Evening Star Newspaper, December 5, 1898, Page 21

THE EVENING STAR, MONDAY, DECEMBER 5, 1898—20 PAGES. NATION'S CURRENCY controller Dawes Submits Annual | Report to Congress. FUNCTION OF THE NATIONAL BANKS | | Suggested Amendment te Section | 5200, R. S, Governing Loans HAWAIL AND PORTO RICO - annual report of Charles G. Dawes, controler of the curreticy, for the vear ended October 31, ISAS, has been seat to Congress. Wi h respect to the condition of nat‘onal banks during the year, as shown by the five reports required from the banks, the con rolier says withstanding that the number of banks in operation on September 20. 1838, $s less than at any date of report since December 19, 189, the amount of individual depostis, loans ani! discounts, and total re- sources is greater than at any time during the existence of ihe national banking sys- tem. On Septem or the firsc time the aggregate resources 1 1 and ¢x ceeded the four-Hillien-te i crease since October 5 TAIT 1G. Ac turns with ¢ an incre 952. 189.74 In lo nl unts in gevernment rities on denesit the treasurer ©: thc United States cure circulating notes and public de po=i and the amount held by the bank: $27.24 in specie legal tenders duction of § ooo in the amount of United States certificates of ceposit for legal tenders results in a increas’ lawful money of $31,809,827. the dey 128.50, and or 454. 40.29, the in The balance duc other b shows an increase of United Slates depesits of The controller w in their for the modification of and banking systems, which subje of economic and g:nera! discussion throvgh- out tl but confines his discussion to the general principles under'ying all of them, becaust se-m to ‘gnore the in- s of bank depositors, with whose pro- » the is pecullarly charged Two Propositions. controle He tes that chose plans which are now most generally discussed may be consider- ed as based upon the following propesi- tions “Pirst. That the disproportion between outstanding currency Habilities gov- ernment payable in gold and the go'd held for their redemption should be lessened by a viraction in the these de- mand-currency lia! cond. That the ir, circulation caused by such contraction should be Micd | by an extension ef the ci 1 . whieh cireu‘at te | in z timately to depend tor its chief | Men upon the com- issumg banks.” s which em to under! these F That t ea cure contrac i seme radical extension k not s cessiry » securi overnment i reserve, f greater safety ser and. That stment lard 1s sub- ed “ond adical € present form of nk note issu to he secured in our cv As opposed to ¢ 3, end in connection with aad views expressed hereir in the present ber states that his s the following assumption: First. That th is ting no such con- ion of the United States finances, reve- S or credit as to justify the proposition that the shifting of the burden of gold re- demption of outstanding currency from the government to the banks is so important to necessitate of itself radical changes a concessions in national banking laws re’ live to the tssue of notes, which changes and concessions would not be considered wise if the interests of the commun respective of government finance alone considered Second. ‘That if, ter relative to changes he eontrolicr re based upen from considerations of general public policy, irrespective of gov ernmental finances, bank note issues { cured only by commercial assets of banks | seem unwise, that the resources, credit an: financial conditions of the United St are such that by means of revenue laws and other amendments to law suggested by the President in his last annual message, a safer ratio between its outstanding circu lation and gold reserve can be attained, the stability of the present gold standard insured, and the currency maintained upon a sound basis without contraction tes Function of Banks. he controler then says: It must b- remembered, in connection with the discussion hanges in the present banking law at by far the most im- portant function of the national banks {s that of an act depositors and and that its not ondary in imp the present bank note !ssues. It is especta!iy important, therefore, in Proposing changes in the laws governing the note-Issuing powers of national banks that the effects of such changes upon th Felation of the bank to ils depositors an borrowers be carefully studied. It ts the belief of ontroller that t proposed preference of the note holder ov the depositor, which is a fundamenta) vas of all these piais, is not only inherent! Wrong and unjustified by any grounds of public policy, but that its practical effect upon the present relation of depositors to banks in the smaller communities of the United States would be so revolutionary as lo bring about the most injurious cond tions in the general business of the country. The controlier fully discusses the ciaim that there is an inherent moral right, irr spective of public polfcy, to prefer a n holder over a deposit holder in the distr bution of the a of an insolvent bank. and denies that such right exists. After reaching this conclusion he asks If, then, there is no inherent moral right to est» blish @ preference of the note-ho'd- Ang credi ors of an insolvent bank as against the depostt-holding str! bution of the assets of an insolvent ban the question arises, does public policy de- mand, In the interest of the common g900 that such a preference shouid be given i order to establish a bank note system which will give banks such a profit that co securé At they will relieve the United States trea: ury of the burden of gold redemption and afford the country a circulating medivm having alleged advantages over that now in use? middleman between the borrowers of a community, & functions are sec- tance and usefulness under any proposed tem of or Losses to Depositors. The controller then presents a series of tables which give approximately the toss which under the proposed plans woul! sult to depositors from the preference ot note holders over deposit holders in cas: of insolvency, based upon the showing ma by the 195 insolvent national banks whese affairs have been finally closed during the existence of the system. The tables give results bearing upon the interests of depositors in banks accordine to geographical sections and according to the following classifications of capital: $50,000, $100,000, $200,000, $200,000, $500,000, and banks with a capital exceeding $500,000, They show that— The depositors of 44 insolvent banks, ha ing a combined capital of $9,122,000, nomina: assets $24,153,212, and with cash dividends paid depositors of $7,906,983, or 71.61 per gent, situated In the middle states of Ohio, Indiana, Ilinols, Michigan, Wiscousin, Min- nesota, Iowa and Missouri, wou'd have los: by preference of thy note holders with In cent issue, 30.70 