The Indianapolis journal. [volume], December 03, 1890, Page 2, Image 2

About The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904

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THE INDIANAPOLIS JOURNAL, WEDNESDAY, DECEMBER 3, 1890.
obtainable under these condition!. Upon this
basis the net lois of revenue for tho year is rut
down at thirty-two million dollars.
REQUIREMENTS VOlt PENSIONS.
The above estimate of $133,203,095, made by
the Interior Department, for the year 1892, Is
based upon tho fact that over L'uO.OOO of the
claimants for pensions under old laws have
availed themselves of the right to present their
claims under the act of Juno 27, 1890. Claims
presented under the new lave will draw a less
monthly rate, and carry arrearages for only a
short time, and for small amounts, while under
the old laws many of them carry my largo ar-
rearage. and man of which will have been
paid wuring the flscal year 1S91. The transfer
of claims from the old to the new law will there
fore very largely reduce the average annual
ralue of pensions, and a reduction in the amount
of arrearages alone is estimated at $10,000,000
for the year For theae reasons it la esti
mated that the amount above named for 1892
will be sufficient to meet the aggregate require
ments for that year.
It Is deemed advisable and opportune at this
time to recommend a change in tho periods of
paying pensions. At present the law requires
that payments ro pensioners shall be made quar
terly, on the 4tfc day of March, Jnne. September
and December in each year, which necessarily
involves the accumulation of large sums in the
treasury, amounting to from thirty to thirty-lire
millions of dollars for each quarterly payment.
This unnecessary withholding of money from
circulation may bo obviated by making twelve'
monthly payments instead of four quarterly pay
ments, as now required. Upon consultation
with the Secretary of the Interior it is suggested
that the law be changed so as to divide the
eighteen pension agencies Into three groups, as
follows: The pension agencies at Columbus, O.,
Washington, 1. C, Boston. Mass., Detroit. Mich.,
Augusta, Me., and San Fraucigeo. Cal.. to make
their payments quarterly on the 4th day of
March, June. September and December; the pen
sion ageneiesat I ndianapolis. Ind., Des Moines, la.,
Buffalo, N. Y., Milwaukee, Wis., Louisville, Ky.,
and Pittsburg, Pa., to make their payments
quarterly upon the 4th day of April, July, Octo
ber and January; and the pension ageneiesat
Topeka. Kan.; Chicago, 111.; Philadelphia, Pa.;
Knozville. Tenn.; New York city. N. . and
Concord, N. II.. to make their payments quar
terly on the 1th day of May, August, November
and February of each year.
During the last flMal year the first group of
agencies disbursed $33.!53,822; tho second
group disbursed $35,987,180, and tho third
croup disbursed $3ti,552,8$Z, and It Is probable
that this ratio will be substantially maintained
In the future.
If the change herein recommended should re
ceive favorable consideration a provision should
be incorporated in any amendment to the pres
ent law that may be adopted providing for pre
llmary payments for fractional quarters ren
dered neccsMary by the change at all the agen
cies, the date of whose regular payments is
changed, and also in all cases of transfer of pen
sioners from one agency to another.
Under the requirements of the act of Feb. 25,
18G2, estaDlishiug a sinking fund for the gradual
extinguishment of the public debt, there have
been purchased during the months of July,
August. September and October of the current
fiscal year $27v85,100 of the funded loan of
1891, and $16,134,000 of the funded loan of
1907, at a cost to the fund for premium and an-
er, and S3.844.450.03 on the latter loan. There
have also been added to the fund, by the redemp
tion of fractional currency, treasury notes, and
United States bonds which had ceased to bear
Interest, the sum of $8,704, making a total of
$19,072,784.97 applied to the fund as against an
stimated requirement for t ie year of $19,077,-
Surplus Revenue and Purchase of Bonds.
The surplus revenue was largely Increased
last summer by the landing changes in tarifflegis
lation. And the available balance in the treasury
was also greatly augmented by the act of July 14,
1890, which transferred over $54,000,000 from
the bank note redemption fund to the available
cash. This sudden and abnormal Increase was
the csuse of much concern and some embarrass
ment to the department.
To prevent an undue accumulation of money
in the treasury, and consequent commercial
stringency, only two methods were open to the
Secretary, namely, to deposit the public money
in national banks, or to continue the purchase
of United States bonds on such terms as they
could be obtained. For reasons heretofore stat
ed, the former method was deemed unwise and
Inexpedient, and the policy of bond purchases
was continued. On aocount of the rapidly-diminishing
supply of United States bonds on tho
market, and of the lxt that the sudden and
great Increase In the surplus compelled the im
mediate purchase of large quantities. It became
very ditticult to obtain them in sufficient
amonnts, and at fair prices. The following is a
brief statement of the successive steps taken to
dispose of the constantly-accumulating surplus:
There were outstanding on June 30, 1839.
United States interest-bearing bonds. Issued
under the refunding net, in the amount of $315,
73 1,350, of which tftrrC.O'JS.tttO were four-per-'
cents, and $131.030,000 four-and-ono-half-per-cents.
Dnring the liscal year 1890 there were
purchased of these bonds $73,023,500 fours and
'930,623,250 four-and-one-half-per-cents., and
. there remained outstanding June 30. 1890.
$602,193,500 fours, including $21,050 issued for
refunding certificates, and $109,015,750 four-and-one-half-per-cents.
Of the bonds so pur
chased there were applied to the sinking fund
for the fiscal year lbio $27,005,600 fours and
$12,138,750 four-and-one-half-per-cent., tho
residue being ordinary redemptions of the debt.
During this period the Secretary was able to
purchase United States bonds at constantly de
. oreaslng prices, so that at the end of the flscal
year 180O tho government was paying for four-per-cent
bonds 7 per cent, less than at the be
ginning of that period, and for four-and-ono-half
per-cent. bonds 4 per cent, less; but
the diminished supply of bonds held for sale,
together with the lower prices which were being
paid, had been gradually curtailing the govern
ment purchases, and soon after tho beginning of
the present fiscal year the growing surplus and
the prospective needs of the country made it ad
visable that steps bo taken to obtain more free
offerings of bonds to the government.
Accordingly, on July 10, 180O, a circular was
Eublished rescinding that underwhich purchases
ad been made since April 17, 1838. andmviting
new proposals, to be considered July 24, for the
sale of the two classes of bonds before men
tioned. Under this circular there were offered
on the day prescribed sf 6,108,350 lour per cents.
and $594,550 four-aud-one-half per cents., at
prices ranging from 121.703 to 128.263 for fours
and from 1031 to 104.40 for four-and-one-halfs,
of which there were purchased all the four per
cents, offered at 124, or less, amounting to
$0,381,350. and all the four-and-one-halfs offered
at 103j, or less, amounting to $584,550. As the.
amount obtained on this day was less than the
government desired to purchase the provisions
of the circular were extended, with the result
that further purchases were made, amounting in
the aggregate to $9,652,500 fours and $706,450
lour-and-one-half per cents.
