Evening Star Newspaper, December 7, 1897, Page 12

12 THE EVENING STAR, TUESDAY, DECEMBER 7%, 1897-16 PAGES. A BETTER CURRENCY Secretary Gage Wants Greenbacks Retired, BANK PAPER'S SUPERIORITY Annual Report of the Head of the Treasury. ESTIMATES FOR THE CURRENT YEAR Secretary Gage of the Treasury Depart- ment has sent his annual report to Con- gress. It is a document of sixty-three pages and discusses in detail the operations of the department as reported by his subor- dinates. Naturally most interest is felt in his views on the curr On this subject he has written as follows: “In their respective annual reports to rs since the close ention with to the | continu H Congress my predeces: of the civil war have called unfailing regularity to the menace public credit occasioned the of the large volume of demand lial us ties, represented by the legal tender notes, and have constantly appealed for su legislative action as would remove the dangers peinted out. se Warn- ings and appeals ha ot met with the responsive action that their serious na- | s not now the part of wis- | In fact, as time has gone on, all the reasons upon which these warnings and appeals were based have re- cefved additional force. The enormous de- preciation in the commercial value of sil- ver, as compared with gold, has greatly in- creased the financial responsibilities of the | ture justifi dom to ignore them. government in its demand liabilities, and all the logical consequences of t fact should be boldly faced. “Under the act of 1878, requiring the pur- chase and coinage of silv ementel 1 by the so-called Sherman act there was outstanding June 30. he sum of $41 tes representin: in s of 189) there were ai | S1LLS67 easury notes hed with the quality of legal tender. aet of Nov ber 1 of the ed to be the polic to secure by safeg “the rity in val Is (gold and i803, rep wet of 1800, tion the two m equal powe the markets and in the paym Redeeming Silver in “Conformable to the spirit of this decla- ration, the Treasury Department in all its operations ha ver coins, and the paper ves of each, as of eqtal dignity and value. In the colle: tion of its revenues, whether in the form of excise taxes or of customs dues, it has made discrimination against neither, while, upon the other han}, it has held itself ready to pay to the public creditor whichever of the two t ht choose to receive as the more desirable to him ven further tha it has ary tot If ready, wheneve nce of this parity, ated to ke on terms of rtallic money, notwithstand. ing and never-ceasing disparity n the natural or commercial value of as compared the other. heless,it w st be recognized that this King involves a h require large financial re- proper and ade- for its con- nd ive nstlyi me overnment in ns that in uddition to its jemption in gold on dem. tender note! sto the tri in throug echangea bility nner TSH, STL» Il of $470,000,000 in | our people. The | mounts witt these 1 w. It is not that the gover upon t at time f liability to SC Oem. vey the ide be calle, eee ar > time or | however pro- | thus show who do not com nuance unim: the ion ve insufficient be supported . The recognized mt has on more t fear and de- industrial, com- is for he publi t , al- though the limit of ‘rea- | that the total of total of the demand | sur, aS above set urged in answer to these te of the treas- ‘ond ory now, that gold | toward the ry and | n it, and t zood | of confiden ncial | er must be received as It might be fur- truth that these endure for an conditia period. W public revenues for public expenditures, and a urplus mmulating; with tons normal, with ample crops 's to agriculture, with jefined r nors of war, we wing sense of ly the continuance of ns can Not be ured to security. Unfortu: good condi us. Commerce and ind nsitive to unfavorable events, az hfal with dangers yet unseen, full recovery from past re- sion a renewed confidence finances are to be r and more en- ions than now exist. t on Congress. government shall operate extent in supplying the country by the direct is- and by maintaining, es of parity, so large silver money, so long will all i industries remain in a state ©f dependency upon the financial wisdom, foresight. and courage of Congress. This forced Gependency on tae one part begets & responsibility on the other. the standpoint of na- al defense the argument is reinforced. appropriate millions to create a nav through the genius of invention, come obsolete and worth appropriate other millions to pro- Vide coast defenses against attacks which may never be ma Such action, timely dd wise as it may be, is inconsistent with @ treasury condition so extended 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 modern days a well- supplied war chest with an impregnable credit is as important as are war ships, shore batteries, or regiments of men. “The advantages of a strong position In mnpor! currency of tne 3 of its through ts @ volum our trade | ‘coin, | intrinsic and exchangeable value." objection be raised, it loses all force when comprehended by all, and with small cost people. he recommendations I make must be construed as tentative steps in a direction which, if consistently pursued, will ulti- mately lead to conditions theoretically de- sirable rather than as being in themselves fina} me: s to that end. The condition of the treasury in its relation to demand obligations requires that one of two steps be taken. The one may be a large rein- forcement of the permanent gold reserve; the other may be by an important reduc- tion in the objectionable form of liabilities. The latter is, in my opinion, the more de- rable. Recommendations. “First. I recommend that proper legista- tion be enacted which will establish, sep- arate and apart from the ordinary opera- tions of the treasury as they relate to and expenditures, a department to nated and known as the issue and redemption division. To this division the sum of $125,000,000 in gold should be set over from the general fund in the treasur: to be used only for redemption purpose: and all the