10 TITE SCRANTON TRIBUNE WEDNESDAY MORNING, DECEMBER 8, 1H97. REPORT OF SECRETARY OF TREASURY Mr. Gage's Currency Plans Defined. An Able Discussion of the Many Reforms Needed Much Depends Upon Wise Action of Congress. "Washington, Dee. 7. The first An nual report of Lyinnn J. Oago us see retary of the treasury shows for the lineal year ended Juno "0. li7. recelptH utnountliiR to J1H0.38T.167.sn and expen ditures nmountlnK to $ilS.3'.i,G22.3u, or a dellelt of $IS,052.4r.1.41. Tliri! was nn Increase- In that year as compared with the preceding year of $20.911. 7V.1.U In lecelpts and $1.1.R9J.713.ia In urdlnnry expenditures. For the year ended June !I0, 1S9S. the secretary estimates re ceipts at $441,227,07i'.fiS and expenditures at $469.227,n76.6S, or n dellelt of $28,000. 000. For the year ended Juno :10. 1899, ho estimates receipts at $4S2.8l,G47.:i7 and expenditures at $501.522"3.'1.22, or n dellelt of J2I,GI7,SS3.S.V The report con tinues: The ntet'iniilatlens) or cold In the tiens ury have been Moac.lly Inc-renslng during the p.it four months and the tendency Is toward a still further advance. Tho net 'ld at the close of the last fiscal year amounted to ll,7:l,7.W. ami has Increased since then to $l.7,113,! on November ?A Tlic net Imports of yotl were SlI.CCO.Sll, a against $78,9l,iT12 net exports for the previous INeal year. The net exports of .-liver Were $3.',0;,M!5, ns ogalim $3.1,IJ2, 25s for tho fiscal year lsw. BONDS, MONEY AND TUADi:. There has been no material change In tho lnterest-bi'j.iiiig debt of the I'M red States since the last annual report. Oil November, 1, iVifi, the amount of niuiia-ttirt-i bonds cillstamllng was $I7,3II.200, 4 it.t the amount July 1. ISO", was J317,W). oixi. The estimated population of the I'nlted Statu November 1. K.i, was 71. !kC,iW. and the per capita supply of money vutsldc the treasury was ?22.(it. The es timated population mid per capita supply of money November 1, IMI. was 73,101,tJO mid $2.1.23, n-spectlvi ly. Imports of tuer i 'landtie, fn-e, for 1S97 were $3l.fl.i4,i3. or H.MS0.77.1 more than In ISM, dutiable Im ports of merchandise were J3S2.732.169, or SJ7.175.tC5 less than In ISM. Exports of lomestle merohar.d'sc fir 1S97 were !. e.:2,rtJ7,GU3, or lC,S07.1Pi more than 111 ISM; i ports of foreign merchandise were $1S, 15,953, or JI20.I9S lei's than In ISO'). TUB NEW TARIFF. fif tho now or Dlngley tariff Secretary Gugo says: 'The tariff act of July 24, 1SJ7, has not been In force long enough to de termine fully Its merits, but It Is eoti lidently behoved that wren In full opera tion. It will afford umple revenue for the ordinary needs of the government, while adequately protecting our manufacturing and agricultural Inteiests. Owing l the heavy Importations which were made In untl.ip.Ulon of the pas.sugc of the meuis tiro the customs revenues received during the llrst three months of the opratlon of the act have been diminished and are not an Indication of the revenue which tho law will produce when Importations nro normal. Our home industries have lilready felt the stimulating effect of tho law." IMMIGRATION. Immigration to tho United States dur ing tho fiscal year ended June 30, IS'J", shows a decrease of 112,133 from the ar rivals for tho puce-ding llscal year, and was the smallest In volume since tho subject has been under federal supervis ion, where It was placed by the act of August 3, IS.'. In fact, it Is the smallest of any liscal year since 1S79, during which ytir 177.S20 were reported to have ar rived. During the year now reported 230, &:!2 persons arrived, of whom 22S.052 were permitted to land and l.SiO were debarred ar.d deported in accordance with law. of thoo deported. 328 belonged to the class known as alien contmcl laborers, and l,2s9 were returned as belonging to the classes of aliens prohibited from ad mission under the act appioved March .1, lv.M. In addition. 2M poisons, who had be come public eharpes within one ear fiorn arrival, were teturned either at the ex pense of the steamship line by which they vveie brought or at the expens-c of the Im migrant fund. The number of immi grants who fell Into temporary distress within one year after landing was 1,121. Thon unfertiinates were relieved, mil tl.ilr maintenance and ho.-pital charges p. ild, from tho Immigrant fund. The heavy decrease in Immigration is attributed largely to recent nXrlcllve legislation. The eommissoncr general In his re-port shows that the annual average for the pcilod 1SS4 to 1MU. Inclusive, was 4?.!,(KI. After the legislation of 1S91 and lKtt be came effective the annual average In tho period 1891 to 1S97, Inclusive, fell to 279.500. Cl'UAN FILIIHSTERING. The prevailing Insurrection In the Islt.nd of Cuba, and attimnts to send expedi tions from tho Tutted States In violation of the neutrality laws, has caused tho maintenance upon the Florida coast of a number of vessels. These vessels have prevented many attempts to violate the laws. The most lucent capture was made, by tho SlcLane, Lieutenant W. K. R'v l.olds. revenue eutter servh e, command ing, oft' Indian Key, Florida, when, en June 20 last, the tug Dauntless was seized n. the aet of leaving our coast with 175 lilies, 300,000 rounds of ammunition, medl i al supplies, and 27 men on board, and taken to Key West, where tho expedition was turned over to tho civil authorities. Vessels on his duty havo cruised to Juno SO, 75.7CS miles. MBnCH.VXT MA151NB. On this subject the secretary says: "On June 311, 1897, the merchant marine of tho I'nlted States, Including all kinds of doc umented chipping, compilseel 22,633 Ves hcl.f, of 4,709,020 grocs tons. On Juno 30, IWJ, It comprised 