Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1905-12-06
From Washington.
I Correspondence of the Alexandria Gazette.
Washington ID G. Dec. 6.

Congress today, ia one growing out OF
financial conditions in the last fe~
months. He recites that whereas last
summer millions were llaned in the
money markets at one per cent, "calP'
money reached 20 per cent IN Noyem-
Der. He regards the exceedingly low
rate about as dangerous as the high
rate. the latter being the logical result
of the former. ''Such extremes can
and should be rendered impossible" he
declares. The Secretary therefore sug-
gests the ACCESSIBILITY of permitting ma
tional banks to issue volume of addi-
tional government guaranteed currency,
equal in amount to 80 per cent OF the
bond-secured currency maintained by
them, but subject to tax OF D or per
cent. until redeemed by the deposit of a
like amount in the Treasury. By elimi-
mating the words secured by United
States bonds deposited with The Treas
urer of the United States" from the ma
tional bank notes now authorized, the
additional currency would be identical
in form with that based upon deposit
of bonds, and It's presence would not
alarm, for it would not be known. DE
believes that The tax would be more
than ample to cover the risk to the
government in guaranteeing redemption
"This may not be the only means OF add.
ing an element of elasticity to our
currency system" says the Secretary,
'the need Of which is universally recog-
nized. suggest it as the plan which
to my mind seems most feasible, and one
fraught with no danger" The Secre-
tary ferews ilis suggestion made last year
that trust companies of large capitali-
zation be incorporated under federal law,
with corresponding supervision. MANY
OF them" be says, ''are convent
ent adjuncts of national banks,
and some, fear, are occasionally
used as means to encrOach upon the
reserve contemplated by statute" MIR.
Shaw recommends also that abraded and
undercurrent silver dollars, which can
not be recoined into dollars without loss,
Re converted into subsidiary coinage at
rate of not exceeding $4,000, 900 per
annum. He suggests that for the pur-
pose of providing people of localities dis
tant from sub-treasuries with clean
money, such legislation be enacted as
will place upon the government the C st
of transportation Of worn out notes be-
low the denomination of SO. A recon-
mendation in which all government en-
ployes will be interested is his plan for
a departmental savings bank, to he
chartered by the government. He finds
after investigation, that government
clerks, as rule, are improvident. The
six savings banks in the city OF Wash
ington have only So, 900, 900 in deposits,
whereas, for instance, Detroit has one
savings bank with deposits of 81, 500,
600, while Cleveland has one institution
where savings depositors have SAG, 900,
900 on deposit. The Secretary further
recommends proper extentiOn of the pro-
visions of the drawback law, encourage
ment of the merchant marine, pneu-
matte tube system between the govern
ment departments, new assistant DIS
trict Attorney 10 New York to try Gus
tons cases, aud, particularly, economy IN
public expenditures for fear it may be-
come necessary tOprovide more revenues
Representative Townsend of Mich
igan today introduced in the House, in
amended form, the Esch- Townsend rail-
road rate bill which passed the House a.
the last session and which was then
popularity known as the administration
measure 1t still commands admins
tration support, although it is not only one
of a number which accord with the views
of the President. The bill introduced
by Mr.. Townsend today follows in gen
eral way the lines of last years bill,
making more clearer; however, that it is
intended to include all private car aud
refrigerating lines. 1t provides that the
act to regulate commerce "shall apply
to all interstate and foreign commerce
by railroad and partly by water, and the
carriers engaged in the transportation
thereof, including receivers and opera
ting trustees" The Interstate Com
merce Commission is to be enlarged so as
to consist of seven members, each receiv-
ing $40, 900 annually, and is given more
power. Appeal to the United States
Supreme Court is provided for in specific
terms. Like the bill of the Interstate
Commerce Commission, it also provides
tor the inspection of the books and ac-
counts of railroad companies, which
books and accounts shall be kept in a
manner prescribed by the commission.
August w. Machen, former Superin
tendent OF Free Delivery ofthe POstOtilce
Department, aud DR.. George E. Lorenz
former postmaster of Toledo, o., both OF
whom are serving terms in the Mounds.
Vile wv. Vs.) penitentiary for conspir-
acy to defraud the government, are IN
Washington today on ticket OF leave, "
having been suhpoenaed as witnesses IN
the trial of William G.. Crawford, on
similar charges. They are allowed the
freedom of the town, but are constantly
accompanied by guards.
Senator Hepburn, of Idaho, introduced
Joint resolution in the Senate today
requesting the President to enter upon
proper negotiations with the gcvernments
of Santo Domingo and Hsyti for acquir.
ing sovereignty and dominion over
that island, with the view of making the
two republics dependencies of the United
States. The reasons assigned are the
unstable character Of the governments of