SUCCESSFUL CALLS FOIi BONDS.
It was soon apparent that these purchases
were inadequate to meet existing conditions;
therefore, on Aug. 19, the department gave
notico that four-and-one-half-per-cent. bonds
would be redeemed with interest to and includ
ing May 31, 1S91; and two days later the circu
lar of Aug. 21 was published, inviting the sur
render for redemption of twenty millions of
those bonds, upon condition of the prepayment
after Sept. 1, 1890. of all the iuterest to and In
cluding Aug. 31, 1!)1. on the bonds so sur
rendered. Under this circular there were re
deemed $20,000,700 four-and-one-half-per-cents.
Notwithstanding the disbursements resulting
from purchases and redemptions of bonds under
the circulars of July 19 and Aug. 21. the indus
trial and commercial interests of the country re
quired that large additional amounts should be
at once returned to the channels of trade. Ac
cordingly, a circular was published Aug. 30.
1890, lnvitiug the surrender of an additional
twenty millions of four-and-one-balf-ier-cents
upon the snme terms as before. This was
followed by another, dated Sept. 0, in
viting holders of . the four-per-cent. bonds
to accept prepayment of interest on those bonds
to July i, 1891, a privilege which was subse
quently extended to the holders of currency
sixes. Under thin circular, of Aug. 30, there
were redeemed $18,078,100 four-and-one-half-per-cent.
bonds, and under that of Sept, 0 there
was prepaid on the four-per-cent. bonds and
currency sixes interest amouuting to $12,009,
051.50. These prepayments of Interest are expressly
authorized by Section 3099 of the Revised
Statutes. They were deemed expedient because
of the disposition of the holders of bonds to de
mand exorbitant prices for them.
The amount of public money set free within
seventy-live days by these several disburse
ments was nearly $70,000,000, and the net gain
to circulation was not less than forty-five mill
ions of dollars, yet the tinancial conditions made
further prompt disbursements imperatively
necessary. A circular was therefore published,
Sept. 13, 1890, Inviting proposals, to bo consid
ered on the 17th. for the sale, to the government,
of sixteen millions of four-per-cent. Inrnds. The
offerings under this circular amounted to $35,
514.900, of vhlch $17,071,150 were
offered at 12t3j. or less, and
were accepted. The total disbursements
since June 30. lsOO, by the means set forth were
. $98,276,682.10. the face value of the bonds re
deemed and interest prepaid being $73,828,200,
The annual reduction of the Interest charge on
these bonds was $7,577,278.25 and the total sav
ing to the government. $18,633,534.72. It
should be stated that there is no saving of inter
est on the four-and-a-half-per-cent. bonds re
deemed under tho circulars of Aug. 21 and 30,
since all the interest on those bonds to Sept. 1,
1891, the date on which they become redeema
ble, has been prepaid, aud that the reduction in
the annual interest charge on the same bonds
takes effect only irom that date.
Another circular. Inviting the surrender of
lour-n-a-nair per cent, bonds for redemption,
vith Interest to and including Aug. 31, 1891,
was nublishod Oct. 9. 1890. The amount surren
dered under that circular during the month of
October was $3,203,100. The total amount of
lour and iour-auda-hair-per-ceut. bonds pur
chased and redeemed fclnee March 4. lwi Is
$211,832,450, and the amount expended there
for is $2 16.620.741.72. The reduction in the an
nual Interest charged by reason of these transac
tions is $".967,09,75 and the total saving of
Interest Is $51,570,700.01. It will be seen from
the feresoin? statement that during tho three
and one-third months from July 19 to Nor. 1,
1890. over $09,000,000 were disbursed In pay
ment for bonds and interest.
There are many grave objections to tho ac
cumulation of a large surplus in the Treasury.
aim especially xo me power which the control or
such surplus gives to the Serrptnrr. T am sure
those objections appeal to no one with so much
force as to the bead of the department upon
wnom rests the difficult and delicate responsi
bility of its administration.
In my Judgment the gravest defect in our
present tinancial svstem is its laek of elasticity.
The national-banking system- supplied this de
lect to some extent Dy the authority wnicn tne
banks have to Increase their circulation in times
of stringency, and to reduce when money be
comes redundant; but. by reason of the high
price or bonds, this authority has ceased to be or
much practical value.
STRINGENCY NOT DUE TO THE TREASURY.
The demand for money, in this country, la so
Irregular that an amount of cireulation.which
will be ample during ten months of the year,
will frequently prove so deficient during the
other two months as to cause stringency and
commercial disaster. Such stringency may occur
without any speculative manipulations of money.
mougn. unrortunately. it Is often lntensinea by
sueh manipulations. The croos of the country
have reached proportions so immense that their
movement to market, in August and September.
annually causes a dangerous absorption of
money. The lack of a sutlicient supply to meet
the increased demand during those months may
entail heavy losses upon the agricultural as well
as upon other business Interests. Though
financial stringency may occur at any time, and
from many causes, yet nearly air of the great
commercial crises in our history have occurred
during the months named, and unless some pro
vision be made to meet such contingencies in the
future, like disasters may be confidently ex--pectcd.
I am aware that the theory obtains, in the
minds of many people, that if there were no sur
plus In the treasury a sufficient amount of
money would be In circulation, and hence no
stringency would occur. The fact is. however,
that such stringency has seldom been produced
by treasury, absorption, but generally by some
sudden or unusual demand for money entirely
independent of treasury conditions and opera
tions. The tinancial pressure in September last,
which at one time assumed a threatening char
acter, illustrates the truth of this statement.
There was atthattimeno accumulation of money
in tho treasury from customs or internal reve
nue taxes, nor from any other source that could
have affected the money market. On tho con
trary, the total disbursements for all purposes,
including bond purchases and interest pre-
Saymeuts, during the last preceding fifty-three
ays, had been about $29,000,000 In excess of
the receipts from all sources.
The total apparent surplus on Sept. 10, when
the money stringency culminated, was $99,509,
220.53. Of this amount $24,216,804.96 was on
deposit in the banks and presumably in circula
tion among the people, and $21,709,379.77 was
fractional silver, which had been in the Treasury
vaults for several years and was not available
for any considerable disbursements. Deducting
the sum of these two items, viz.; $45,926,184.73,
left an actual available surplus of only $56,217,
321.25. The amount of the bank-note redemp
tion fund then in the treasury, which had been
transferred to the available funds by the act of
July 14. 1890, was $54,000,000, being substan
tially the amount of the available surplus on
Sept. 10, 1800. This bank-note fund had been In
tho treasury in varying amounts formany years.