22,908 vessels, of 4,7u3, tS0 gross tons. The reeelpts from tonnago taxes were $731,7b9, the lurgest revenue collected from this source since 18&I. Tho unequal operations of the law by which , intended to convey the Idea that the gov vcsscls entering the United Mates from enlmcnt will ever bo called upon to pay certain foreign countries and ports are exempt from tax In return for the exemp tlon of American vessels from tonnago or equivalent tuxes In stch foreign conn trie's and ports calls for legislative ac tion. In view of our large expenditures for the benefit of navigation, amounting to about $20,000,000 a year, and of tho fact that about 75 per cent, of the tonago en gaged In our foreign trade Is composed ot foreign shipping, congress may well eon tdder whether there should not be a re adjustment of tonnago taxation. The satisfaction affoided by examina tion of tho statistics of the growth of our merchant merino must be tempereil by tho relleotlon that our tonnage rogls-tere-d for tho fore-lgn trade Is the lowest In over h:lf a century. The decllno has been gradual, and may be attributed in part to natural and In part to le-glslatlvo causes, operating both ut homo and abroad. Ilocovrr. too, from tho nature of things, must bo gradual, and will re qulro tho co-operation of natural utid legislative conditions. For the estab lishment of tho latter, tho passage of a stalilo law regulating Imports has pre pared the way, and at Its coming session congress, I vonture to hope, will glvo to tho merchant marine tho benetl:t of pains, taking Investleutlon and liberal avttin which havo already effected tho recon t ruction of our navy. The conditions un der'whloh maritime competition must bo conducted, tho clemonts of our strens'h and weakness, nnd of tho strength and weakness or our foreign rivals, offer no Insuperable obstacles to the formulation .Of -3 1 'jurn.hin policy, through which In tlmo wo may regain a share of tho for eign carrying trade proportionate to our rank among commercial powers ami our national aspirations." tub rriuiBNcv. This subject Is considered In detail. Secretary Gage says: "in their recpec tlve reports to congress my predecessor,! since the close of the civil war have culled attention with unfailing regularity to tins mention to the public credit oceaslonid by th continued ue of the large volume of demand llabilitli-s, represented by the LYMAN J. GAGE, SECRETARY OF THE TREASURY. legal lender notes, and have constantly appealed for such legislative action as would remove the dangers pointed out. Although these warnings and appeals have not as yet met with the icsponslvo action that their serious nature Justllles, It Is not now the part of wisdom to Ignore thorn. In fact, as time has gone on, all the reasons upon which these warnings and appeals were based have received ad ditional force. The enormous deprecia tion In the commercial value of silver, as compared with cold, has greatly Increased tho financial rcsponslbllltie-s of the gov ernment In its demand llablltes, and all the logical consequences of the fact should bo boldy faced. "Under the aet of ISTs. requiring the purchase and coinage of sliver, supple mented and enlarge'd by tho so-called Sherman act of liio. there were outstand ing Juno 3o, li'jT, the sum of $410,337,570 In silver dollar or eertlllcates represent ing them. Under tho aet of 1S90 there wero also oiitfctandli.g $1I4,SG7,2V) In treas ury notes clothed with the quality of legal rtnder. in the act of November 1, 1S9.!, repealing the purchasing ciause of the net of 1S90, It was de hired to be the policy of the Unittd Slates to secure by safeguards of legislation 'the parity In valuo of the coins of tho two metals (gold and silver) and the equal powei of every dollar at all times In the markets and In the payment of debts. "Conformable to the spirit of this dec. laratlon. the treasury department In all Its operations has treated gold ami sil ver coins, and tho paper representative of each, as of equal dignity and value. In the collection of its revenues, whether in the form of excise taxes or nt customs dues, It has mado discrimination against neither, while, upon tho other hand, it has held Itself ready to pay to the public creditor which ever of the two he might choose to receive as the more desirable to him. Bvvn further than this, It nas declared Itself ready, whenever iieeesnry to the maintenance of this parity, to ex change on even terms, at the pleasure of tho holder, either form of the metallic money for the other. These practical operations and declarations were neces sary, mid they have operated to keep In concurrent circulation on terms of equal ity the two kids, of metallic money, not withstanding the varying and never ceasing disparity between the imturnl or commercial value of the one as compared with tho other. Nevertheless, It must be recognized that this undertaking Involve's a largo llnanclal responsibility and re qulivs proper and adequate Icglslatlvo provisions for Its continued execution. ON I'AH WITH GODD. "The responsibility of the government In this respect means that In addition to. Its liability for redemption in gold on de' mand of $31(1,000,000 of legal tender notes, It must also hold Itself In reidlness to re deem In llko manner $114,000,000 of tho treasury notes of 1S90, and to maintain through Its treasury the free Interchange ability with gold, for any part or all of $170,000,000 in silver now current with our people. Tho aggregate total of these 11a Inlltlrw .tnii-ionl to SO fH HI nm If u .,, upon to pay at any one time or over any one period of time, however piotractcd, the total of liability thua