dollars new held for re- demption of silver certificates, and all the under ed to the ihe act of 1 be me account. Further, that 1,000,000) in the legal tender tes known as green- hereinafter described, ted in the said issue and redemp- tion sion, be disbursed therefrom only upon the receipt in exchange therefor of an equivalent amount of gold coin. Such gold, when so secured, to be held in said division as part of the general redemption fund, “Second. I recommend that provision be Je for the issue of refunding loan bonds, ble after ten years at the pleasure of » government, such bonds to bear inter- est at the rate of 2% per cent per annum, principal and interest, in gold nd that the Secretary of the Treas- ye authorized to issue Such bonds and in payment therefor, with an equit- allowance for the difference in inter- be collected a: of the United States which mature by their terms of payment in the years 1904, 1007 and 1925, Removing an Ambiguity. The advantage involved in the proposed ion hes in this: It removes an ambigu- y from our contract obligations—an am- piguity which affects unfavorably the gov- ernment credit. The word ‘coin,’ now used to express the obligation In the public debt, is an ambiguous word. It is no doubt un- derstood by the more discriminating public creditor to mean gold coin, and the solemn act of Congress pledging the maintenance of silver coin upon a parity with gold coin makes it impossible to construe the word as therein used, to mean anything other than gold or its full equivalent. Yet as this is a conclusion of logic rather than a clear statement of fact, the simpler and more humble investors or would-be invest- ors in the public debt are confused and doubttul, and the public credit is the weaker therefor. or thus recommended without wise precedent. The earlier issues ot our government bonds were payable in “dollars.” With greenbacks a legal tender, with gold and silver on a substantial com- mercial parity, but both at a large prem- jum over paper money, a similar question arose, What did ‘dollars’ mean? And in to remove all doubt upon the sub- an act was passed solemnly pledging -"faith of the United States to the pay- in coin or its equivalent of all its bearing obligations, except when expressly provided in the law. commercial disparity between our gal tender dollars’ and ‘coin dollars’ was not then essentially greater than the pres- ent commercial disparity between silver and gold. This act of 1869 was judicious. To refund our outstanding bonds now pay- able in coin into bonds payable in gold would strengthen and confirm the public t and put us in a position to command markets of the world for our securities the most advantageous terms. “It may be objected that the adoption of a specific form of payment for the pub- lic debt would be inimical to the spirit of a qualifying clause in the repealing act of which reads: ‘And it is hereby de- to be the policy of the United to continue the use of both gold er as standard money, and to coin the course er State: and siiv both gold and silver into money of equal If this we consider the only two methods by which the gold and silver coins now ix concurrent use with us can be so continued as to maintain the ‘parity in value of the coins of the two metals and the equal power of every dollar at all times in the market and in the payment of debts.’ “One of these methods is famillar to us, it has been in daily use in our finan- system simee 1879. The other method would consist in so advancing the coinage value of sflver by international agreement or otherwise as to lend a natural parity between the two, so that the present arti- ficial method could be safely abandoned. There is nothing in the proposition now under consideration to interfere with the purpose to secure an inauguration of the latter method. It must, however, be ad- mifted to be a method which, if adopted, will operate to throw upon the governing body whatever measure of risk may be involved in the experiment, and it is manti- festly just that there the risk should lie, rather than upon the helpless and possi- ble _non-assenting creditor. “To accomplish the objects: herein sug- gested without contracting the circulation some other form of paper money must be allowed to fill the vacuum which would otherwise be occasioned. The national bank note now familiar to our people is the readiest and most practical agent to accomplish that object, and under reason- able conditions it will be found responsive to the call. Enlarged I ie of Bank Notes. “An enlarged issue of bdénk notes thus contemplated would require a number of amendments to the present national bank act. These amendments should be made only upon such conservative lines as would, while granting the necessary aid to the business world in facilitating ex- changes, in nowise weaken the system, or lessen the stability of the notes to be issued. The complaint uttered against the national bank act as it now stands is not airected toward the method of bank organization or the absolute safety guar- anteed to the noteholder. It is directed toward those restrictions it emtbodies, which result in its failure to accomplish the full benefit it ought to carry. The requirement of the law now makes it im- possible to organize a bank with a capital of less than $50,000, no matter how small the place in which it ts to be located, or how restricted the volume of business there to be transacted. Because of that, with the added expense of taxation, both national and local, many eomm:::‘ties are the national treasury, with its accompany- ing benefits to all commercial Interests and great reinforcement of the public credit, can, I believe, be secured without any un- settling legisiation, in a manner easy to be deprived of the ald of banks ef ve and burdened with onerous rates « change and interest charges. “In order to obviate to as great an extent as possible those objections and make the act more harmonious with proper business conditions, I recommend that it be amend- ed in the following