The San Francisco Call. Newspaper, December 4, 1895, Page 8

8 THE SAN FRANCISCO CALL, WEDNESDAY, DECEMBER 4, 1895. PRESIDENT GROVER CLEVELAND’S MESSAGE SENT TO CONGRESS. WASHINGTON, D. C., Dec. 3.— pended is the message from President Cleveland to Congress, as read in the Sen- ate and House of Representatives to-day: To the Congress of the United States : The pres- ent assemblage of the legislative branch of our Government occurs at & time when the inter- ests of our people and the nceds of the country give especial prominerce to the condition of our foreign relations and the exigencies of our National finances. The reports of the Govern- ment fully and plainly exhibit what has been accomplished witain the scope of their respec- tive duties and present such recommendations for the betterment of our country’s condition as petriotic and intelligent labor and observa- tion suggest. I therefore deem my executive duty ade- quately performed at this time by presenting to Congress the important phases of our situa- tion as related to our intercourse with foreign pationsand statement of the financial prob- which confront us, omitting, except as lated to these topics, Ly reference mental operations. 1earnestlyinvite, not only the careful consideration v critical scrutiny of Congress my fellow-countrymen to the reports con- iese departmental operations. If 1d fairly examined they will furnish s and painstaking care for the PSS endations resg on of duty of legislation, be- n would promote Ie they are todepart however, but the severe the recom 1t is Clsimed That a Low Tariff In- creased Exports. By latory tariff legislation in January last t e Republic, recognizing the value of ket opened to t n of s snder our ed icts entry at the ARGENTINE-BRAZIL EOUNDARY. Settlement of the Dispute Through Friendly Arbitration. The mission’s boundary dispute between the Ar- gentize republic and Brazil, referred to the Presi- dent of the United States as arbitrator durinz the term.of my predecessor, and which was submitted to me for determination, resulted in an rof historical and ¢ United States und Chilea ms commission, s work was abraptiy terminated last year by expiration of the stipulated time within which erms cc e SPECIE PAYMENTS BY CHILE. Considered a Step of Great Import~ ance and Interest. specie payments by Chile is a ana importance, both in its on_her own welfare and as »f sound financial princi- ntial of the South step o direct o pies in one American repub ATTACKS ON MISSIONS IN CHINA. Steps Should Be Taken to Check the Fanatical Cutbreaks. The close of tne momentous struggle between China and Japan, while relieving the diplomatic nts of this Government from the delicate duty dertook at the request of both countries of rendering suck service to the subjects of éither belligerent within the territorial limits of the other as our neutral position permitted, developed a domestic condition in the Chinese empire which has cansea much anxiety and called for prompt and careful attention. as a result of a weak control by the central government over the pro- administrations, following & diminution of onal governmental authority under the stress they of an overwhelming pational disaster, or as a man tion upon good opportumty of the aver- e Chinese population to all foreign ways s, there have occurred in widely ices of China serious outbreaks of 2l 8p foreigners, which i uncheeked by the ig ies, if not actualiy connived at by t have cul tacks on foreign missionary destruction of prope in, ninated in_mob at- ions, causing much tended with personal reported and although the mav have fall ies of other nw plainly behooves this (io most prompt and decided ¢ ainst similar or perhaps more dreadiul alling the hundreds of American hich have grown up tiroughout mission v rior of China under the temperate rule of tolerat custom and imperisl edict. The de. mands of the United States and other powers for the degradation and punishment of responsible the respective cities and provinces, w glect 0- otherwise, had permitted uprisings, and for the adoption of Stern measuges by the Em. peror’s Government for the protection of the lite and property of foreigners, were followed by the disgrace and dismissal of certain provincial ofli- cials found derelict in duty, and_the punishment death of a number of those adjudged guilty of participating in the outrages. This Government insisted that a special Ameri- can commission should visit the province where estigation. This latter com: er much opposition, has gone overiand from Tientsin, accompanied by a suitable Chinese es- cort, and by its demonstration of toe readiness and abllity of our Government to protect its citizens will act, it is betieved, as an influential deterrent of any similar outbreaks. The energetic steps we have thus taken are ail the more likely to result in the future safety of our citizens in China because the imperial Government is, I am persuaded, en- tirely convinced that we desire only ihe liberty and protection of our own wrongs they may have no ulterior designs or wise. China will not forget either our kindly service to her citizens during ber late war, nor the further sact that while furnishing all the facilities at our command to further the negotiation of a peace b tween her ana Japan we sought no advantages and interposed no counsel. The Governments of both China and Japan have in special dispatches transmitted through their respective diplomatic representatives expressed in & most pleasing man- ner their grateful appreciation of our assistance o their citizens durmng the unhappy siruggle and of the value of our aid in paving the way to their re- sumption of peaceful re.atious Solangsaon 4 RELATIONS WITH FRANCE. Negotiations in the Waller Case Not Satisfactorily Concluded. The customary cordial relations between this country and France have been undisturbed, with the exception that a full explauation of the treat- ment of John L. Waller by the expeditionary military authorities of France still remains to be given. Mr. Waller, formerly United States Consul at Tamatave, Temained in Madagascar, his term of office expired, and was apparently successtal in procuring business concessions from the Hovas of greater or less value. After the occupation of ‘Jamatave and the declaration of martial law by the French he was arrested upon various charges, among them that of communicating military in- formation to the enemies of France; was tried and convicted by a military tribunal and sentenced to thirty years’ imprisonment. Following the course justified by abundant precedents, this Government requesteq from that of France the record of the proceedings of the French tribunal which resulted in Mr. Waller's condemnation, Thi$ request has been complied with to the ex- tent of supplying & copy of the oflicial record from which appear the constitution awd organization of the court, the charges as formulated and the gen- eral course and result of the trial. and by which it is shown that the accusea was tried in open court and was defended by counsel. Bu: the evidence adduced in support of the charges, which was not received by the French Minister for Foreign Aftairs till the first week in_October, has thus far been withheld. the French Government taking the ground that its production in response to our de- mand wonld _estavlish & bad precedent. The etforts of our Embassador to procure it, however, though impeded by recent_changes in the French Ministry, bave not been relaxed, and it is confi- detiy expected that some satisfactory solution of the matter will shortly be reached. Meanwhile. it appears that Mr. Waller's con- finement bas every alleviation which the state of bis heaith and all the other circumsiances of the cese demand or permit. In agreeable contrast (0 the difference above noted respecting & matter of common concern, where nothing is sought except such & mutually satisfactory ouicome as the true merl 8 0f the case require, IS the recent reso'ution 3 the French Chambers favoring the conclusion of 4 permanent treaty of urbitration between the two sountries. An invitaton has been extended by France to she Government and people of the United States 10 participate in a greal international exposition st Puris in 1600 as a suitable commemoration of :bis. the world's marveious, century of progress. I Beartily recommend its acceptance, together with ens and redress for a: uffered, and that we have . political or other- 3.