In August, 1887, It was $105,873,095.60, which
bad been gradually reduced by disbursements to
the amount above named. It is apparent, there
fore, that the financial stringency under discus
sion was not produced by the absorption of
money by the Treasury, DUt by causes wholly
outside of Treasury operations. At tho
time - when the financial pressure in
September reached its climax tho ex
traordinary disbursements for bond pur
chases had substantially exhausted the entire or
dinary treasury accumulations, and but for the
?.ct that Congress had wisely transferred the
bank-note redemption fund to the available
cash, there would have been no money at com
mand In the treasury by which the strained
financial conditions could have been relieved
and threatened panic and disaster averted. Had
this fund been in the banks Instead of tho Treas
ury the business of the country would have been
adjusted to the increased supply, and when the
strain came It would have been impossible for
the banks to meet it The government could not
have withdrawn it from the banks without com
lulling a contraction of their loans, and thus di
minishing their ability to give relief to their cus
tomers. The more recent financial stringency in No
vember, immediately after the disbursement of
over $100,000,000 for tho purchase and redemp
tion of bonds within tho preceding four months,
furnishes another forcible Illustration that such
stringencies aio due to other causes than Treas-
,ury operations.
Tariff and Customs Administration.
In my report of last year I recommended a re
vision of the tariff and the adoption of better
methods of customs administration. In provid
ing for a reduction of excessive revenue by a re
arrangement of the import duties, it was advised
, that tho opportunity be taken to remove in
equalities and incongruities resulting from de
fective legislation and changed conditions of
trade, and which bore injuriously upon public
and private interests; to simplify both rates and
classification; to enlarge the frea list by the ad
dition thereto of articles unsuited to domestic
production, or which were of an unprofitable or
unimportant character a9 subjects of domestic
industry, and to maintain the protective prin
ciple, and thus to stimulate and Improve our
home markets, and give remunerative employ
ment to our workingmen.
In the recent statutes, respectively known as
the "customs administrative act'" and the "tariff
act of 1890," these views have received legisla
tive approval and sanction. The customs ad
ministrative act went into operation Aug. 1,
1890. Four months is too short a time in which
to determine fully the merits of the law. but in
its operation thus far it seems to have fully Justi
fied its enactment. . The just interests of the
revenue and of honest Importers have been pro
moted, and the government has now, to a greater
extent than ever before, control of the means to
determine the legal rate and amount of duty due
and collectable upon importations.
It is recommended that that part of Section
8 of the law which requires a statement of the
cost of production of consigned merchandise Ie
repealed, as it Is found to be of little practical
utility, and to be obstructive to legitimate busi
ness. Also, that that part of fection 19 which
Imposes additional duties on unusual coverings
be modified so that such coverings shall pay a
single duty, at the rate to which they would be
subject If imported separately, not less than that
imposed upon the contents.
The purpose of the tariff act of Oct. 1 last was
to effect needed reduction of revenue, and such
an adjustment of duties as would adequately
foster and encourage home industries while
maintaining the standard of American wages.
This end, it is believed, has been accomplished.
More articles than ever before have been placed
upon the free Ut, rates have been reduced on
many others, and Increased duties have been
imposed when deemed necessary to the adequate
protection of our agricultural and manufactur
ing interests.
The area of population, the accumulated
wealth and characteristic resources of the United
States rendei it certain that, for many years to
cpme, the home market will be a better ono for
our own products than all others combined.
This very superiority of the United States as a
market is an inducement to foreign producers
every where to seek access to and control of It.
To permit our own producers to be driven out
by foreign competition would be to expel them
from their best and most natural market, and
compel them to seek inferior competitive mar
kets elsewhere. Free trade can never be suc
cessfully established or perpetuated in any
country whose home market for its own products
exceeds its aggregate markets abroad.
The provisions for the advancement of recip
rocal trade with other countries.as contemplated
by the law, are not hostile to the principle of
protection, but aro believed to bo in harmony
with it.
The law has been too short a time in operation
to warrant discussion herein of its many details.
It is believed that the measure is sound in
principle, and that its several classifications,
rates and other provisions have been ad
justed upon a comprehepsive view of
the vast interests of the whole coun
try. Tho law embraces so many and such
complex Interests that it is quite possible a prac
1 tical test may disclose the necessity for some
mortifications and corrections, but stability and
certainty In the revenue laws are so essential to
our tinancial and industrial prosperity that it is
earnestly hoped this law may have a fair trial
before any radical and sweeping changes shall
be attempted. The new industries which it was
fontidently expected would spring up under its
fostering care and the now homo markets which
would thereby be opened for American labor and
products will certainly fail of realization if any
well-grounded fear shall be aroused as to the
stability of the law or of the principle of protec
ts which it embodies. Especially will this be
the fact if the continued agitation of this ques
tion shall cause serious apprehension that the
protective principle is to be discarded and a
tariff for revenue only is to be adopted, whereby
our home market is to be exchanged for an un
certain and vastly inferior foreign one and the
country is to he depleted of its gold and silver to
pay for foreign labor and material which should
be supplied by our own people.
The continuing controversy between tho Amer
ican system of wisely-adjusted protection and
the opposite system of unchecked industrial
competition with all the world is the inevitable
contest between two irreconcilable standards of
civilization. The conditions under which we aro
enabled to make the concest for the higher
standard of living for all classes of our citizens
are peculiarly favorable. The United States,
with absolute freedom of trade, and perfectly
untrammeled Industrial competition among
sixty three millions of people, unsurpassed in
energy. Industry, and Inventive genius, and
with the widest possible range of climate and
natural products, are by these conditions assured
the Iowet range of prices compatible with a
reasonable return to producers, and the main
tenance of a higher standard of civilization for
the Industrial classes.
CHANGKS IN Till: LAWS RECOMMENDED.
I again urge certain amendments to the laws
'relating to tho customs service, which have been
heretofore recommended as essential to econom
ical and efficient administration.
First The Increase of the permanent appro
priation for the expense of collecting the reve
nue from customs. For many years the fund
available for defraying the expenses of collect
ing the revenue from customs has been Insuffici
ent to cover such expenses, and the department
has been unable to employ a sufficient force to
properly collect the revenue and guard against
evasions. It is false economy to refuse the means
to insure tho enforcement of the laws upon which
depend the revenues of the government. The
department Is almost daily compelled to refuse
expenditures absolutely necessary to such en
forcement. On this subject the following is
quoted from tho Secretary's last annual report:
Serious embarrassments have occurred several
times through deficiency in this appropriation,
which has proved insufficient to defray necessary
expenses of collection, the average annual cost of
which exceeds $7,000,000. The fund at dis
posal is derived from the permanent annual ap
propriation of $5,500,000 made by the act of
March 3, 1871, 'and in addition thereto such
sums as may be received from tines, penalties
and forfeitures connected with the customs, and
from fees paid into the treasury by customs
officers, and from storage, cartage.dray age, labor,
and services which on the date or the passage
of the act amounted to nearly $2,000,000. 6ince
that time the annual receipts from these sources
have diminished about $1,000,000, in conse
quence of legislation affecting tines, penalties
and forfeitures, and the abolition of many of the
official fees." The rapid growth of the country,
the opening of an immense line of unguarded
frontier by the building of railways and tho crea
tion of new ports, make the need of legislation
on this subject more imperative than ever be
fore. Second The compensation of all collectors of
customs by fixed salaries, and the abolishment
of all fees, commissions, perquisities and emolu
ments. This is necessary to secure uniformity
and the proper adjustment of the compensation
of these officers commensurate with their duties
and responsibilities. Under the present system
the emoluments of some collectors are excessive
while in other cases they are Inadequate.