particulars: Seeretary Gage’s Remedy. “First. Permit national banks to be or- ganized with a minimum capital of $25,000 in any place having a population of 2,000 inhabitants or less. “Second. Reduce the rate of taxation on circuiating notes secured by deposit of bends to one-half of 1 per cent per annum. “Third. Permit banks now organized or hereafter organized to issue circulating notes to the par value of the refunding bonds hereinbefore suggested, when de- pestted by them with the treasurer of the United States; and, further, allow such banks as shall avail themselves of the op- portunity to depos't as security with the treasury of the United States greenbacks, treasury notes, or silver certificates to a to- tal amount of $20,000,000, against which there shall at once be issued to them by the controller of the currency national bank notes to an equal amount, it being further provided that from time to time, at his convenience, the Secretary of the Treasury shall substitute for the green- backs, treasury notes, and silver certificates so deposited to secure circulation, bonds of the same class and character as the re- funding bonds first named to the amount of $200,000,000, such bonds to be chargeable to said banks and by them accounted for at such price (not less than par) as the market quotations may indicate to be their fair market value. During the period of time intervening between the deposit of greenbacks, treasury notes and silvér cer- tificates and the substitution of the bonds by the Secretary of the Treasury the circu- lating notes specifically issued therefor shall be exempt from taxation. Upon such sub- stitution of bords the funds released there- by shall at once be transferred by the Sec- retary of the Treasury to the issue and redemption div‘sion. “Fourth. After said banks have deposited such bonds, greenbacks, treasury notes, or silver certificates to the amount of 50 per cent of their capital they shall be permitted to issue bank notes in addition to the i) per cent thus provided, to the extent of 25 per cent of such deposit, which sald 25 per cent may be unsecured by any direct pledge of security, but issued against the assets of the bank. “Fifth. Extend the guaranty of payment by the government to all circulating notes of the bank whether issued against depos- ited security or against assets. “Sixth. To secure the government against less, if any, attaching to its guaranty a tax of 2 per cent per annum on unsecured circulation shall be levied to create a safety fund, which fund shall be invested by the Secretary of the Treasury ahd the control- ler of the currency in government bonds. In addition to such funds the government shall be further protected by having a first lien upon all assets in case of failure of the issuing bank. “Seventh. AH notes shall be redeemed in the city of New York at the subtreasury, and at such other subtreasuries as may be designated by the controller of the cur- rency with the approval of the Secretary of the Treasury. The control of such re- demption shall be under the direction of the controller of the currency and made fron: a redemption fund of 10 per cent, to be provided and maintained by the banks. Eighth. Restrict the issue of national bank notes to the denomination of $10 and upward. A Desirable Credit Currency. “An examination of the plan herein pro- posed will show that the amendments sug- gested are not of a distinctly radical char- acter. It fs believed that banks organized under the national bank act, with these amendments, would give upon a thoroughly safe basis a desirable credit currency lead- ing ultimately to further freedom of issue as the result of time and experience. A careful investigation of the commercial con- aitions of the country at different periods of the year shows how essential to those sec- tions depending upon the prompt moving of the staple crops of cotton, wheat and corn is a bank note issue which enables the local bank to supply its customers with the means necessary for such purpose within the shortest period of time and at the low- est cost. In illustration of this point at- tention is called to the extent to which the crop producing sections of the country are now dependent as borrowers of money upon other sections. “The national banks located in the south- ern states have an aggregate capital of $68,680,000. On October 6, 1596, they had borrowed largely from banks in the east, to assist in handling the cotton crop, $13,54%,- 000. On March 9 following these loans had been reduced to $2,516,200. They succeeded in borrowing for a part of their needs, but commercial necess:ties required more. With proper banking facilities the necessity of such borrowing now existing would be re- duced to a minimum. “I am confident that under an act allow- ing a greater Iberality of issue, and les burdensome rates of taxation, those banks would find it to their interest to issue, in stead of $18,950,000, the amount which. the have at present outstanding, a sum equal to the full amount of their capital, and, addition, in the season of crop activity, an additional unsecured volume of circulation approximating 25 per cent of their capital. “From data gathered from the records of the office of the controller of the currency it is found that during the existence of the national banking system oclations, having a combined capital of $5,000,000, have been placed in the hands of receivers Of the number of those in this list whose affairs are fully closed only eighteen, ha ing a capital of 31,610,000, would have f ed to pay in liquidation an amount suffi- cient to fully provide for their circulating notes, had such notes been outstanding to the full limit, as herein contemplated, at the time of their failures, respectively. ‘The deficiency would have required to cover it a contribution from the guaranty fund of but $194,820. Had the whole number of 330 failed associations maintained in current use an amount of note issues equal to 25 per cent of their capital, as herein pro- posed, the 2 per cent tax on