The times. [volume] (Richmond, Va.) 1890-1903, 1894-12-04

and 1avjsa ouf ~ ships in which cur
products and manuIactui -, la -
transported. The miinopS nericsn mas
foreigners for carrying ,nss the seas
sengers and products aco5f.an had
should be turned into American i ,H,.;;
shfp-buiding. which has peer reYYiyed bv
10 strangulaton, snoulu De amninvmant
the prospect Of pTohtable -" ,,'r ,ii.ie
for ships when built and the american
sailor should be resurrecteu , -,
take his place, a sturdy am anu niu natrio,ic
cltlzen In time or peace, am ntaros,s
ana safe defender OF American ii''e' e9'S
IN the day OF conflict ,.. L.. do,,
The ancient provision OF our ~" uenE .
Ing American registry 70 S-IpS ouIl'
abroad and owned by Aihe nondifion5s noi
In the light Of present cohu l not
only 10 be failure for good al every
| point. but to be nearer rehc OF par
Darism than anything that eAtsos r urteI
the permission Of statute OF the United
States. / earnestly recommend its
prompt repeal.
THE BEcAAr BOND IssCg DEFENDED.
During the last month the gold re-
served in the Treasury Tor the purpose Oh
! rcdceming the notes OF the Government
| circulating as money IN tne ndiiuS vi t ,me
people became so reduceu anu i.s Iu-
Their depletion in tile near lGtIIe steIheu
so certain, that in the exercise VI pIopel
care for the public Weitdte II neSa,'sI
necessary 10 repleni'h tinS tesTINe' 81 a. -
| thus maintain popular lalth IN lhe ann.
| ty and determination OF the Government
| to meet, as agreed, ITS pecuiIdi VOii9a
| items. 1t would have been Wen II IN tiia
emergency authority nan 49, - ~
| the bonds OF the Government aIll7 .,
| low rate of interest and maturing "ltilIn
short period, but the ConbISsS nasl"e
| failed to confer such authoilly' Ie9o'
| WAS necessarily had 20 the Resumption a..
| of 1873 and pursuant to It's PROVISIONS
| bonds were issued drawing interest az tle
| rate OF per cent. per aH.luHi anu uia
! turing ten years after lhelr iaStci uitl
hatV h., Oh. limo IfnOrlXD0
| act. | am glad TO say however ina
| on the sale of these bonds the premium
| received operated 10 REFUGE the 80 ~,
| interest to be paid by the ToNeIIi l,II
| be worse. or farther removed from sensi-
| BILE finance, than the relations eNiStuIS
between the currency the Government ~
| issued, the gold held for us redemption
and the means which must be resOrled 10
| for the purpJse of replenishlng Such re
| demption fund when impaired. EEtn u
| the claims upon this lund were SoillilloI
| to the obligations originally intended, ana
| If the redemption of these Oblsduois
| meant their cancellation, the una Wou'l
| be very small But these ObhSdlloh'
when received and redeemed IN !" az
| not cancelled. but are fe-iSSueH, ana may
| do duty many times by way OF drawing
| gold from the Treasury. Thus we nave
| an endless chain in operation constantly
depicting the Treasury s gola ana never
| near final rest As II TINS vas not
| bad enough, we have, by statutory
| declaration that IL is the policy OF the
Government 10 maintain the panty ne
| tween gold and silver, aided the tOrce ana
| momentum Of this eXhauSting process
| and added largely 10 the currency oDliga-
| tons claiming this peculiar gold re1emp-
| ZION. our small gold reserve Is thus
subject TO drain from every side. Inc
| demands that increase our danger also
increase the necessity Of protecting TINS
reserve against depletiOn. and 1t Is most
| unsatis factory TO know that the protection
Afforded Is only "A temporary palihton.
| Ii is perfectly and papably plain that the
only way under present conditions by
which this reserve when dangerously de-
pleted can be replenished - through the
issue and sale Of the bonds of the Gov
eminent for gold, and yet Congress has
not only thus far declined to authorize the
issue OF bonds best suited TO such pur-
pose. but there seems disposition in
some quarters 10 deny both the rcccssi-
~ and the power 70. the issue OF bonds
at all.
| cannot for a moment believe that any
OF our citizens arc deliberately
ling that their Government should
default in its pecuniary Obligations.
or that its financial operati )ns should
be reduced TO silver basis At
any rate should not feel that
my duty was done H. / omitted any
effort l could make to avert such a ca
lamity. As long. therefore. as no pro-
vision Is made for the final redemption or
= be putting aside Of the currency obhga-
~ draw from the Government its goll,
and as long as 10 better authority for
bonds issues Is allowed than at present
exist, such authority viii he utilized
whenever ana As often as il becomes
necessary - maintain a sufficient gold
reserve, and In abundant time 10 save the
credit or our country ana make goo the
financial declarations Of our Government.
FORA MORE ELASTIC CURRENCY.
Questions relating to OR tanks and
currency are closely connected with the
subject Just referred t. ard they also
present some unsatisfactory TEXTURES.
Prominent among them are the lack
or elasticity in our currency circulation
and its frequent concentration in Hnan-
cial centres when il is most needed in
other parts of the Countrywide absolute
enforcement Of the Government TO the
circulation of the currency Of the coun-
Try. This condition carnOt be immediate
" reached; but, aS a step In that dlrec-
ton and as means Of securing more
elastic currency and obviating other OBJ
1ectiOns 10 the present arrangement OF
bank circulation, the Secretary OF the
Treasury presents in his report a scheme
modifying the present banking laws ana
providing for the issue Of circulating
notes by State banks free from taxa
ton under certain limitations. The
Secretary explains his plan so plainly,
and It's advantages are developed by him
with such remarkable clearness, That any
effort on my part TO present argument IN
It's support would be SuperUuOuS. ! SNAIL
therefore, content myself with an I'M
qualified endorsement Of the Secretary
proposed changes in the law and brlet
and imperfect statement of their proml-
nent features.
As TO NATIONAL BANKS.
1t is proposed to repeal all laws pro-
viding for the deposit of United states
bonds as security for circulation, TO per
init national banks to issue circulating
notes not exceeding in amount 80 per
cent. Of their paid-up and unimpalred
capital. provided they deposit with the
Government as a guarantee iund IN
United States legal tender notes, lhclud-
ing Treasury notes OF 1880, sum equal
In amount TO 80 per cent. or the notes
they desire TO issue. this deposit 10 De
maintained at all times, but whenever
any bank retlres any part or us circu-
iation Il proportional part OF IT'S guar
antee fund shall be returned 10 II, 10
permit the Secretary Of the Treasury 10
prepare and keep handy ready for issue,
in case an increase in circulation Is de
sired, blank national bank notes Tor each
bank having circulation, and 10 repeal
the provisions OF the present law lmpoS-
posing limitations and restrictions upon
banks desiring TO reduce or increase thelr
circulation-thus permitting such IN
crease or reduction within the limit OF
Is per cent of capital TO be quickly
made as emergencies arise
In addition TO the guarantee luIlu re-
duired IL is proposed 10 provide a edlely
f1nd for the immediate redemption OF the
circulating notes of failed banks 10y M
posing a small annual tax, say ohe,Eal
OF one per cent, upon the ave- t T9 fn5n