per cent more than a1 the present system, or 35.44 per cent « dividends; with an 30 per cent not © tgsue, 31.76 per cent more, or 41.83 per cent of their dividends; and with a 60 per cen! 17 “3.82 per cent more, or 33.26 per cent ir dividends. also show that, as compared with the rate of loss to the New England de- positor through the preference of the note h « in cases of Insolvency, the issues of 1 ed notes being either 10 per cent, NS) per cent or 60 per cent of the capital, tbe depositor in the eastern states will lose 1 rate of nearly two and one-half times aS great, the depositor in the southern a rate nearly three times as great; posttor in the Pactfle states at a rate a8 great: the depositor in the ates ata rate over four and one- mes as great, and the almost oblit- ed deposttor In the western states at a over seven times as great. nthe bank note issues of foreign coun- tries In case of insolvency,” says the con- roller, “the holder would, it is under- stonl enjoy no preference over the deposit holler, ‘They would share ratably In the ‘To give the credit which enables es of these great banks to circulate, rted by stringent laws as they are, no injustice to depositors such as is proposed in these plans for the United States ts neces- In one country only, Canada, are the note holders preferred over the depositors im case of insolvency. The note-issuing banks of Canada are but thirty-eight in number, with a combined circulation of abort $88.000,000."" Sammary of Views. The controller calls attention, as a sum- mary of his views upon the proposed plans, to these proposttions: “1. As a fundamental proposition, any bank note system depending for security upon the commercial assets of hanks and sanctioned by government should be in- herently fair in its relation to the depos- it-holding creditors and the _note-holding creditors of an {nsolvent bank. 2. No system ts inherently fair which creates a preference of the note holder over the deposit holder in the distribution of the s of an insolvent bank. In none of the older countries, to the recess of whose uncovered note systems f 3 tending to justify the ex- is the note holder w preferred over the deposit holder of insolvency of banks of issue. with {ts thirty-eight central banks as compared with scattered in Canada national banks in this country, furnishes the only exception to this rule. “tL The necessity of the preference under any such system in this country to give security an eredit to the notes demon- strates that it is the depositors of the country, and not the banks, upon whom the Fs weight of the guarantee of the note issue must fall. A fairer system would pro de that when a receiver took charge an_in- solvent bank he should not first pay into the ul redemption fund held by the government an amount derived from the assets of bank sufficient to nay the note holders In full before paying anything to depos he should pay into the fund that ata share of the proceeds the assets which s the note holders, not as preferr but as creditors in ‘The tax upon the solvent banks for the currency privi ould not, then, be lim- ited to not exc ng 1 per cent per annum of thelr annual note issue, or in any other hould go to d creditors, the same class as de- mount, but should be made sufficient'y urge to provide for the deficit, whatever should prove to be. “8. If under such a system, owing to causes to which we have referred, the tax upon the s ks Would be so arge as to render the issue of h cur: unprofitable and unattractive to the banks, it would be a demonstration of the radical ¢ in the environment and condition of our banking system as compared with the more centra nd older svstem of Europe. It would be a demonstr hile the hanks would take the pr n the circulation, the ¢ itors wou'd the bulk of the losses A Grave Injustice. “It would be a conclusive demonstration of what we bel to the fact that. under our bankin as at present org: the absolute safety of notes se- ial assets and is- sed in these plans r to a grave h cannot be publie pe tor grounds of “7. Such a system f uncovered notes as proposed is providing for a preference of the note holders over other creditors, would interfere radically with the more important fun national banks to which the pot ng function is secondary and sub- dinate. “This would be against public policy and would operate against banking in the smali- er communities, and tn the western, south- and central portions of our country. “S. The government of the United States is not In such straits, in connection with its present curren system, as to compel it to enter into a plan of currency changes which it in effect sells extended ané valuable curreney privileges to the national banks of the country in exchange for as- sistance from them in meeting its present governmental currency obligations payable in gold z “9. If the present conditions of govern- mental currency demand reforms, to secure which will ¢ 1 cost, it better for the mmment, as the representative of all people, and under all the circumstances nected wit banking system, to p 1s ind exact cost direct than to r to evade it by granting exten- privileges to banks which of imburse themselyes from y and the depositor class for any cost which they Incur in assur the burden of gold redemption or maintaining the credit of ir notes.” Elasticity In Currency. The controller then discusses the ques- tion of the elasticity needed in bank cur- ency, commenting upon the great elasticity of the check and draft circulation of the cnt tn this connection, nd as embodying his ecommer tations on this branch of his re- port, he says , First. The existing bank note system, based upon deposit of government bonds security, should not now be ahandoned ond. Por the purpose of allowing elas- ticity to bank note issues to protect the anits and the community in time of pantie, a small amount of uncovered notes, in ad- dition to the secured notes, should’ be au- d by under the following limi- ‘ They should be subjected to so ax that they could ni sued in the purpose of profit, but available in times of emergency. tax should be so large upon the solvent « banks as to provide a fund which, connection with the pro rata share of assets of an insolvent bank, would he sufficient to redeem the notes in full with- necessitating any preference of note rs over depositors of any insolvent Is- «x bank, The tax should be so large as » force this currency into retire ment s the emergency passes. currency could be used only to effects of the too rapid liqui- its which are collapsing under anic, but could not be profitably used as a basis of business speculation and inflation. It should be to the business com- munity what the clearing-house certificates are to our cities in times of panic—a rem- edy for an emergency, not