such circuls tion would have produced the sum of $2, 454,140.48 available to meet the deficit of $194,824, shown to have resulted from the failure of the eighteen banks which failed to yield from their own assets the amount that would have been necessary to provide for all their own outstanding credit cur- rency. Breaking “The Endless Chain.” “In submitting these recommendations, I am rot unmindful of the convictions, pre- conceptions and prejudices so widely prev- alent among the people in much that re- lates to our currency and banking system. It will at ence appear to many that the Proposal herein made to place in condi- tional retirement the sum cf $200,000,000 in our legal tender (greerback) issues is a discrimination against a form of paper money, which, uncer the influence of a worthy sentiment, has become to them a symbol of the unity end pcwer of the na- tion’s life. A little reflection, however, will lead to a conclusion quite to the contrary of such an inference. Bearing in mind the fundamental truth upon which this argu- ment rests, viz, the necessity for a reduc- tion in the volumes of demand liabilities, now constituting a menace to the public treasury, it is, economically speaking, a matter of indifference whether this reduc- tion be made in the volume of silver, silver certificates, treasury notes, greenbacks, or in some agreed upon proportions of each; but the historical fact is that it has been through the greenback, the only unalloyed credit note of the government, that the ‘endless chain’ has been worked. Once dis- bursed, these notes find their way, by a purely natural process, to the banking cen- ters, where in case of an outward move- ment of gold, or because of any internal movement of distrist, they have been a ready agency to deplete the gold reserve in the public treasury. Lhe proposition to retire a large portion of these notes into an issue and redemption division, there to be held until the public is willing to offer for them in fair exchange an equal sum in gold, is a proposition to dignify them with the honor of actual gold equivalency when they are passed out, as they have hitherto been honored with actual gold equivalency when pushed in upon the treasury for re- demption. The proposition is therefore quite different from @ proposition to retire and destroy them. On the other hand, the proposal to thvs preserve and honor them will excite objections from another class, who will allege that the notes now in ques- tion should be retired and utterly de- stroyed. They will aver that so large a sum, no matter how held, will prove an irresistible temptation to. which Congress will yield when in some exigency extraordi- nary and pressing needs for public expen- diture shall rest upon the treasury, and that the restrictions now it adopted, will then be i “In. consideri: g this objection, it must be remembered that if it were granted full force and yielded to as a determinative ob- jection, there is nothing whatever to pre- vent the lawmaking power from issuing ot any time and in any amount the legal tender notes of the United States to ciacu- Jate as monoy. Such is the final opinion of the Court, from which there is uo appeal. Neither must it be forgotten by such objectors that use and custom grad- ually acquire a restrictiye péwer, but little less binding than statwtory enactment or constitutional prohibition. “The so-called treasury reserve of $100,- 000,000 of gold has no ‘warrant in specific legislation, although its, propriety has been indirectly recognized by. Congress, and yet there is a supreme confidence that no im- pairment in that provision will ever be au- thorized or sanctioned by congressional ac- tion. The only real ference, then, be- tween holding these government notes in a separate department and their destruction is a difference which eonld at any time be covered by legislative action. Pertinent Observations. “The important naturé of the subject un- der discussion tempts to a fuller treatment. I must, however, be contentiwith referring once more to that feature of this series of recommendations which touches the ques- tion of note issues by national banks. I am moved to press the recommendation as submitted, in view of the following consid- erations: “Paper money is the product of an indus- trial, commercial and financial evolution. Its economizing effect in the use of metallic money precludes the idea of its abandon- ment until society shall relapse into an- archy. “Credit is the base upon which it rests. Paper money is the evidence that a thing of value has passed into the possession of the issuer, and that the holder of that paper is willing to await payment. When payment is made the evidence of the transaction should be withdrawn, to appear again only when a similar transaction occurs. “The bank is an agency, the result also of a pure evolutionary movement, whose function it is to issue its various forms of credit instruments, of which paper money is one, against the pledges and promises to it of the less publicly known members of the industrial community. It thus be- comes an intermediary in much the larger part of all trade and industry. “Whatever operates to render the bank a safe, efficient and available agency to the people operates to the general prosperity. “The requirement that the bank shall in- vest its capital in public securities as a precedent to the issue of its credit instru- ments—paper money—is a requirement which operates by so much to reduce its efficiency to commerce and industry. It cannot use its capital in two directions at the same time. Only a necessity to con- trol the bank’s capital for the public use or an indispensable need for security in such a form to the note holder can justify this requirement. “The exigencies of the government's finances in 1863 induced Congress to re- quire from all rote-issuing banks a pre- liminary investment of their capital in the government's bonds. The many disastrous losses incurred by the people from the note issues of irresponsible banks previously