Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1895-12-12
llnpartset Eaga
1T u earnestly hoped that prompt and ef-
fectiye action on their part will not te de-

,a IT + s.ra,sfstly hoped that prompt apd et-
iayed.'" 4 ~ ''~ NV - 0e
Needed Improvement In Consular Service.
In view of the growth OF our interests
in foreign countries and the encouraging
commerce, the question of antmprovement
in the consular service mas increased in
Importance and urgency; Though there
officers are rendering valuable services to
the trade and Industries Of the country,
the needs Of some plan Of appointment and
higher average of efficiency is not denied
che Importance of the subject has led the
9 fensaH1 %h StsRs mht
lation, to answer the need of a better
system Of consular appointments. The
matter having been committed to the con-
sideration of the secretary Of state, in pHr-
suance of his recommendations, an execu-
tive order was issued on the goth of Sep
TENDER. 1895, by the terms of which it is
provided that after that date any vacancy
In a consulate or commercialagency, with
an annual salary or compensation from
be dn eths ' by
ter or promotion from some other position
under the department of state of a char
the TO qsl by ths
state f bat having pre VIC sly
and fitness for consular duty: or by the ap-
5pointment of person who, having been
selected by the president and sent to a
examination, to be qualified for the posi-
ing usually. on account of their small com
dents Of the locality, it was not deemed
practicable to put them under the new
system. .-..
Official Residences for Diplomats.
l am thoroughly convinced that in adj
and ministers at foreign courts should be
residences. The Salaries Of these officers
to pay With 9 other
expenses, the cost Of maintaining house,
hold establishments in keeping with their
and desate The use
tive undeniably depends much upon the
appropriateness Of his surroundings, and
eeun5ry HIS s %he sR9a p
tain that it does not suffer in its relu lions
with foreign nations through parsimony
and shabbiness In Its diplomatic outfit.
National Finances.
Fully half the message is devoted to a
discussion Of the financial situation. -
He gives a lengthy review of the growth
Of our currency, especially the United
States notes and treasury notes, and the
consequent endless drain on the gold re.
The president states that among the
causes for this constant and uniform
sShhrinkage IN this fund may be mentioned
operation Of the tariff law until recently in
force, which crippled our exchanges of
commodities with foreign nations and ne
our"balances In gold; the unnatural infu-
sion Of silver into our currency and the in
creasing agitation for its free and unlina-
sion as to our disposition or ability to con-
tlnue gold payments; the consequent hoard
ing of gold at home and the stoppage OF
the return Of our securities already sold
abroad and the high rate foreign ex-
change which induced the shipment OF
our gold to be drawn against as matter OF
speculation"
Dealings with Bond Syndicate.
The history Of the various bond trans
actions which have been resorted to in
order to replenish the gold reserve is re.
viewed and the constant subsequent fall.
We are now. the president says, nearly
where we started, and nearly all of the
gold withdrawn has been paid out on
United States notes, which still remain un.
Cancelled. Therefore, he says, II am con.
vinced the only thorough and practical
rem edy for our troubles is found in the re.
tirement and cancellation Of our United
Statessnotes, commonly called greenba cks
and the outstanding treasury notes issued
by the government in payment Of silver
purchases under the act Of $780,"
The method ne proposes is an exchange
for bonds. small and large ind bearing 9
low rate of interest and for a long term
The increase in the bonded debt would be
compensated by renewed activity and en-
terprise and restored confidence. A
troublesome Indebtedness would be can.
celed. instead Of the menace OF unending
bonds.
The obligations necessary to fund this
Indebtedness would not equal in amount
those from which we have been relieved
since 1884, by anticipation and payment
beyond the requirements Of the sinking
fund out Of our surplus revenues.
Increase in Circulation.
1.-THE currency withdrawn by the retire.
ment of the United States notes and treas.
ury notes, amounting to probably less thar
as Void be used on their retirement, Of Si BY
an increase in the circulation of our ma.
IS issue think they Shows
par value of the bonds they deposit 10 Sc.
cure it, and that the tax on their circula.
ton should be reduced to one-fourth of one
all the expense of the government incurred
on their account. In addition they shoulC
be allowed to substitute or deposit in lier
their circulation those which would be is.
sued for the purpose OF retiring the United
States notes and treasury notes.
1t Is estimated that this would increase
the national bank circulation by nearly as
much as the currency retired. Restrictions
in the law on the location of national banks
In the law on the location of national banks
with and branch banks authorized. =
But there might not be the necessity FOL
such an addition Of the currency by new
issues OF bank circulation as at first glance
is Indicated" he says.
The silver left in the treasury, ne thinks
might be gradually converted into frac'
tional coin. The government, he says. re-
ceiveS no gold in payment of revenues, mol
would it If the revenues were increased
The receipts are all in silver certificates
United States notes and treasury notes.
Beginning OF the Panic.
On July l, 1882, more than q year and 9
half before the first bonds were issued C
replenish the gold reserve. there was net
balance in the treasury, exclusive of such
reserve, of less than sl5, 0OO, 900. but the gold
reserve amounted to more than sll, 200. 900
which was the quieting feature Of the sit.
uation. 1t was when the stock of gold be.
gan rapidly to fall that fright supervened
our securities held abroad were returned
pressed for payment. In the meantime ex.
tensive shipments Of gold and other un.
favorable indications caused restlessncss
and fright among our people at home.
"ThereupOn tine general state of ouY
funds, exclusive Of gold, became also i'm.
material to them, and they. too, drew gold
f9 the Yb for aSaRst
the large increase in the proportion Of gold
withdrawn which was retained by our own
people as time and threatening Incidents
pioSISSSSu lllS ASCdA ySdF emu
ed June 30. 1894. nearly SS5. 0OO, 900 in gold was
Withdrawn. from the treasury and about
81, OOO, OOO was sent abroad, while during the
fiscal year ended June 80, 1895, over $117,-
0OO,OV0 was drawn out, Of which only about
SIT, 100000 was shipped, leaving the large
balance of such withdrawal to be account
ed for by domestic boarding.
1T Is possible that the suggestion Of in
creased revenue as remedy for the diff
culries we are considering may have
originated in an intimation or distinct al
legation that the bonds which have been
issued ostensibly to replenish our gold re-
serve were really issued 20 supply insult
ticient revenue. Nothing can be further
from the truth. Bonds were issued to OBJ
tain gold for the maintenance Of our ma
tional credit. AS has been shown, the gold
thus obtained hats been drawn again from
the treasury upon United States notes and
treasury notes. This operation would have
been promptly prevented if possible; but
these notes having thus been passed to the
treasury, they become the money Of tho
government, like any other ordinary gov.
eminent funds, and there was nothing to
do but to use them in paying government
The president 'fhsn,takes up the free sill
"Were@t there, infinitely stronger reasons
than can be adduced for hoping that such
action would secure for us a bimetallic cur
ment SO novel and hazardous as that pro-
posed might well stagger those who believe
that stability Is an imperative condition OF