an instrument f current business could be Amendment Suggested. The controller, under the thead of “Limi- ation of loans,” urges an amendment to section 5200 of the national banking law by which he will be given power to enforce a personal penalty for infractions of the law probibiting excessive loans, something which the law does not at present give. He then recommends an amendment which wil allow the banks of larger communities ‘o have more nearly the privilege of loan- ing a given per“tent of their assets to one individual, which now belongs, under strict piance with the present law, to the banks of the smaller communities, He then says: The greater ratio borne by banking re- sourees to bankiug capital in the larger communitics, as cempared with the like ratio in smaller communities, is responsible for the defective and unequal working of the present provision. ‘The average ratio of resources to the ay- erage capital of the 47 national banks in the city of New York Is as 18 is to 1; of the 17 national banks in Chicago as 10.2 ts to 1; of the 6 national banks fn St. Louis as is to L; of the 258 national banks in other reservercities as 6.6 is to 1; while in 3.255 tigate banks the ratio is but as 4.7 is tu 1 The taw limiting loans to 10 per cent of the capital, when applied to the 3,255 banks of the smailer commuuities of the country, as a whole, would allow the loaning of 214 per cent of thelr total assets to one ndividual. As compared with this, the banks of the city of New York, on the av- erage, could not Joan over fifty-six one- hundredths of i per-cent of their total as- sets to any one individual; the banks of j that it should at least pass laws au.hoviz. Chicago not over ninety-eight one-hun- dredths per cent of their total assets; the banks of St. Louis not over 14 per cent of their total assets; the banks of other re- serve cities not over 1.51 of their total as- sets. In other words, the proportion of their assets which the country banks of the United States can Ican, in strict compliance with section 5200, to one individual, is sixty-three one-hundredths of 1 per cent greater than in 257 reserve cities, seventy four one-hundredths of 1 per cent greater than in St. Louis, over twice as great as in Chicago, and nearly four times as great as In the city of New York. ‘This provision as {t stands at present constitutes an incentive to the making of loans the larger in proportion to the total assets of banks in smaller communities, where, as a rule, large loans which are safe are the most difficult to secure; while in the larger business centers of the coun- try, where commercial conditions create a certain demand both from banks and bor- rowers for large and safe loans, its effect is the reverse to such an extent as to be injurious. Personal Penalty. He then say: ‘The failure of the present law to provide the power to apply a personal penalty for the making of excessive loans sometimes embarrasses the ccntroller in endeavoring to check tendercies toward recklessness in loaning, which point to the ultimate ruin of a banking institution. As before stated. the present provision, when properly altered, should allow the benks of larger communities to have more nearly the privilege of loaning a given p-r cent of their tota’ assets to one individue! which now belongs. under a strict compli- ance with the present provision, to_ the benks of the smaller communi'fes. [From this privilege they are now debarred by law. The desired results can be obtained, in our judgment, by adding, after the words, in section 5200, “shall at no time exceed one-tenth part of the amount of the c: ital stock of such association actua'ly p in" the f-Howing words: ‘ “Provided. That the restriction of this section as to the amount of total liabilities to any association, of any person, or of any company, cerporation, or firm for money borrowed, shall not apply where a lean in excess of one-tenth part of the capital stock shall be less than 2 ver cent of the total assets of said bank At ihe time of making said loan. Said loan shall be at all times protected by collateral security equal to or greater in value than the exces In the amount of sad loan over one-tenth of the capital stock.” The strict and personal penalty enfor-e- able by the controller should then be pro- vided for infractions of the amended sec- tion by the officers of banks, to enab’e the controller to successfully enforce general and strict compliance with its term The penalty clause will enable the con- troller not only to limit the size, but to enforce the securing of excessive loans, Insolvent Banks. Under the head of insolvent banks the controler discussés in detail his ruling of May 8, 1898, reversing the former position of the office in refusing to revise an assess- ment against stockholders when an error In the first assessment became manifest He states that in eight banks a revision of the first assessment has been made. In three cases he has made a second assess- ment against stockholders in the interest of depositors, and in five cases he will make returns to stockholders of suis illegally collected from them. He states that in the administration of insolvent banks in the interest of creditors he has effected annual savings approximat- ing $100,000. Domestic Branch Banking. Under this head the controller, while recommending that domestic branch bank- ing should be legalized in communities of less than 2,000 inhabitants, many of which are now unable to support independent banks, opposes the granting of any more liberal privileges of branch banking than these, on grounds of public policy. He states that: Such privileges would place the larger banks of the great cities in competition with the banks of smaller communities, and would probably result in a rapid centrali- zation of the banking business of the cou try in the hands of a constantly lessening number of institutions. Theoretical advan- tages are claimed for such results, but in our judgment they would be injurious to the best interests of our country. Such a system would increase the diff- culties in the way of the small borrower, though lessening them for the large bor- rower. It would tend to separate the bor- rower from the lender, as it would of ne- cessity remove the central lending power from the small borrowers of small com- munities. It may be claimed that the agenis in charge of the branch banks would possess the same powers of loaning as the officers of the smaller banks now possess; but such arguments ignore the prevalling tendencies f modern corporate management whicn magnify of necessity central responsibility, and constantly tend to subordinate to rigid systems the activities and responsibilities of agents upon detached duty. Foreign and Col nial Branch Bank- ing. In connection with