Third The consolidation of customs districts,
demanded alike for reasons of economy and the
changed condition of commerce and transporta
tion. This might be accomplished by authoriz
ing the Secretary of the Treasury to change the
boundaries of customs districts, or to abolvh
districts when the expenditures exceed the re
ceipts therein.
Fourth Tho abolishment of oaths to monthly
accounts of customs employes as unnecessary,
and as subjecting there officers to useless ex
pense. Fifth The repeal of the laws requiring bonds
to be given by individual importers upon the en
try of merchandise for warehouse, and for the
return of packages not designated for examina
tion, and delivered to importers in advance of
appraisement and liquidation of duties. In the
case of warehouse bonds the government is
amply protected by the possession of the mer
chandise, and the so-called "return bonds" are
found in practice to serve no valuable end. The
taking of these useless bonds involves a large ex
pense without any compensating benefit.
Sixth The revision and codification of the
customs laws. Theee laws are now scattered
through the statutes, and 6bould be brought to
gether, revised, and re-enacted in one harmoni
ous code.
Seveuth-iLeglslatlon to secure railway statist
ics of foreign commerce. It is indispensable to
a proper record and exposition of the foreign
commerce of the United States that railway car
riers of merchandise should be required by law
to render such statistical returns as are required
of carriers of freight by water. Any attempt to
completely exhibit tho foreign trade of the coun
try is largely neutralized and frustrated at pres
ent by tho necessity of merely estimating the
greater part of such trade conducted by rail.
Infernal Revenue Collections.
The Secretary calls attention to the eco
nomical manner in which the internal rev
enue was collected. The receipts from all
sources aggregated, for the year ending
June SO, 1890, 142,594,696.57, and for the
year, 18S9. 130,894,434.20, makin? an increase
this year of $11,700,202.37. This vast sum
was collected at a cost of $1,095,110.80, be
ing W,617.S5 less than the cost of collection
in 1689, when the receipts were over eleven
millions less. The estimated receipts from
all sources for the current fiscal year ag
gregate 146,000,000. In connection with
the estimate of expenses for the next fiscal
year, the Secretary calls attention to the
fact that Section J31 of the act of Oct. 1,
1890, provides as follows:
"That on and after July 1, 1891, and until
July 1, 1905, there shall be paid, from any mon
eys in the treasury not otherwise appropriated,
under the provisions of Section 36yu of the lie
vised Statutes, to the producer of sugar testing
not less than 00 degrees by the polariscope,
from beets, sorghum, or sugar-cane grown with
in the United States, or from maple-sap' pro
duced within the United States, a bounty of 2
cents per pound; and upon such sugar testing
less than 00 degrees by the polariscope, and
not less than SO degrees, a bounty of 1
cent per pound, under such, rules and regula
tions as the Commissioner of Internal Revenue,
with the approval of the Secretary of the Treas
ury, shall prescribe.'
It is impossible at present to make, even an
approximate estimate of the expenses necessary
to carry into effect this provision of the law. It
is believed, however, that it will require a very
considerable sum of money to enable the depart
ment to ascertain upon what sugars this bounty
shall be paid, and the rate of bounty to .which
claimants for same may bo entitled." "
Congress also enacted a law authorizing the
makers of sweet wines to use grape brandy, free
of tax, for the fortification of their wines, and I
have not yet been able to make an estimate' of
what additional sums will be required to carry
into effect the provisions of this law.
The ascertaining of the amount of bounty to
be paid to the producers of sugar is an entirely
new feature in the internal revenue system. The
bureau has none of the machinery required to
execute the law. It is simply a collection office.
It will be necessary to make a chemical analysis
in all cases where bounty is claimed. It is not
deemed practical to have samples 6ent to this
office for analysis, and rely upon the tests made
here as to the entire production. The law re
quires that the tests shall be made by the polari
soope, and this will require the services of a
large number of chemists of considerable exper
ience. Only one chemist and ono microscopist
are now employed in the Bureau of Internal
Kevenue. I am informed that the Department
of Agriculture now employs a number of chem
ists, and gives much attention to the culture of
sugar-producing plants and the methods of man
ufacturing sugar.
In viow of thene facts, it is respectfully recom
mended that the law be so amended as to require
this bouuty to be ascertained and paid by the
department of Agriculture. If, however, it shall
be decided that this department shall remain
charged with the duty of ascertaining and pay
ing the bounty upon sugar, the Secretary is com-
pelled to ask the privilege of being allowed to
make a supplemental report upon these two sub
jects, and to ask for such additional appropria
tions as may be necessary to give these laws full
force and effect, and to fully protect the inter
ests of the government in their execution.
Money In Public Depositaries.
The monetary transactions of the government
have been conducted through the Treasurer of
the United States, nine sub-treasury officers and
275 national-bank depositaries. The number of
such depositaries on Nov. 1, 1890, was 201.
The amount of public moneys held by national
bank depositaries, including those to credit of
the Treasurer's general account and disbursing
officer's balances, on Mach 1. 1839, was $48,
818,991.63, which, being largely in excess of the
needs of tho public service, I have endeavored,
as far as practicable, to reduce to the amount
necessary to be kept with such depositaries for
the business transactions of the government.
To accomplish this purpose without seriously
disturbing the business of the people, who may
have been borrowers of these deposi
taries, by any sudden withdrawal of
large amounts, each depositary holding any
public money, in excess of that needed, was no
tified on 'ov. 30, 18S9, to transfer to tho sub
treasury on or before Jan. 15, 1890, an amount
equal to lo percent, of the excess, or, if pre
ferred, the whole amount could be transferred
at once. This gave ample time for the adjust
ment of any business changes made necessary
by the withdrawal of funds, and resulted in a
reduction of about $0,000,000. A similar noti
fication was given Jan. 28, 1890, allowing until
March 1, 1890. to make tho transfer, which re
sulted in a reduction of about $0,000,000. 2o
further notifications for withdrawals have yet
been made, but the holdings of the depositaries
have been further reduced by the purchase and
redemption of United States bonds held in trust
as security for deposits, and the payment of the
deposits, with these depositaries, from the pro
ceeds of the purchases or redemptions, so that
on Nov. 1, 1890, the amount held br banks was
$-M..037,687.08, a reduction since March 1, 188y,
Of 18.8$1,303.0j. .
