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The San Francisco call. (San Francisco [Calif.]) 1895-1913, December 04, 1895, Image 8

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PRESIDENT GROVER CLEVELAND'S MESSAGE SENT TO CONGRESS.
WASHINGTON, D. C, Dec. 3.—Ap
pended is the message from President
Cleveland to Congress, as read in the Se
nate 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 a time when the inter
ests of our people and the needs of the country
give especial prominence 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 within the scope of their respec
tive duties mid present such recommendations
for the betterment of our country's condition
as patriotic 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
nations and statement of the financial prob
lems which confront us, omitting, except as
they are related to these topics, any reference
to departmental operations. I earnestly invite,
however, not only the careful consideration
but the severely critical scrutiny of Congress
and my fellow-countrymen to the reports con
cerning these departmental operations. If
ju*-ily and fairly examined they will furnish
j r> >■ : of assiduous and painstaking care for the
public welfare. I press the recommendations
they contain upon the respectful attention of
-barged with the duty of legislation, be
cause I believe their adoption would promote
the people's zood.
TRADE WITH ARGENTINE.
It is Claimed That a Low Tariff In-
creased Hxports.
By mandatory tariff legislation In January last
ie Republic, recognizing the value of
_.■ market opene 1 to the free Importation ol
a under oiu h** admitted
certain products of the 1i..: ntryat
duties. It ling to note th-t the
tre made to enlarge theexchai -
trade or. a -ioitint basis Ol mutual benefit are In this
d by 'the country from which
ourwoi ■ dr.-w their needful supply of
raw material.
ARGENTINE-BRAZIL EOUNDARY.
Settlement of the Dispute Through
Friendly Arbitration.
The mission's boundary dispute between the Ar
gentine republic aDd Brazil, referred to the Presi
dent of the United States as arbitrator during the
term.of my predecessor, and which was submitted
to me for determination, resulted in an award in
favtrofßr upon the historical and documen
tary evidence presented, thus ending ■ long, pro
traded controversy, and again demonstrating the
wisdom and desirs • ■ ■■• ing ternatiooal
txMindar.v disputes by recourse to friendly arbitra
tion. Negotiations are prosressinc fora revival of
the Cnited States and Chilean claims commission,
work was abruptly terminated las: year by
the expiration of the stipulated time witnin which
terms co;:!'.! Ie made.
SPECIE PAYMENTS BY CHILE.
Considered a Step of Great Import'
ance and Interest.
The resumption (if specie payments by Chile is a
step of great interest ana importance, both in its
direct consequences upon h^r own welfare and as
evincing the ascendency of sound financial princi
ples in one of the most influential of the South
American republics.
ATTACKS ON MISSIONS IN CHINA.
Steps Should Be Taken to Check the
Fanatical Outbreaks.
The close of tne momentous struggle between
China and Japan, while relieving the diplomatic
agents of this Government from the delicate duty
they undertook at the request of both countries of
rendering such service to the subjects oi either
belligerent within the territorial limits of the
other as our neutral position permitted, developed
a domes'ie condition in the Chinese empire which
has earned much anxiety and called for prompt
and careful attention. Either as a result of a weak
control -by the central government over the pro
vincial administrations, following a diminution of
traditional governmental authority under the stress
of an overwhelming national disaster, or as a
manifestation upon good opportunity of the aver
sion of the Chinese population to all foreign ways
and undertakings, there have occurred in widely
separated provinces of China serious outbreaks of
the old fanatical spirit against foreigners, which if
unchecked by the local authorities, if not actually
connived at by them, lave culminated in mob at
tacks on foreign missionary stations, causing much
destruction of property and attended with personal
injuries, as well as loss of life.
Alinot:::h but one American citizen was reported
to have been actually wounded, and although the
Uestiuction of property may have fallen more
heavily upon the missionaries of other nationali
ties than our own, it plainly behooves this Govern
ment to take the most prompt and decided action
to guard against similar or perhaps more dreadful
calamities befalling the hundreds of American
mission stations which have grown up throughout
the interior of China under the temperate rule of
toleration, custom and imperial edict. The de
mands of the United states and other powers for
the degradation and punishment of responsible
Officials of the respective cities and provinces, who,
by neglect o.* otherwise, had permuted uprisings,
and for I he adoption of stern measures by the Em
peror's Government for the protection of the life
and property of foreigners, were followed by the
disgrace and dismissal of certain provincial ofli
cials found derelict in duty, and the punishment
by 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
the first disturbances occurred for the purpose of
Investigation. This latter commission, formed
after much opposition, has gone overland from
Tientsin, accompanied by a suitable Chinese es
cort, and by its demonstration of the readiness and
ability of our Government to protect its citizens
will act. it is believed, as an Influential deterrent
of any similar outbreaks. The energetic steps we
have thus taken are all 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 the liberty and
protection of our own citizens and redress for any
wrongs they may have suffered, and that we have
no ulterior designs or objects, political or other
wise.
China will not forget either our kindly service to
her citizens durinc her late war, nor the further
iact that while furnishing all the facilities at our
command to further the negotiation of a peace be
tween her anu Jupan we sought no advantage*
and inu-rposed no counsel. The Governments of
both China arid Japan have in special dispatches
transmitted throuuh their respective diplomatic
representatives expressed in a most pleasing man
ner ttjeir grateful appreciation of our assistance to
their citizens during the unhappy struggle and of
the value of our aid in paving the way to their re
sumption of peaceful re.ations.
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 explanation 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, remained in Madagascar, his term of
0006 expired, and was apparently successful in
procuring business concessions from the Jlovas of
greater or less \-a!ue. After the occupation of
'1 BDuttvr iti;d the declaration of martial law by
the French he was arrested upon various charges,
among them that of communicating military in
iormation 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
requested from that or France the record of the
proceedings of the French tribunal which resulted
in .Mr. Waller's condemnation.