—Ap- rst disturbances occurred for the purpose of | ssion, formed | I [ | | such legislation as will adequately provide for a due representation of this Government and its people on the occasion. s DISCRIMINATION OF GERMANY. Many Obstacles Thrown in the Way of American Trade. Our relations with the States of the German Em- pire are in many respects tvpical of a condition ot things elsewhere found in countries whose produc- tions and trade are similar to our own. Tie close rivalries of competing industries, the influencs of the delusive doctrine that the internal develop- ment of a nation is promoted and its wealth in- creased by apolicy in which undertaking to re- serve its home markets for the exclusive use of its own producers necesserily obstruct their sales in toreign markets and prevents free access {0 the products of tne world: the desire to recain trade needs 1d chanzed conditions of de- ppiy, and our own halting tardiness in ing u free exchange of commoditics and by means imperiling our footing in the external ets naturally open to us, have created a situa- somewhat injurious t0 American expors inter- ot only in Germany, where they are perhaps most noticeable, but in adjacent countries. The exports affected are lurge and other food products, the Teason assigned for unfavorable discrimination being that their con- sumption is deleterions to the public health. This s all the more irritating in view of the fact that no opean State Is as jealous of the_excellence and se difliculties confined to our food products d for exportation. Our great insurance npanies, for example, having built up & vast | business abroad and invested a large share of their gaivs in foreign countries in compliznce with local laws and regulations then existing, now find them- selves within a narrowing circle of ouerous and un- oreseen conditions, and are confronted by the ne- essity of retirement from a field thus made profit- 5 d, are not summarily expelled, of them of late have been from Prssia. i to be forgotten that international trade cannot be one-sided. Its currents sre alternating F movements should be honestly reciprocal, Without necessarily degenerated nto a device to gai ntage or a contrivance 1o secure benefits wit the semblance of a re- turn. In our dealings with other nations we ought to be open-hand=d and scrupulously fair. This should be our policy as a producing Nation, and it plainiy becomes us as a people who love generosity and the moral aspect of National good faith and reciprocal forbearance. These considera- tions shou!d not, however, constrain us (0 submit to unfair discrimination, nor to silenity acquiesce in vexatious hinderance to the enjoyment of our share of the legitimate advantages of proper trade If an examination of the situation Sug- | gests such measures on our part as would involve restrictions simlilar to those from which we sui- «d the way to such a course Is easy. It should, ever, by no means be lightly entered upon, nce the necessity or the inauguration of such a policy would be regretted by the best sentiment of our people and because it naturaily and logically might lead to consequences of the gravest chaj 1 take pleasure in cal v ention to the towed on thé vess our new part in the notable ceremony of pening of the Kiel canal. It was fitting that this extraordinary achievemen: of the newer German natiopality should be celebrated in the progress of American exposition of the latest developments of the world's naval energy. ———— BERING SEA ARBITRATION. Cleveland Thinks the British Should Be Paid for Seizures. Our relations with Great Britain, always inti- mate and imporiant, have demanded during the | past year even a greater share of consideration than is usual. Several vexatious questions were left undetermined by the decision of the Bering Sea arbitration tribunal. The application of the principles lmd down by that august body has not been followed by the results they were intended to accomplish, either because the principles them- selves iacked in breadth and definiteness or because their execution has been more or less imperfect. Much correspondence has been exchanged between the two Governmenis on the subject of preventing exterminating slaughter of seals. The insufli- ency of the Pritish patrol of Bering Sea under the regulations agreed on by the two Governments has been pointed out. and yet only two British ships have been on_police duty during this season The need of a more effective en- ment of isting rezulations, as well as the tion of such sdditional regulations as expe- e has shown to be absolutely necessary to out the intent of the awards. have been earnestly urged upon the British Government, but thus tar without effective results. In the mean- time the depletion of the seal herds)by means of pelagic bunung has so alarmingly 'progressed inless their sisughter is at once effectively | checked their extinction withio & few years seems | 0 be a matter of absolute certainty. The understanding by which the United States was 10 pay and Great Britain to receive a lump sum of $425.000 in full settiement of all British claims for damages arising from our seizure of British sealing vessels unauthorized, under the award of the Paris tribunal of arbitration, was not confirmed by the last Congress. which declined to make the necessary appropriation. I am still of the opinion that this arrangement was & u and advantageous one for the Governm arnestly recommend hat it be azain considered and sanctioned. 11, however, this does not meet with the favor o Congress. 1t certainly will hardly dissent from the proposition that the Governmeut is bound by every consideration of honor and good faith to provide for the speedy adinstment of these | claims by arbitration as the only other alternative. | A treaty of arbitration has therefore been ngreed | upon and will be immediately laid before the Senate. 50 that in one of the modes suggested; a final settiement may be reached. anding that Grea: Britain originated to entorce international rules for the -vention of gollisions at sea, bused on the recom- dations of" the maritime conference of Wash- ington, and concurred in, suggesting March 1, 1895, as the date to be set by proclamation for carrying these rules into general effect, her Majy ty’s Government, having encountered opposition on the part of British shipping interests. announced its inability to accept that which was consequently canceled. ~The entire matter is still in abevance, without prospect ofa better condition in the near future. 2 e CANADA AND THE LAKES. The Alaskan Bouondary in a Fair Way to Settlement. The Commissioners appointed to mark the inter- national boundary in Passamaquoddy Bay, accord- ing to the description of the treaty of Ghent, have not fully agreed. The completion of the pre- liminary survev of that Alaskan boundary which follows the contour of the coast fronr the southern- most point of Prince of Wales Island until it strikes the one hundred and_forty-first _meridian, at or near the summit of Mount St. Elias, awaits far- ther necessary appropriations, which are urgently recommended. This survey was undertaken under the provisions of the convention entered into by this country and Great Britam July 22, 1892, and the suppleinentary conventionof February 3, 1894. As o the remalning section of the Alaskan boundary, which follows the one hundred and for.y-first’ meridian northwardly from Mount St. Elias to the frozen ocean, the settlement of which involves the physical location of the meridian mentioned, N0 conventional agreement has vet been made. The ascertainment of a given meridian &t & particolar point is a wOrk requiring much time nd ‘careful observations and survess. Such ob- rvations and surveys were undertaken by the United ~tates Coast and Goedetic Survey in 1890 and 1891, while similar work in the same quarters under British suspices are believed o give nearly colncident results; but these gurveys have been independently conducted and no international agreement to mark these or any other parts of the one hundred and forty-first meridian by permanent monuments has yet been made, In the meastime the valley of the Yukon is be- coming & highway through the hitherto unexplored wilds of Alaska, and sbundant mineral wealth has been