this branch of his re- port the controller discusses at length the necessity for the establishment of nterna- tional and intercolonial branch banking. He shows the disadvantages, as compared with foreign trade, under which American export and import trade now lubors as a result of inferior banking facilities, and shows that these same disadvantages are a serious hindrance to the adjustment of our trade relations to the new advantages af- forded by territorial expansion. In this connection he discusses the Ha- waiian and Porto Rican banking and trade situations, He says: ‘The foundation for the greater growth of trade between the United States and her colonies must be speedily and firmly laid in proper banking laws, which will result in enabling her merchants to do business with the people of the colonies without the disadvantages existing at present. Our present national banking laws do not authorize the establishment of American international or American _intercolonial banks, nor could any national bank estab- sh a branch in a territory or colony such as Porto Rico or Hawaii, even if our pres- t laws unchanged were extended over it. White it is questionable whether Congress should legalize the establishing of foreign or colonial branches by national banks transacting business under the present law, ing, under proper res.rctions, the general incorporation of banks organized to carry on international and interco.onal banking, as distinguished from domestic banking, ad- mits of no reasonabie doubt. Unless some such legislation is provided the American exporter and importer, in his trade with America’s own colonies, will be compelled to endure all the disadvantages under which, in ali South American mar- kets and in many other markets of the world, he now labors in his competition with foreigners enjoying superior banking facilities. Involves Difficult Questions. His recommendations in connection with this branch of his report are made as fol- lows: The determination of the relation of any new banking system to the existing barks and domestic credits of Porto Rico, differ- ing as they do from those of this country, involves many difficult questions; ana legal provisions for the appointment of a com- mission especially charged with the exami- nation of the conditions of domestic benk- ing and finance on the islands, and with the recommendation of the proper form of laws in connection therewith, is respect- fully urged upon Congress. In view of the conditions and necessities of our trade with our new territories of Porto Rico and Hawaii, and with cther South American countries, as well as with those other territories over which our coun- try must exercise a more or less extended measure of control, the controller «arnestly recommends the passage of laws authoriz- ing the incorporation of banks organized for the purpose of carrying on interaattonal and intercoloniai branch banking. ———__+ 0+ ______ Memorial to Dr. Crummell. There will be held Wednesday evening next a memorial service to the late Dr. Alexander Crummell at the Metropolitan A. M. E. Church, at 7:30 o'clock. The meet- ing will be under the auspices of the Min- isters’ Union of this city. The principal ad- dress will be made Rev. Geo. F. Miller of Brooklyn, N. Y. v. F. J. Grimke will make a short address for the Ministers’ Union. The music will be rendered by a number of choirs of the city, led by Prof. J. T. Layton. THE C. AND 0. CANAL Interest in Proposed Sale by State of Maryland. PROSPECTIVE LOSS OF WATERWAY Reasons Advanced Against Action at This Time. THE SITUATION DISCUSSED The residents of the District of Colum- bia and in the colinties of Maryland through which the Chesapeake and Ohio canal passes are taking lively interest, it is understood, in the proposed sale of that waterway. When the subject was first broached by the board of public works of Maryland a few weeks ago there appeared to be a general sentiment that it would be advisable to dispose of its holdings in the corporation, especially as the canal has never, with the exception of a couple of years, about a quarter of a century ago, paid the state any interest, but within the past few days a decided change of opinion has taken place, and it is understood the board of public works will be asked to withdraw its proposition to sell the state's interest to the highest bidder. Among the reasons advanced as to why the state should not relinquish its hold on the canal is that there are a large number of persons who woulé be injuriously affect- ed if the operations of the canal are stop- ped. A gerfttleman who takes a great in- terest in the matter said; Issue Misunderstood. “The real issue of the proposed sale of the state’s interest in the Chesapeake and Ohio canal, and the real ground of the ob- jection to the sale, seem to be strangely misunderstood by the state officials of Maryland and many who have discussed the matter. The question is not whether the canal shail be maintained as a canal or whether it shall be converted into a railroad, but whether the siate will sell its. holding to the Baltimore and Ohio and have neither canal or railroad, or ho'd on to its interest and insure the continua:e of the canal or else have a railroad con- structed on its towpath, “The object of the purchase has been said to be a removal of a threat to the Baltimore and Ohio. Why should the state bestir itself to remove a threat to the Bal- timore and Ohio? What public interests will be served by making that read the enly outlet to the coal mines of Maryland and the Elk Garden? “The bituminous coal mines of this part of the United States are controlled by three railroads, namely, the Baltimore and Ohio, the Pennsylvania and the Norfolk and Western. What is to prevent these three companies from forming a combine and levying tribute upon the factories and commerce of Baltimore and other cit just as tribute is levied upon every hearth- stone by the anthracite coal combine? ‘The existence of the canal or of an indepen- dent road on its towpath is an absolute guarantee, as far as Baltimore is con- cerned, against any such calamity. Shall the state of Maryland enter into any ar- rangement to remove the obstacles to a combine? < No Special Favors. “The people of Maryland and those of Washington and Alexandria, who voted large sums years ago for the construction of the canal, need not look to the Baltimor and Ohio road for any special favors. The Baltimore and Ohio is no longer a Balti- more or a Maryland enterprise. The ma- jority of its stock, as reorganized, s h in other citi For five years to come ict one Baltimore man will have a single vote in electing directors of the company. Every sLere of its stock will be voted by citizens of New York, members of a voting syndi- cate or pool which has already