The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1894-12-04

a
priated for that purpose, except to expert
nent stations. 1 fully concur In the con
! illusions which no has reached. $500. H.
| Adherence to the principle of civil ser
vice reform Is urged and a national board
OF health recommended. Then comes ref
erence to the appointment Of the commits
sioners to investigate the Chicago strike.
| Regarding their report the president says
Their work has been well done, and their
standing and intelligence give assurance
that the report and suggestions they make
are worthy Of careful consideration.
Then the president comes to discussion
OF the tariff question, saying in part:
| Amend the Tariff Bill.
| The tariff act passed at the last session
of the congress needs important amend.
ments II 1t is to be executed effectively and
with certainty. In addition to such neo-
essary amendments as will not change
rates Of duty am still very decidedly In
| favor Of putting coal and iron upon the
| free list.
So far as the sugar schedule is concerned
| would be glad, under existing aggrava-
tions, to see every particle Of differential
| duty in favor of refined sugar stricken out
OF our tariff law. II with all the favor now
accorded the sugar refining interest in our
tariff laws 1t still languishes to the extent
of closed reflneries and thousands Of dis
charged workmen, 1t would seem to pre-.
| sent a hopeless case for reasonable legisla-
tive aid. Whatever else is done or omitted,
| 1 earnestly repeat here the recommended
tion that the additional duty of one tenth
of n cent per pound, laid upon sugar im-
ported from countries paying q bounty ON
its export, be abrogated.
With the advent Of new tariff policy
not only calculated to relieve consumers
of our land in the cost of their daily life,
but to invite u better development of
| American thrift and create for us closer
and more profitable commercial relations
with the rest Of the world, 1t follows as a
logical and imperative necessity that We
should at once remove the chief, II not the
only, obstacle which has so long prevented
our participation in tho foreign carrying
trade Of the sea- The ancient provision Of
our law denying American registry to
ships built abroad and owned by Ameri-
cans appears in the light of present condi-
tions not only to be failure for good at
every point, but to be nearer q relic Of bar
barism than anything that exists under
the permission Of a statute of the United
States. Earnestly recommend its prompt
repeal.
During the last month the gold reserved
in the treasury for the purpose Of redeem
ing the notes Of the government circulate
ing as money in the hands of the people
became so reduced, and its further deple-
tion in the near future seemed so certain
that in the exercise of proper care for the
public welfare 1t became necessary to re-
plenish this reserve. Resort was neces-
sarily had to the resumption act of 1876,
and pursuant to its provisions bonds were
issued drawing interest at the rate Of 5 per
cent per annum and maturing ten years
after their issue.
A New Financial Policy.
Questions relating to our banks and cur
rency are closely connected with the sub
ject just referred to, and they also present
some unsatisfactory features. Prominent
among them are the lack Of elasticity in
our currency circulation and Its frequent
concentration In financial centers when It
is most needed in other parts of the
country
The absolute enforcement of the govern
ment from the business of banking is the
ideal relationship of the government to
the circulation Of the currency of the
country.
This condition can not be Immediately
reached; but as q step in that direction
and as Il means of securing more elastic
to the present arrangement Of bank cir
culation the secretary Of the treasury pre-
scnts in his report scheme modifying
present banking laws and providing for
the issue of circulating notes by state
banks free from taxation under certain
limitations.
The secretary explains his plan so
plainly and Its advantages are deyel-
oped by him with such remarkable clear
ness that any effort on my part to present
argument in its support would be super
fuous. l shall, therefore, content myself
with an unqualified Endorsement of the
proposed changes in the law and brief
and imperfect statement of their prom
inent features.
The Banking System.
1t is proposed to repeal all laws provid-
ing for the deposit of United States bonds
as security for circulation; to permit ma
tional banks to issue circulating notes not
exceeding in amount rs per cent. of their
paid up and unimpairod capital, provided
they deposit with the government, as a
guarantee fund, in United States legal
tender notes, including treasury notes of
1890, sum equal in amount to 80 per cent.
of the notes they desire to issue, this de-
post to be maintained at all times, but
whenever any bank retires any part of Its
circulation proportional part of its guar
antee fund shall be returned to 1t; to per-
init tho secretary of the treasury to pre-
pare and keep on hand ready for issue in
case an increase in circulation is desired
blank national bank notes for each bank
having circulation, and to repeal the pro-
visions Of the present law imposing limi-
tations and restrictions upon banks desir-
to reduce or increase their circulation
thus permitting such increase or reduction
within the limit of rs per cent. of capital
to be quickly made as emergencies arise.
In addition to the guarantee fund re-
quired, 1t Is proposed to provide safety
fund for the immediate redemption Of tho
circulating notes Of failed banks by inn
posing small annual tax say one half of
per cent, upon the average circulation
of each bank until the fund amounts to 5
per cent Of the total circulation outstand
ing. When bank fails its guarantee
fund Is to be paid into this safety fund
and its notes are to be redeemed in the
first instance from such safety fund thus
augmented-any impairment Of such fund
caused thereby to be made good from tho
Immediately available cash assets of said
bank, and If these should DO insufficient
such impairment to be made good by pro
rata assessment among the other banks,
the contributions constituting a first lien
upon the assets of the failed bank in favor
OF the contributing banks. As further
security it is contemplated that the exist
ing provision fixing tho individual liabil-
ity OF stockholders is to be retained and
the banks Indebtedness on account of its
circulating notes is to be made first lien
on all its assets.
State Bank Taxation.
For the purpose of meeting the expense
of printing notes. official supervision, can
collation., and otherlike charges there shall
be imposed a tax of say one-half of / per
cent. per annum upon the average amount
of notes in circulation.
LIZ H.. Il.