discovered in that region, especiaily at or near the junction of the boundary meridian with the Yukon and its tributaries. In these circum- stances it is expedient, indeed imperative, that the jurisdictional limits of the respective Governments in this new region be speedily determined. Her Britannic Majesty’s Government has proposea a joint delimitation of the 141s¢ meridian by an in- ternational commission of experts which, if Con- gress will_autborize it and make due provisions therefor, can be accomplished with no unreason- able delay. It is impossibie to overlook the vital importance of continuing the work aiready en- tered upon and supplementing it by further effect- ive measures 10oking 1o the exact location of this entire boundary line. I call attention to unsatisfactory delimitation of the respeciive jurisdictions of the Ubited States and the Dominion of Canada in the Great Lakes at the approaches (o the Narrow waters that connect them. The waters in question are frequented by fishermen of both nationalities and their nets are there used. Owing to the uncertainty and ignor- ance as to the (rue boandary vexatious disputes aud injurious seizures of boats and nets by Cana- dian cruisers often occur. While any positive set- tlement thereof by an accepted siandard is not easily o be reached, a joint commission to deter- miné the line in these quarters on a practicai basis, by measured courses following range marks on shiore, is a necessity for which Immediaie pro- vision should be made. S VENEZUELA AND ENGLAND. lmplm-l‘ Arbitration Should Settle the Boundary Dispute. It being apparent that the boundary dispute be- tween Great Britain and the republic of Venezuela in the time-worn ruts, regardless of the inexorable | laws of n mand and iny American cattle | of More Bonds. | concerning the limits of British Guiana was ap- proaching an acute stage, a_definite statement of the interest and policy of the United States as re- gards the controversy seemed to be required, boih on its own account and in Vi of its relations with the friendly powers directly concerned. In July last, therefore, a dispatch was addressed to ur Embassador at London for communication to | the British Government, in which the atticude of | the Unpited States was fully and distinclly set { forth. The general conclusions therein reached &nd formuiaied are. in substance, that the tr: ditional and established pol of this Government is firmly opposed to a forcibie increase by any European power of its territorial possessions in this continent; that this policy is as well founded in principle 2s it is strongly supported by numer- | ous precedents: that as a consequence the United States is bound to protest against the enlargement of area of British Guinna in derogation of the rights and against the will of Venezuela: that col sidering the disparity in s rength or Great Britain and Venezuela, the territorial dispute between them can be reasonably settled only by friendly, impartial arbitration, and the resort to such arb tration should inciude the whoie controversy, ana it is Dot satisfactory that One of the pawers' cou- cerned be permitted to draw an arbitrary line throngh the territory in debate and to declare that it will submit to arbitration only the portion lying on one side of it. In view of these conclusions the dispatch in question called upon the British Governiment for & definite answer to the question whether it would not submit the territorial controversy between it- self and Venezuela in its entirety to imparial arbitration. The answer of the British Gove ment has not yet been received, but is expected shortly, when further communication on the sub- ject will probably be made to Congress. iy UNFAIR ARRESTS IN HAWAIL Dole’s Regime Has Not Conceded Claims for Indemnity. Early in January last an uprising against the Government of Hawaii was promptly suppressed. Martial law was forthwith proclaimed and numer- ous arrests were made of persons suspected of being in sympatay with the royalist party. Among these were several citizens of the Unitea States, who were either convicted by 4 military court and sen- tenced to death, imprisonment or fine, or were de- ported without trial. The Umted States. while denying protection to such as had taken the Hawaiian oath of sllegiance, insisted that martial law, though altering the forms of justice, could not supersede justice itself, and de- manded a stay of execution until the pro- ceedings had been submitted to this Government and knowledge obtained therefrom that our citizeps had receiv:d fair trial. The death sen- tences were subsequently commuted or were i | mitted on condition of leaving the isiands. The cases of certain Americans arrested and expelled by arbitrary order, without formal charge or- trial huve had attention, and in some lustances have been found to justify remonstrance and a claim for indemnity, which Hawaii has not thus far con- ceded. Mr. Thurston, the Hawaiian Minisier, having furnished tnis Government abundant reason for asking that he be recalled, that course was pursued, and his successor has lately been re- | ceived. — LVNCHING;’ OF FOREIGNERS. Attention Is Called to the Abuse of Alicn Contract Labor. The deplorable Iyhching of several Itallan labor- ers in Colorado was naturally followed by inter- national representations, and 1 am happy to say that the best of efforts of the State in which the ontrages occurred have beex put forth to discover and punish the perpetrators of this atrocious crime. The dependent families of some of the unfortunate victims invite by their deplorable condition gra- cious provision for their needs. These manifestacions against beloless aliens ma; | be traced through successive stages to the vicious padrone systez, whicH, unchecked by our immi- gration and contract labor statutes, controls these | workers from the moment of landing on our shores and farms them out in distant and often rude | regions, where their sharpeninz competition in the fields of bread-winning toil brings them into col- lision with other labor in:erests. While welcom- ing, us we should, those who seek our shores to merge themselves in our body politic and with per- sonxl competence by honest effort, we cannot re- | gard such assemblages of distinctively alien labor- | ers hired out by speculators and shipped hither | and thither. as the prospect of gain may dictate, as otherwise than repugnant to the spirit. of our ¢iv- ilization, deterrent to Individual advancement and | | hindrances to the building up of stable commun- ities resting upon the wholesvme ambitions of the citizens and constituting the prime factor in the prosperity and progress of our Nation. If legisla- | tion can reach this growing evil it certainly should be attempfed. | ———— AS TO JAPAN’S GREATNESS. This Country Congratulated on the Friendly Relations. I Japan has furnished abundant evidence of her | vast gain in every trait and characteristic that ! constitutes a nation’s greatness. We have reason | for congratulations in the fact that the Govern- ment of the United Stntes, by the exchange of 1i eral treaty stipulations with the new Japan, w. the first to recognize her wonderful advance and to | extend to her the consideration and confidence due her national enlightenment and progressive character. AR SO AT GUATEMALA AND MEXICO. The Dispute to Be Settled Peaceably by Arbitration. The boundary aispute which recently threatened to embroil Guatemala ana Mexico has heppily yielded to pacific counsels, and its determination has by the juint agreement of the parties been sub- mitted to the sole arbitration of the United States Minister (o Mexico. ‘The commission appointed under the convention of February 18, 1889, to set new monuments along the boundury between the United States and Mex- ico has completed the task. S COLONIZATION MEXICO. Assistance Rendered Unfortunate Negroes from Alabama. As a sequence of the failure of a scheme for the colonization In Mexico of negroes, mostly emi- grants from Alabama under contract, & great num- ber of these helpless and suffering people starving and smitten with contagious disease, made their way or were assisted to the frontier in a_wretched plight and were quarantined by the Texas authori- ties. Learning of their destitute condition, I di- rected rations 10 be temporarily furnished' them through the War