1 Ins request has Ijeeri complied with to the ex
tent of supplying v copy of the ollicial record from
which appear the constitution aiid organization of
the court, the charges as formulated and the gen
era! course and result of the trial, and by which it
is shown that the accused 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
Affairs till the first went in October, has thus far
been withheld, the French Government taking the
ground that its production in response to our de
mand would establish a bad precedent. The
efforts of our Kmbassador to procure it, however,
though impeded by recent chaises in the French
M inisiry, have not been relaxed, and it is confi
dently expected that some satisfactory solution of
the matter will shortly he reached.
Meanwhile, it appears that Mr. Waller's con
finement, has every alleviation which the stale of
his heaith and all the other circums'ances of the
rr.gv demand or permit. In agreeable contrast to
the dl ltere nee above rioted respecting a mailer of
."oiiiinoii concern, where nothing is sought except
Hick a mutually satisfactory ou:come as the true
oierl s of the case require, is the recent reso'ution
if the French Chambers favoring the conclusion of
* 1" rrnuiient treaty of arbitration between the two
,t-R.
An lnviiat : on has been extended by France to
ibm Goveramsat mid people of the Lnited .-states
to participate In a great International exposition
11 i'ur.Kln 1900 as a suitable commemoration of
.hm. the world's marvelous, century of progress. I
feeartily recommend its acceptance, together with
Its Chief Feature a Recommendation That the Financial Tangle Be
Untied by the Retirement of Greenbacks and Issuance
of More Bonds.
such legislation as will adequately provide for a
due representation of this Government and its
people on the occasion.
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 typical of a condition of
things elsewhere found in countries whose produc
tions and trade are similar to our own. The close
rivalries of competing industries, the influene? of
the delusive doctrine that the internal develop- I
ment of a nation Is promoted and its wealth in- i
creased by a policy In which undertaking to re- !
serve its home markets for the exclusive use of its !
own producers necessarily obstruct their sales in
foreign markets and prevents free access to the I
products of toe world: the desire to retain trade
in the time-worn ru:s. regardless of the inexorable
laws of new needs and changed toiiditiona of de
ninnd and supply. an>l our own belting tardiness iv
inviting a free exchange of commodities and by
t bis means imperiling oor footing in the external
markets naturally open to us, have created a Bit ra
tion somewhat injurious to American export inter
'■s:s. not only in Qermany, w.'iere they arc perhaps
most noticeable, but in adjacent countries.
The exports affected are largely Anirncan cattle
ard other fcoJ prod acts, the reason assigned ff>r
unfavorable discrimination bein? that their con
sumption is deleterious to the public health. This
s fill the more irritating in view of the fart that no
iviropean State is as jealous of the excellence and
- :neness of its exported food supplies as the
nor so easily üble on account of in
herent soundness to guarantee these qualities. Nor
se difficulties confined to our food product*
>1 for exportation. Our great insurance
companies, for example, having built up a vast
business abroad and invested a large share of their
gains in foreign countries in compliance with local
laws an. l regulations then existing, now find them
selves within a narrowing circle 01 onerous and un
loreseen conditions, and are confronted by the ne
i ssity ot retirement from a rield thus made profit
able, If, Indeed, (hey are not summarily expelled,
as some of them of lat,? have been from Trussia,
It is not to be forgotten that international trade
cannot bo one-sided. Its currents are alternating
and its movements should be honestly reciprocal.
at this it is almost neces>ar:ly degenerated
into a device to gain advantage or a contrivance to
secure benerits with only the" semblance of a re
turn. In our dtMHn?.< with other nations we ought
to be open-hand?.*! and scrupulously fair.
This should Ik? our policy as a producing Nation,
and it plainly becomes us as a people who love
geueroiiiy and the moral aspect of National good
faith and reciprocal forbearance. These considera
tions should not, however, constrain us to submit
to unfair discrimination, nor to silently acquiesce
in vexatious hinderance to the enjoyment of our
share of the legitimate advantages of proper irade
relations. If an examination of the situation sug
zests such measures on our part as would Involve
restrictions similar to those from which we Buf
fered the way to such a course is easy. It should,
however, by no means be lightly entered upon,
since the necessity lor the inauguration of such a
policy would be regretted by the beat sentiment of
oir people and because it naturaily and logically
might lead to consequences of the gravest char
acter.
I take pleasure in calling your attention to the
encomiums bestowed on the vessels of our new
navy, which took part in the notable ceremony of
the opening of the Kiel canal. It was tiwin.c that
this extraordinary achievement of the newer
German nationality 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 important, 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 laid down by that august body has not
been followed by the results they were intended to
accomplish, either because the principles them
selves tacKed In breadth and definlteness or because
their execution has been more or less Imperfect.
Much correspondence lias been exchanged between
the two Governments on the subject of preventing
the exterminating slaughter of seals. The insuffi
ciency of the British 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
in these waters. The need of a more effective en
forcement of existing regulations, as well as the
adoption of such additional regulations as expe
rience has shown to be absolutely necessary to
carry out the intent of the awards, have been
earnestly urged upon the British Government, but
thus iar without effective results. In the mean- !
time the depletion of the seal herds] by means
of pelagic bunting has so alarmingly progressed
that unless their slaughter is a l , once effectively
checked their extinction within a few years seems
to be a matter of absolute certainty.
The understanding by which the United States
was to pay and Great Britain to receive a lump
sum of $4'JS,(X)O in full settlement 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
j the opinion that this arrangement was a judicious
and advantageous one for the Government and I
earnestly recommend that it be a^ain considered
. and sanctioned. if. however, this does not meet
with the favor of Congress, it 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 adjustment of these
claims by arbitration as the only other alternative.
A treaty of arbitration has therefore been agreed
upon and will be immediately laid before the
Senate; so that in one of the. modes suggested; a
final settlement may be reached.
Notwithstanding that Great Britain originated
the proposal to enforce international rules for the
prevention of collisions at sea, based on the recom
mendations 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 Majes
ty's Government, having encountered opposition
on the part of British shipping interests, announced
its inability to accept that which was consequently
canceled. '1 he entire matter is still in abeyance,
without prospect of a better condition In the near
future.
