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.