been ay pointed. The dominating influence in th voting trust, outside of New York, will be Chicago. New York at one end, Chicago at the other and Baltimore a way station. “What is the state to gain by the sale to the Baltimore and Ohio? Suppose the generosity and patriotism of that company should prompt ft to pay a half million cf dollars for the state's interest, the sum so received would, under the constitution, have to go toward payment of the tate debt, saving in that manner $15,000 a year in interest. The destruction and abanlon- ment of the canal would so decrease the value of property along nearly two hundred miles that reduced assessment would de- crease the receipts into the state's treasury fully that much-each year, and probably double that much, and so the state would, in fact, be getting nothing in dollars and s for its property. But it would be depriving the people ot a large portion of the state of their only avenue to market, ad taking the daily bread from hundred of families. The state expended ten mi lion dollars to give this great advantage to the people, and it is to be abandoned in order ‘to remove a threat from the Balt- more and Ohio.’ Matter of Deserts. “In what manner has the Baltimore and Ohio deserved this kindly consideration from the state? By withholding the interest on the State's stock in the Washington branch? By failing to pay over to the Washington branch nearly a million dollars, which it admits that it owes and one-third of which belongs to the state? “The canal is in the hands of the Balti- more and Ohio until May 1, 1901. It must continue its operation as a canal until that time or the attorney general of the state can make a motion for the immediate sale of the work for violation of the terms of the decree. On May 1, 1901, the decree for sale must be enforced if the state asks it. With the state’s interest in the hands of the Baltimore and Ohio the threat of the sale will be removed, and we may rea bly look for a discontinuance of business on the canal the day after the sale is made. And, as has been sald by some well-inform. ed persons, it will become a frog pond. “The Baltimore and Ohio will have no ob- ject in diverting any coal from its own lines or operating the canal at a loss. It will not build a track on the towpath, because it already has_a double track within a stone's throw from almost any part of the line west of Tuscarora, near Washington. It is, therefore, certain that the only object the Baltimore and Ohio can have in the pur- cae) is to remove the threat of a competing ine. Competing Line Needed. The people want the competing line more than they want the sum the Balti- more and Ohio may offer. Treasurer Shryock’s statement, which was recently published, shows that the state does not need the money, but even now the revenues are so large that the present small tax rate should be reduced. “It is apparent that the Baltimore and Ohio is the only possible purchaser at this time. By buying the stock it would get the canal and remove the threat. Any other purchaser would only be buying a lawsuit, and then might not get the canal. “The state has held on for sixty years, and it can hold on for three years longer. Then, if desirable, the canal itself can be sold, and there might be many bidders. At this time the West Virginia Central and the Western Maryland roads are satisfied with Baltimore and Ohio arrangement: but long before 1901 a break may come. Fature Possibilities. “The Western Maryland may want its own entrance to the mines, and so insure a sup- ply of coal to eastern points over its own road as far as Baltimore. The West Vir- ginia Central may want an outlet to tide- water before then. The Pennsylvania may want to bid for It, and build a dine to short- en the distance from Washington and the south to Pittsburg and the west. pro- posed canal from the lakes to the Ohioriver ay have taken and a water outlet to Washington and Baltimore may be needed. Then a canal from Pittsburg to Cumber- land would allow the passage of a boat from Chicago or Duluth to Washington. “With all these possibilities in the future it would be criminal for the*state to. enter into any arrangement with the Baltimore and Ohio for the,destruction of the canal. A sale to the Balt{more and Ohio means its destruction and ‘hot the continuance of a waterway. ues ‘There have beet many. references, to the offer Governor Brown made for the sale of the canal stocks. But the object of that proposed sale was to substitute a railroad for the canal, not the destruction of the canal and of all chance for a railroad.’ —__+——_ WHAT ENGLISHMEN EXPECT. Frank Statement Regarding th Anglo-American Rapprochement. A London dispatch of yesterday’s date says: The practical conclusion of the peace negotiations at Paris is hailed here with considerable satisfaction, and the news- papers daily discuss the so-called “im- perial’’ future of the United States, coupled with the fervent hope that the United States will adopt a colonial “open door” policy. The Saturday Review is very candid about what it describes as “the slobbering cant and hypocritical blazoning of doubtful af- fection” between the United States and Great Britain, and says: “Let us be frank and say outright that we expect mutual gain in material interests from this rap- prochement. The American commissioners at Paris are making their bargain, whether they realfze it or not, under the epee | naval strength of England, and we shall expect a material quid pro quo for this as- sistance. We expect the United States to deal generously with Canada in the matter of tariffs, and we expect to be remembered when the United States comes into posses- sion of the Philippine Islands, and above all, we expect her assistance on the day, which fs quickly approaching, when the future of China comes up for settlement, for the young imperialist has entered upon a path where it will require a stroug friend, and a lasting friendship between the two nations can be secured, not by frothy sentimentality on public platforms, but by reciprocal ad- vantages in solid, material interests.” The foregoing opinion is certainly out- spoken enough, but every American moving in business circles here knows this voices the expectations of the average English- man. The question of the Sulu Islands again is viewed through the spectacles of British commerce, the Pall Mall Gazette remark- in, wet the United States acquire the Sulus if they want them; but let us have the ‘open door’ there for our trade. The Sulus are the connecting link between North Bor- neo and the Philippine nd we have as much interest in these islands as the Amer- icans will have.” EARLY AGREEMENT EXPE ‘TED. Peace Treaty With Spain Will Be Signed Thix Week. A Peris divpatch of yesterday says: The United States