shove n. It is, nowever. In dispensable that tho treasury bo en dowed With power anil re-sources ample to meet all claimants who may come, ami with margin sullledent to give full assur ance to nil who do not come, that lta ability for continuance Is unimpaired. The statement that the traditional $1U, OO'j.OU) of gold reservo Is Insufficient for these jurposes need not bo supported by argument. It Is manifest. The recog nized Inadequacy of thut amount ha on more thin one occasion brought fear an I derangement to all interests, industrial, commercial and lliKiiclnl. The losses suf fered by t lie bra'y politic through these derangements havli.g their origin In the state of tho public treasury can not be named, although It Is not beyond the limit of reasonable estimate to say that the to tal of such losses exceeds the total of the demand liabilities of the treasury as above set forth If It he urged In answer to these considerations that the state of tho treasury Is fairly satisfactory now, that gold Is flowing freely toward tho treasury und not nway from It, anil that there Is a, good steto of confidence In our present tlrvanola' condition, tho answer must bo received an a perfectly correct one. It might ho further urged with prob. able truth that theso- favorable condi tions will endure for an Indeilnlte pe riod. With puiblla revenues sullleient for publlo expenditures, and a reasonable surplus accumulating; with trade rela tions normal, with ample crops carrying fair rewards to agriculture, with no war or well-detlned rumors of war, wo might go on with a. growing sense of security. Unfortunately tho continuance of these gooil condition can not be assured to us. t'ommerce and Industry, sensitive to nil unfavorable events, nml watchful with anxiety against dangers ns yet unseen, need for their full recovery from past reverses and depu-sclnii a renewed confi dence thnt tho government's llnanccs nro to be (Irmly .placed on stronger and moro enduring foundations than now exist. "As long ns the government shall oper ate to any important extent in supplying the cutreticy of tho country by the direct Issues of Its notes and by maintaining, through Its guarantees of parity, so largo a volume of sliver money, so long will nil our trade and Industries lemaln In a state of dependency upon the llnanclal wisdom, foresight, and courage of congress. Tills forced dependency on the one part bL'gets corresponding responsibility on tho other. "Considered from the ftandpolnt of na. tlonal defense the argument is reinforced. Wo appropriate millions to cienle a navy, willed), through the genius of Invention, imiiv- speedily become nbrolete and worth less. Wo appropriate other millions to provide coast defenses against attack; which nmy never be made. Such action, timely ami wise as It may tie, is mcomHt- ent with a treasury condition so extend ed In a time of peace as to bring panic and alarm to our own people before the first sound of the enemy's guns. In mod ern days a well-supplied war chest with an impregnable credit Is as important as are war ships, shote batteries, or regi ments of m n, "The advantages of a strong position In the national treasury, with its accom panying benefits to all commercial Inter ests and great reinforcement of the pub lic credit, can, I believe, be secured with out any unsettling legislation, In a man ner easy to be comprehended by all, and with small cost to tho people. Tho rec ommendations 1 make must be con btrued n tentative steps in a direction' which, if consistently pursued, will ul timately lead to conditions theoretically desirable rather than as being In them selves final measures to that end. The condition of the treasury In Its relation to demand obligations requires that one of two ste-ps 1,0 taken. The one may tie a largo reinforce inent of tho permanent gold reserve; the other may bo by an Im portant eduction In the objectionablo form of liabilities. The latter Is, In my opinion, the more desirable'". ItBCOMiMBNDATIONS. "I'lrst I recommend that proper legis lation lie enact, d which will establish, separate and apart from tho ordinary operations of the treasuty as they relate to levetiue and expenditures, a depart ment to bo designated and known as the Issue nnd redumption division. To this division the sum of $123,0Wi,lJO lu gold should be set over from the general fund In the treasury, to be used for redemp tion purposes, and nil the silver dollars now held for redemption of .silver cer tificates, and all the silver bullion and dollar coined tlierefiom, bought undc" the aet of 1S90, should be passed to tho r.amo account. Further, that the sum of $2of).00O,( In the legal tender notes of tho United States known as greenbacks lo eolle-cted as hetelnafter described, and do posltf d In the said issue and redemption division, to be disburse therefrom only upon the receipt In exehungo therefor of an equivalent amount of gold coin. Such gold, when so secured, to bo held In said division as part ot the general redemp tion fund. "Second I niommend that provision be made for the Issue of refunding loan bonds, jxaynblo after ten years at tho pleasure of tho government, such bonds to bear Interest at tho late of 2l2 per cent, per annum, payable, principal and Inter est, In gold coin; and that the secretary of tho treasury be authorized to Issuo such bonds and receive In payment there for, with nn equltnblo allowance for tho dlffercnco In Interest, any part or all of tho outstanding loans nf tho United States which mature by their terms of payment In tho years 1901, 1907 and 1923. ADVANTAGES. "Tho advantage Involved in tho pro. posed action lies in this: