or
these obligations meant their cancellation
the fund would DC very Sn. all But these OBJ
legations when received ald redeemed ia gold
arc not Cancelled, but arc rcisSued. and may
do duty many times By way OF drawing gold
from tho treasury. Thus We have Gn
endless elain in operation. constantly dcpletv
ing the trcaSury'S gold and never near q final
rest AS II this was not bad enough, We have,
by statutory declaration that il Is the policy
of tho government to maintain the parity be-
tween gold aud silver, al led tho force and mo,
mentum OF this cXhau3ting process and added
largely to tho currency obligations claiming
thi peculiar goll redemption. Our small gold
reserve Is thus subject to drain from every
side. The demands that increase our danger
also increase tho necessity OF protecting this
reserve against depletion, and IL is most unSat-
isfactory to know that the protection afforded
is only temporary pllliation.
Bond Issues the Only Remedy.
1t is perfectly and paipably plain that tho
only way unuer present NOnulJlOnS by WHICH
this reserve whom dangerously depleted can be
replcnished Is through tho issue and sale OF
the bonds OF the government for gold and yet
congress has not only thus far declined to
authorize the issue OF bonds best suit ed to such
o purpose but there seems disposition In
some quarters to deny both the necessity and
power for tho issue OF bonds at all.
| cannot for moment believe that any OF
our citizens arc d liberately willing that their
government should default in its pecuniary OBJ
legations or that Its financial operations should
be reduced to silver basis. AT any rate I
should not feel that my duty was done IL i
omitted any effort could make to avert such
is made for the final redemption or the putting
aside OF the currency obligation now used to
repeatedly and constantly draw from the gov
thority for bond issues Is allowed than ct pres
emit exists, such authority Will be utilized
whenever and as often as IL becomes necessary
abundant time to save the credit of our coun-
try and make good the financial declarations
OF our government.
Change In Currency System Advocated.
Questions relating to our banks and curren-
cy are closely connected with the subject Just
referred to and they also present some unsat-
isfactory features. Prominent among them
are the lack Of elasticity in our currency cir
culation and its frequent concentration In A.
nancial centers when 1t is most needed In other
parts Of the country.
from the business OF banking Is the ideal rela-
OF the government to the circulation
or tho currency OF the country ThlS condition
cannot be Immediately reached: but as step
In that direction, and as means OF securing u
moro elastic currency and obviatng other OBJ
jections to the present arrangement OF bank
circulation, the secretary OF the treasury pre-
scnts In his report @ scheme modifying present
laws and providing for the issue OF
circulating notes by state banks free from tax
alton under certain limitations.
Endorses Secretary Carllsie's Plan.
The secretary explains his plan SO plainly
and its advantages are developed by him with
such remarkable clearness that any effort on |
my part TO present argument In It's support |
would be supcrnuous. I shall therefore con- |
tent myself with an unqualified Endorsement |
Of the secretary's proposed changes In the law |
and o brief ana imperfect statement OF their |
prominent features.
Features of the Proposed Scheme.
It Is proposed to repeal all laws providing for |
the deposit OF United States bonds as security |
for circulation; to permit national banks to |
Issue circulating notes not exceeding IN |
amount 20 per cent of their paid up and un- |
paid capital, provided they deposit with the |
as o guarantee fund. In United |
States legal tender notes, including treasury |
notes OF 1890, q sum equal in amount to % per |
cent. OF tho notes they desire to ISSUE this |
deposit to DO maintained ct all times, but ]
whenever any bank retires any part OF |
It's circulation proportional part OF |
Its guarantee fund shall be returned To II: TO, |
permit the secretary OF the treasury to pre- |
pare and keep on hand ready for issue In case |
an increase In circulation Is desired blank ma |
tional bank notes for each bank having circu- |
lation, and to repeal the provisions OF tho pres
Las Cvvl uvxA