au- thorized to do business by ill-considered provisions of many separate states seemed to justify the national government in re- quiring from banks of issue a pledge of the bonds in trust for the security of their note holders. “Without further extension of the his- torical statement, it is recognizable that the exigencies of the government do not now require the absorption of banking carital in aid of its own finances. In fact, with treasury conditions once normally es- tablished as to revenue and expcnditure, the funded debt will, within a few years, be entirely lHquidated. “Tne impertance of banking in its rela- tion to industry and commerce demands for it, in view of the considerations thus enumerated, careful and timely attenti “The question is complicated by the fact that for a whole generation our people hay been schooled in a system of bank-note is Sues secured by pledges in the hands of a public trustee. It is not a good system, but it ought not to be ylelded until in some other form adequate ,guarahties for the solvency of hank-note issues: are provided. “The problem is a two-fold one: How to withdraw the specific form of security now provided, since it will ultimately disap- pear; how to provide a substitution which will be recognized by the people as ade- quate security, and which will at the same time allow to banks within’ well-guarded limits the most useful: freedom in their rote issues. The problem is too large, its results too far-reaching, to be solved’ off- hand or by expert dictum. Its solution must be gradually reathed by the path of safe experiment. To allow national banks to issue circulating notes equal to 25 per cent of their capital upon a pay- ment of 2 per cent per annum «s an insur- ance or safety fund upon amounts so ts- sued, is, if the demonstration drawn from the controller's office can he trusted, a proposition well within the limits of safe- ty. Nevertheless, whatever risk there is should be assumed by the government, ob- noxtous‘as it may be to the general prin- ciples of governmental action. It is by uch action that the situation as it exists has been evolved. Upon the government, therefore, rests the duty of sceing it pron- erly solved “Some years of experience along the line suggested will prove what is an adequate provisional tax for the security of note holders, and will allow such amendments as time will justify, involving as one of its features complete withdrawal of th Revernment’s guaranty from bank-note Revenues Past and Future. The revenues of the government from sources for the fiseal ycar ended June 1897, were The expendi- tures for the same period were $448,4! 40, showing a deficit of $18.05: : The reccipts showed an increase of $20, 911,759.11 cver 1896, and the expenditure an ineres 4,713.49, The revenue it for the current fiscal year, it is estimated will be $441 68, and the expenditures $469, G8, showing a deficit of 009, 000. It is estimated that the revenue » for the fiseal y lews, ar 1599, und the $482.8 penditu: 4,047 perts that the total a treasury were $855,685, of the fiscal year, a 74, 764.3 close. Of these sums, $808,354. available on June 20, 1896, and 3. 424.23 on June 30, 1897, for the strictly fiscal operations of the government, while $547, 350.973 vas held at the former date, and $591,468,953 at the latter, on deposit against outstanding certificates and treasury notes. The accumulations of gold in the treasury have be2n steadily increasing during the pust four months, and the tendency is to- ward a still further advance. The net gold at the close of the last fiscal year amounted to $140,780,738, and ‘has increased since then to $157,113,988 on November 20. Operation of the Tariff of 1897. The tariff act of July 24, 1897, entitled “An act to provide revenue for the govern- ment and to encourage the industries of the United States,” the Secretary says, ‘has not teen in force long encugh to determine fully its merits, but it 1s confidently be- Heved that when in full operation it will afford ample revenue for the ordinary reeds of the government, while adequately protecting our manufacturing and agricul- tural interests. Owing to the heavy importations which were made in anticipation of the passage of the measure the customs, revenues received during the first three months,of the opera- tion of the act have bean diminished, and aré not an indication of the revenue which the law will prodvce when importations are nermal. * ‘ Our ‘home industries have’ already felt the stimulating effect of the-law. ‘The board of general appraisers reports that “the following figures would indicate that there will be fewer protests and less litigation under the new tariff act than un- der its predecessor.”” ' Number of protests received first sixty days under act of August 28, 1894, 2,896; under act of July 24, 1807, 730, Hall of Records. “The necessity for the erection of a suit- able fireproof building for the safe-keeping of the records and official papers of the several departments has for a long time been palpable and urgent. Congress, by an act approved June 11, 1996, directed that, after conference with See eo desig- ted officers, a report shot presented by. the Secretary of the Treasury upon the suitableness for @ site for a hall of records on the public reservation at the intersection of Ohio and Louisiana avenues with 10th and 12th streets, in this city, and of any public grounds within reasonable distance of the nts. The need for such a ‘building is imperative. Attention is there- fore invited to a communication addressed under date of January 7, 1897, by the Sec- retary of the Treasury to the Speaker of the House of Representatives. Nothing as since developed tq modify or change conditions as then stated, and i is sub- mitted that-legislation be enacted extend- ing the powers of the Secretary of the Treasury and making such an appropria- tion as may be necessary to pursue the in- quiry further. Plans showing the general scheme and project are row being prepared ard will be submitted.” “Improving Public