It removes an ambiguity from our contract obllgailons an ambiguity which affects unfavorably tho government credit. Tho word 'coin,' now used to express the obligation in tho public debt. Is an ambiguous word. It Is no doubt understood by the more discrim inating public creditor to mean gold coin and tho solemn act of congress pledging tho maintenance of silver coin upon a parity with gold coin makes It impossible to construe tho word 'coin,' as therein used, to mean anything other than gold or Its full equivalent. Vet as tills is a conclusion of logic rutlur than a clear statement of fact, tho simpler und more humblo investors or would-be Investors tit the public debt ate confused and doubtful, and the public credit Is tho weaker thciefor. "Nor Is tho course thus recommended without wl8o precedent. The earlier i snei of our government bonds were pay able In 'dollars.' With greenbacks a legal tender, with gold and silver on a sub. stantlal commercial parity, but both at a largo prumlum over paper money, a sim ilar question arose, What did 'dollars' menu? And In 1809, 'to removo all doubt upon the subject," an uct was paej sol. eninly pledging the faith of tho United States to tho payment In coin or Its equivalent of all Its Interest-bearing ob ligations, except when otherwise express ly provided lu tho law. Tho commercial disparity between our Mogul-tender dol lars' nnd 'coin' was not then essentially greater than tho (present commercial dis parity between sliver ami gold. This aet of IS was judicious. To rufund our out standing bonds now payable lu coin Into loudfl payable In gold would strengthen and confirm tho publlo credit und put us In a position to command tho markets of the world for our securities on tho most advantageous terms, "It may bo objected that tho adoption of n. spodflo form nf payment for the pub llo dabt would )0 Inimical to the. spirit of a. qualifying clauso In tho repealing net of 1S93, which rends: 'nd It Is .hereby de clared to bo the policy of tho United Slates to continue the tiso of both gold mill silver ns .tnndard money, and to coin both gold and silver Into money of equal Intrinsic nnd exchangeable value.' If this objection bo raised, It Iojcs all force when wo consider tho only two method. by which tho gold and silver coins now In concurrent use with us can bo bo continued as to maintain tho 'parity In v.iluo of tho coins of the two metnU nnd the equal power of every dollar at nil times In tho market and In tho payment of debts' "Olio of thetp tT.cthodr. Is familiar to us, Alnr.o it has been In dally uso In our ilnan. clal system slnco 18?9. The other method would corslst In so ndvanclng tho coin age valuo of silver by Internatloiuil agree ment or nthrrwlso ns to lend a natural parity Itetween tho two. so that tho pres ent artificial method could bo safely aban. donod. There Is nothing In the proposi tion now under conlderatlon to Interfere with the, purprso to secure nn Inaugura tion of tho latter method, it must, how ever, bo admitted to bo a method which, If adopted, will operate to throw upon tho governing body whatever measure of risk may ho involved In tho experiment, nnd It la manifestly Just that there tho risk should lie. rather than upon the help less nnd possible, non-assenting creditor. HANK NOTBS. "To necompllsh the obJcls hrreln sug gested without, contracting the circula tion, some otliet form ot paper money must bo allowed to fill tho vacuum which would otherwise be occaslom-d. The na tional bank nolo now familiar to our peo ple Is tho readiest and most practical agent to accomplish that object, and un der reasonable ccndltlons 11 will bo found responsive to tho call. "An enlarged lssuo of bank notes thus contemplated would require a number of amendments to the present national bank act. These aimerdments should be mado only upon such conservative lines ns would, while granting the necessary aid to tho business world In facilitating ex changes. In nowise weaken the system, or lessen the stability of tho noti-s to bo is sued. Tho complaint uttered against the national bank act as it now stands Is not ellri'cted toward the method of bank or ganization or the absolute safety guar anteed to the noteholder. It is directed toward those restrictions It embodies, which result In Its failure to accomplish; tho full benefit It ought. to carry. Tho requirement of the law now makes It Im possible to organize a lmnk with a. cap ital less than $50,000, no matter how small a place In which it Is to be located, or how restricted the volume of business thero to be transacted. Heeauso of that, with the added expense of taxation, both national and local, many communities are deprived of the aid of hanks of lssuo nnd burdened with onerous rates of ex change and lntetest charges. "In order to obviate to ai great an ex tent as possible those objections and make tho act more harmonious with prop er business conditions, I recommend that It bo amended In tho following particu lars: IIBCOMM BNDATIONS. "First Permit national banks to be or ganized with a minimum capital of 323, 000 In any place having a population of 2,000 inhabitants or less. "Second Reduce the rate of taxation on circulating notes secured by depo-dt of bonds to one-half of 1 per cent, per an num. "Third 1'ermlt 'batks now organized or hereafter organized to issue circulating notes to the par vr-luo ot the refunding bonds hereinbefore suggested, when de posited by thorn with the treasurer of the United States; end, further, allow such banks as shall avail themselves of the op portunity to deposit as security with tho treasury of the United States greenbacks, treasury notes, or