The entire amount, thus withdrawn from the
banks, was in exoess of the needs, of the public
service with those depositaries, and was used in
payment of United States interest-bearing
bond purchased either from the banks relinquish
ing the deposits, or from others, and resulted in
a saving to the government, by reason of the
purchase of these bonds, and the consequent
stoppage of interest, of about $400,000 per an
num, touch withdrawal also increased the cir
culation, for in no case was a bank allowed to
hold public funds to tha amount of the market
value of the United States bonds furnished as
security therefor. On four-and-a-half-percent,
bonds a balance equal to par was allowed, and on
four-per-cent. bonds a balance, equal to 110 per
cent, of face value, so that for each $100,000
withdrawn from the banks payment from the
treasury was made for like amount of bonds,
with premium at an average rate of 105a for
four-and-a-half-pe.r-cent. and 127 for four-percent,
bonds, thus returning to the channels of
trade the amount of the deposit, and from $5,000
to $17,000 additional on each $100,000. The In
crease of circulation by these operations was
about $2,000,000.
The amount now held by the n' nal bank de
positaries is still in excess of the 1 xn;ents ot
the publio service, and further wlu. a.V will
be made whenever it can be done wii. ut detri
ment to business interests.
borne of the objections, believed to be con
clusive, against this method of restoring the sur
plus to circulation, were 6tated specifically in
the Secretary's last annual report. Subsequent
experience has continued the convictions then
expressed, that this policy is unwise and inex
pedient, and should never bo employed except
During tho recent financial stringency the Sec
retary was frequently urged to adopt this
method of reducing the snrplus, but he declined
to do so for the reasons stated in said report, and
also for the further reason that such relief vias
wholly impracticable to meet a sudden emer
gency. The law does not permit the transfer of
money, once covered Into the treasury, to banks
for commercial purposes, and it specifically for
bids such transfer of money received from cus
toms duties. The only authorirrd method of
making such deposits is to designate certain
banks as depositaries of publio xnoueys, after
which they may deposit United States
bonds to the amount designated, and then be au
thorized to receive sucn funds as may be there
after collected under the internal revenue laws.
This Is necessarily a very slow process, which
would require several weeks, if not months, to
produce any substantial effect npon the circula
tion. Such a policy would certainly prove a
most unsatisfactory way of affording relief to
the business interests of the country in an im
pending commercial crisis.
INDEPENDENT TREASURY SYSTEM.
There are doubtless some defects in the Independent-treasury
system, but an experience of
forty-four years has, in my Judgment, fully
demonstrated iu superiority to the bank-deposit '
policy, which it superseded. In tho annual re
port of the Secretary of the Treasury for the
year 1857 will be found a very forcible state
ment of the relative advantages of the two sys
tems in their ability to meet commercial crises,
as Illustrated in 1837 under the bank-deposit
policy, and in 1857, when the Independent
treasury system was in full operation:
"The operations of the independent-treasury
system in ordinary times had been found by
experience eminently successful The danger
of loss from unfaithful and inefficient officers,
the expense of conducting its operations with
out the intervention of bank agencies, its
deleterious effects upon commercial progress
and the general business of the country all of
which were apprehended by the opponents of
tho measure at tho time of its adoption have
been demonstrated to be unfounded. It only re
mained to encounter a commercial crisis like the
present to vindicate the justice and wisdom of
the policy against all cause of complaint or ap
prehension. A brief comparison of the opera
tions of the Treasury Department during the
suspension of 1837 and the present time will
place the subject before the publio mind in the
most satisfactory manner.
'On the 30th of June, 1837, immediately after
the general suspension, the deposit'banks held
to tho credit of the Treasurer of the United
States, and subject to his draft, the sum of $24,
994,158.37 alarger amount, in proportion to
the receipts and expenditures of the govern
ment, than there was in the treasury at the time
of the suspension by the banks the present year.
The funds of the government being then under
tho control of the banks, and they either un
willing or unable to pay, the government was
placed in the anomalous condition of having an
overflowing treasury, which It was seeking to
deplete by distribution or deposits with the
States, and yet unable to meet its most ordinary
obligations.
"The effort of the government to withdraw its
deposits and get control of its funds was felt as
an additional blow aimed at the banks. Every
dollar which could thus be drawn from the
vaults of the banks diminished to that extend
their ability to afford relief to their customers.
Their loans had to be contracted, and the de
mand made by them upon their debtors for set
tlement Increased the pressure already felt in the
money market, and thereby added to the general
panic and want of confidence, which are the
usual attendants of a monetary crisis. The gov
ernment was not only embarrassed for want of
its money, but in the effort to obtain it became
obnoxious to the charge of adding to the general
distress, which many persons thought it was its
duty to relieve. To avoid a recurrence of these
difficulties the plan of separating the govern
ment from all connection with the banks was
suggested, and in 1 846 was permanently adopted.
Tho result is beforo the country in the occur
rences of the last few weeks. The banks, as in
1837, have suspended specie payments, but the
analogy ceases there, so far as the operations of
the Treasury Department in its disbursements
are concerned. The government has its money in
the hands of its own officers, and in the only cur
rency known to the Constitulion. It has met ev
ery liability without embarrassment. It has
resorted to no expedient to meet the claims of its
creditors, but with promptness pays each one
upon presentation, -.if the contrast between the
operations of 1837 and the present time stopped
here it would bo enough to vindicate the policy
of the independentrtrea8ury system; but it does
not. The most remarkable feature distinguish
ing the two periods has reference to the effect
upon the commercial and general business inter
est of the countrr nroduced bv the nreseiXt oper
ations of tho independent Treasury. It Is the re-
lief which has been aff orded to the money market
by the disbursements in specie of the general
government. In 1837 the demand of the govern
ment for it funds with which to meet its obliga
tions weakened the banks, crippled their
resouroes and added to the general panic and
pressure. In 1857 the disbursements by the gov
ernment of its funds, which it kept in its own
vaults, supplied the banks with specie, strength
ened their hands, and would thus have enabled
them to afford relief when it was so much
needed if they had been in a condition to do it."
This item of history, and the many subsequent
operations of the independent-treasury system,
under like circumstances, are commended to tho
careful consideration of those' persons who now
insist upon its repeal, and upon a return to tho
old bank-deposit policy. It is worthy of ob
. scrvation, also, that the policy of affording "re
lief to the money market," now so much crit
icised in certain quarters, is by no means a new
thing. It has been the uniform policy of the
government, when possible, in all commercial
crises from 1846 to the present time. The diffi
culty which the department has encountered
during the last year in withdrawing a part of
our present bank neposits. even by the careful
and conservative methods adopted, and at times
when there was no tinancial pressure, gives some
conception of what those difficulties would bo in
making such withdrawals in times of stringency
and commercial distress. The experiences of
1837, related in the above quotations, would be
repeated, more or less, in every commercial
crisis.
THE CIRCULATING MEDIUM.