Bulldings, The Secretary continues: “For a number of years the question of improving the architecture of federal build- ings has received serious cohsideration at the hands of those best qualified to judge in such matters, and this desire at last found expression in the act of Congress, approved February 20, 1893, which provides, in brief, that the Secretary of the Treas- ury may, in his discretion, cbtain designs, plans and specifications for the public build- ings erected under his supervision »y com- petition among members of the architec- tural profession at large. ., This procedure being without precedent in governmental construction, it is prob- able thzt further werking tests of the law may reveal defects in its administrative features; and should such contingencies arise, Congress will be requested to pass such remedial legislation as may be neces- sary. “The character and greatness of a ration may be fairly judged by its public struc- tures, and with this conviction my best ef- forts will be devoted to securing the high- est expression of architectural art in the buildings which are to symbolize the grea hess of the government which erects them. District of Columbia. The net expenditures on account of the District of Columbia for the fiscal year 1897 were $6,FUS,580.34. The net revenues depos- ited im the treasury on this account for the Same period were $3,507,79.87. Under the operations of the sinking funds the net reduction of the bonded debt during the year was $557,400, and of the annual interest charge $14 >. The acts of the legislative assembly of the District of Columbia authorizing the is- Sue of the 7 per cent water stock bonds provided that not less than $15,000) should be set apart annually for their gradual re- demption. On July 1, 1878, when the treasurer of the United States assumed the duties of the late sinking fund commissioners,the amount of these bonds outstanding was $4! requiring annually $20,610 for interest and $15,000 to be set apart for a sinking fund, aggregating for both purposes $44,610. ‘This amount has been annually appropriated since that time, to be paid wholly from the revenues of the water department. By the operations of this sinking fund these bonds have been retired to the amount of $80,000, leaving outstanding $343,000, maturing as follows: $329,000 due October 1, 1901, and $14,000 due July 1, 1903. In addition to the water stock bonds retired, there have been purchased with this sinking fund other bonds of the District, amounting to $40, 450. There are sufficient funds uninvested to purchase $33,550 additional bonds of the old funded debt, making a total of $ bl to be redeemed by the sinking fund for those obligations. This sum equa the Amount of the water stock bonds outstand- ng. ‘The interest accumulations on the bonds of the old funded debt retired with this sinking fund are available to pay interest on the water stock bonds. ‘The estimated amount accruing during the fiscal year 1888 is $17,389.57, while the total amount re- quired for interest is 10. ‘he difference between these sums is all that is required to be approj fund for the fiscal c Undcr the authority contained in the Dis- trict appropriation act approved Marcia 3, 1897, the balance remaining on the of July, 1897, of the principal of the debt incurred for increasing the water supply was paid in full, mak the total ments on account of the princi , and for interest thereon §254,1%: As Congress, by the act of Augu: 1804, otherwise provided for the redemp of the § per cent greenback bonds, to ine payment of which special iaxes were pledg- ed, the treasurer renews the recomn tion, that Congress be asked to authorize him to dgliver to the Commissioners of th District of Columbia the tax lien certifi- cates now held by him security for the payment of those taxes, in order that they may apply all moneys hereafter derived therefrom to the payment of the outstand- ing drawback certificates, as contemplated the act of Congress approved June 19, . providing for their issu a SAVINGS von Pos BANKS. Provisions of Two Bills Introduced in the House. The Postal Savings Bank bill was intro- duced in the House yesterday by Mr. Lori- mer of Illin Under his plan money or- der offices selected by the Postmaster Gen- eral are to be made branch postal savings banks, with an office in the department to be called the Central Bank, Any person may become a depositor under this act, in- cluding married women and minors above twelve years. Deposits are Mmited to a dollar and its multiples and not exceeding ~ each, and deposits accumulating above $1,000 will not draw interest. Postal sav- stamps and cards of the denomination and 10 cents are to me sold. Interest is to be at the rate of 2 per cent to be added to the principal on June y sbooks are to be for- warder y examination. The Secretary of the Treasury, under this bill, is required to invest the dep: in inter- 0 of est-bearing bonds of the United Stat or » principal is guaranteed by the onds and bonds of mumeip under sta) restrictions. Deposits will not be liable or detention under any le: proc All statut a to crimes in the po applied to the 2m, and the act is ix months of its pi postal si take effect sag E called for in a bill introduced yesterday by Mr. Adamson of Georgi He proposes making every post office y order of- keeping ever t office open ll times and stations for reception of and that a new post office shall be stablished at any point on a public road outside the limit of an incorporated com- munity, whenever applied for by twenty five citizens, vesting discretion in the Post Office Department if the proposed office is within two miles of an existing office. For the appointment of postmasters the Dill requires recommendation of both senators of the state, except where divided, when the appointment is left to the representa- tive of the district. The department is also required to furnish copy of charges against a postmaster to him and allow answer. ———_- oe -—_____ “CAPT LOVERING REPRIMANDED. to A Cutting