silver eertlllcates to a total amount of $200,000,000, against which there shnll at ence be Issued to them by the comptroller of tho currency baliK notes to an equal cmount, it being further provided that from time to time, at his convenience, tho secretary of the treas ury shall substltuto for the greenbacks, treasury notes, nnd silver certificate's so depositee! to secure circulation, bonds of tho same class nnd character as tho re funding bonds first named to the amount of $200,000,000, such bonds to bo charge able to said banks and by them accounted for at such price (not less than par) as the market quotatlcr s may indicate to bo their fair market value. During tho period of time intervening between the de posit of greenbacks, treasury notes, and silver certificates and the substitution of the bonds by tho secretary ot the treasury tho circulating notes specific ally Issued therefor shall be exempt from taxation. Upon such substitution of hi nds tho funds released thereby shall at oneo be transferred by the secretary of tho treasury to the Issue and redemption division. "Fourth After said banks havo depos ited such bor.ds, greenbacks, treasury notes, or silver certificates to the amcunt of 50 per cent, of their capital they shall be permitted to Issuo bank notes In ad dition to the 50 per cent, thus provided, to the extent of 25 per cent, of such de posit, which said 25 per cent, may be un-se-eurcHl by any direct pledge of security but Issued against the assets of the bank. "Fifth Bxtend the guaranty of pay ment by the government to all circulating notes of tho bank whether issued against deposited si'eurlty or against assets. "Sixth To secure tho government against loss, If any, uttuchlng to its guaranty a tax of 2 per cent, per annum nn unse-cured circulation shall bo levied to create a safety fund, which fund shall be Invested by the secretary of the treas ury and tho comptroller of the currency In government boi.ds. In addition to such funds tho government shall bo further protected by having a. first lien upon all assets In ease of failure of tho Issuing bank. "Seventh All notes shall be redcem.-d In the city of New York at the sub-treasury, and ut such other sub-treasuries as may bo designated by the comptroller of tho currency with tho approval of the sec retary of the treasury. Tho control of such redemption shall be under tho direc tion of tho comptroller of tho currency and made from a redemption fund of 10 per cent., to bo provided and maintained by the banks. "Blghth Hestrlct tho Issue of national bank notes to tho denomination of $10 nnd upwurd. SVSTBM IIBVIBWED. "An examination of tho plan herein proposed will show that the amendments suggested uro not of a distinctly radical character. It is believe! that banks or ganized under tho national bank act, with these amendments, would glvo upon a thoroughly safe basis a desirable credit currency leading ultimately to further freedom of lssuo as tho result of tlmo and experience. A careful Investigation of tho commercial conditions of the country at different periods of tho year shows how essential to thoso sections depending upon tho prompt moving of tho staple ci'ops of cotton, wheat, and corn Is a bank note lssuo which enables tho local bank to supply its customers with the means necessary for such purpose within tho shortest period of time and at the lowet cost: In Illustration of this point atten tion Is called to the extent to which iho crop producing sections of the country uro now dependent s borrowers of money upon other sections. "Tho national bunks located In tho routhern states havo nn nggrogate capital of $C9,GS0.Oi. On October , ISlHi, they had borrowed largely from banks In tho east, to assist lu handling the cotton crop, $13, 54S.O0O. On March !) following these loans had been reduced to $2,516,200. They sue ceivdesl in borrowing for a, i-art of their needs, but commercial rii-cessltles re quired more. "With proper banking faclll ties the noce8lty of suoh borrowing now existing would bo reduced to it minimum. "I on confident thut under an act al lowing a greater liberality of Issue, and less 'burdensome ratio nf taxation, thoso banks would find It to their Interest to is. sue, Instead of $18,950,000, tho amount which they havo at present outstanding, a sum equa, to tho full amount ot their rapltnl, and, lu addition, In the season of crop activity, an additional unsecured volume of circulation approximating 23 per cent, of their capital. I "From data gathered from tho records of tho ofllco ot the comptroller of the cur rency It Is found that during tho exist ence of tho national banking system 330 associations, having a combined cnplt.U of .TS.OOO.ouO havo been placed In tho hands of receivers, Of tho number of those In this list whose affairs arc fully closed only IS, having a capital of $1,G10,UX), would havo failed to pay in liquidation an amount sufficient to fully provldo for their circulating notes, hnd such notes been outstanding to tho full limit, as herein contemplated, at tho tlmo of their failures, respectively. Tho deficiency would have required to cover It a contri bution from the guaranty fund of but $19I,S29. Had tho whole number of 330 associations maintained In current uso nn amount of note Issues equal to 2." per cent, of their capital, as herein proposed, the 2 per cent, tax on suoh circulation would have produced tho sum of $2,431, 140.4S available to meet the dellelt of $191. 824, shown to havo resulted from the fail ure of trio IS banks which tailed to yieiu from their own assets tho amount that would havo been necessary to provide for nil their own outstnndlng credit cur rency. OIIJECTIONS jrBT. 