Depariment. At the expiration of their quarantine, they were conveyed by the railway company, al compara:ively nominal rates, to their bomes in Alabama, upon my assurance in the absence of any fund available for the cost of thelr transportation that 1 would recommend to Congress an appropristion for its payment. I now strongly urge upon Congress the propriety of mak- ing such an appropriation. It shouid be remem- bered the measures taken were dictated not only by sympatby and bumanity, but by a conviction that 1t was not compatibie with the dignity of this Government that so large a body of dependent cltizens should be thrown for relief upon the char- ity of a neighboring State. Ao B THE BULLYING OF NICARAGUA. Intervention of This Government Was Duly Appreciated. In last year's message [ narrated at some length the jurisdictional questions then freshiy arisen In the Mosquito Indian strip of Nicaragus. Since that time, by the voluntary act of the Mosquito Natlon, the territory reserved to them has' been incorporated with Nicaragua, the Indians formally subjecting themselves to be governed by the gen- eral Iaws and regulations ot the republic instead of by their own customs ard regulations, and thus availing (hemselves of a_privilege secured to them by the treaty between Nicaraguaand Grea: Brit- ain of January 28, 1860, After this extension of uniform Nicaraguan administration to the Mos- quito strip the cuse of British Vice-Consul Hatch, and of several of his countrymen, who had been summarily expelled from Nicaragua and treated with considerable indignity, provoked a claim by Great Britain upon Nicaragus for pecunfary in- demnity which, upon Nicaragua's refusal to admit L'ability, was enforced by Great Britain. While the sovereignty and juiisdiction of Nicaragua was in no way ques:ioned by Great Britain the former’s arbi- traty condzct inregard to British subjects furnished the grourd Zor this proceeding. A British naval force occupled, without resist- ance, the Pacific seaport of Corinto, but was soon afier withdrawn upon the promise that the sum demanded would be paid. Throughout this inci- dent the kindly offices of the United States were invoked and were employed in favor of as a peace- ful settlement and such consideration and in- dulgence toward Nicaragua as were consistent with the nature of the case. The efforis have since been made the subject of appreciative and grateful recognition by Xicaragu. — —— RUSSIA’S TACIICS TOUCHED, Evils of the Practice of Interrogating Her Citizens in This Country. The coronation of the Czar of Russia at Moscow in May next invites the ceremonial purticipation of the United States, and in accordance with usage and diplomatic propriety our Minister to the im- perial court has been directed torepresent our Gov- ernment on this occasion. Correspondence is on foot touching the practice of Russizn Consuls, within the jurisdiction of the United States, to interrogate citizens as to their ruce and religious faith, and uUpon ascertainment thereof to deny the Jews passports or legal docu- ments for use ip Russia. Inasmuch as such a pro- ceeding imposes a dlsability which, in the case of succession to property in Russis, may be found to infringe the treaty rights ot our citizens, and which is an_obnoxious invasion of our territorial | iurisdiction, it hus elicited fitting remonsirance, the result of which, it is hoped, will remove the canse of complaint. ‘The pending claims of sealing vessels of the United States seized in Russian waters remain un- adjusted. Our recent conventlon with Russia, es- tablishing a modus vivendi as to imperial jurisdic- tion in such cases, has prevented further difliculty of this nature. The Russian Government has wei- comed in principle our suggestion for a modus vi- vendi, to embrace Great Britain and Japan, 100k- ing to the better preservation of seal iife in the North Pacific and Bering Sea, and the extension of the protected area defined by the Parls tribunal to all Pacitic waters north of the thirty-hith parailel. It is especially noticeable that Russis favors pro- hibition of the use of firearms in seal-hunting throughout the proposed area and a longer closed season for pelagic sealing. — CONTROL OF SAMOAN ISLANDS. Treaty Obligations That Are Irksome and Unnatural. In my last two annual messages I called the attention of Congress to the position we occupied asone of the parties to a treaty or agreement by which we became jointly bound with England and Germany to o interfers with the government and control of Samoa as. in effect, to assume the man- agement of its affairs. On the 9th day of May 1894, I transmitted to the Senate a special mes sage, with accompanying documents, giving in- formation on the subject and emphasizing the opinion [ have at all times entertained, that our situation in thls matter was inconsistent with the | mission and traditions of our Government, in vio- | lation of the principles we profess and iu ail its phases mischievous and vexatious. 1again press | this subject upon the attention of Congress and ask for such legislative action or expression as will lead the way to our reliet from obligations both irksome and unnatural | —_— |NO RECOGNITION FOR CUBANS. lThe President Deftly Dodges the Question of Belligerency. Cuba is again gravely disturbed. An insurrec- | tion, in one respect more active than the las: pre- ceding revolt, which continned from 1868 to 1878, | now exiats in a large part of the eastern interior of the island, menacing even some populous towns on the const. Besides deranging the commercial ex- | changes of the islana, of which our country takes the predominant share, this fl grant condit on of | hostility, by arousing sentimental sympatLy and inciting adventurous support among our people, has entailed earnest efforl on the part of this Gov- ernment 10 enforce obedience to ovr neutrality laws and to prevent the territory of the United “States from being used as a vantage ground from | which to aid those in arms against Spanish | sovereignty. | Whatever may be the traditional sympathy of our countrymen as individuals with a people who seem to be strugghing for larger autonomy and | greater freedom depends, as such sympathy natu- rally must be in behalf of our neighbors, yet the | plain duty of this Government is to observe in good faith the recognized obligations of inter- national relationship. The performance of this duty should not be made more difficult by a disre- | gard on the pur: of our citizens of the obligations | growing out of their al egiance to their country, which should restram them from violating as indi- viduals the neutrality which the Nation of which they are members is bound to observe in its rela- tions to friendly sovereign States. Though neither the warinth of our people’s sympathy ' with the | Cuban insurgents, nor our loss and_material dam- age consequent upon the futile endeavor thus far made torestore peace and_order, nor any shock our humane sensibilities may have received from the | erueities which appear to especially charact this sanguinary and fiercely conducted war, ve in the least shaken the determination of the Gov- ernment_to honestly fulfill every international obligation, yet it i8 t0 be earnestly hoped, on every | ground, that the devastation of armed conflict | may speedily be stayed, and order and quiet re- | stored to thie distracted’island, bring | train the activity and thritt of peaceful pursuits. | " One notable instance of interference by Spain ! with passing American ships has occurred. On March 8 last the Allianca, while bound from Colon | to New York, and following the customary track for vessels near the Cuban shore, but outside the three mile limit, was fired upon by a Spanish gun- | boat. Protest was promptly made by the United States against this act, as not being justified by a state of war, nor permissibie in respect of vessels | on the usual paths of commerce, nor tolerable in | view of the wanton peril occasfoned to innocent | | ng in their life and property. The act was disavowed with full expression of regret and assurance of nou-re- | currence of such just cause of complaint, while | the offending officer was relieved of his command. | Military arrests of citizens of the United States in | Cuba liave occasioned frequeit reclamations. Where held on_criminal charges their delivery to the ordinary