Announcement to the Army by Gen. Miles. Major General Miles has issued the fol- lewing general order to the army in regard to the case of Captain Lovering, convicted of ill-treating Private Hammond: “By order of the President the proceed- ings, findings and sentence in the case of Capt. Leonard A. Lovering, 4th Infantry, fare approved. It is, however, disappoint- ing that an offense so grave, and as an ex- ample so far-reaching as this, should have been visited with so light a penalty. There is no question that Private Hammond de- served punishment for his conduct, but he should have received it in a lawful way. The military laws governing the army are explicit. They prescribe the duties of offi- cers and enlisted men, with the penalties for their violaticn. Under them both have rights and obligations. When, therefore, an officer, with the inteliigence and experience with which Captain Lovering is credited, not only violates these laws, but exhibits such a iack of humanity as is shown in this case, he should receive a more severe sentence than a mere reprimand. Commit- ting such acts degrades the officer more than the soldier he punishes, and snows unfitness tor the care and commandof men. Under excitement men frequently do things which in cooler moments they recail with scrrow and regret; but this case ts aggra- vated by the fact that after weeks of de- Uberation this officer evinces no regret for his wrongful acts.” ‘The next movement in the case will prob- ably be the trial by court-martial of Private Hammond on charges of insubordiration, flagrant disobedience of orders and deser- tion, conviction on either of which charge will result in his dishonorable discharge from the army. + e-+___—_ Former State Treasurer C. B. Collins of Florida has been arrested and taken to Tal- lahassee to be tried on a charge of embez- Mrs. Annie Fitzsimmons, Edwin W. Quin- by and his wife of Manchester, N. H., were poisoned by drinking wood alcehol. ‘The action brought by Mary. Ann Angell macatnnt Peele GOs anes there Co etores an admeasurement of dower of the late Jay Gould has fom J0re te bem Snares: Soest 08 New ‘or! i ae ete te a in turn, cott, jr., tees. four girl Sixteen from persons to it. impossib’ is the cnly released to well, und oughly trai improved fr ed to climb, 2 te DErOpr ing secu the 0 RE been returned to endeavor to keep track of giris With this and one other s is known by them, the girls inmate: To Be Presented With Every $5 Purchase, a Pair of Best Rubber Shoes, : Also a Pretty Souvenir for Every Child. Handsome Footwear. Fresh From the Factory--the Newest and Best Made Are Our Trade Winners. Holiday Slippers. Greatest Variety at 25c. to $2. Our Matchless $3 Shoes For Men and Ladies Are Equal to Any $4 or $5 Grade. Christmas Shoes For Boys, [lisses and Children. Great Money Savers. Heilbrun & Co., 402 7th St. N. W. Look for Old Woman in Show Case. ee Lowered. _ General M have escaped, exception Bu whom the le ¢ to manage her. her thovght to hav in their work n rooms w in an ordinary part of the building was not separated from the fence surrounding the that of nd the cells iati against escapes. ‘aping is Ps a of girls w ticed and one by a girl's mother who fou latt XCOT the instruction x reduced The report begins by saying that seven| have been admitted i for the last year the number being twelve. girls number being eight during the last flscal year. With the were brought back. The report centinu “Two girls who were apprenticed ¢ their employers and were Eleven girls have been returned—five by the beard of children’ since the three, m . live appr The stion in schoo. “The following facts will explain why girls have escaped from the scho | When the building was turned over {the Commissioners of the District of ¢ |iumbia to the board of trustees one can hardly imagine how ill-adapted it was for its purposes. There were no gratings upon ihe windows cr doors; the locks and doc ing the offic se 18! Are us wou FORM GIRLS Work of the School Described by President Endicott. RESULTS HAVE BEEN ENCOURAGING Age Limit of Admission Should Be SEPARATING THE RACES The anrual report of the board of trus- tees of the District Reform S. is made to Attorney hool for Girls | enna and, | te Corgress by William C. Endi- | president of the board of tr u by ren- nd to have them the ranged in simple thing nd doors. Ss have been obliged to expend from for maintenance a large sum of money in order to make the build- Tt i: lieved that, provided the officers exercise proper care and supervision over the gir chance of minimum. It must. however, be remember- ed that In all prison and reformator: stitutions, even in those where the vision of pri now prisoners is by no means uncommon. “In the tic} Columbia, cailed. previous annual to which special reports, ‘arly in those for the years 184 1895, I dwelt at some length upon the his. tory of the school and upon stati garding girl criminals in the Di: ics rict attention Encouraging Showing. “The school has been opened nearly four years, ard any one who has studied the problem cannot fail to be convinced that the foundation of a great work, much need- ed in the District, has been laid. The work of the last year has given us great encour- agement. be- to in- per- ‘oners is sirict, the escape of par- and re- of is There have been many difficul- ties in our way, and I am frank in saying that at times the task has seemed almost an impossible cne. The institution has been grossly misrepresented before and to mem- bers of congressional committees, and has been unfairly dealt with by the press to such an extent that I believe the citizens of the District of Columbia have an unfa- vorabie impression regarding the school, which in reality compares favorably with similar inst! itutions. “Any school built and maintained at a large expense must of necessity he extrava- gant, modates only In especially when the school accom- twenty-seven girls. no sense is the school a colored reform school, at least not under the law by which Con- gress established the school. for