During the last twenty years the net aggre
gate increase ot money in actual circulation
among the people was $727,760,709. Average
monthly increase during that period, $3,032,330.
Per capita increase, $4,991. For the ast ten
years the aggregate. increase has been $476,039,
024. Average monthly increase for same period,
$3,966J)92. Per capita increase, $3,592. For
the period of nineteen months from March 1,
1889, to Oct. 1, 1890, the aggregate increase
has been $93,806,818. Average monthly In
crease In same period, $4,9 10.358. Per capita
increase, about $1.50. For the corresponding
period of nineteen months from March 1, 1S85,
to Oct. 1, 1886, the aggregate decrease in circu
lation among the people was $21,859493.
Average monthly decrease for samo ?eriod, $1,-
150,500. Per capita decrease, abo;c 40 cents.
For the period of three months from July 1, to
Oct. 1, 1890, the aggregate increase of circula
tion in actual use among the people was $68,
354,339. Average monthly increase for same
period of three months, $22,784,778.
These various changes in the amounts in actual
circulation among the people, were caused part
ly by the additions of new kinds of money, part
ly by the retirement of certain other kinds, and
sometimes, very largely, by the policies pur
sued by the Treasury Department. Tbe policy
of hoarding, in order to show a very largo sur
plus, accounts mainly for the heavy decrease of
circulation shown from March, 1885, to Octo
ber, 1886. The opposite policy of keeping the
surplus as low as practicable by the purchase of
United States bonds, and thereby saving inter
est, and at the same time returning the money
to the channels of trade, largely aocounts for the
remarkable increase in circulation during the
last nineteen months, as shown in tables Is'os. 3
and 5. '
This fact will be more readily understood by
the statement that from March 4, 1885, to Oct.
1, 1886, the total amount disbursed in redemp
tion of bonds was $79,026,200, while for a cor
responding period from March 4, 1889, toDct.
1, 1890, the total amount disbursed in the re
demption and purchase of bonds was $239,799,
091. How the Silver Lair Tlas Operated.
In my last annual report I presented, for the con
sideration of Congress, a plan for the utilization of
the silver product of the United States. The
measure proposed was briefly this: To purchase,
at the market price, the silver bullion product
of our mines and smelters, and to Issue, in pay
ment, legal-tender notes, redeemable in a quan
tity of silver bullion equivalent in value, at the
date of presentation, to the face of the notes, or
in gold, at tbe option of the government, or in
silver dollars, at tho option of the holder. This
measure was suggested with a view to promote
the Joint use of gold and silver as money, to in
crease the volume of paper currency by the an
nual addition of an amount equal to the value of
our silver product, to provide a home market for
the American product of silver, and, by so doing,
enhance the value of that metal, until a point
were reached where we could, with safety, open
our mints to the free coinage of both metals at a
Axed ratio.
- A bill embodying, with some modifications, the
measure suggested was favorably reported in the
House of Representatives of the Fifty-first Con
gress from the committee on coinage, weigbts
and measures and was adopted by the House.
The bill was amended in the Senate by the sub
stitution of a free-coinage measure. As the re
sult of a conference between the two bodies a
bill was passed and approved by the President
July 14, 1890, the essential provisions of which
are: The monthly purchase by the government
of 4,500.000 ounces of silver at the market pi ice,
to be paid for in legal-tender notes, redeemable
in coin, and the repeal after July 1, 1891, of the
mandatory coinage of silver dollars.
The material points of difference between the
measure recommended and the one adopted by
Congress are that the new silver law limits the
purchase of silver to 4,500,000 ounces per month
without distinction as to domestic and foreign
Eroductlon Instead of taking the entire silver
ullion product of the United states as proposed,
and omits the bullion redemption feature.
Immediately on the passage of the law new
forms of legal-tender notes were designed, in
denominations of one, two, live, ten. twenty,
fifty, one hundred and one thousand dollars, and
were engraved and printed at the Bureau of En
graving and Printing. Owing to the fact that
the purchases under the act were to commence
thirty days after its passage, it was necessary
that the larger denominations of notes should be
engraved first, but, at this time, a sufficient supply
r The latest Investigations by the United States and
Canadian Governments show the Royal Baking Powder
superior to all others in leavening strength. -.
r Statements by other manufacturers to the contrary
have been declared by the official authorities falsifica
tions of the official reports.
of the smaller denominations of notes arc being
received, aud It will be the policy of the depart
ment to pay out small notes, as far as practica
ble, in the purchase of silver. Regulations were
also prepared inviting offers for the sale of silver
for consideration at the Treasury Department,
at 1 o'clock i'. m., on Mondays, ednesdays and
Fridays of each week, and the effort has been to
distribute the purchases as nearly as possible
thionghout the month.
Under the operations of this law. the amount
of silver purchased from Aug. 31, 1890. to Dec.
1, 1890, aggregated 16,778.185 fineounces, cost
ing $18,671,075. an average of f 1.1 128 per tine
ounce. Ibe price of silver advanced rapidly
after the t assage of the new law; indeed, the
immediate effect of the law had been largely an
ticipated la the advance in price prior to Its pas
sage. On he 1st day of July, 1690, the price of
silver w as Ul.04.6. To July 14, the price had
advanced to $1.03; to Aug. 13. $1.13, and to
Sept. 3, $1. 21. the highest point reached. Since
that date there has been a decline, with f onie
fluctuations, to the present time, the price falling
as low as $0.97. ' .
Notwithstanding the fact that tho advance In
the price of silver following tho passage of the
law has not been maintained, the becretary
ventures to express the belief that the new silver
act is a great improvement over the law re
pealed, and that its beneficial results will event
ually commend It to general approval. As yet
the period of time has been too brief to really
test the merits or tho law, and the permanent
effect which it will have on tho price of silver.
One thing is certain, that It has been the means
of providing a healthy and much-reeded addi
tion to the circulating medium of the United
States. The amount of treasury notes Issued on
purchases of silver bullion from Aug. 13 to lov.
23, 1890, has been $18,807,000.
FLUCTUATIONS DUE TO SPECULATION.
It must be apparent to any careful observer of
the movement of sliver that tho recent violent
fluctuations in xrlce are mainly due to speculat
ive operations in the large surplus of from eight
to ten million ounces, which has not been ab
sorbed by treasury purchases. This downward
tendency 4ias been materially assisted by a se
vere and almost constant stringency of the
money market. This surplus was accumulated,
in the first instance, by tho withholding from the
market, by producers and speculators, for some
months prior to the passage of tho new silver
act, of the current product of America silver, in
the hop of securing a better price. It has been
maintained and augmented both by importations
of foreign silver and by a falling off In the ex
port of domestic silver, the latter occasioned
doubtless by tho fact that in the purchases of
silver under the now silver law the Treasury
Department has paid, as a rule, a price consid
erably in excess of the price of silver in London.