civil jurisdiction for trial has been demanded and obtalped in_conformity with treaty provisions, and where merely detained by way of milltary accusation under a proclaimed staie of | siege, witnout formulated accusation, their release or trial has been insisted upon. The right of American consular officers in the isiand to prefer protests and demands in such cases having been questioned by the authoriti:s, their enjoyment of the privilege stipulated by treaty by tne Consuls of Germany was claimed un- der the most favored nation provision of our own convention and wus promptly recognized. The longstanding demand of Antonle Maximo Mora against Spain has at Jast been seitled by the payment on the ldth of September of the sum originally agreed upon in liquidation of the claim. Tt distribution among the parties entitled to re- ceive it has proceeded as rapidly as the rights of those claiming the fund could be safely deter- mned. The enforcement of differential duties against products of this country exported to Cuba and Porto Rico prompted the immediate claim on our part to the benefit of the minimum tariff of Spain in return for the not favorable treatment ermitted by our laws as regards the production of panish territories. A commercial arrangement was concluded in January last securing the treat- ment 8o clalmed. Vigorous ?mlam against ex- cessive fines imposed on our ships and merchandise by the customs officers of these isiands for trivial errors have resulted in the remission of such fines in instances where the eauity of the complaint was apparent, though *he vexatious practice has not been wholly discontinued. g s SN STATE OF AFFAIRS IN TURKEY. There Is a Prospect That Americans Will Be Protected. Occurrences in Turkey have continued to exoite concern. The reported massacres of Christians in Armenia, and the development there and in other districts of fanatic hostility to Christian influences, naturally excited apprehension for the safety of devoted men and women who, as dependents of the foreign missionuries’ societies in the United States, reside in Turkey under the guarantee of law and usage and in the legitimate performance of their educational and religious missions. No efforts have been spared in their behalf, and their protection in person and_property has been ear- Destly and vigorously enforced by every means within our power. I regret, however, that an attempt on our part to obtain better information concerning the true condition of affairs in the disturbed quarters of the Ottoman empire by sending thither the United States Consul at Sives (o make investigation and Teport was thwarted by the objections of the Turk- ish Government. This movement on our part was in no sense meant as a gratgitous entanglement of the United States in the so-called Eastern ques- tion, or as an officious interterence with the righ and duty which belong by treaty 3 _certain grea: European powers, caliing for their_intervention in political matters affecting the good government and religions freedom of the uon-Mussulman sub- Jects of the Sultan, but it_arose solely from our de- sire to have an accurate knowledge of the condi- tions in our efforts to care for those entitled to our protection. ‘The presence of our naval vessels, which are now in the vicinity of the disturbed localities, at- Free Coinage of Silver Boldly Opposed, the Belligerency of Cubans Dodged and Feeble Utterances Re- lating to the Monroe Doctrine. | fords opportunity to acquire a measure of familiar- ity with the condition of affairs, and will enable uS to tuke suitable steps for the protection of any interesis of our countrymen within reach of our ships that might be found imperiled. The Otto- | man Covernment has lately issued an imperial edict exempting forever from taxation the Ameri- an college for girls at Scutari. Repeated assur- ances have also been obtained by our envoy at Constantinople that similar institutions main- tafued and administered by our countrymen shall be secured in the enjoyment of all rights, and tnat | gur cliizens throughout the empire shall be pro- coted. The Government, however, in view of existing facts is far from relyinz upon Such assurance as the Timit of its duty. “Our Minister has been vigilant and alert in affording all possible protection in in- dividual cases where danger threatened or safety was imperiled. We bave sent ships as far toward the points of actual dis:urbance as it is possible for )\ Lo zo, where they offer refuge to those ob- i to flee, and we have the promise of other powers which have ships in the neighborhood that our cltizens us well as theirs will be received and protected on board those ships. On the demand of that Turkish soldiers shall guard and escort to the coast American refugees. These orders have been carried out, and our latest ntelligence gives assurance of the present ersonal safety of our citizens aud missionaries. Chough thus far no lives of American citizens have been sacrificed, there can be no doubt that serious loss and destruction of mission property has re- sulted from riotous conflicts and ontrageous at- tacks. By treaty several of the most powerful European powers have secured a right and have assumed a duty not only in behalf of their own cit- izens and in furtheraice of their own interests, but as’agents of the Christian world. Their right- is to enforce such conduct of the Turkish Government as will restrain tanatical bru- tality, wnd if this fails their duty isto so interfere 8 10 Inyure azainst such dreadful occurrences in as Pave lately shocked civilization. The powers declare this right and this duty to be theirs alone, and it Iy earnestly hoped that prompt and | efte tion on their part will not be delayed. ayulates at Erzeroum and Eatdelat, Hurpoot. for which appropriation 4 Wit session. have been provis.onally filled by trusted emploves of the Department of Sta not yet received their exequaturs, - CAUSED A DECIDED RUPTURE. Attempt to Arbitrate a Venezuelan Company’s Claim. arbitration of the claim of the Vene- zuels Steam Transportation Company un- der the treaty of January 19, 1892, be- tween the United States and Veneruela | resultea in an award in favor of the claimant. The Government has used its good offices toward compo: the one hana and France and Belgium on the other, growing out of the dismissal of the repre- sentatives of those powers on the ground of & pub- | lication deemed offensive to Venezuela. that dismissal was coupled with a cordial reauest | that other more personally agreeable envoys be | sent in their stead a rupture of intercourse ensued | and still continues. | | The ) IN THE CONSULAR SERVICE. Recommendations for Securing a Better Standard of Efficiency. Tn view of the growth of our interests in foreign countries and the encouraging prospects for a gen- | eral expansion of our commerce, the need for ex- | pansion of an improvement in the consular service has increased in urgency. Though there is no | doubt that the great consular officers are render- | ing valuable services to the trade and industries of | the country, the needs of some plan of allotment and control which would tend to secure a higher | average of efficiency cannot be denied. | 1iThe importance of the subject has led the axec- utive to consider what steps might properly be taken without additfonal legisiation to answer the need of a better system of consular appointments. | his recommendations, an executive | sued on the 20th of September. 