Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1897-12-07

Culloch Will sail for San Francisco
about Dec. 18th.
The secretary makes strong pleo
fot the recognition OF the services OF
officers and men in the cutter service,
reoommending that they be put on
practically the same footing as those
In the navy.
Tho appropriation OF $4,000 is urged
TO provide a vessel for service on the
yukon river next spring. The secretary
says II could be built ON the Puget
Sound In sections and put tog1 thcr
and equipped at st. Michaels
Much space is given to the merchant
marine which IS said to include
greater documcutcd Tonnage than at
any time FOR tho previous Il years OK
capt In 1893. Against this ahowlng.
however Is put tho fact thnt our ton-
mage registered for foreign trade is
the smallest In halr n century. Con-
gress Is asked 10 consider this with
the suggestion that tonnage taxation
be readjusted so as 90 remedy the mat
ter.
Former recommendations regarding
the laws for steamboat inspection are
! renewed
A brief history Of the work of the
| coast and geodetic survey service is
| given. aud strong plea is made for
1 more liberal appropriations for the
maintenance and extension of the light
/ mousse oElNhiishne
The record Of the lifcsaving service
! is given briefly, showing that IN f9a
| disasters during the year, involving
| the lives Of i.ii5 persons. only 90 wcrn
/ lost, and that out of 81 ,329,5 so worth Of
/ property involved, S5,29l,l15 WAS
/ saved.
The Union Pacific sale is treated
with great brevity, bare statement
| of the facts being given.
The report ClDgsH with exhaustive
review Of the currency question with
! recommendations.
After detailing the evils Of the pres
/ ent system. according to his view, the
| secretary offers the following recon-
mendutions of which he says:
The recommendations l make must
be construed as tentative steps In IL
! direction which, If consistently pur-
sued, will ultimately lead to conditions
theoretically desirable rather than as
being in themselves final measures TO
( that end. The condition Of the treas
ury In its relation TO demand obltga-
| tons requires that one of two steps
/ be taken. The one may be a large
| reinforcement of the permanent gold
reserve; the other may be by an inn
/ portant reduction IN the ohjoctiono' %
! form Of bias. The latter is, in my
/ opinion. the more desirable.
First / recommend that proper
! legislation he enacted which will es-
| tahlish. separate and apart from the
ordinary operations of the treasury as
they relate to revenue and expendi-
lures. q department TO he designated
and known as the issue and redemp-
/ ton division. To this division the
sum of S125. 100000 in gold should be
set over from the general fund In the
treasury. to be used only for redemp-
tion purposes, and all the silver dollars
now held for redemption of silver GER
tincates, and all the silver bullion ana
| dollars coined therefromi bought under
the act of 1880, should be passed 10 the
same account. Further, that the sum
of 5000 ,OOO. 900 in the legal tender notes
of the U. $. known as greenbecks be
collected as hereinafter described and
dcposited in the said issue and re-
/ dcmption division, to he disburseu
therefrom only by receipt In exchange
therefor of an equivalent amount OF
gold coin. Such gold, when so secured,
TO be held in said division as part of
the general redemption fund.
second | recommend that provision
he made for the issue of refundne
loan bonds, payable after ten years
at the pleasure of the government
such bonds to bear Interest at the rate
of 2Ik per cent per annum. payable.
PRINCIPAL and interest.in gold coin; and
| That the secretary of the treasury be
authorized to issue such bonds and re-
oelve in payment therefor, with an
|
ence in interest, any part or all of the
outstanding loans OF the United states
which mature by their terms of pny-
ment In the years 1904, 1907 and 1875.
Continuing. he says:
1.-THE advantage involved In the pro-
posed action lies in this. II removes
an ambiguity from our contract obll-
gations-an ambiguity which Affects
unfavorbably the government credit
The word coin, now used TO express
the obligation in the public debt, Is an
ambiguous word. II is no doubt un-
derstood by the more discriminating
public creditor to mean gold coin. and
the solemn act of Congress pledging
the maintenance Of silver coin upon q
parity with gold coin makes 1t impos-
sible to construe the word coin ms
therein used to mean anything other
than gold or It's full equivalent. Yet as
this is Il conclusion OF logic rather than
a clear statement of fact, the simpler
and more humble investors or would
be investors in the public debt are con
fused and doubtful, and the public
credit Is the weaker therefor"
The secretary then goes on to show
that the course suggested has a prece-
dent in the act of Congress in 1895
pledglnG the government to the pay
meut Of all interest bearing obliga-
tons in coin or its equivalent.
He adds: ITO accomplish the OBJ
iects herein suggested without con-
trnctinr the circulation, some other
form OF paper money must be allowed
to IN the vacuum which would other
wise be occasioned. The national bank
note now familiar to our people Is the
readiest and most practical agent to ac-
compllsh that object. and under reas-
enable conditions II will he found re-
sponsive to the call"
To obviate the difficulties In the way
NJ this method OF supplying the de-
ficiency he recommends the following
changes in the national banking law;
First Permit national banks TO ho
organized with a minimum capital Of
sos 00O IN any place having population
of 1000 inhabitants or less.
Second. Reduce the rate Of taxation
on circulating notes secured by de-
posit Of bonds to one-half Of one per
cent per nnnum.
Third Permit banks now organized
or hereafter organized to issue circu-
latinC notes to the par valup of the
refuuding bonds herelnhefore sur-
sested. when deposited by them, with
the treasurer uf the United States; and
further. allow such banks rs shall avail
themselves Of the opportunity 10 de-
post as security with tn" treasurer OF
the United states. ErceubaCSs. treas
ury notes or silver certificates TO total
amount OF 5000 900. against which
there shall be at once issued 10 them by
the comptroller Of the currency. M
tional bank notes to an equal pmountl II
being further provided that from time
20 time. NJ his convenience, the secre-
tary Of the treasury shall substitute
for the greenbncks. treasury notes and