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Birmingham state herald. (Birmingham, Ala.) 1895-1897, December 17, 1895, Image 1

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BIRMINGHAM STATE HERALD.
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VOLUME 22: . BIRMINGHAM:, ALA., TUESDAY, DECEMBER 17, 1895. NUMBER. 82.
__- «—«»- •
MR, CARLISLE'S REPORT
Shows a Deficit of Forty-two Mil
lion Dollars
FOR THE LAST FISCAL YEAR
The Deficit for This Year Is Estimated at
Only $17,000,000.
HE PREDICTS A SURPLUS FOR 1C37
The Prefont Revenue Laws Will Yield Am
ple Revenue if Rigid Economy la En
forced—The Bond Deal Defended.
He Suggests a Remedy.
Washington, Dec. 16.—The annual re
port of Hon. John G. Carlisle, secretary
of the treasury, presented to congress to
day, is a document of some 35,000 words.
The greater part of this space, however.
Is devoted to a recapitulation of reports
of the numerous bureaus of the depart
ment over which Mr. Carlisle presides,
and to statisttcal matter already made
public.
Passing over these and coming to the
secretary’s discussion of the condition
of the treasury and the currency the re
port says;
At the beginning of the last fiscal year,
July 1, 1894. the cash balance in the treas
ury, excluding all current liabilities, but
Including a gold reserve of $64,873,024,
was $117,584,436, and at the close of the
year, June 30, 1895, the cash balance, ex
cluding all current liabilities, but lnclud
inga gold reserve of $100,000,000, was $195,
240.153, showing an Increase of $77,657,717.
The excess of expenditures over receipts
during the year was $42,805,233, as against
a deficiency of $69,803,260 during the fiscal
year of 1894. The total receipts during
the fiscal year 1895 were $15,668,055 greater
than the receipts during the fiscal year
1894, and the expenditures were $11,329,981
less than during the year 1894. The rev
enue derived from customs during the
year 1895 exceeded the revenue derived
from the same source in 1S94 by the sum
of $20,340,086, but the receipts under the
internal revenue laws and from other
sources were less than during the pre
vious j’ear; the net increase of revenue
was $15,668,055, as above stated.
If the income tax provision contained
in the act of August 28, 1894, had been
sustained by the courts it is believed
that the deficiency for the year would not
have exceeded the amount In my last an
nual report. In that report the opinion
was expressed that the law then in force
would not only yield an ample revenue
during the fiscal year 1896. but there
would be a surplus of nearly $29,000,000.
This opinion was based upon the suppo
sition, which then seemed to be well
founded, that all the sources of revenue
provided in the act of August 28, 1894,
would be available, and that owing to
the,higher rate of taxation imposed upon
distilled spirits and some other articles
the receipts under the internal revenue
laws would be very considerably In
creased; but the decision of the supremo
court holding the Income tax provisions
of the act to be unconstitutional, and the
fact that the receipts from internal rev
enue did not increase as anticipated,
hut actually fell off $3,689,560 during the
fiscal year 1895 as compared with the
previous year, notwithstanding the high
er rate imposed on spirits and other ar
ticles, have greatly altered the situation,
and I am now of the opinion that there
will be a deficiency of about $17,000,000
during the current fiscal year.
Treasury Notes.
x iic iuiui excess oi expenunures over
receipts from July 1, 1893, to December 1,
1895, was $130,221,024, and of this sum
$22,462,290 was paid out of the balance on
hand at this date in excess of $100,000,000,
and the remainder has been supplied by
the use of United States notes and treas
ury notes presented for redemption, and
thus received into the treasury in ex
change for gold coin. The act of May 31,
1878, provided that when any United
States note “may be redeemed or be re
ceived into the treasury under any law
from any source whatever, and shall be
long to the United States, they shall not
be retired, canceled or destroyed, but
they shall be reissued and paid out again
and kept in circulation,” and the act of
July 14, 1890, provided that the treasury
notes, when redeemed, may be reissued,
but that "no greater or less amount of
such notes shall be outstanding at any
time than the cost of the silver bullion
and the standard silver dollars coined
therefrom then held in the treasury pur
chased by such notes.”
It is clear that when any of these notes,
have been redeemed they do not consti
tute a part of the reserve fund, but be
come a part of the general cash assets
of the treasury, to be used in the same
manner as other money belonging to the
government. Whenever they could, by
exchanges, be used to procure gold for
the replenishment of the reserve, they
have been so applfed, but when this could
not be done they have been treated as
available funds in the treasury and re
issued in payment of public expenses.
None of my predecessors in office have
ever made any distinction between the
notes received in payment of the ordinary
revenue and notes presented by the hold
ers and redeemed in coin, but such noted
have been used indiscriminately, as the
exigencies of the public service required.