The imports into the United States of foreign
silver from May 1 to Nov. 1 of the present year
have exceed tho exrorts of do
mestic silver by some $7,750,000, while,
for the corresponding period of last
year, the exports exceeded the imports by some
$7,800,000. a difference or $15,610,000. an
amount in excess of the value of the present vis
ible stock of silver on the American market. So,
too, in regard to the movement of silver from
Ban Francisco to the Orient; not one ounce of
6ilver bullion has been shipped fcinco the first of
May, against an average exiort for prior years
of from $5,000,000 to $10,000,000. bo that the
present surplus stock of silver may, at any time,
be augmented by imports or diminished by ex
ports, and, as the current product of silver from
our mines does not differ very widely from the
monthly purehaees by the government, it is
probable that tho existing surplus will remain
for some time an impediment to the permanent
and steady advance of silver. Even if the pres
ent surplus should be purchased by the govern
ment, importations from abroad, might, at any
time, accumulate an additional stock of siver,
the manipulations of which by speculators
would result in wide fluctuations in price. Had
the law provided for tho purchase of only the
Eroduct of the United States, this surplus would
ave been absorbed ere this, and as none would
have been imported for speculative purposes no
surplus would have been accumulated. The
withdrawal of the entire jeilver product of our
mines and smelters, which amounts to nearly
one-half of the world's annual output of silver,
would probably soon create a shortage abroad,
and this in turn would cause a steady and per
manent advance in price.
COINAGE LEGISLATION ULGED.
The Secretary here details the operations
of the mints, which have already been
printed with the report of Director Leech.
He Tasks for additional legislation and says:
The attention of Congress Is respectfully re
quested to the act of May J6, 1882, authorizing
the exchange of gold bars for gold coin, freo of
charge, at the coinage mints and at the United
States assay ofilce at New York. I am of opinion
that this at has facilitated the movement of
gold from this country, and have tho honor to
recommeud its repeal, or that it be so modified
as to make the exchange of gold bars for gold
coin discretionary with the Treasury Depart
ment, and to allow the imposition of a email
charge equivalent to the cost of manufacturing
the bars, when the bars are intended for export.
Legislation is also recommended looking to tho
recoinage of tho subsidiary silver coins in the
treasury. There were on Oct. 25. 1890, sub
sidiary silver coins in the treasury of the face
value of $19,545,362.71, of which some $000,
000 were actually uncurrcnt, and a considerable
fortion of the remainder consisted of coins no
onger authorized to be issued. Of the balance,
the largo sum of $17,427,663.50 consisted of
half-dollars, for which there is no demand. If
authority of law existed for the recoinage of
these coins into new coins of denominations for
which there is a popular demand, it is believed
that tho very largo cash asset of $19,000,000, at
present unavailable, could be made an available
asset.
Asidefrom the importance of relieving the
treasury from this lncubumof uncurrent coln. lt
is the duty of the government to see that the
people are provided with a suitable amount of
change money In an attractive and desirable
form. Instead of waiting for small annual ap
propriations to accomplish this desirable end, it
seems eminently proper that authority should bo
granted the Treasury Department to recoln this
uncurrent silver coin into new coin, and to pay
the loss incident to such recoinage from the very
large profits which have been made by the gov
ernment on tbe manufacture and issue of silver
coin. I can conceive of no good reason for hoard
ing, in the treasury vaults, nineteen millions of
useless coin, which the peorle will not accept,
and denying to ihem the use of this large amount
of money In a form very much needed. A bill
was favorably reported from tho committee on
coinage, weights and measures of the Tifty-llrst
Congress, and is now on the House calendar,
authorizing such recoinage, and I have the honor
to respectfully urge its prompt and favorable
consideration.
On Feb. 18,1890, a communication was ad
dressed to the chairman of the committee on
publio buildings and grounds of the House of
Representatives, recommending the passage of
the bill for the sale of the present site and the
purchase of a new site and the erection of a suita
ble building for the mint at Philadelphia. The bill
was favorably reported from the committee on
fiablio buildings and grounds, and is now on tho
louse calendar, and it Is recommended that It
be enacted into Liw at the present session of
Congress.
Foreign Commerce and Decay of Shipping.
Much space in the report is devoted to
statistics relating to our exports and im
ports." The value of our foreign commerce
during the last fiscal year was greater than
for any previous year. It amounted to
?t.647,139,093, as against 81,487,533,027 during
the fiscal year 1S89, an increase of $159,G06
000. The value of imports of merchandise,
also, during the last fiscal year was the
largest in the history of our commerce,
amounting to $789,310,409, as against S745,
131.C52 .during the fiscal year 18S9, an in
crease of $44,178,757. The value of exports
of merchandise during tbe same period was
$857,828,684, as against ST42.401.375 for vhe
previous year, 18S9, an increase of $115,427,
S09. The exports exceeded the imports of
merchandise by SCS.518.275. The exports of
domestic merchandise were S115.011219 in
excess of the value of such exports dnring
the preceding year. The Secretary shows
that in 1857 American vessels carried 70.5
per cent, of our imports and exports, and
that by 1690 the percentage so carried had
fallen to 12.29. He adds:'
ft Is impossible to present a stronger argu
ment than. is contained in the above llgurcs for
vigorous and efficient measures in behalf of our
rapidly vanishing foreign merchant marine.
They show that the relative decline In our for
eign carrying trade has been, constant and
alarming. This decline has averaged 13 per
cent- per annum since 1857, until in 1890 the
percentage of imports and export carried in
American vessels was lees than In any year
RAILWAY TmB-TAUIXS.
From Indlinipolls Union SUtioa.
ennsylvaniaLinBsll
Last West- South Worth,
Trains ntn by Central Standard Tinu.
Leave for Pittsburg, Baltimore fd 4:4ft am
Washington, Philadelphia and New -J d 3:00 p m
York. (d 5:30 pm.
Arrive from the East, d 11:40 am,, d 12:50 pm.
and d 10:00 pm.
Leave for Columbus, 9:00 am.: arrive frorA
Columbus, 3:45 pm.; leave for Itlohmond. 4:09
pm.: arrive from Hlohmond, 9:00 am.
Leave for Chicago, d 1 1:05 am., d 11:30 pnv
arrive from Chioago, d 3:30 pm.; d 3:30 am.
Leave for Louisville, d 3:io am.. 8:00 ack,
d 3:45 pm. Arrive from Louisville, d 11:00 am
5:55 pin., d 10:50 pm.
Leave for Columbus, 4:10 pm. Arrive from
Cnlumbus, 10:20 am.
Xave for Vlnoennes and Cairo, 7:20 am.. 4:00
pin.; arrive from Vinoonnes and Cairo; 10:50
am.,5:tx) pm.
d. dully; other trains except Sunday.
TANDALIA LINE SHOUTiisr KOUTB TO
8T. LOUIS A!fD THE WtT.