CANADA AND THE LAKES.
The Alaskan Boundary in a Fair
Way to Settlement.
Tbe Commissioners appointed to marie the inter
national boundary in I'a3sama>|UOddy Bay, accord
ing to the description of the treaty of Ghent, have
not fully agreed. The completion of the pre
liminary survey of that Alaskan boundary which
follows thecontourof the coast from the southern
most point of Prince of Wales island until it Strikes
the one bundled and forty-first meridian, at or
near the summit of Mount St. Kllas, awaits fur
ther necessary appropriations, which are urgently
recommended. This survey was undertaken under
the provisions of the convention entered into by
this country and Great Britain July 22. 1892, and
the supplementary convention of February 3, 1894.
As to the remaining section of the Alaskan
boundary, which follows the on«- hundred and
for.y-flrst meridian northwardly from Mount wt.
Kllas to the frozen ocean, the settlement of which
involves the physical location of the meridian
mentioned, no conventional agreement has yet
been made. The ascertainment of a given meridian
at a particular point is a wont requiring much time
and careful observations arrl surveys. Much ob
servations and surveys were undertaken by the
United -tates Coast and Goedetic survey In" 1890
and 1891, while similar wor* in the same quarters
under British auspices are believed to give nearly
coincident results; but these surveys have been
independently conducted and no international
agreement to murk these or any other parts of the
one hundred and forty-first meridian by permanent
monuments has yet been made.
In the meantime the valley of the Yukon is be
coming a highway through the hitherto unexplored
wilds of Alaska, and abundant minerul wealth has
been discovered in that region, especially at or near
the junction of the boundary meridian with the
Yukon and its tributaries. In these circum
ttaooM It is expediunt, md»ed 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 I4lsl meridian by an in
ternational commission of experts which, it Con
gress will authorize it and make due provisions
therefor, can be accomplished with no unreason
able delay, it is impossible to overlook the vital
importance of continuing the work already eo
tere'i upon and supplementing it by further effect
ive meusures looking to tbe exact location of this
entire boundary line.
I call attention to unsatisfactory delimitation of
the respective jurisdictions of the United states
and the Dominion of Canada in the Great l,akt»s at
the approaches to 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 true boundary vexatious disputes
auu injurious seizures of boats and nets by Cana
dian cruisvrs often occur. While any positive set
tlement thereof by an accepted standard is not
easily to be reached, a joint commission to deter
mine the Hue in these quarters on a practical
basis, by measured courses lollowing range marks
on shore, is a necessity for which Immediate pro
vision should be made.
VENEZUELA AND ENGLAND.
Impartial Arbitration Should Settle
the Boundary Dispute.
It being apparent that the boundary dispute be
tween Great Britain and the republic of Venezuela
THE SAN FRANCISCO CALL. WEDNESDAY, DECEMBER 4, 1895.
Free Coinage of Silver Boldly Opposed, the Belligerency
of Cubans Dodged and Feeble Utterances Re
lating to the Monroe Doctrine.
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, both
on its own account and in view of its relations
with the friendly powers directly concerned. In
July last, therefore a dispatch was addressed to
our Kmbassfulor at London for communication to
the British Government, in which the attitude of
the United States was fully and distinctly set
forth. The general conclusions therein reached
end formulaied are. in substance, that the tra
ditional and established policy of this Government
is firmly opposed to a forcible increase by -any
European power of its territorial possessions in
this continent; that this policy is as well founded
in principle as 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 Guiana in derogation of the
rights and against the will of Venezuela: that con
sidering the disparity in s ronsth or Great Britain
a:nl Venezuela, the territorial dispute between
them can be reasonably settled only by friendly,
impartial arbitration, and the resort to such arbi
tration should include the whole controversy, ana
it is not satisfactory that One of the powers con
cerned be permitted to draw an arbitrary line
through 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 Government for
a definite answer to the question whether it would
not submit the territorial controversy between It
self and Venezuela in its entirety to impartial
arbitration. The answer of the British Govern
ment has not yet been received, but is expected
shortly, when further communication on the sub
ject will probably be made to Congress.
UNFAIR ARRESTS IN HAWAII.
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 sympathy with the royalist party. Among these
were several citizens of Hip United states, who
were either convicted by a military court and sen
tenced to death, imprisonment or line, or were de
ported without trial. The United Stales, while
denyine protection to such as had taken the
Hawaiian oath of allegiance, 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
citizens had receive d fair trial. Ihe death sen
tences were subsequently commuted or were re
mitted on condition of leaving the islands. The
cases of certain Americans arrested and expelled
by arbitrary order, without formal charge or trial,
have hart attention, and in some instances have
been found to justifj remonstrance aim a claim mr
indemnity, which Hawaii has not thus far con
ceded. -Mr. Thurston, the Hawaiian Mlniscer,
having furnished this Government abundant
reason for asking lhat he be recalled, that course
was pursued, and his successor has lately been re
ceived.
LYNCHINGS OF FOREIGNERS.
Attention Is Called to the Abuse of
Alien Contract Labor.
The deplorable lynching of several Italian labor
ers in Colorado was naturally followed by Inter
national representations, and I am happy to say
. that the best of efforts of the, State in. which the
outrages occurred have been 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 manifestations against helpless aliens may
be traced through successive stages to the vicious
padrone system, 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 sharpening competition In the
fields of bread-winning toil brings them into col
lision with other labor interests. While welcom
ing, as we should. those who seek our shores to
merge themselves In our body politic and with per
sonal 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 civ
ilization, deterrent to Individual advancement and
hindrances to the building up of stable commun
ities resting upon the wholesome 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 attempted.
A
AS TO JAPAN'S GREATNESS.
This Country Congratulated on the
Friendly Relations.