Secretary Sherman called attention to
this question In his annual report for
1877. The result was that congress passed
the act of May 31, 1878, making it manda
tory upon the secretary of the treasury
to reissue the notes. Since that act the
right and duty of the secretary of the
treasury to reissue the old legal tender
notes, no matter how received into the
treasury, provided they belong to the
United States, has never been questioned
in any quarter, and as to the treasury
notes Issued under the silver purchasing
act, they must be reissued when re
deemed in gold, or, if canceled, standard
silver dollars must be Issued In their
place, for if this were not done there
8vould be a smaller amount of such notes
outstanding than the coijt of the silver
bullion and the standard silver dollars
coined therefrom and held In the treas
ury, and this condition is expressly pro
liibited by the statute under which the
notes were issued. Whether these notes
are reissued or destroyed and standard
silver dollars substituted for them, the
practical result is the same, for in both
cases the secretary would be using notes
redeemed in gold for the payment of the
ordinary expenses of the government;
in one case, by paying out the notes them
selves, and In the other by drawing silver
from a reserve fund on account of their
cancellation, and then paying out the
silver.
Cash Balance.
i The cash balance in the treasury on
the 1st day of December, 1895, was $177,
406,386, being $98,072,420 in excess of the
actual gold reserve on that day, and $77,
406,386 in excess of any sum that it would
be necessary to use for replenishing that
fund in case the secretary should at any
time be able to exchange currency for
gold. There is, therefore, no reason to
doubt the ability of the government to
discharge all its current obligations dur
ing the current fiscal year and have a
large cash balance at its close, without
imposing additional taxation in any form
upon the people, but I adhere to the opin
ion heretofore expressed that the secre
tary of the treasury ought always to
have authority to issue and sell, or use
in the payment of expenses, short time
bonds bearing a low rate of interest, to
supply casual deficiencies in the revenue.
While the situation does not require
any legislation for raising additional rev
enue by taxation at this time, it is such
as to require the strictest economy in
appropriations and public expenditures.
Nearly every appropriation is in terms,
or by necessary implication, a direction
to the executive authorities to expend
the money, and therefore the responsi
bility for an increase or reduction of ex
penditures rests primarily and mainly
upon congress.
witn a complete return to tne normal
business conditions of the country and
a proper legislative and executive super
vision over expenditures, the revenue
laws now in force will, in my opinion,
yield ample means for the support of the
public service upon the basis now estab
lished; and upon the assumption, which
seems to be justified, that the progress
now being made toward the restoration
of our usual state of prosperity will con
tinue without serious interruption, it is
estimated that there will be a surplus of
nearly $7,000,000 during the fiscal year
1S97. During the fiscal years 1894 and 1895
the ordinary expenditures of the govern
ment have been decreased $27,282,656 as
compared with the fiscal year 1893, and
it is believed that with the co-operation
of congress further reductions can be
made in the future without impairing the
efficiency of the public service.
The Bond Issues.
Between the 1st day of February, 1894,
and the 15th day of March, 1S95, three is
sues of bonds were made, amounting in
the aggregate of $162,315,400.
The payments into the treasury on ac
count of the second bond sale were not
entirely completed until after the 1st day
of December, 1S94, and it soon became ev
ident that the transaction had not been
effectual to stop the drain of gold.
On the 8th of February, 1S95, the re
serve had been reduced to $41,340,181 and
several millions more had been demand
ed, a part of which was taken out and
afterwards returned to the treasury on
account of the temporary restoration of
confidence resulting from the fact that
it became generally known that meas
ures were about to be taken for the re
plenishment of the reserve.
The large withdrawals in December,
1894, and in January and the early part
of February, 1895, were due almost en
tirely to a feeling of apprehension in
the public mind, which increased from
day to day until it nearly reached the
proportions of a panic, and it was evi
dent to all who were familiar with the
situation that unless effectual steps were
promptly taken to check the growing
distrust the'"government would be com
pelled within a few days to suspend gold
payments and drop to a depreciated sil
ver nnd paper standard. More than $43,
000,000 of the amount withdrawn during
the brief period last mentioned was not
demanded for export, but was taken out
by people who had become alarmed on
account of the critical condition of the
treasury in its relations to the currency
of the country.
Congress, although earnestly appealed
to for relief, having failed to make any
other provision for meeting the emer
gency, a contract, the particulars of
which were immediately communicated
to that body, was entered into on the 8th
day of February, 1895, for the purchase of
3,500,000 ounces of standard gold coin, at
the price of $17.80,441 per ounce, to be
paid for by the delivery of United States
bonds, having thirty years to run and
bearing 4 per cent interest, and the gold
to be deposited at the United States sub
treasuries. By the terms of the contract
not less than one-half of the gold was to
be procured abroad, and the parties with
whom it was made stipulated that they
would "as far as lies in their power ex
ert all financial influence and will make
all legitimate efforts to protect the treas
ury of the United States against the
withdrawals of the gold pending the con
plete performance of the contract.”