186. .y the terms | of which it is provided that after that date any va- | caney In & consulate or commercial agency with an | annual salary or compensation from oflicial fees of not more than $2500 or less than 1000 should be nlled elther by transier or promotion from some other position under the Department of State of a | | character tending to quallfy the incumbent for the | position to be filled or by the appointment of & per- | s0n not under the Department of State, but having previously served thereunder and having shown nis capacity and fitness for consular duty, or by the appointment of a person who, having been se- lected by the President and sent to a_board for examination, is found. upon such examination, to be quaiified for the position. Posts which pay les: than $1000 being usually on account of their small compensation filled by selection from residents of the locaiity, it was not deemed practicable to put them under the new system. The compensation of $2600 was adopted as a maximum limit In the c'agsification for the reason that _consular officers receiving more than that are often charged with functions and duties scarcely inferior in dignity and importance to those of dip- lomatic agents, dnd it was therefore thought best to continue their selection in the discretion of the executive without subjecting them to extmination before a board. Excluding seventy-one places with compensation at present less than $1000 and fifty- three above the maximum in compensation, the number of positions remaining within the scope of | she order is 196. This number will undoubtedly be increased by the inclusion of consular officers whose remunera- tion in fees, now less than $1000, will be aug- | mented with' the growth of our foreign commerce and a return to more favorable business condi- tions. In execution of the executive order reterred | 10, the Secretary of State has designated as a board | to'conduct the prescrived examinations the Third Assistant Secretary of State, the solicitor of the Department of State and the chief of the Consular Bureau, and has specified the subjects to which such examinations shall relate. It is not assumed that this system will prove a full measure of con- sular reform. It is quite probable that actual ex- perience will show particulars in which the order | already issued may be amended and demonstrate that for the best results appropriate legislation by Congress is imperatively required. In any event, these efforts to improve the consular service ought to be supplemented by legislation providing for consular inspection. This has frequently been a subject of executive recommendation, and I again urge such action by Congress as permit the frequent and thorough Inspection of consulates by officers appointed for that purpose or by persons already in the diplomatic or consular service. The expense attending such a plan would be in- significant compared with its usefulness, and I hope the legislation necessary to set it on foor will be speedily forthcoming. I am thoroughly convinced that in addition to their salaries our Embassadors and Ministers at foreign courts should be provided by the Govern- ment with official residences. The salaries of these officers are comparatively small, and in most cases insufficient to pay, with other necessary ex- penses, the cost of maintaining household estat: ishments in keeping with their important and del- icate functions. The usefulness of a Nation's dip- lomatic representative undeniably depends much upon the appropriateness of his surroundings, and a country like ours, while avoiding unnecessary glitter and show, should be certain that it does not suffer in its relations with foreign nations through parsimony and shabbiness in iis diplomatic ‘Sutiit. hese considerations and the other adventages of having fixed and somewhat permanent locations for embassies would abundantly justify the mod- erate expenditure necessary to carry out this sug- gestion. St TANGLED STATE OF FINANCES. It Has Not Been Relieved by Fre- quent Bond Issues. As we turn from a review of our foreign rela- tlons to the contemplation of our National finan- clal situation we are immediately aware that we approach a subject of domestic concern more im- portant than any other that can engage our atten- tion and one at pregent in such a perplexing and delicate predicament as to require prompt and wise treatment. We may be well encouraged to earnest effort in this direction when we recall the steps already taken toward improving our economic and finan- cial situation and when we appreciate how well the way has been prepared for further progress by an aroused and intelligent popular interest in these subjects. By commandas of the people a customs revenue system, designed for the protection and benefit of favored classes at the expense of the great mass of our countrymen, and which, while ineflicient for the purpose of revenne cur- talled our trade relations and impeded our entrance to the markets of the N has been superseded by @ tariff policy wh;:‘l:flidn is upon a den f the rights rnment to obstruct the avenues to our people’s cheap living or lessen their comfort and contentment for the sake of according especial ad- our Minister orders have been jssued by the Sultan | ‘Ihese apprintees, though now in Turkey, | & the differences between Venezuela on | Although | ‘Fhe matter having been committed to the consid- | eration of the Secretary of State, in pursuance of | der was 1s- | Its Chief Feature a Recommendation That the Financial Tangle Be Untied by the Retirement of Greenbacks and Issuance | v antages to favorites, and which, while encours | azing our intercourse and trade with other nations, | recoznizes the tact that American self-reliance, | thrift and ingenuity can build up our country’s in- dustries and devclop its resources more sarel than enervating paternalism. The compuisor: purchase and coinage of silver by the Government, unchecked and unreguiated by busine s conditions and heedless of our currency needs, which for more than fifteen years diluted our cireulating me- diam, undermined confidence abroad in our finan- cial abliity, and at last_calminated in distress and panic at_home, has been rece stopped by the repeal of the laws which forced this reckless scheme upon the country. The things thus accom- { plished, notwithstanding their extreme importance | and beneticent effects. fall far short of curing the monetary evils from which we_sufer as a result of long indulgence in {ll-advised financial expedients. The currency denominated by the United States und so only known as greenbacks, was is- sued in large volumes duriog the late Civil War, and was intended originally 1o meet the exigencies of that period. 1t will be seen by a reference to thedebaces in Congress at the time the laws were passed authorizing the issue of these notes that the.r advocates declared that they were intended for only temporary use and to meet the emergency of war. Inalmost-if not all the laws relating (o them some provision was made contemplating toeir voluntary or compulsory retirement. A large quantity” of them, however, were kept on_foot and mingled with the currency of the country, su that at the close of the year 1874 they amounted to $388,990.073. Immediately ater that date and in January, 1875, a law was passed providing for the resumption of specie payments, by which the Sec- retary of the Treasury was required whenever ad- ditional circulation was issued to National banks 10 retire United States notes equal in amount to 80 per cent of such additional National bank circula- tion until such notes were reduced to $300,000,- 000. This iaw furiher provided that on and after the first day of Junuary, 1879, the United States notes then outstanding should be redemed in coin, and in order to provide and prepare for such re- demption the Secretary of the Treasury wasau- thorized not only touse any surplus revenues of the Government, but to issue bonds of the United States and dlspose of them for coin and to use the proceeds for the purposes contemplated by the statute. In May, 1878, and before the date thus appointed for the ridemption and retirement of these notes another statute was passed forbidding their further cancellation and reifrement. Some of them had, however, been previously redecmed and canceled upon the issue of additional National bank circu- Iation as permitted by the law of 1875, S0 that the amount outstanding at tke time of the passege of the act forbidding their further retirement was $346,681,016. The taw of 1878 did nos stop at dis- inct prohibition, but contained in addition the | following express provision: *And when any of said notes may be redeemed or be received into the treasury under any law from any source whatever and sball belong to the United Siates they shall nov be retired, cancelea or destroyed, bat they shall be issued and paid out azain and kept in circulacon.” This was the condicion of aifairs on the 1st day o Junuery, 1879, which had been fixed upon four years before as the date for entering upon the re- demption and retirement of all these notes and for which such abundant meaus had been provided. The Government was put in the situation of owiog 10 the holders of its notes debts payable in gold on demand, which could neither be retired by receiv- ing such notes in discharge of obligations due the Government, nor canceled by actual payment in gold. It was forced to redeem without redemp- tion and to pay without acquittance. There has been issued and sold $95,000,000 of tne bonds authorized by the resumption act of | 1875, the proceeds of which, together with other gold in the treasury, created’ s gold fund deemed | sufticient to meet the demands that might be made upon it for the redemption of the United States | notes. ‘This fund, together with such other gold as might be from time to time in the treasury availa- ble for the same purpose, has since been called our gold reserve and $100.000,000 has been regarded as an adequate amount to accomplish its object. This fund amounted on the 1st day of January, 1879, t0 $114,193,350, thereafter constanuy fluctuat- ing.’ It did not fall below that sum untii July, 1892. In April, 1893, for the first time since its establishment, this reserve amounted o less than $100,000,000, containing at that date only $97,011.- 330. In the meantime, and in July, 1390, an act had been passed directing larger Governmental pur- chases of silver than had been required under pre- vious lawsaud providing that the payment for such siiver treasury notes of the United States should be issued payable on demand, in gold or silver coin, at th* discretion of the Secrétary of the Treasury. It was, however, declared in the act to be “the established policy of the United States to maintain the two metals on a parity with each oth- er upon thegpresent legal ratio or such ratio jas may be provided by law.” |~ 1n view of this declaration it was not deemed | permissible for the Secretary of the Treasury to | exercise the discretion in terms conferred on him by refusing to pay gold on these notes when de- manded, because by such discrimination in favor of the gold_dollar the so-called parity of the two metals would be destroved. and grave and danger- ous consequences would be precipitated by afirm- ing or accentuaing the constantly widening dis- parity between their actual values under the ex- isting ratio. It thus resulted that treasury notes issued in payment of silver purchases under the law of 1890 were necessarity treated as gold obligations, at the | option of the holders. Thése notes,on the first day of November, 1893, when the law compelling the monthly purchase of silver was repealed, amounted to more than $155,000,000. The notes of this description now outstanding, added to the | United States notes still undiminished by redemp- tion or canceliation, constitute & volume of gold obligations amounting to nearly $300,000,000. These obligations are the instraments which, | ever since we have had a gold reserve, | have “been wused to aeplete the reserve. | ‘This reserve. as had been stated, had falien in A pril, 1893, 10 £97,011,330. 1t has from that time to the present, with very few and unimportant upward movements, steadily decreased except when it has | been temporarily replenished by the sale of bonds. Among the causes for this constant upward | shriokage in this fund may be mentioned the great | falling off of exports under the operation of the | tariff 1aw, until recently in force, which crippled | our exchange of commaodities with foreign nations | and necessitated to some extent the payment of | our balauces in gold, the unnatural infusion of | silver into our currency and the increasing agita- tion for its free and unlimited coinage, which have created apprehension as to our disposition or ability to continue gold pavments. The conse- quent hoarding of gold at home and the stoppage of investments of foreign capital, as well as the return of our securities already sold abroad, and the high rate of foreign excnange, which induced the ship- ment of our gold to be drawn against, is a matter of speculation. In consequence of these conditions the gold reserve o the 1st day of February, 1894, was reduced to $65.438,377, having lost more than $31,000,000 during the preceding nine months, or stoce April, 1893. 1ts replenishment being neces- sary, and no other manner of accomplishing it being possible, resort was had to the issue and sale 9t bonds provided for by the redemption act of Fifty millions of these bonds were sold, yielding $68,633,295 71, which was added to the reserve fund of gold then on hand. As a result of this operation this reserve, which had suffered constant and large withdrawals in the meantime, stood on the 6th day of March, 1894, at the sum of $107,.- 446.802. Its depletion was, however, immediately thereafter so accelerated that on the S0th day of June, 1894, it had fallen to $64878.025, thus losing by withdrawals more than $42,000.000 in five months, and dropping slightly below its situ- ation when the saie of $50,000.000 in bonds was effected for its replenishment. This depressed condition grew worse and on the 24th day of November, 1894, our gold reserve being reduced to $57,669,701, it became necessary to again strengthen it. This was done by another sale of bonds amounting to §50,000,000, from which there was realized $58,538,600, with which the fund was increased to $111,142,021 on the 4th day of December, 1894. Again disappointment awaited the anxious hope for relief. There wasnot even & lull in the exss- perating withdrawals of gold. On the contrary they grew larger and more persistent than ever. Between the 4th day of December, 1894, and early in February, 1895, a period of scarcely more than two monihs after the second re-enforcement of our gold reserve by the sale of bonds, it had los: by such withdrawals more than $69,000,000 and had fallen to $41,340.161. Nearly $45,000.000 had been withdrawn within the month immediately preceding this situstion. In an:icipation of impending troubie I had on the 28th day of January, 1895, addressed a communi- cation to Congress fully setting forth our difli- cuities and dangerous position and earnestly rec- ommending that authority be given the Secretary of the Treasury to issue bonds bearing a low rate of interest, pavable by their terms in gold, for the purpose of maintaining a sufficlent gold reserve, and also for the redemption and cancella- tion of outstanding United States and the treasury notes issued for the purchase of. silve Jaw of 1850. This recommendation d: ever, meet with legisiative approval. In’ February, 1895, theretore, the situation was exceedingly critical. With a reserve peritously low, and a refusal of Cangressional aid, everything indicated that the end of gold payments by the Government was imminent. The results of prior bond issues had been exceedingly unsatistactory, and the larke withdrawals of gold immediately Sjicceoding their public sals n open marke: gave rise 1o a rewsonable suspicion that a large part of the gold paid into the treasury upon such 8 .ies was promply drawn out again by the presentation of United Btates notes or treasury notes, and found its way to the hands of those who had only tem- porarily paried with it in the purchase of bonds. In this emergency and in view of its surrounding perplexities, it became entirely apparent to those apon whom the struggle for safely was devolved. not only that our gold reserve must, for the third time in less than thirteen months, be' restored by another issue and sale of bonds besring a high rate of interest and baaly suited to the purpose, but that a plan must be adopted for their disposition bromising better results than those realizea o pre- vious An agreement was, therefore, made with a number of financiers and bankers whereby it was stipulated that bonds described in the re- sumption sct of 1875, payable in coin thirty years afier their date, bearing interest at the rate of 4 T cent per annum, and amounting to about $62, 500,000, shoutd be exchanged for gold, receivable by weight, amounting to a little more than $63,- 000, "This gold was to be dellvered in such in- stallments as would complete its delivery within about six months from the date of the contract, and atleast a half of the amount wasto be fur- nished from abroad. Itwas aiso agreed by those supplying this gold that during the continuance of the contract they would by every means in their power protect the Government against gold with- The contract also provided that it (‘ongress would authorize