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 Stnte.s, by the exchange of lib
eral treaty stipulations with the new Japan, was
the first to recognize her wonderful advance and to
extend to her the consideration und confidence due
her national enlightenment and progressive
character.
GUATEMALA AND MEXICO.
The Dispute to Be Settled Peaceably
by Arbitration.
The boundary dispute which recently threatened
to embroil Guatemala nun Mexico has happily
yielded to pacific counsels, and its determination
has by the joint agreement of the parlies been sub
mitted to the so!e arbitration of the United States
Minister to Mexico.
The commission appointed under the convention
of February 18, IPB9. to set new monuments along
tne boundary between the United States and Mex
ico has completed the task.
COLONIZATION IN MEXICO.
Assistance Rendered Unfortunate
Negroes from Alabama.
As a sequence of the failure of a scheme for tbe
colonization In Mexico of negroes, mostly emi
grants from Alabama under contract, a 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, 1 di
rected rations to be temporarily furnished them
through the. War Depar. merit. At the expiration
of their qnaran.ine, they were conveyed by the
railway company, at com para tvely nominal rates,
tv their l.omes in Alabama, upon my assurance in
the absence of any fund available for the cost of
their transportation that 1 would recommend to
Congress an appropriation for its payment. I now
strongly urge upon Congress the propriety of mak
ing such an appropriation. It should be remeni
bered the measures taken were dictated not only
by sympathy and humanity, but by a conviction
that it was not compatible with ihe dignity of
this Government that so large a body of dependent
citizens should be thrown for relief upon the char
ity of a neighboring State.
THE BULLYING CF NICARAGUA.
Intervention of This Government
Was Duly Appreciated.
In last year's message t narrated at some length
the jurisdictional questions then freshly arisen in
the Mosquito Indian strip of Nicaragua. Since
that time, by the voluntary act of the Mosquito
Nation, the territory reserved to them has' been
incorporated with Nicaragua, the Indians formally
mbfeottag themselves to be governed by the gen
eral laws and regulations ot the republic instead of
by their own custom m ard regulations, „,,,( , lms
availing . hemselves ol a privilege secured to them
by the treaty between Nicaragua and Grea 1 . l.ril
ain of January 28, 1860. After this extension of
uniform Nioiragunn administration to the Mos
quito strip the cuse of British Vice-Consul Hatch,
and of several of his countrymen, who had b«en
summarily expelled from Nicaragua and treated
with considerable Indignity, provoked a claim by
Great llritalu upon Nicaragua for pecuniary In
demnity which, upon Nicaragua's refusal to admit
1 ability, was enforced by Great Britain. While the
sovereignty and juiisrifctiou of Nicaragua was in no
way questioned by Gr»»at Itrituin the former's arbi
trary com! '.ict in regurd to British subjects furnished
the frro:ii4'or (his proceeding.
A Brit:.-,;t naval force occupied, without r»'sist
ii'ic ■•. the i'acirlc seaport of t'oriuto, but was soon
af;er withdrawn upon the promise that the sum
demanded would be paid. Throughout this inci
dent me kimlly offices of the United States were
Invoked and were employed in favor of a* a peace
ful settlement and such consideration and in
diilcenee toward Isicarngua as were consistent
with the nature of the case. The efforts have
since been made the subject of appreciative and
grateful recognition by Nicaragua.
RUSSIA'S TACMCS TOUCHED.
Evils of the Practice of Interrogating
Her Citizens in This Country.
The coronation of the Czar of Huswia ft! Moscow
in May next invites the ceremonial participation
of the I'nltrd states, and In sccordaaOß with usage
and diplomatic propriety OUT Minister to the Im
perial court has been directed to represent our Oor
eminent on this occasion.
Correspondence is on foot touching the practice
of Kussian Consuls, within the jurisdiction of the
United States, to interrogate citizens as to their
race ana religious faith, and upon ascertainment
thereof to deny the Jews passports or lejral docu
ments for use in Russia. Inasmuch as such a pro
ceeding imposes a disability which, in the case of
succession to property in Kussia, may be found to
infringe the treaty rights ot our citizens, and
which is an obnoxious invasion of our territorial
jurisdiction, it has elicited fitting remonstrance,
the result of which, it is hoped, will remove the
canse of complaint.
'lhe pending claims of sealinK vessels of the
United States seized in Russian waters remain un
adjusted. Our recent convention with Kussia, es
tablishing a modus Vivendi us to imperial jurisdic
tion in such cases, has prevented further diilicuity
of this nature. The Russian government has wel
comed in principle our suggestion < or a motlus vi
vendl, to embrace Great ISntaln and Japan, look
ing to the better preservation of seal ilf<- in tho
North Pacific and Bering Sea, mid the extrusion of
the protected area denned by the Paris tribunal to
all Pacific waters north of the thirtyi.uli parallel.
It is especially noticeable that Russia favors pro
hibition of the use of firearms in s«'hl -hunttiiK
throughout the proposed area and a longer closed
seasou 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
as one of the parties to a treaty or agreement by
which we became jointly bound with Knglan.l mid ;
Oermany to so interfere with the government and
control of Samoa as. in effect, to assume the man
agement of its affairs, i>n 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 f have at all times entertained, that our
situation in this matter was Inconsistent with the
mission and traditions of our <;ovrrnment, in vio- '
lution of the principles we profess and in all its
phases mischievous and vexatious. I again press
this subject upon the attention of congresi and ;
ask for such legislative action or expression as will
lead the way to our relict iroru obligations both ,
irksome and unnatural.
NO RECOGNITION FOR CUBANS.
The 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 exists In a large part of the eastern interior of
the island, menacing even some populous towns on
the coast. Hesides deranging the commercial ex- i
changes of the island, of which our country takes
tta* predominant share, this !i 'grant condit on of
! hostility, by arousing sentimental sympathy and ;
: inciting adventurous support among our people, |
; has entailt-d earnest effort on the part of this Q»v- |
eminent to enforce obedience to oir neutrality j
laws and to prevent the territory of the United ,
•states from being used as a vantage ground from j
1 which to aid those in arms against Spanish i
i sovereignty.