and Spanish peace commis- sions held private sessions today, After- ward representatives of both bodies pre- dicted confidently that the treaty would be signed within a week unless unforeseen complications arise. The Americans declare there is no foun- dation for the reports circulated in the Uni- ted States and cabled back here that Pres ident McKinley has forwarded to the Amer- ican commissioners instructions to insist unyleldingly upon a coaling base in the Carolines, and that the Spaniards are en- deavoring to renew their opposition to a cession of the Philippines. Both comm recognize that the lat- ter question i a. At Madrid yesterday the Official Gazette published an announcement that the draw- ing for the redemption of the Cuban bonds would occur on December 10). ‘The speculation in the Cuban and Ph pine debts on the bourse has seriously di pleased the cabinet. The rise in those se eurit is attributed to the report that the government ill devote the indemnity re- ceived from the United States to the co- lonial indebtedne egarding which no de- ve resolutions have been taken by min- isters An Official dispatch from the Visayas Is- lands, in the Philippines, announces that the insurgents are Yedoubling their attack: The government advices say “The rebels have now their guns trained on the city and fire on the defenses nightly. Our troops maintain a spirited defense, and have killed large numbers of the enemy. — NUMEROUS ARRESTS OF Rifles Found Hidden Underground at Bilbao, Spain. LONDON, December 5.—The Daily Mail publishes the following dispatch from Biar- ritz: “The cens upon Hotto. CARLISTS. ship is so severe that the Spanish newspapers are prohibited from contradicting Carlist news published abroad. There have been numerous arrests of Carlists at Barcelona and elsewhere in Catalonia. The Carlist general Isasi and several colleagues have disappeared.” The Madrid correspondent of the Stand- ard say: “ “The conservative party and Senor Silvela, through their organs, have suddenly made peremptory bids for power. Senor Sagasta treats the matter calmly, riuiculing the smallness of Senor Silvela’s following, and declining to hasten the assembling of the cortes to be convened in January, or the conclusion of the peace negotiations.” A dispatch from Bilbao, Spain, says: The local papers report the discovery here of 806 rifles. carefully hidden underground. A number of Carlists have been arrested on the charge of being connected therewith. —cee- Police Will Interfere. Mr. Louis H. Perley of 631 North Carolina avenue, who complained against the play- ing of foot ball on the spac on North Caro- lina avenue between 6th and 7th street: has been informed by the District Com- missioners that the police authorities will stop the practice, pacts eee RIVERDALE. Mr. G. W. Whalley and family have gone to Washington for the winter. ‘the few patients ill of scarlatina in Riverdale are recovering. It Is not thought to be necessary to close the schools. Mr. William Foulks of Bladensburg has gone to visit his daughter in Baltimore county. Mrs. Wheelock, who las recently returned from Virginia, has Jeft her home in Bladensburg, and Will bereafter live in Washington. A great number of witnesses—sixty, it is said— have been summoned to Rockville in’ the Barron- Keyworth case. Mrs. Kote, whose children have been ill of scarlatina, 18 now herself a victim to the disease. Mrs. Kline and her son have come to make their home with Mr. Arthur Wheeler. ‘The adjourned meeting of the Republican Club here convened at the town hall recently, for the purpose of perfecting a permanent organization, The committee of five baving cha. ge of the drafting of a constitution and by-laws to govern the club re- ported having completed its work, and the report made was adopted as a whole, with a few slight changes. The temporary chairman then announced the election of permanent officers to serve for one year, which was held, resulting as follows: Pres- ident, J. A. Blundon; first vice president, J. Q. Burchfield; second vice president, R. C. Mangum} third vice’ president, Wm. Wilson; secretary, C. J. Wagner; treasurer, G. W. Whalley. Clreviars’ have been sent out from this club. to tue several districts urging the formation of other Fepublican clubs, with “a view to creating @ re- publican association, composed of delegates from the several clubs." Se FALLS CHURCH. Installation services were held at the Baptist Church recently, when Rev. A. W. Graves s installed as pastor of the church. Rev. J. J. Muir of Washington preached the sermon on the occasion. An address was also made by Rev. W. 8. O. Thomas, a former pastor of the church. The resident ministers of the town were present and took part. After the ceremonies the members of the congregation held a sociable at the residence of Mr. E. J. Northrup. Mr. S. S. Ives, a former resident of the town, now of Corbettsville, N. ¥., 1s visiting his brother, Mr. A. H. Ives. A sociable was given by Pioneer 1 of Good it at Odd Templars to its members Tuesday Fre out for the marriage of Miss Mary Fellows’ Hall Invitations E. Crossman, daughter of Mr. Isaac Crossman, and Mr. John W. Mutersbaugh, to take place De- cember 14 in the M. E. Church. Miss Nellie E. Hawxhurst, who bas been visit- ing Miss Elizabeth Riddle at Chambersburg, Pa., returned home recently. Messrs. W. J. Allen, A. M. Smith, Walton Stew- art, Ryail Aibertson, ©. W. Parker, Misses Matilda Rawlings, Fillzabeth Rice, Maud Rathbun and Jennie Mail, ave been appointed, to a ‘for Christmas celebration by the Presbyterian Sunday Dr. T. C. Quick, M. E. Church, H. L. ‘Turner and W. L. Gordon will leave here tomorrow for Richmond ‘to attend the Grand ‘of Afasons, as the representatives of Kemper a of this iter, Miss Anita, town. Mrs. G. R. Phillips and da are visiting friends fn. Portsmouth, Va. Ste. Hf. Ghristman and faumily-and Dr. R. W. Watkins and family have moved fo Washington for winter. ‘The Village Improvement Society has undertaken for the use of the public CIVIL SERVICE REFORM Eighteenth Annual Meeting in Baltimore of the National League. Program ef Exercises Includes Elec- tion of Officers and Read- ing of Report The eighteenth annual meeting of the Na- tional Civil Service Reform League will be held in Baltimore Thursday and Friday, De- cember 15 and 16. Officers will be elected and other appropriate business transacted The general headquarters of the league during the meeting will be at Music Hail. opposite the Mount Royal station of the Balttmore and Ohio railroad. The several sessions of the convention will be public and the following program has been ar- ranged: December 15—10:30 a.m., a joint meeting of the members of the general committee and of the executive committee at the as- sembly room, Music Hall. The following is a list of