Trains arrive and leave ludiar.spolls as follows:
Leave for SL Louis. 7:30 am. 11:50 am, 1.-00 p m. 1 1:03
pm.
Greenc&stle and Terre Hants Acoora'datlon. 4:00 pm.
Arrive from St. Louis, 3:45 ain. 4:15 am. U:50 pin, 5:29
pm. 7:15 pm.
Terre II aute and Oreen castle AccomMatlon. 1 0:00 anu
Sleeninc and Parlor C&ra are run ou through train.
For rates and Information apply to ticket agents of
the company, or W. Y BliUNNEU. District Pm-
enger Agent
TILE VESTIBULE
PULLMAN CAR LINTA.
lkavs nrDUNAPOLia.
No. "3 Monan acc, ex. tfantUy 5:19 pes
No. 38 ClilOAfo Linr, Pullman VeUbuled
coaches, parlor and dining car, dally 11:25 aq
Arrive In Ohicago 5:10 nm.
No. 34Chiogo Night Ex., PuUinan VeiU-
buled coaches and tleerers. daily 12:40 xS
Arrive In Chicago 7:35 am.
ARRIVE AT LNUIA-NAPOL1S.
No. 31 Vestibule, dally..,- 8:20 pm
Wo. 33-Vestlbule, daily.-. 345 am
No. 39 Motion Acc, ex. Sunday. 10:40 am
No. 4& Local freight leaves Alsbama-tt. yard at
7:05 am.
Pullman Vestibuled Sleepers for Chicago stand a
-west end of Union Station, and can be t&xeu at 8i0)
p. m., dally.
Ticket Oflees No. 25 South Illinois street and&t
Union Station.
AVrouglit-Iron ripe
Gas, Steam & Water
Boiler Tubes, Cast and
Malleable Iron Fittings
(black and galvanized).
Valves, Stop Cocks, Knirino
Trinfminfirs. Steam Oamres,
Pipe Tongs, Pipe Cutters,
Vises, screw Plates and
Dies, Wrenches, Steam
Traps, Pumps, Kitchen
Sinks, Ilose, Beltinp, Bab
bitt Metal, Solder, Whit
and Colored W'lpins: Waste,
and all other supplies used
In connection with CJas,
Steam and Water. Natural
Gas Supplies a specialty.
Steam-heating Apparatus
for Publio Buildings. Store
rooms, Mills, Shop, Facto
ries, Laundries, Lumber
Dry-houses, etc Cut and
Thread to order any size
Wrought-iron Pipe from e
inch to 12 inches d lame tec
KNIOHT A JILLSO.V,
75 fc 77 ii. Pennsylvania st
since he formation of the government. These
figures appeal alike to our national pride and
our natloual interests. Tho folly and the dan
ger of depending upon our competitors for tho
means of access to foreign markets need not bo
stated. The humiliation of witnessing the dis
appearance of our flag from tho high seas, 'with
out one ellort to restore it to its former proud
tK)sition, cannot be expressed. Surely no subject
Is of greater Importance than the enlargement
of our foreign markets, and nothing will con
tribute more to that end than tbe command of
ample facilities for reaching them. 'Aid to our
merchant marine is not aid to a class, but to the
farmer, the manufacturer, and the merchant, as
well as to the ship-builder and ship-owner.
No interest is more thoroughly interwoven
with all others, or more worthy of the fostering
care and protection of the Nation. None has
been so vigorously and effectively assailed by
foreiKn governments, nor so persistently icnored
and neglected by our own. The reasons for our
present humiliating position are well known,
Tbe remedy i plain and easily within our power.
In the Secretary's annual report for lfcsO are
stated somewhat in detail the causes of present
conditions, and tbe practical remedy for them.
These recommendations are now renewed and
respectfully urged upon the prompt and favora
ble consideration of Congress.
Immigration and Allen Labor. '
Under the beads of "Immigration" and
"Alien Contract-labor Law" tbe Secretary
eays:
The noticeable feature of our Immigration la
recent years has been a change in the character
of many of the lumlgrants, who do not readily
asslollate with our people and are not in sym
pathy with our institutions. Bo long as unde
sirable iinmigratlomwas a matter of rare oc
currence and desirable immigration the rule,
the rational policy was pursued of permitting
all to come to our snores who desired to no so.
The conditions are now materially changed, and
the tendency of Congress, as shown hjfethe alien
contract, pauper and Chinese exclusion acts, has
been to limit and restrict Immigration. It is a
matter of public knowledge that transportation
Irom any part of Plurope to our Atlantic ports Is
so cheap and easy as practically to exclude none,
and the consequence is that our asylums for tha
poor, the ick and the insane, and our prisons,
are crowded with strangers, whose charge upon
the public may be said to have begun with their
lanuing. .
Further legislation is needed to exclude per
rous unlit for citizenship, and It is therefore rec
ommended that all immigrants be required, as a
condition precedent to their landing, to produce)
evidence attested by our consular ollicers of their
moral, mental and pbjical qualifications to be
come good citizens. Our country owe too much
in greatness and prosperity to its naturalized
citizens to wish to Impede the natural move
ment of such valuable members of society to our
shores, and it Is ah additional argument in behalf
of tbe proposed plan of certification that it would
lend encouragement to the continuance of such
additions to our population.
With the administration ut New York of the
immigration laws entirely within the control of
the department, a more satisfactory and effect
ive enforcement has been possible of the laws
against the Introduction into the United Mates
of laborers who come under coutract. The In
spectors appointed by the department work
under the direction of and in sympathy with tho
Superintendent of Immigration, and in a unity
of interest to this end tho object of tbe law is
more surely obtained. From April 10, 18DO, to
Oct. 1, lb9U, 123 imported aliens were detected,
and returned, while during. the longer period
from March 1, 1881), to April 11), lsyo, but forty
such persons were sent back. From all tho
ports less than fifty alien contract laborers wera
returned during the four years preceding March
1, 1889, while since that date two hundred have
been so deported.
The defense of our wage-workers against un
fair competition is so essential a part of the In
dustrial protective system of the country that
nothing should be left undone in legislation or
administration to make It eltectlve. The law
should, however, be amended as suggested la
my last report, so as to relieve clergymen,
teachers and scientists from its prohibitive
features.
Minister Lincoln Was Not There.
Chicago, Deo. 2. Kobert T. Lincoln
minister to England, this afternoon denied
tbe statement cabled to London that be at
tended tbe Irish demonstration at liattexy
D on Saturday nigbt and that be acted as
one of the vice-presidents on the occasion,
lie received an invitation to be present at
tbe meeting, but did not attend. He could
not. be said, commit ho grave an indiscre
tion as to attend a meeting of such a char
acter wbilo occupying bis present position
toward the Knglish government. Mr. Lin
coln will start for Knglaxd at tho end ot
this month.
Health is wealth. Take Sitnmcns Liver Rcgu
ator for all sickness caused by diseased Uvea
m
ktional Tube-Worls
It
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