under that law the school fs intended for the reforma- tion of both white and colored girls. As far as I know ho one has ever applied to send white girls to the school, and the judges of the courts have not committed any, but the judges of the courts. as well as the police, would agree that there are many white girls in the District who should be sent to just such an institution instead of to the jail_and workhouse. If any addition. is made to the school then accommodation can be built for both white and colored girls. Any one who is familiar with the difficulties attendant upon having white and colored girls would, I think, agree that it is best to separate the two races, par- ticularly when they belong to a criminal or lower class. “Our principa! difficulites can be traced to the laws made by Congress establishing the school. Under the law girls under eighteen years of age are committeed to | twenty. I called upon and wrote to the | judge of the Police Court who committed | the girl to tae school, and begged him in | person and by letter not to send the girl | to the Such a girl can accomplisa The building is constructed < that unless the girl is shut pin her own room continually she must ociate with the little girls (some only twelve years of age), who have done noth- ing worse than il@ and unmanage- . ‘ontrol of their parenta Work of Reformation, latter class of girls can re- formed, but a hardened criminal, known in | i be | j the lowest dens of Washington, such as j is often us by the courts, not only cannot be reformed, but is only happy he gets hold of girls at the school > trying to do well and does all in power to make others as bad as her- We have had riots, though that may {| be a rather strong term: we have apes, aS statistics will show two girls sent to the Albany county iary by the Supreme Court of the ct of Columbia for arson. in all of cases the trouble can be directly ed to girls who are not fit to be sent to a reformatory institution. Yet if the courts send girls to the school the trustees othing but receive them. I agree entirely with the superintendent, who sug- gests that the age of admission should be reduced from eighteen to 1 the age of dismissal from tw hteen years. en then it would not t nel to the school who jail ences. ‘The District is filled with a large class . white as well as colored, who are iminals. and yet need the care and tion a ruction which our in- stitution furnis' in order to make them good and useful women. 1 have visited several reformatory institutions which nal reputation for the good in them. In no instance, as far rved, were criminals of the worst type allowed to mingle with those who had committed for minor offen: the eS are separated. As I have building constructed pr that it is impossible They are obliged to use the same kitchen, the | Same dining room and the same school oom. The institution is not large enough to admit hardencd criminals, and as long as this is done with the modations there same trouble Congress — should in- capacity of the then a be constructed where good might be kept apart. In aW as it exists regarding the mis sal might well More Buildings and. Land Wanted. Mr. Endicott then calls attention to the report of t her recommendations are approved by the board of trustees. The ations m: approy ntenan A recomme! ppropriate & of ninet ments. Fe ta Congress 0 for an additional build- or more reoms and improve- nting the exterior of the building $1,200 is asked. For cementing the | cellar floors $i) is wanted. For aun i tional storehouse for vegetables, et {is ret asked to inc $600 in its first deficiency bill to ck salary of the treasurer, for w appropriation was made for the fi 1847, and to pay $25 a month this fiscal year. Unless th propriation is made the trustees “are ir danger of finding them- selves without a treasurer. Congress is asked to give ten or fifteen acres of government land for cattle and and horse pasture. Congress is also asked to place the school, in appropriations made, net in the list of charities, but under the head of reforma- tories and prisons, the same as the boys’ school. It is asked that the Attorney General, and not the Commissioners, be requ:red to ap- Prove the appointments of officers, agents, teachers and employes. ——_—_.»— A. AN P. A. MOVE. Members of the Association Urged to Oppose Sectarian Appropriations. President Echols and Secretary Palmer of the American Protective Association, have ifsued a special address to the coun- cils of the association. They are urged to Protest to the President against the ap- pointment of Attorney General McKenna as Supreme Court justice. The address asserts that the gcvernment departments are being Romanized, and that Romanists are given more than half the offices in certain depariments. “The bureau of en- graving and printing,” it says, “is a notable example of this iniquity, which has grown to such proportions that a Protestant {s practically debarred from entering the pub- lie service in this department if there is a papist seeking the position.” The address asserts that the President's latest exto sicn of the civil service rules will confirm in their positions these persons now in the service. * The address concludes by urging membera to write to their senators and representa: tives in opposition to the appropriation of any money at the present session of Con- gress for sectarian purposes. It particular- ly condemns appropriations for what it calls “sectarian charities n the District.” ——————— Maryland. Republican Club Election. The annual election of officers for the Maryland Republican Club will take place at its regular monthly meeting this even- _ ing, at Dennison’s Hall, 923 F street northwest. A large attendance is ox- pected. The Maryland Club is reported to be in a flourishing condition. The pres- vent officers are: President, Arthur Stabler; first vice president, Joseph Trainor; sec- ond vice president, Dr. W. L. Robbins; re- cording secretary, C. H. Krene: sponding secretary, James W. treasurer, R. J. Beall.