the members of these committees as at present constituted: General commit- tee, Carl Schurz, New York: James P. Tolman, Massachusetts League; Arthur Hobart, Boston; Dana Estes, Brookitne: Sherman 8. Rogers. Buffalo; W. W Vaughan, Cambridge; Franklin McVeagh. Chicago; Charles B. Wilby, Cincinnati; J H. Patterson, Dayton; Henry Van Kleeck, Denver; John Joy Esson. District of Co- lumbia; Francis 0. Mason, Geneva; W n Dudley Foulke, Indiana; D. H. Taylor, Lu- zerne county; Charles Noble Gregory. Me ison: George A. Pope, Mary Hitchcock, Missouri; Henry 1 ton; William A. Aiken, Norw cls Wood, Pennsylvania; Rochester; J. W. Jenks. Cor Executive committee—Carl Sch man, New York; Moorfield Story Sherman 4 S. Rogers, Buffalo: W Aiken, Norwich; E. M. Shepard, Brooklyn William G. Lowe, Brooklyn: Charles J Bonaparte, Baltimore: Everett P. Wh New York: Silas W. Purt, New York man B. Eaton, New Y dward ©. New York: Charles ins w YX Richard Watson G New York; Wm. Potts, New York: Morrill Wyman, jr.. Cam- bridge; William D. Fouike Richard H. Dana, Bosto 5 Indianapolis; Herbert h Charles Richardson, Pb Jobn W Ela, Chicago. deiphia At 2 o'clock p.m., meeting of the leagu Will be held at assembly room, Music Hail at which will be read the report of the sec- , report of special committee on the twelfth census, report of special commit- tee on violations of the civil service rule miscellaneous business; 8 p.m., annual ad- dress of the president, Cari Schurz, at Leh- mann’s Hall, No. 856 North Howard street. Second Day. At 10:30 a.m., meting of the ie assembly room, Music Hall, the {i being the program: Election of officer: gue at ports from local associations, report committee on resolutions, miscellanec business. One p.m., a luncheon, by ladies of the Arundell and Arund=ll Good Gov- ernment Clubs, at the club house, No. 1000 North Charles street. At 2 p.m., meeting of the Hall, at w ing paper j read: “Cold Adminisiration— from Spain,” by He Haywood Glas: Washington; “Th» } und Me viding a Stable and Compet for Our New Dependenc Eaton of New York in the Indian Ser 2,” by Philadelphia We E to Spoiism>n”” Char . Bonaparte of Baltimore. A banquet will be ten the iered visiting deiegates the evening of the at the Hotel Rennert, Saratoga sire a ROCKVILLE. The weather for the past week o materially interfered with the work on the 0 turnpike between Kockville and the District i For ubout two miles the stone of the old roadbed has been removed, and a small awount of grading has beén dove st this end of the line. Farmers who haul their produce to market have to tal side roads and drive across fields until the ten days reach @ point where the road has net been torn up, thereby being put to much loss of time and incon- venience. ‘The plan of commencing the work so late in the fall is now universally condeiued. Mr. Gerome Lyddard, a well-known citizen of the ty, dropped dead at a spring at his in hear ds station, recently, aged sixty Feaus, He was walking about, appnreutiy in good bealth, until death overtook him. a number of chiidren The marriage of Miss Ella May, daughter of Mr. He leaves a widow aud Church at Poolesviile. Mr. James Creamer has commenced the erection of a dwelling house on his farm in the western, section of the county, John F. and J. D. Harriss being the contractors. Wild turkey bunting bh amusement in this section full. Several large flocks of become a popular @ the recent snow- nese birds have beet Jocated in what is known as the “Big Pines,” x few miles wost of Rockville. ‘A new post office named Glenmont bas been es. tablished at the junction of the Norwood and Brookevilie turnpikes in this county ‘The congregation of the Christian Church at this place bi tended a call to Rev. Robert Elmor cf West Virginia to become pastor at Rockville, and he bas accepted. Mr. Moreland of the Treasury Department has, through Mr. Frank Higgins, attorney-at-law, yur chased of Mrs. Rebecca T. Veirs a valuable hous and lot In the west end of Rockville, the consid: ation being $2,700. Mr. W. Ho Rabbitt, W turkey near Pennitield’s | dnesday, killed a rk on the canal whi weighed twenty-three pounds and whose “bear measured ten and three-quarters: Inches. ‘The following additional eases have been tried in the cireut court: State agt. Horry Green, larceny; guilty; eighteen months in the bouse of correction George Jackson, assault; guilty: two years in the house of correction. ‘George Juckson, assault guilty; one year in the house of in. Ste wall Jackson, assault with futent to rape; not guilty. Henry Gallagher, larceny; uot guilty.” Rob. ert Brown, assault; gullty; two years in the house of correction. William Garrison, larceny; guilty; eighteen months in the house of correction. W. H.. alias Bud Ross, rape; guilty; not sent Joun B. Richardson, statutory burning, two cases; plead ped. Alfred ( not guilty. guilty; lt with’ intent enced or kill ed guilty; not yet sente sault with Intent to kil more, assaulting an offic Jail." Alfred Butler, as: gullty of assault: not se The trial of B: moved here from George's today. It is expected that Saturday of this week court will adjourn until early in January, when the present jury panel will to try the Gibbons murder cuse, county. During the past two weeks quite a numbe fine horses have died In the vicinity of Forest Glen, Sligo and other places from a disease which appears to attack the spine. Among the M bb, Merrick and Elgin Information has been received by friends in the county of the death Shaw, a for- mer resident of W! was killed in a railroad accldent in Oblo, where he bad been residing for some time. a KENSINGTON. anty, is set fo The following families bave removed to Washing- ton during the week: Mr. Albert Scott and family, Mrs, M. A. Constant, Mrs. Susan Anderson, Mr. B. F. Schnelder and family and Mr. W. B Russell and family. The church aid and home missionary societies of the Warner Memorial Presbyterian Church will meet Wednesday next at the home of Mrs. T. 2. Martin. Mrs. Mary Whisner of Baltimore, Mrs. FP. H Dand and daughter aud Mr. F. L. Reed of Wash- ington bave been the guests of Mrs. T. M. Hol- r. ‘The oyster supper given by the ladies of St. Paul's M. B. Church last week was unusually suc cessful. — About~one hundred and sixty suppers Were served each evening, a large number of peo- plo coming from Washingtov. Mr. Frank Libbey, @ former resident of Kensington, gathered in the nickels with bis graphophone; a well-stocked table of candy and cake and freezers of cream were pre- sided over by Mrs. Howard Fill, Mrs. C. L. Hard- ing and Miss Ciara Little, and a daluty us well as useful fancy table was under the charge of Mrs. E. W. Moore and Mrs. F. B. Figgins. oe Tian LAUREL,- MD. Miss Jean Daniel Crane, daughter of Mrs. Vir- ginia and the iste James.C, Crane of Laurel, died at the home of her uncle in Baltimore Thesdey morning. She was twenty-two years of age. Her funeral took place ‘Thursday afternoon, at o'clock, from the Tesidence of her uncle, ‘The Chesapenké and Potomac Telephone Company has placed a jong-distance telephone in the store of Mr. ‘Georgy! MW -Liilibeldge, opposite the Citi- gens’ National Bank, on Main street. 