Whatever may be the traditional sympathy of !
our countrymen as individuals with a people who j
i seem to be struggling for larger autonomy and I
i grea'.er freedom depends, as such sympathy natu- |
. rally must be in behalf ot our neighbors, yet the j
: plain duty of this Uovernment is to observe In i
good fait ti the ri-cognized jobligations of inter- i
national relationship. The performance of this
duty should not be made more difficult by a disre- !
i garil on the pur' of our citizens of the. obligations !
! graving out of their al i-giance to their country,
whi<h should restrain them from violating as indi
viduals the neutrality which the Nation of which
they an members is hound to observe in Its rela
tkMH to friendly sovereign states. Though neither ,
the warmth of OUT people's sympathy with the j
J Cuban insurgents, nor our loss and material dam- I
; age consequent upon the futile endeavor thus far j
! made to restore peace and order, nor any shock our j
' humane sensibilities may have received from the ;
, cruelties which appear to especially characterize j
this sanguinary and fiercely conducted war, have i
in the least shaken the determination of the Gov- [
ernment to honestly fulfill every International ;
obligation, yet it is to be earnestly hoptnl, on every j
! ground, that the devastation of armed conflict ;
may speedily be stayed, and order and quiet re- |
; stored to the distracted island, bringing in their ;
train the activity and thrift of peaceful pursuits.
one notable instance of interference by Spain j
1 with passing American ships has occurred. On I
March 8 last the Aliianca, while bound from Colon j
to New York, and following the customary track :
| for vessels near the Cuban shore, but outside the ;
I three mile limit, was tired upon by a Spanish gun- j
' boat. Protest was promptly made by the I'nited
! States against this act, as not being justified by a j
| state of war, nor permissible in respect of vessels i
; on the usuul paths of commerce, nor tolerable in, ■
i view of the wanton peril occasioned to Innocent
' life and property. The act was disavowed with I
! full expression of regret and assurance of non-re- ,
\ turrence of such just cause of complaint, while ;
i the offending oflicer was relieved of his command. !
; Military arrests of citizens of the United States in !
Cuba have occasioned frequent reclamations. !
j Where held on criminal charges their delivery to '
the ordinary civil jurisdiction for trial has been j
demanded and obtained in conformity with treaty
] provisions, and where merely detained by way of
military accusation under a proclaimed state of
! siege, without formulated accusation, their release j
or trial has been insisted upon.
The right or American consular officers In the i
Island to prefer protests and demands in such :
cases having been questioned by the authoriti'B, j
their enjoyment of the privilege stipulated by j
i treaty by tne Consuls of tiermany was claimed un- \
der the most favored nation provision of our own ]
convention and was promptly recognized.
The long-standing demand of Antonio Maximo i
Mora against Spain has at last been settled by the |
payment on the 14th of September of the sum
originally agreed upon in liquidation of the claim.
Its distribution among the parties entitled to re
i ceive ;t has proceeded an rapidly as the rights of
those claiming the fund could be safely deter
! m.ned. The enforcement of differential duties
j against products of this country exported to Cuba
I and Porto Rico prompted the immediate claim on
I our part to the benefit of the minimum tariff of
| Spam in re: urn for the not favorable treatment
i permitted by our laws as regards the production of i
■ Spanish territories. A commercial arrangement :
i was concluded In January last securing the treat
ment so claimed. Vigorous protests against, ex
cessive tines impo3P.don our ships and merchandise
by the customs orticers of these islands for trivial
' erron have resulted in the remission of such fines
' In instances where the runny of the complaint was
j apparent, though '.he vexatious practice has not
I been wholly discontinued.
STATE OF AFFAIRS IN TURKEY.
There Is a Prospect That Americans
VV ill Be Protected.
Occurrences In Turkey have continued to excite
concern. The reported massacres of Christians in
Armenia, and the development there and in other
districts o : fanatic hostility to Christian influences,
naturally excited apprehension for the safety of
devoted men and women who, as dependents of
the foreign missionaries' 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 Iheir benalf, and their
protection in person and property has been ear
nestly und vigorously enforced by every means
within our power.
I regret, however, that an attempt on our part to
Obtain better information concerning the true
I condition of affairs in the disturbed quarters of the
Ottoman empire by sending thither the United
States Consul at Slves to make investigation ana
report was thwurted by the objections of the Turk
ish Government. This movement on our part was
in no sense tueunt as a gratcltous einanslement
of the t'nited States in the so-called Eastern ques
tion, nor as an officious interference with the right
and duty which belong by treaty to certain grea 1 .
European powers, calling for their intervention in
political mutters affecting the good government
arid religions freedom of tiie uon-Mugsiilman sub
jects of the Millan, 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, af
fords opportunity to acquire a measure of familiar
ity with the condition of affairs, and will enable
us to take suitable steps for the .protection of any
interests of otir countrymen within reach of our
ships that mighr be found imperiled. The Otto
man Covernment has lately issued an imperial
edict exempting forever from taxation the Ameri
can college for Kirls at Scutari. Repeated assur
ances have also been obtained by our envoy at
Constantinople that Bimilar institutions niain
talued and administered by our countrymen shall
be secured in the enjoyment of all rights, and tnat
our citizens throughout the empire shall be pro
tected.
The Government, however, in view of existing
facts is far from relying upon such assurance as the
limit of Itl duty. Our Minister has been vigilant
and nlerl in affordin« all possible protection in in- |
dividual cases where danger threatened or safety
was Imperiled. We have smt ships as far toward I
the polnt.s Of actual disturbance as i is possible for
them to RO, where they offer refuue to those ob- I
llKeil to fiee, mid we lave the promise of other
powers which have ships In the. neighborhood that
our citizens as well as theirs will be received and
protected on board those ships. On the demand of
our Minister orders have been issued by the Sultan
thai Turkish soldiers shall guard and escort to the
i oast American retoiraea,
These orders have been carried out, and our
latest Intelligence Kives assurance of the present
J>ersonal safety of our citizens mid missionaries.
