The islander. [volume] (Friday Harbor, Wash.) 1891-1899, 1897-12-16
The Oficial Paper Of San Juan County.
THURSDAY, DECEMBER 10Th, 1897


and comprehensive state paper. There
are no labored flights of ford rhetoric
I'm it, no ponderous phrases, no playing
to the galleries. 1t is nothing more nor
less than a plain, practical review OF
the nations affairs, with such recon-
mendations to Congress with respect to
legislation as the president deems it
wise to make. The most important
matters considered, at least from the
presidents standpoint as indicated by
his message, are the questions of cur
rency reform and the position of the
United States with respect to the Cuban
struggle for independence.
AS might reasonably be expected the
president regards bond issues, for the
purpose of maintaining the gold re-
serve, as serious menace, but he con-
cedes that under our present system
there is no other recourse when the
revenues of the government fall far be-
low it's expenses and the gold reserve
drops below $1O0,OOO,00O, which has
come to be regarded as the minimum
limit of safety. The president is the
foremost champion of the wise protec-
tive policy intended to serve the two
fold purpose of fostering domestic IN
dustries in the interest of American
labor and American capital, and pro-
vide sufficient revenue to meet all the
requirements of the government, in
Guiding the payment not alone of the
interest but of the principal also OF the
public debt. Under the Cleveland ad-
ministration and the operation Of the
mongrel tariff measure enacted by a
Democratic Congress, the national debt
was not only not diminished dollar,
but was increased $685., 315, 400 by the
issuance of bonds bearing AZ per cent
interest, this enormous sum being re-
quired and used to make up for def
Gent revenues and maintain the gold
reserve. Although the expenses of the
government are still greatly in excess
of the receipts the president evidently
does not anticipate any necessity for
more bond issues under the new tariff
law, if Congress will only be reasonably
sensible in the matter of appropriations.
1t is apparent. however, that the presi-
dent realizes that bond issues are liable
to become necessity at any time so
long as Congress fails to relieve the
government of the great burden i'm
posed by the requirement that all our
various forms of money shall be kept at
par with gold. We now have $780,
100000 of currency which the govern
ment has undertaken "by solemn en-
actment" to keep at par with gold, and
the president regards it not only as an
responsive charge" but as danger
Gus menace to the national credit"
His recommendations are simple and
appear practical. For instance he adj
vises that United States notes which
are redeemable in gold should be issued
only in exchange for gold, and regards
it of the utmost Importance that the
government should be relieved Of the
responsibility of providing all the gold
needed for exchanges and export. He
concurs with the secretary of the treas
ury in his recommendations that ma
tionai banks be allowed to issue notes
to the face value of the bonds deposited
by them to secure their circulation, fn-
stead of only 80 per cent, as at present;
that the tax on their circulation be re-
duced to one-half of one per cent per
annum; that authority be given for the
establishment Of national banks with a
minimum capital of $25, 900, instead of
5000 as at present, to "enable the
smaller villages and agricultural re-
gions of the country to be supplied with
currency to meet their demands" and
that $40 be the minimum denomina-
ton of national bank notes. Such a
minimum limitation would lead i'm
mediately to q much larger use of silver
in ordinary business transactions. If
these suggestions meet the approval Of
Congress the president further says
that he would recommend that ma
tional banks ''be required to redeem
their notes in gold"
To the Cuban question and the gov
ernments relations with Spain the
president devotes more space in his
message than he does to the question
of currency reform, possibly because he
may have reasoned that it would re-
quire more argument to justify his posi-
tion, though we do not believe that
such is the case. On the contrary we
believe that the president is entirely
right in his advocacy of a policy of
non-interference, under existing condi-
lions, and in his argument that the
recognition of belligerency would be
more harmful than beneficial to the
Cuban cause, even if it could reason
ably be assumed that the Cubans are
entitled to such recognition under the
most liberal construction of interna-
tional law. The ne& Spanish ministry
should be given a chance to bring order
out of the chaos in Cuba, especially as
its efforts in that direction are charao-
terized by humane methods and respect
for the principles of mondern warfare
We may hope that the Cubans may be
successful in securing their absolute in