The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-12-03
THE MINNEAPOLIS JOURNAL.

Oh documenLal shipping, comprised 24,213
vessels We OF b.7s7 ,so2 gross tons. On June
6524, 218 gross tons
American shipping was greater In vol.
ume on June 80. 1902, tl1anseyer before in
our history. The total tonnage COM
pleted was trif1e less than in 1901, but
the shipbuilding in progress during the
amount of wages. has never been equaled
IN this country. =
Metric System. tr '1s
Attention is again called to the neces-
stty for reform in our present system Of
weights and measures. The greater part
OF the world hassalready. adopted the in
ternational decimal system. The many
advantages to be gained by the introduce
tion OF such a system IN place of the sew
eral heterogeneous systems now In use.
none Of which are decimal or international
In character, would prove of the greatest
value to the manufacturing, commercial,
scientific and educational interests of the
country. 1t is believed that the intro
sduction OF the internal or metric system of
weights and measures in the departments
of the government, allowing a reasonable
time for the change will not only greatly
facilitate the work of these departments,
but will bring about It's general adoption
by the public without further legislation.
Central Pacific Debt.
All amounts which have become due to
the United States under the agreement
dated Feb. l, 1899, for the settlement of
the indebtedness of the Central Pacific
company, have been paid by the railroad
company in full. including interest on all
outstanding notes to Aug. 1, 1902. u
i The principal of all notes held Aug l,
1902 amounted to $38,22S, 265.14, and the
first mortgage bonds to the amount OF
| ssS, 900 were held as security for the
| payment thereof. > S..
| Gold Basis. -
| There. can be no valid reason, legal,
economic or equitable, why the govern
own obligat tons, whether they be repre-
| sented in paper, 100 per cent fiat, or in
, silver, so per cent fat. When the govern
ment expressly guarantees its own issue.
no objection can appropriately be urged
against requiring banks to pay their notes
! in gold On the contrary, see many ad-
vantages to be gained, especially with re-
spect to our foreign commerce, by max
| ing every obligation between the govern
ment and the people, and between 1nd1-
viduals, payable in money every dollar OF
which shall be the equivalent of 25.S
grains of standard gold, and on which a
demand for this equivalent can be directly
or indirectly predicated..
! -" Banking. ..,.> .. :.~
| Recent oVculS uOt only JUSTLY puI Gil
force thee onclusion that our banking sys-
| tenn is imperfect. During certain months
of the year Invertebrates dropped danger
ously low-dangerous in the sense that
speculation was invited thereby. When
the time arrived for moving crops, rates
advanced alarmingly high. Meantime the
price Of government bonds rendered the
maintenance of national-bank circulation
unprifitable, and this class of currency was
| rot with mid if1y he f.
ment exerted every influence within its
authority to counteract this natural con-
| traction. <t<giet:-e' .--
Additional circulation will be neces-
sary. Outstanding government bonds are
| inadequate to secure it even If their
market value would justify their use by
| the banks. 1t is even doubtful if ma
tionalt bank currency based on govern
ment bonds can be made advantageous to
| banks. A lower tax On circulation would
be counteracted very promptly by cor
responding advance in the price of bonds
and the profit would accrue to the presett
| bondholder -
! see no objection to the issuance of
: circulation based upon general credits, If
properly safeguarded. Neither do I be-
l1eve Unnecessary to make currency thus
issued al first lien upon assets. A very
small taxfupon circulation: would be suf-
fcient to cover any possible loss.
| uouDC' HOWE NcTs AflS WiSdOHl Oh making
provision for the iaoAlance of credit cur
zrency to the limit esSfsk the banks capital
Not that would fear unfortunate results
4 but In all financial legislation the greatest
caution must be exercised lest the cur
rency be suddenly and und,1ly inflated. A
4 gradual Increase in circulation is we'll nigh
| imperative, but a sudden and unnecessary
| Increase would be most unfortunate. Sew
eral other safeguards will naturally sug-
| gest themselves and need not be consid
cred in this report 4 =. b
am not prepared at this time to recon-
mend branch banks. Recent events con
firm previous opinion that the. peculiar
cond itions Of this country would not be
conserved by such a policy. "
The. department recommends no one
plan to the exclusion Of all others. It is
1 the province of the department to point
out the weak places that the congress may
strengthen them; to suggest. possible, II
not imminent dangers, that the congress
may provide against them but ultimate
responsibility does not lie with the de-
partment.