New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-03-04
THE ERA OF BOND ISSUES.
ErrORTs To MAINTAIN THE GOLD RE-
SERVE AND TO MAKE GOOD THE
REVENUE DEFICIT.

THE CONTRACT WITH THE MORGAN SYNDICATE
CALLS OFT SHARP cRITIcIsM-THE INCOME
TAX DECLARED UNCONSTITUTIONAL
| PRESIDENT CLEvELANDS MES
SAGE on THE vENM-
UEI.AS QUESTION.
The second regular session Of the LID Con-
gress opened on December 3. 1894. ard final ad-
journment was taken on March g. 1895.
Senate-Republicaas 81: Democrats. "A; 1nde-
pendents 1: vacancies. j. Total. ~
! House-Charles F. Crisp Of Georgia Dem)
Speaker; Republicans. 12i Democrats: Si'' IN
dependents and Popusts. IL. Total 3'o
President Cleyelands Message mentioned the
recognition of the Republic Of Hawaii by our
Government. but made comments thereon.
An important recommendation was repetition
% a suggestion made in the previous year, look
ing to the withdrawal Of the Government from
the obligations of the existing Samoan treaty
| He favored the increase of the Army TO its fun
strength, and recommended the construction OF
additional battle-ships and torpedo-boats. Other
| recommendations were that adequate protection
be provided for our forest reserves and that
comprehensive forestry system be established;
that the further allotment of land in severalty
| to the Indians be cautiously made. so as to
! obviate the evils already developed BY the sys-
TEN: and. in the way Of further tarin leSlsia-
ton that coal and iron be put on the free lst
| and that the differential duty in favor OF re-
fined sugar be stricken from the law
The session Of Congress was uneventful. apart
| from the discussion Of currency questions. In
| the Senate a feeble attempt made to take
up the so-caed "popgun" bills passed by the
House cOrOllaries to The WilSon-Gornah act
These bills added coal. iron and sugar TO the
/ free list 4 test vote was reached on the bill
respecting sugar on December T.. when ii failed
| by % to yI. thus ending all attempts to modify
the tariff. In the House Dill 10 repeaI the
diferential duty of one-tenth cent on sugar
from countries paying an export bounty was
passed on January 20-2:}9 10 II. On account OF
the injustice done to sugar producers by the
abrupt stoppage of the bounty by the new tarin
act. an appropriation OF SJ.23S.2s9 was made so
as to prolong the payment of the bounty on
sugars produced before June 80. lS9o
THE INCOME TAX OVERTHROW
| No appropriation having been made at the
long session for the collection of the income
tax. urgency deficiency bill was passed in
January providing the money. and by joint
| resolution the time within which returns OF in
come should be filed was extended from March
| | 70 April L.. Before the latter date, however.
the United States Supreme Court rendered a
decision declaring the law unconstitutional The
decision was handed down April 8. re-
hearing Of the case was had before the full bench
! early in May and the final decision was handed
down on the 10th Of that month
! demonstration against the policy Of the
| Administration in respect to Hawaii was in
volved in the vote Of the Senate on February
authorizing the President to contract for lay
ing a cable TO the Sandwich Islands. The
| proposition passed the Senate by vote OF 80
to % but was lost in the House by lo2 to Ia
4 bill Incorporating the Nicaragua Canal Com
pany, by which the United states vas to guar
antee the company's bonds and 10 hold seven
tenths Of the SlO0.00O.00O Of capital stock was
passed by the Senate on January % by ii to
u. 1t not acted on by the House.
! CURRENCY REFORM PROJECTS.
| The embarrassment Of the Treasury continu-
ing. another bond issue of SJ0O0o.OO0
solved in Noyember. and the gold reserve vas
thus raised to SIP 100000. In his annual re-
port the Secretary of the Treasury. with the
approval Of the President. set forth scheme
OF currency reform. involving a reorganization
OF the Nationa. banking system. A bill en-
bodying this plan was introduced in the House
early in December. and. with scne changes. was
approved by the Democratic caucus The
| House. however refused TO accept the proposal
of the Committee Rules by which the bill
| was to be pressed To passage and the measure
| thus received its death blow.
The drain the Treasury gold continued at
| an alarming rate. and on January ~ the
! serve was reduced to So iS, 1I3-the lowest
point reached since resumption in 1879 On that
day the President sent special message tn
| Congress containing a second project as to the
! currency. His recommendations included the
| issue Of a ffty-year per cent boEd, payable
| in gold. the proceeds to be used in aintaining
the Treasurys gold reserve and in redeeming
legal-tender and Treasury notes: the cancelia-
ton Of all notes redeemed permission to
National banks to circulate notes up to the par
value Of bonds deposited. such notes to be OF
denominations greater than SO; the limitation
,f -ilV at.S a l-Ss han
$40 and the requirement that impor. duties be
payable only in gold The President intimated