'In submitting theso recommendations, I am not unmindful of tho convictions, preconceptions nnd prejudices so widely prevalent among tho people In much that relates to our currency and banking sys tem. It will at once appear to many that tho proposal herein made to placo In con ditional retlrrtncnt tho sum of $200,000,WO In our legal tender (greenback) issues is n discrimination against a form of paper money, which, under tho Influence ot a worthy sentiment, has become to them a. symbol of tho unity and power of the na tion's life. A little rellectlon, however, will lend to a conclusion qtilto to tho con trary ot such an Inference. Hearing in mind tho fundamental truth Upon which this argument rests, viz., the necessity for a reduction In tho volume of demand liabilities, now constituting :i menaco to tho public treasury. It Is, economically speaking, a matter of Indifference wheth er this reduction be mncio in lire volume of sliver, silver certificates, treasury notes, greenbuoks, or In some agreed upon proportions of each; hut the histor ical fact is that It has been through tho greenback, the only unalloyed credit note of the government, that tho 'endless chain' has been worked. Once disbursed, theso notes find their way, by a purely natural process to the banking centers, where In case of an outward movement rf gold, fir because of any Internal move ment of distrust, they havo been a ready agncy to deplete the gold reserve In tho public troasuiy. The proposition to re tire a large portion of these note. Into an Issue and redemption division, there to bo held until tho public Is -willing to offer for them In fair exchango an equal sum lu gold, Is a proposition to dignify them, with the honor of actual gold equiv alency when they are passed out, as they havo hitherto been honored with actual gold equivalency when pushed In upon tho treasury for redemption. Tho propo sition Is therefore quite different from a proposition to retire and destroy them. On tho other hand, tho proposal to thus preservo anl honor them will excite ob jections from another class, who will al lege that the notes now In question should be retired and utterly destroyed. They will aver that no large a sum, no matter how held, will prove an Irresistible temp tation to which congress will yield when in somo exigency extraordinary and press ing needs for ipubllo expenditure shall rest upon the treasury, and that the re stilctions now proposed, If adopted, wilt then be disregarded. "Tho so-called treasury reserve of $100, 000,000 of gold has no warrant In spe elllc legislation, although Its propriety has been Indirectly recognized by con gress, and yet there Is a supreme confi dence it hat no Impairment In that pro vision will ever be authorized or sanc tioned. by congressional nction. The only real difference, then, between holding these government notes In a. separate department and their destruction Is n dlffercnco which could nt any tlmo be covered by legislative action. FACTS AND PRINCIPLES. "Tho importnnt naturo of tho subject under discussion tempts to a fuller treat ment. I must, however, bo content with referring once moro to that featuro of this series of recommendations which touches 'tho question of note Issues by natlonul banks. I am moved to press tho recommendation ns submitted, In view of tho following considerations: "Paper money Is tho product of an In dustrial, commercial, and llnanclal evo lution. Its economizing effect in the use of metnlllc money precludes the Idea of Its abandonment until society shall re lapse Into anarchy. "Credit Is the base upon which it rests. Paper money Is the evldenco that n thing of value has passed Into the pos session of the Issuer, and that tho holder of that paper Is willing to await pay ment. 'When payment Is mado tho evl denco of the transaction should bo with drawn, to appear again only when a similar .transaction occurs. "The bank Is nn agency, the result also of a puro evolutionary movement, whoso function It Is to Issue Its various forms of credit Instruments, of which paper money is one, against tho pledges and promises to it of tho less publicly known members of tho industrial com. munity. It thus becomes an Intermediary In much the larger part of all trade and Industry. "Tho requirement that the bank shall Invest Its capital In publlo securities us a precedent to tho Issue of Its credit Instruments paper money Is n require ment which operates by so much to re duco Its eillcleney to commerce nnd In dustry. It can not use Its capital In two directions at the same time. Only a necessity to control the bank's capital for the public use or an indispensable need for security In such n form to the note holder can Justify this requirement. "Tho exigencies of the government's llnanccs lu 1SG3 Induced congress to re quire from all note-lssulng banks a lire limlnary Investment of their cupital In tho government's bonds. Tho many disas trous losses Incurred by the people from tho note Issues of Irresponsible banks previously authorized to do business by Ill-considered provisions of many sepa rate states seemed to Justify the na tional government In requiring from banks of Issuo a pledge of the bonds In trust for tho security of their note hold ers, IMPORTANCE OF RANKING. "Tho Importanco of banking In lta re lation to Industry and commerce de mnnds for It, In view of the considera tions thus enumerated, careful and time ly attention. Tho question Is complicat ed by the fact that for a vvholo genera tion our people huve been schooled In a system of tmnk-noto issues. secured by pledges In the hands of a public trustee. It