3 . of the ch - Cre a cil of Laurel, this week. 1 Bers ‘Mr. George Merson, son of the late Mr. Jam eon, “died: at biebome In Lamrel Weasesday Merson, inesday worting of typheid-pneumonia. He was about Ee ge ee ‘Mr. John “W. his family from Marguerite ustelie Sweeney and Mr. Zanes “i wnaeringe ts Jas. F. Poole of this county, and Mr. Walter } Shannon of Manassas, Va., is announced to tak place December 14, at 8 p.m., in the M. E. |RECEIPTS AND EXPENSES Report of Chairnian of Committee in Charge of Home for Soldiers. d Means Expendea of Members of Dis- trict Regiment. Mra. Lizzie W. Calver, president the Legion of Loyal Women, has submitted a | Teport covering the operations of the tem- porary home for District soldiers, lately closed, showing receipts and at: as follows: “As chairman of the committee in charge of the temporary home for the homeless sol- diers of the ist Regiment, District of Co- lumbia Volunteers. I have the honor to re- Port that, as soon as the necessity for this home was known, and tt was decided to es- tablish it, the house No. 413 9th street was rented, cleaned, put in order and furnish- ed, provision being made for the comforta- ble lodging and nourishing subsistence of one hundred soldiers, and the home was ready to receive this number upon the ar- rival of the regiment in Washington on their furlough of sixty days. As necessary to the proper management of the home and with a view to the strictest economy, there were employed a bookkeeper, a housekeep- irsements er, a superintendent of the building, a cook and a fanitor. “One hundred and forty-eight in all of the members of the regiment were ved at the home. Of these 36 were s hox- | pitals as too sick to rema ns y { with the others, nd 85 ores al j atten jon in our f itution. prescriptions r them having been com Evans’ j drug store and 10 at the United States dis pensary, all written by Dr. Charlies V_ Pet- | tevs, who gave his serv “Besides members of ou n diers, who were ived z. meals a » junck passing transient i luneh f - nes having kitchen “Every attention he comfort of thos at the home was and it was 9 ted as all of them were more or less during their stay with us as the r of heir campaign fn Santiago Receipts and Disbursements, ‘Our cash receipts were as follows employes of the government pr ES from the citizens’ comm from employes of the pens 1 from empl: n office of auditor for Office Department, $40.23: from employes in Agricultura! Department, $36.28: from em- ployes in office of auditor for War Depart ment, $25.90; from Legton of Loyal Women and rr from cos — ong the Maptist Chavet Jed a su t $1.5 n provements on the ¢ that $1,400 of seribed and that woi the bids are submitte say clude a sty the patatin . tute Mr. Quinn and Mr. Carmick wer ntly elected to the vestey of the ¢ bof Our Savion The guild of the Church of « uized, and the thst meetin at the residence of Mrs. Stale Mr. Thos. H. ts in Quincy, Fla, Mr. Means has gone south by the direction of the De partinent of Agriculture to make seme t Vestigations Mr. and Mrs. Kinnan have moved dnte the elty for the winter Mrs. Chas. Davis ix now organist of the Church Our Saviour, She | ‘ young s under her pated in Miss Bi months’ porary stieet, whic hare for « Lewis of Eokingt visit in N ry has bx has retarned frow a te ort an railway Soldiers’ i Phe r ning existing ns in vers at but the willing i if pid transit ts to f iu heat Dr ams, pastor of the Church of 0 Saviour, is now located on 1 vot The University Club, couy students of the Thursday wight by the mem nt Met an add: holle University = larg. by th the pr Garriga gave w sinoke attended, ne ir fr which w but bers dur by by ment a lunch was ser A social will Vnion in the } Wednesday eve interesting featu resentation of @ mitber of « —_—--+ AROMA The last regular tm A for 1898 will be bel it wll be give season of the year, it fs ex t e when thts ali-important subje of most and what is done is more big inted, especially by the corporation © condition, Bs pecially is this true of Fl avenue, which ex tends n distance of nearly « mile and is net only almost impassable, but dangerous to drive over as at some places the branches and Mute of trees extend over the street so far and low as to de mollsh, at least, disfigure, the top of a car. ‘and’ at other ‘places the nd mudholes are so deep as to upset a tem attempt at moderately fast driving ts a Misses Stabler and Magruder, teachers at the public school In that portion of ‘the town lying én Narsiand, are drilling the pupils for a Christmas entertalums be the 23d instant ‘These entertainments are given almest every year, just before Christmas The Takowa Whist Club, composed of young ta sand gentlemen of the park, was entertsined Wednesday evening at the home of Mim Vivia Jack son, ou Carroll avenue. ‘The prizes. 9 silver-handied comb and brush for the gentleman snd a pair of silver scissors for the lady, were won by Mr. W. Gidiings 2nd Miss Mary Cady. reapectively. ‘This 48 the Second time during the short existence of we club that Mr. Giddings has won a fist prize. ‘The bext meeting Will be bel@ at the residence of Miss Sarah Waters. Z fnfant daughter of Mr. and Mrs. Witliam W Steers died Inst Sunday of pneumonia, She was but a little over seven months of Mrs. Hh n Thompson, who resides mear Slica, on: yrtained her friends from Takoma W evening st @ social, which was greatly en) L present. The guesis met at the post office hen Sua’procesded on a straw ride to Bra. ‘Thompeos's home. The Ladies’ Aid Guild of Tetulty Eplecopel Churel held a meeting at the residence of Mrs. Osborve, tu Bright wood, Tharsday afternoon. Takoma Aesombly Is waking elaborate prepa: rations for ite dance to be given tomorrow even iu Takome Hall. ; ‘Takoma Counci!, Juntor Order of Tnited Amerl- can Mechanics, held a meeting Wednesday evening. ‘The omer tg said to be making great progress, espe Glally Ia relation to increase of membership. ‘The members of the Takown Citizens’ Association who compose the standing committees are bard et Tork endeavoring to accomplish thelr tasks, and tt fs thought {hat from new ep no efforts for tents till be spared, in eo far as the Dist tion of the saturb te coqeerned. | Congress will Monday, and throngh ‘which will be irought to bear upon that body before aputber season roils ds noty arate, bo Smportant tive waste water, fn better street ratizand serrice ther is now HI Tt page to read Mar Hondreds Uhrovgh them.