Though 1 1 1 1 1 *« tar no lives of American citizens have
been sacrificed, there can be DO doubt that serious
lose and destruction of mission property has re
sulted from riotous conflicts and outrageous at
tacks. By treaty several of the most powerful
European powers have secured a right and have
assumed a duty DOt only In behalf of their own cit
i/.ens and in furtherance of their own interests,
luit as?agents <>t the Christian world.
Their right- Is to enforce such conduct of the
Turkish Government as will restrain fanatical bru
tality, anil W this fails their duty is to so interfere j
as to Insure against such dreadful occurrences Hi '
Turkey an I aye lately shocked civilization. The i
DOW) n declare this rU'ht and this duty to be theirs !
alone, nii'l It Is earnestly hoped that prompt and j
effective aotloa on their part wi'.l not be delayed, j
The ntw i-numilHti's at Krzeroum and Katdelat,
Ersengan arid Rarpoot. for which appropriation
was made lasi session, have been proviN.onally
Oiled by trump i employes of the Department ot
State. These npp- lrr<es, though now in Turkey, |
have ii'il yet r«'i cued their exequaturs.
CAUSED A DECIDED RUPTURE.
Attempt to Arbitrate a Venezuelan
Company's Claim.
The arbitration of the claim of the Vene
zuela Hu-ain Transportation Company un
der the treaty of January 19, 1892, be
tween the United States and Venezuela
resulted in an award in favor of the claimant.
The Uovernment has used its good office.* toward
composing the differences between Venezuela on
the one liana and France and Belgium on the
other, growing out of the dismissal of the repre
sentatives cf those powers on the ground of a pub
lication deemed offensive to Venezuela. Although
that dismissal wns coupled with a cordial request
that other more personally agreeable envoys be
sent in their stea<l a rupture of intercourse ensued
and still continues.
IN THE CONSULAR SERVICE.
Recommendations for Securing a
Better Standard of Efficiency.
In 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
hns 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
an'i control which would tend to secure a higher
average of efficiency cannot be denied.
I (The Importance of the subject has led the axec
utive to consider what steps might properly be
taken without additional legislation to answer the
need of a better system of consular appointments.
The matter having been committed to the consid
eration of the Secretary of state, in pursuance of
his recommendations, an executive ler was is
sued on the 20th of September. 18£. y the terms
of which it is provided that ufter that date any va
cancy In a consulate or commercial agency with an
annual salaiy or compensation from official fees of
not more than $"500 or less than $ 1000 should be
tilled either by transfer or promotion from some
other position under the Department of State of a
character tending to qualify Hie incumbent for the
position to be filled or by the appointment of a per
son no: under the Department of State, but having
previously served thereunder and having shown
his capacity and fitness for consular duty, or by
the appointment of a person who, having been se
lected by the President and sent to v board for
examination. Is found, upon such examination, to
be qualified for the posiiion. Posts which pay less
tnan $1000 being usually on account of their small
compensation (Hied by selection from residents of
the locality, 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 asslflcation 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 di[>
lomatic agents, rtnd it was therefore thought best
to continue their selection in the discretion of the
executive without subjecting them to examination
before a board. Kxcluding seventy-one places with
compensation at present less than $1000 and fifty
three above the maximum in compensation, the
number oi positions remaining within the scope of
»he order is 196.
This number will undoubtedly be increas<Kl by
the inclusion of consular officers whose remunera
tion in fees, now loss than $1000. will be aug
mented with the trowtli of our foreign commerce
and a return to more favorable business condi
tions. In execution of the executive order reierrert
to, the Secretary of state has designated as a board
to conduct the prescribed examinations the Third
Assistant Secretary of .-itate, 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 ordpr
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 will 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 1
hope the legislation necessary to set. it on foot will
be speedily forthcoming.
I am thoroughly convinced that In addition to
their salaries our Etnba«sadors 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
penns, the cast of maintaining household estab
lishments 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 throuuh
parsimony and shabhlness in Its diplomatic outth.
These considerations and the other advantages <>t'
having fixed and somewhat permanent locations
for embussies would abundantly justify the mod
erate expenditure necessary to carry out this sug
gestion.
TANGLED .STATE OF FINANCES.
It Has Not Been Relieved by Fre
quent Bond Issues.
As we turn from a review of our foreign rela
tions to the contemplation of our National finan
cial 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 present 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 wheu we appreciate how well
the way has been prepared for further progress by
an aroused and Intelligent popular interest In these
subjects. By commands 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
inefficient for - the purpose of revenue cur
tailed our : trade relations and impeded our
entrance .to., the markets of the world
has been superseded by a tariff policy which in
principle is . based upon a denial of . the rights
of the Government to obstruct the avenues to our
people's cheap living or lessen their comfort and
contentment tor the sake of according especial ad
v ant.igfs to favorites, and which, while encour*
aging our intercourse and trade with other nations,
recognizes the fact that American self-reliance,
thrift and Ingenuity can build up our country's in
dustries and develop its resources more surely
than enervating paternalism. The compulsory
purchase and coinage of silver by the Govern ment,
unchecked and unregulated hy busine s conditions
and heedless of our currency needs, which for
more than fifteen years diluted our circulating me
dium, undermined confidence abroad in our finan
cial anility, and at lust culminated in distress and
panic at home, has been recently slopped by the
repeal of the laws which forced this reckless
scheme upon the country. The things thus accom
plished, notwithstanding their extreme importance
anti beneficent effects, full far short of Coring the
monetary evils :rom which we suffer as a result of
long indulgence in 111-advised financial expedients.