Is not a good system, but it ought not to be yielded until in somo other form adequate guaranties for the solv ency of bank-noto Issues are provided. "The problem is a two-fold one: How to withdraw tho specific form of security now provided, since It will ultimately disappear: how to provldo u substitu tion which will bo recognized by the people as adeqimto security, and which will nt tho same tlmo allow to banks within vvell-gunrdiHl limits the most use ful freedom In their note Issues. Tho problem Is too large, Its results too fnr rcnchlng, to lie solved offhand or by ex pert dictum. Its solution must be grad ually reached by the path of safe ex periment. To allow national banks to Issuo circulating notes equal to 25 per cent, ot their cnpltal upon a payment eif 2 per cent per annum as nu Insur ance or safety fund upon amounts so Issued, Is, If tho demonstration drawn from tho comptroller's office can bo trusted, a proposition well within tho limits of safety. Nevertheless, whatever risk thero Is should bo nssumed by the government, obnoxious us It may be to tho general principles of governmental notion. It Is by such nction that tho situation ns It exists h's been evolved. Upon tho government, the'eforo, rests tho duty of seeing u properly solved. "Somo years of experience along the lino suggested will prove whnt Is un adeqimto provisional tax for the secur ity of note holders, und will allow such amendments as time will justify, In volving ns ono of Its features a com plete withdrawal of the government's I guaranty from bank-note Issues." gllHIIIIIIIIIIIIIIIIIIIIIIBIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIUIH E f ii ii i tho clothing n man wears, to look rlcht lis IH II HIS 1 15 in r nm i i ir r K3 Our men's shoes speak for thonnelves more eloquently than wo can. Tomntlnv in 3 stylo und In price. Yoti'ro sure to bo satisfied with TUB NEWARK'S shoos for 2 mon aud boys, v The Newark a Corner Lackawanna 5 Sole Agents (or the poster Hoot for m lor men, ZlI.MMIMKMI,,,,,,,.. .iimiiummiiimiiiiimiiiiiiimi)mi; LACKAWANNA MANUFlCTUR-RS OF Bill Umber cut to order on short notice. Hardwood Mine Rails snwed to uniform lengths constantly on hand. Peeled Ilr-mlocic Prop Timber promptly Furnished. MILLS At Cross Fork, Potter Co.. on the Buffalo and Susqtic. mnna Railroad. At Mlna, Potter County, Pa., on Cotidcrsport, and Port Allecany Kailro.id. Capacity-400,000 feet per day. GENERAL OFFICE-Board of Trade Building, Scranton, Pa. Telephone No. 4014. Steam and Hot Water HEATINC Hot Air Furnaces, Sanitary Plumbing, Gas and Electric Light Fixtures. ELECTRIC LIGHT WIRING, THE HUNT k CONNELL CO., 434 Lackawanna Ave. RAILROAD TIME TABLES. PEiSfLVANIA HAILROAD. Schedule In Effect November is, iSi. Trains Lcavo Wilkes-Barre as Follows 7,30 a. m., week days, for Sunbury, Harrlsburg, Philadelphia, Balti more, Washington, and for Pitts burs; and n0 West, 10.15 a. m.. week days, for Haztoton, Pottsvllle, Reading, Ncrristown, and Philadelphia; and for Sun bury, Harrisburg, Philadelphia, Baltimore, Washington and Pitts, burg and the West. 3.15 p. m., wook days, for Sunbury, Harrisburp:, Philadelphia, Balti more, Washington and Pittsburg and the West. 3.15 p m., Sundays only, for Sun bury, Harrisburg. Philadelphia, and Pittsburg andtho West. 6.00 p. m., weok days, for Harleton nnd Pottsvillo. . , J R. WOOD, OenM Pass. Agent. I. II. IIUTCHISON. tleneral Munavfer. Central Railroad of New Jersey (Lehigh and Susquehanna Division.) Stations In New York Koot of Liberty street. N. ., ami Whitehall Terminal. Anthraclto coal ukuc! exclusively, lusur- Int? cleanliness arl comfort. Tl MUTABLE INTJFl-'KCT NOV. 14. 1897. Trains leavo Scranton for I'lttston, Wilkes-Barre, etc., at 8.20, 0.15. 11-30 a. m.. 12.4D, 2.00, 3.03. 5.U0, 7.10 p. m. Sunudys.9.00, u. m., 1.00. 2.15, 7.10 p. m. For Atlantic City. 8.20 a. m. ....,, For Now York. Newark anil l.llzabjtn, 8.20 (express) a. m., 12.43 (express with Huffet parlor car), 3.03 (oxprj-ah) p. m. Sunday. 2.15 p. m. Train leaving 12.4., p. m arrives at Philadelphia. Heading Tar. ininal. 5.19 p. m. and New York 0.00 p. m. For Mnuch Chunk, Allentovvn, ltethle hem. Kaston and Philadelphia, S.20 a. m., 12.15. 3.05, 5.00 (except Philadelphia) p. in. S Ko'raLonBanraiich. Ocean Grove, etc.. at 8.20 a. m. and 12.45 p. in. For Readlnc. Lebanon and H.irrlsburff, via Allentovvn. S.2tfd. m., 12.4j, 5.00 p. in. Sunday. 2.15 p. m. For Pottsvllle. 8.20 a. m.. 12.45 p. m. Returning leavo New York, foot of Llb- ......;.. Vnrtk nivor. t !l 111 fpv!ire.,V am 1.10. 1.30, 4.15 (express with Huffet , narlo'r car) p. m. Sunday, 4.30 a. in. ' Leavo New York, foot Whitehall street, ' South Ferry, at 9.08 a. m.. 1.00, 1.33. 3.35' r m Passengers urrlvlnK or departing from this terminal can connect under cover with all tho elevated railroads, Broadway cable cars, and ferries to ! Brooklyn and Staten Island, making , quick transfer to and from Grand central I)enot and Long Island Railroad. Leave Prllndelphla, Reading Terminal, 9.00 a. ni., 2-00 and 4.30 p. m. Sunday, 0.23 Through tickets to all points at lowest rate may ba had en application In ad vanco to the ticket agpnt at the station. II. P. BALDWIN. Gen. Pass. Agt. J. H. OLHAUSEN. Oen. Supt. Del.. l.acUa. and Western. Effect Monday. Nov. 21, 1SD7. Trains leavo Scranton an follows: Ex press for New York and all points East, l.l'i, 3.0. 5.13, S.OO and 10.05 a. in.; 12.53 and 3.33 p. m. Express for Easton, Trenton, Philadel phia and the South, 5.15, 8.00 and 10.20 a. m 12.55 and 3.33 p. m. Washington and way stations, 3.1.i p. m. Tobyhanna accommodation, 0.10 p. m. Express for Ulnyhamton, Oswego, i:i mlra, Corning, Hath, Dansville, Mount Morris and Buffalo, 12.10, 2.35. 