their issue bonds payable by their terms in gold and bearing interest at the rate of 3 per cant per annum might within ten days be sub- stituted at par for the 4 per cent bonds described in the agreement. On the day this contract was made its terms were communicated to Congress by wspeciul executive message, in which it was stated tha un $16,000,000 would be saved to the Gov t if goid bonds bearing 3 per cent interest authorized to be substituted for those mentioned in the contract. Conzress having deciined to grant the necessa authority 10 secure this saviag, the contract uii- modified was carried out, resulting in a 20.d reserve amounting to §10 0 on the Sth day of July, 1895. The performance of this coniract not only res:ored the reserve, but checked for a time the withdrawal ot gold and brought on a period of re- stored confidence and such peace and quiet in business circles as were of the greatest possible value in every interest thut affects our peopie. [ have never had the slightest misziving concerning the wisdom or propriety of this arrangement and am quite willing (0 answer for my full share of re- sponsibility for its promot on. I believe it averiad a disaster, the imminence of which was fortunately not at the time generally understood by our people. ‘I boush the con.ract mentioned stayea for a Lime the tide 0f gold with- drawal its zood resalts could not be permanent. Recent withdrawais have reduced the reserve from 8107,571,320 on the Sth dsy of July. 1895, 10 $79, 333,960. ' How long it will remain large enough (o render its increase unnecessary is only a matter of conjecture, though quite large withdrawals for shipment in the Immediaie future are predicted in well-informed quarters. “Abou: $16,000,000 has been withdrawn during the month of November. The foregoing statement of events and condi- tions develops the fact that after increasng our interest-bearing bonded indebiedness more than $162,600,000 to save cur gold reserve we are neatly where we started, having now in reserve 79,338,966 as agaiust $65,438.377 in February, 1894, when the first bonds were issued. Though the amount of gold drawn from the treasury ap- pears to be very large, as gathered from the facts and figures herein presented, it actually was much larger, vonsiderable sums having been acquired by the tréasury within the several periods stated with- out the issue of bouds. On the 28th of Jannary, 1895, It was reported by the Sccretary of the Iréasury that more than £172,000,000 of gold had been wjthdrawn for hoarding or shipment during the vear preceding. He now reports that from January 1, 1879, to July 14, 1890, a period of more than eleven years, oniy a little over $28,000,000 was withdrawn, and that between July 13, 1890, the date of the passage of the law for an increased purchase of silver, and the first day of December, 1895, or within less than_five and a half years, there was withdrawn nearly $375,000,000, making a total of more than $407.000,000 drawn from the teeasury in gold since January 1, 1879, the date fixed in 1875 for the retirement of the United States notes. Nearly £327,000,000 of the gold thus withdrawn has been paid out on these United States notes and yet every one of che 316,000,000 is still un- canceled and ready to do_service in future gold depletions. More than_ 876,000,000 in gold has sice their creation in 1890 been paid out from the treasury upon notes given on the purchase of silver by the Government, and yet the whole, amounting 0 $153,000.000, except & little more than $16.- 000,000, which has been retired by exchanges for silver at the request of the holders, remains outstanding and prepared to join their older and more exper.enced allies in future raids upon the treasury’s gold reserve. i In oiher words, the Government has paid in gold more than nine-tenths of its United States notes and still owes them all. It has paid‘in gold abous one-half of its notes given for silver purcha without extinguishing by such payment one doilar of these notes. When added to all tois we are re- minded that to carry on this astounding financial scheme the Government has incurred a bonded izdebtedness of $45,500,000 in establishing & gold reserve and $162,315.400 in efforts to maintain it, that the annual interest_charge on such bonded indebtedness is more than $11,000,000, that a con- tinuance of our present course may 1esult in fur- ther boud issues, and that we suffered or a threatened wizh ail this for the sake of supplyi gold for foreign shipments or facllitating its hoard- ing at home, & situation is exhibited which cer- tainly ought to arrest attention and provoke imme- diate legslative relief. I & u convinced the oniy thorough and practical remedy for our troubles is found in the retirement and cancellation of our United States notes, commoniy called greenbacks, and the outstanding treasury notes issued by the Government in payment 0. silver purchases under the act of 1890. I believe this could be quite readily scconmlished by the exchange of these notes for United States bonds of small as well as large denominations bearing & low rate of interest. They should be long term bonds, thus increasing their desirability as investments, and because their payment could be well postponed to a period far removed from presant finavcial burdens and perplexitics. when with increased prosperity and resoiirces they could be more easily met. To insure the cancellation of these notes and also provide & way by which gold may be added to our currency iniien of them a feature in the plan should be an authority ghven to the Secretary of the Treasury (o dispose of the bonds abroad for gold, If necessary, to complets the contemplated redemption and canceliation, permitting iiim 10 use the proceeds of such bonds to take up and cancel any of the notes that may be in the treasury or that may be receivd by the Government on any account. The increase of our bonded debt involved in this plen would be umply compensated by renewed activity and enterprise in all business circles. The restored confidence at home, the reinstatement of faith in our monetary strength abroad, and the stimulation of every in- terest and industry would foliow the canceilation of the gold demand oblizations now efllicting us, In any event, the bonds proposed would stand for the extinguishment of a_troublesome indebied- ness, while in the patir we now follow there lurks the menace of unending bonds with indebted- ness still undischarged and aggravated in every feature. The obligations necessary tofund this in- debtedness would not equal in amount_those from which we have been relieved since 1884 by antici- pation and payment by the requirements of the sinking fund out of our surplus revenues. The currency withdrawn by the retirement of the United States notes and treasury notes, amounting to probably less than $486,000,000, might be sup- plied by such gold as would be used on their retire- ment or by an incresse in the circulation of onr National banks. Though the aggregate capital of those now in existence amounts lo more than $664,000,000, their outstanding circulation, based on bond security, amounts to only about $190,000, 000. They are authorized to issie notes anioun ing to 90 per cent of the bonds deposited to secure their circulation, but in no event beyond the amount of their capital stock, and they are obliged {o pay 1 per cent tax on the circulation they ssue. 1 think they should be allowed to issue eircula- tion equal to the par value of the bonds they de- posit to secure it, and that the tax on their circu- ation should be reduced to one-fourth of 1 per cent, which would undoubtedly meet all the ex- pense the Government suffers on their account. In addition they should be allowed to substitute or deposit, in lien of the bonds now required as se- curity for their circulation, those which would be issued for the purpose of retiring the United States notes and treasury notes. ‘Ihe banks already ex- isting, if they desired to avail themselves of the provisions of the law thus modified, could issue NEW TO-DAY. an=TQu== SEE OUR HOLIDAY DISPLAY OF ONYX TABLES, Piano and Banquet Lamps, FRAMED PICTURES, PHOTO MEDALLIONS, SILVER i i NOVELTIES. TOILET and MANICURE SETS, TOY BOOKS, GAMES, ETC., XMAS CARDS, CALENDARS, OILand WATER COLOR OUTFITS. OPEN EVENINGS. Sanborn, Vail&Co., T41-743-745 Markef Streets