The currency denominated by the United
States and so only known as greenbacks, was is
sued in large volumes during the late Civil War,
and w;is intended originally to meet the exigencies
of that period. It will be seen by a reference to
the debates 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
or v sir. In almost- if not ail the laws relating to
them someprovision was made contemplating tin-ir
voluntary or compulsory retirement. A large,
quantity of them, however, were kt-pt on foot and
mingled With the currency of the country, so that
at the close of the year 1874 they amounted to
$388,999,073. Immediately after that date and in
January, 1875, a law was passed providing for the
resumption of specie payments, by which the Sec
rotary or' the Treasury was required whenever ad
tl fmi.il circulation was issued to National hunks
to 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. Thta iaw fur. her provided that on and after
the first day of January, 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 was au
thorized not only louse any surplus revenues of the
Government, but to issue bonds of the United
States and diapOM of them for coin and to use the
proceeds for the purposes contemplated by the
statute.
In May, 1873, and before thedatetbus appointed
for the redemption and retirement of these notes
another statute was passed forDidding their further
cancellation and retirement. Some Of them had,
however, been previously redeemed and canceled
upon the issue of additional National bank circu
lation as permitted by the law of 1876. so that the
amount outstanding at the time of the passcge of
the act forbidding their further retirement was
$346,6H1,01«. The law of 1878 did not stop at dis
tinct prohibition, but contained in addition the
following express provision: "And wnen any of
said notes may be redeemed or be received into the
treasury under any law from any source whatever
and shall belong to the United States they shall not
be retired, canceled or destroyed, but they fhall be
issued and paid out again ami kent in circulation."
This was the condition of affairs on the Ist day of
January. 1879, which had been fixed upon lour
yean before as the date for entering upon toe re
demption and retirement of all mess notes and for
which such abundant means had been provided.
The Government was put in the situation of owitig
to the holders of its notes debts payable in gold on
demand, which eouid 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 a gold fund deemed
sufficient to meet the demands that might be made
upon it for the redemption of the United States
notes. This iund, 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 Ist vlay of January, 1870, to
$114,193,350, thereafter constantly fluctuat
ting. It did not fall below thai sum until July,
1892. In April, 1893, for the h'rst time since its
establishment, this reserve amounted to les3than
$100,000,000, containing at that date only $97.011.
--330. In the meantime, and in July, 1890, an act had
been passed directing larger Governmental pur
chases of silver than had been required under pre
vious laws and providing that tile payment for
such silver treasury Dotes of the United .States
should be issued payable on demand, in gold or
silver coin, at tn/r discretion of the Secretary 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 tii.on theipresent legal ratio or such ratio ias
may be provided bylaw."
in view O' this declaration it was not deemed
permissible for the ."secretary of the Treasur.v to
exercise ttie 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 destroyed, and grave and danger
ous consequences would be precipitated by allirni
ing or accentua'.ing 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 necessarily treated as gold obligations, at the
option of the holders. These 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
Vnited States notes still undiminished by redemp
tion or cancellation, constitute a volume of gold
obligations amounting to nearly $300,000,000.
These obligations are the instruments which,
ever since we have had a gold reserve,
have been used to deplete the reserve.
This reserve, ns had been stated, had fallen in April,
1893, to $97,011,330. It has from tnat tioie to the
present, writ]] 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
shrinkaae in this fund may be mentioned the great
falling off of exports under the operation of the
tariff law, until recently in force, which crippled
our exchange of commodities with foreign nations
and necessitated to some extent the payment of
our balances in gold, the unnatural Uifusion of
silver into our currency and the increasing n^it:i
tlon for its free and unlimited coinage, which have
creHted apprehension as to our disposition or
ability to continue gold payments. 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 excriange, 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 on the Ist day of February, 1894,
was reduced to $65.4X8,377. having lost more than
$31,000,000 during the preceding nine months, or
st-nce April, 1893. Its replenishment being neces
sary, and no other manner of accomplishing it
being possible, resort was had to the issue and sale
of bonds provided for by the redemption act of
1875.
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.
--4-16.802. Its depletion was, however, immediately
thereafter so accelerated that on the 30th day of
June, 1894, it had fallen to $64,873.0.5. thus
losing by withdrawals more than $42,000,000 in
five months, and dropping slightly below its situ
ation when the saie of 550.000.000 in bonds was
-_ . . . . . , * Th" {i ->-<
condition grew worse and on the *th 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 950.000,000, from which there
was realized $58.538, ti00. 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 was not even a lull in the exas
perating withdrawals of gold. On the contrary
they grew larger and more persistent than ever.
Between the lth day of December. 1H94, and early
In February, 1895. a period of scarcely more than
two months after the second re-enforcement of our
fcoUl reserve by the sale of bunds, it had los; by
such withdrawals muro than $119. 000,000 and hud
fallen to 541.540.161.
Nearly $45,000,000 had been withdrawn within
the month immediately preceding this situation.
In unieipatiou of impending trouble I had on the
28th day of January, 1595, addressed a communi
cation to Congress fully setting forth our dlfli
culties 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, payable by their terms in gold, for
the purpose of maintaining a sufficient' gold'
reserve, and also for the redemption and cancella
tion of outstanding United States and the treasury
notes issued for the purchase of. silver under the
law of 1890. This recommendation did not, how
ever, meet with legislative approval:
In February, 18a5, therefore, the situation was
exceedingly critical. With a reserve perilously
low, and a refusal of Congressional aid, everything
Indicated that the end of gold payments by the
Government was Imminent. The results of prior
bond issues had been exceedingly unsatisfactory,
and the law withdrawals of gold immediately
succeeding their public sale in open market gave
rise to a reasonable suspicion that a largo part of
the gold paid into the treasury upon such s.les was
promptly drawn out again by the presentation of
united States notes or treasury note*, and found
its way to the lianas of those who hart only tem
porarily paned with it in the purchase of bonds.