9.00 a. in.. nnd 1.55 p.m., mukliiK close lonnectlons at Buffalo to all points In tho West, Nortn wist and Southwest. Hlnghamton und way stations. 1.03 p. in. Nicholson aeeoir mentation. 5.15 p. m. Hlnghamton und Elmira express, 5.55 Express for I'llca and Rlchileld Springs 2.33 a. in. and 1.55 p. m. Ithaca. 2.33, 9.00 a. in., nnd 1.53 p. m. For Northumberland, litlston, Wilkes Ilnrre, Plymouth. Rloomsburs and Dan ville, making close connection at North umberland for WilllHii'.fciiOrt, lluriihhurs, Ualtlmorc, Weahlugton and tho South Northumberland and Intermediate sta tions, C.oo, 10.03 a. rn., and 1.55 ami O.-oo p. Nantlcoko and Intermediate etatlons, 8.0s and 11.10 a in. Plymouth and Inter mediate stations, 3.35 and 8.50 p. m. For Kingston. 12.43 p. m. Pullman parlor and sleeping coaches or. all express trains. For detailed Information, pocket time tables, etc., apply to M. L. Smith, Dis trict Passenger Agent, depot ticket oillec. , Uric and Wyoming Valley, Tn effect Sept. 19. 1S57. 'Crilns leavo Scranton for New York and Intermediate pclnts on Erlo railroad, also for Havvley and local points at 7.05 a, m, and 2.23 p. in. n 4 -A The Newark 4 9 mimt hievn dm nmnap ii,i r r, Shoe Store, and Wyoming Aves. 3 ladles and the James A. Ilanlster Shoe S 3 B LUMBER CO., I J, W, GUERNSEY'S GREAT MUSICAL ESTABLISHMENT Is the best place in the state to buy cither an Organ or Piano . . YOU CAN I1UY CIIHAPCR, YOU CAN I1UY ON GASY TERMS, YOU CAN BUY I1ETTUR INSTKUMBNT3 Than at uny other plnoo. Don't fail to call and see (or yourself. Wareroom, 205 Washington Avenue, SCRANTON, PA, Arrive at Scranton from above points at 10.23 a. m., 3.15 ar.d 9.3S p. m. Delaware and Hudson. On Jlonilay, July S, trains will leavo Scranton us follows: For Curbondule 0.20. 7..r.3. .55. 10.15 a. m.; 12.00 noon; 1.21, 2.20, 3.52, 6.25, 6.25, 7.57. y.i5. iu.45 p. m.: 12.10 a. m. For Albany. Saratoga. Montreal. Bos- ton. New England points, otc, 0.20 a. m., 2.20 p. m. For Honesdalo C.20, 8.53, 10.15 a. m, i 12.00 noon; 2.20, 5.25 p. m. For Wllkes-Barro 6.45, 7.50, S.43, 9.33. 10.45 a. m.. 12.05, 1.23, 2.28, 3.33, 4.41, 0.00, 7.50, 9.50, 11.30 p. m. For New York, Philadelphia, etc., via Lehigh Valley It. It., 0.45, 7.50 a. m., 12.05, 1.23, 4.41 p. m. (with Black Diamond Ex press) 11. SO p. m. For Pennsylvania R. R. points 0.45, 9.33, n. m.; 2.28, 4.41 p. m. For western points via Lehigh Valliy R. It., 7.50 a. m.. 12.03, 3.33 (with Black Diamond Express), 9.50, 11.30 p, m. Trains will arrlvo at Scranton as fol lows: From Carbcndalo and the north 0.40 7.43, 8.40, 9.31, 10.10 n. m., 12.00 noon; 1.20, 2.21, 3.23. 4.37, 5.43. 7.45, 9.15, 11.23 p. m. From Wllkes-Barro and the South 6.15 7 50. R.50, 10.10, 11.53 a. m.i 1.16. 2.11. 3.13, B.20. 0.21, 7.53, 9.05. 9.45 a. m.; 12.05 a. m. J. W. IirnniPK. G. P. A, Albany, N. Y. II. W. CROSS, D. P. A.. Scranton, Pu. Lehigh Valley Railroad System Anthracite Coal I'sed. Ensuring Cleanli ness and Comfort. IN EFFECT NOV. U, 1S07. TRAINS LEAVE SCRANTON For Philadelphia and New York via D. & II. R. R. at 0.43, 7.50 a. m., and 12.05, 1.25. 2.28. 4.41 (Black Diamond Express) and 11.30 i. m. For Plttston and Wilkes-Barre via D. L. & W. R. R.. 0.00, 8.0S, 11.20 a, m., 1.53 3.40. CCrt P. m. For Whlto Haven, Hazleton. Pottsvllle, and principal points in the coal regions via D. & II. R- B.. 6-15. 7.50 a. m., 12.03, 2.2j and 4.41 p. m. For Bethlohem. Easton, Reading, Har risburg and principal Intermediate na tions vli D & II. R. R.. Cli, 7.50 a. m., 12.05, 1.23, 2.28, 4.11 (Black Diamond Ex press), 11.30 I. m. For Tunkhannock, Towanda, Elmira, Ithaca, Geneva, anil principal Intermedi ate stations via D.. L. & XV. It. R., 0.00, 8.0S a. m.. 12.40 and 3.40 p. m. For Geneva, Rochester, Buffalo. Nlag ar Falls, Chicago, nnd all points west via D. & H. R. B., 12.03. 3.33 (Black Diamond Express). 9.50 and 11.30 p. m. Pullman parlor and sleeping or Lehigh Valley chair cars on all trains betwoun Wilkes-Barre und New York. Phlladel nlila. Buffalo, nnd Suespenslon Bridge. 1 ROLLIN II. WILBI'R, Oen. Supt. CHAS. S. LBE, Gen. Pass. Agf., Fhlla., A.'W. NONNEMACHER. Asst. Con. Pass. Agt., Philadelphia. Pa. Scranton ofllce, 309 Lackawanna avenue. sciAvrn. division. In i:tfccl October Hit, 1M17. North lloiindj Noutli Hound, Oa 201 1202 20 1 . J & c. Stations L gi J S I g 3 (Trains Dally. Ex- g &, ... p ii Arrlvo Leave a u I 725 N. Y. Franklin nt. .... 7 40 .... 7l0Vcst 4'.'nd street .... 755 .... 1700 vVcehawkcn ,. 8101..., p Mjiurrlve Leave a m r m I i! nlola .... 2c6i ,, 10') Hancock .... 2U1.... Ii!5i titarll(.ilt .... 322 .... r.N6 Preston park .... aal .... I2401 Wluwnod .... 241!.... isav royntello sm .... fan Orson .... 25S .... tam riensant Sit sufl! .... flisv Unlondale .... 3i9 .... 1149, Forest city .... 8 JO1,,,, ,,, ar.d u Si1 Carbondaie 734 3 3( .... .... 1647(1180: White llrldtfo 17371388 ... .... fH41HI2vl Slaytleld f7 42 rs 13 .... .... Mllisii Jermyn 7 44' a 45 .... .... 6.1WHSI Archibald 7&o ssi .... .... oajiusi Winton 7 8JISMI.... .... niwillt lVckTlllo 7S4 8M) ... .... C 31107 Oljrpbaut '2 4 04 .... fii'01103 I'ricebiirg t(A iOl' .... .... 18 It 01 Throop 8 on 410'... .... u is ii (Ni Frnvidonco Hioi4., .... 612,11037 l'ark l'laco 1812 II 171 .,., ... 8 10 10 Ml scranton d 15 4 3oL. r m a it Leave Arrive a u r ul All trains ruu dally except Aundav. r. signifies that trains stop on signal (or pas. eengers. secure rates via Ontario Western before purchasing tickets and save money. Day anl fclglit Kpresstotho West. J. C, Anderson, Oen. Pass Agt. V, Vlltcrott, Ulv 1'ass, Agt Scranton, ra.
Significant historical Pennsylvania newspapers