In this emergency and in view of its surrounding
perplexities, it became ! entirely apparent to those
upon whom the struggle lor safety 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 bearing a high rate
of Interest and badly suited to the purpose, but
that a plan must be : adopted for their disposition
piomising better results than those realized on pre
•vioiM sales. An agreement was, therefore, made
with a number of financiers and bankers whereby
It was stipulated that bonds described in the re
sumption act of 187&, payable in coin thirty years
after their date, bearing interest at the rate of 4
per cent per annum, and amounting to about 962,
--000,000, should be exchanged for gold, receivable
by weight, amounting to a little more than $65,
--000.000. This gold was to be delivered in such in
stallments as would complete its delivery within
about six months from the date of the contract,
and at least a half of the amount was to be fur
nished from abroad. It waa also agreed by those
supplying this co!d that daring the continuance of
the contract they would by every means in their
po\«'er protect the 'Government, against gold with
drawals.
The contract, also provided that if Congress
would authorize their issue bonds payable by their
terms in told and bearing interest at the rate of 3
per cant per annum might within ten days be sub
stituted a' par lor the 4 r ur cent bonds described
in the agreement. On t lie- day this contract was
made its terms were communicated to Congress
by a special executive message, in which it WBS
stated that more than $16,000.(100 would be saved
to the Government if gold bonds bearing n per
cent interest were authorised to be substituted for
those mentioned in the .-ornract.
Congress having declined to grant the necessary
authority to secure this saving, the contract un
modified was carried out, resulting Id a «o:d reserve
amounting to 8107,671,380 on the Sth day of July,
1895. The performance of this contract not only
restored the reserve, but checked for a time the
withdrawal of cold and brought on a period or re
stored confidence and such peace and quirt in
business circles as were of the greatest possible
value in every Interest that affects our people. I
have never had the slightest misgiving concerning
the wisdom or propriety of this arrangement and
am quite willing to answer lOT my full share of re
sponsibility for its promot on.
I believe averted a disaster, the imminence of
which was fortunately net at the time generally
understood by our people. 'I hoiKh the ron.ract
mentioned stayed for a time the tide of gold with
drawal its good results could not be permanent.
Recent withdrawals have reduced the reserve from
51u7,.*>71,3 > JOoii the Bth day of July. 1895, to $7?,
--333,960. liOiv long it will remain large enough to
render its increase unnecessary is only a matter of
conjecture, though quite large withdrawals for
shipment in the immediate future are predicted in
well-informed quarters. About. $16,000,000 has
been withdrawn during the month of November.
The foregoing statement of events and condi
tions develops the fact that after increasing our
interest-bearing bonded indebtedness more than
$162,000,000 to save cur gold reserve we are
nearly where we started, having now in reserve
$79,333,906 as against $65,438,377 in February,
1894, whin 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, i: actually was much
larger, considerable sums having been acquired by
the treasury within the several periods stated with
out the issue of bonds.
On the 28: h of Jacnary, 1895, It was reported
by the Secretary of the Treasury that more than
$172,000,000 Of gold had been withdrawn for
hoarding or shipment during the y*v»r preceding.
He now reports that from January 1, 1879, to July
14, 1890, a period of more than eleven years,
only a little over $28,000,000 was withdrawn,
and that between July 14, 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 treasury
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 the $346,000,0U0 is still up
canceled and ready to do service in future gold
depletions. More than 000.000 in gold has
since 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
to $153,000,000, except a 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 experienced allies in future raids upon the
treasury's gold reserve.
In o;her words, the Government has paid in gold
more than nine-tenths of its United States notes
and still owes them all. It lias paid 'in gold about
one-half of its notes given for silver purchase*
without extinguishing by such payment one dollar
of these notes. When added to all tnis we are re
minded that to carry on this astounding financial
scheme the Government has incurred a bonded
indebtedness of $95,500,000 in establishing a gold
reserve and $162,315,400 in efforts to maintain
It, that the animal interest charee on such bonded
Indebtedness is more than $11,OOJ,(JOO, tnat a con
tinuance of our present course may lesult in fur
ther bond issues, and that we suffered or are
threatened with all this for the sake of supplying
gold for foreign shipments or facilitating its hoard
ing at home, a situation is exhibited which cer
tainly ought to arrest attention and provoke imme
diate legislative relief. Lan convinced the only
thorough and practical remedy for our troubles is
found in the retirement and cancellation of our
United States notes, commonly called greenbacks,
and the outstanding treasury notes issued by the
Government in payment o. silver purchases under
the act of 1890.
I believe this could be quite readily accomplished
by the exchange of these uo:t's for United States
bonds of smalt as well as large denominations
bearing a low rain of interest. They should lie
long term bonds, thus increasing their desirability
as investments, and because their payment could
be well postponed to a period far removed from
present financial burdens and perplexities, when
with increased prosperity and resources they could
be more easily met. To insure the cancellation of
these notes and also provide a wav by which gold
may be added to our currency "in lieu of them a
feature in the plan should be an authority given to
the Secretary of the Treasury to dispose of the
bonds abroad for gold, if necessary, to complete
the contemplated redemption and cancellation,
permitting him to 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 received by the
Government on any account. The increase of our
bonded debt involved in this plan would be amply
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 follow the cancellation
of the gold demand obligations now afflicting us.
In any event, the bonds proposed would stand
for the extinguishment of a troublesome indebted
ness, while in the path- we now follow there lurks
the menace of unending bonds with indebted
ness still undischarged and aggravated in every
feature. The obligations necessary to fund 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 increase in the circulation of our
National banks. Though the aggregate capital of
those now in existence amounts to more than
$664,000,000, their outstanding circulation, based
on bond security, amounts to only about $190,000.
--000. They are authorized to issue notes amount
ing to 90 per cent of the bonds deposited to secure
their circulation, but in no event beyond the
amount or their capital stock, and they are obliged
to pay 1 per cent tax on the circulation they
issue. . , ..; .•
I think they should he allowed to Issue circula
tion equal to the par value of the bonds they de
posit to secure it, and thai the lax on their circu
lation 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. 'I he banks already ex
isting, if they desired to avail themselves of the
provisions of the law thus modified, could issue
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