This undertaking was faithfully and
efficiently carried out, and no gold was
taken from the treasury to be used in
paying for the bonds, as had been done
in the two former cases, nor was any
withdrawn for shipment until after the
delivery had been completed under the
contract.
After a large part of the gold had been
furnished from abroad, the secretary, in
order to prevent disturbance in the rates
of foreign exchange at a critical period
and avoid a condition which would force
gold exports and consequent withdrawals
trom the treasury, acquiesced in a de
parture from the literal terms of the con
tract that one-half of the coin should be
procured abroad and accepted deposits
of gold then held in this coun
try to complete the delivery. Ordinary
prudence demanded that the success of
the plan to protect the treasury against
withdrawals should not be endangered
by insisting upon a strict compliance
with all the details of the contract, es
pecially as the government could sustain
no loss, and the whole amount of gold
stipulated for was secured.
The details of the bond Issues are then
stated, and the secretary says:
The beneficial effects of this transac
tion were felt immediately, not only in
this country, but in every other having
commercial or financial relations with
our people. Confidence in our securities
as a safe and profitable investment was
at once restored to such an extent that
they ceased to be returned to our own
market for sale, and a very considerable
demand for them was created abroad;
but the most gratifying evidences of im
provement in our condition were afforded
by the prompt revival of business among
oiir own people, the increased activity
and extension of our domestic, industrial
and commercial operations, the rise in
the prices of our principal agricultural
products aim me general reeling III re
lief and security which became apparent
In every part of the country. These en
couraging indications of increasing pros
perity still continue, and it Is reason
ably certain that if our progress is not
checked by a repetition of large demands
upon our resources, or by a failure to
meet the Just reyyislteg of tlje people In
respect to the reformation of our finan
cial system, we are entering upon an era
or material growtli and development not
surpassed In our history.
But. adds Secretary Carlisle, our fur
ther progress towards a complete restora
tion of confidence and prosperity is seri
ously impeded by the defects In our cur
rency laws, and he proceeds to discuss
the remedy as follows:
Our past experience with the United
States notes and the treasury notes has
clearly shown that the policy of attempt
ing to retain these obligations of the gov
ernment permanently as a part of our
circulating medium and to redeem them
In coin on presentation and reissue them
after redemption must be abandoned, or
that such means must be at once pro
vided as will have a tendency to faclU
tate the efforts of the secretary to ac
cumulate and maintain a coin reserve
sufficient In amount to keep the public
constantly assured of the stability of our
entire volume of currency and of our
ability at all times to preserve equality
in the exchangeable value of its various
parts.
Tbe issue of bonds to procure coin for
the reserve, which is the only effective
method now available under the law,will,
unless the conditions which have already
been developed by the present policy are
radically changed, ultimately result in
the creation of a public debt much
larger than would be required to retire
and cancel all the notes; and the annual
Interest charge will be much greater
than It would be necessary to Incur on a
new class of bonds adapted to the present
circumstances of the government and the
well known preferences of investors. If,
however, an attempt Is to be made to
keep the United States notes and treas
ury notes permanently in circulation by
reissues after redemption, and the gov
ernment is to be permanently charged
with the duty of sustaining the value of
all our currency, paper and coin alike,
the conclusion cannot be avoided that the
policy of Issuing bonds for the accom
plishment of these purposes must also
become permanent, and such additional
powers must be conferred upon the secre
tary as will enable him to execute the
laws relating to these subjects with the
least possible disturbance of the busi
ness affairs of the public and the least
possible charge upon ■ the treasury. I
nm thoroughly convinced that this pol
icy ought not to be continued, hut that
the United States notes and treasury
notes should be retired from circula
tion at the earliest practicable day, and
that the government should be wholly
relieved from the responsibility of pro
viding a credit currency for the people.
If our legal tender notes were retired
there Is abundant reason to believe that
a very large amount of gold which has
been excluded from the country by the
excessive use of silver and paper in our
circulation would promptly return to
take its place in our currency and con
stitute a permanent part of our medium
of exchange.
The retirement and cancellation or the
legal tender notes would not necessarily
produce any contraction of the circula
tion; and if such a result should continue
for any considerable period, it would he
a demonstration of the fact that the
volume of currency previously existing
was not needed in the business of the
people, for whenever the volume is re
duced below the actual requirements of
trade the deficiency will be supplied
either from abroad In exchange for our
products and securities or by the banks
at home, or by both.
Loss ot Revenue.
After discussing at considerable length
the disturbances to the country caused
by the silver purchasing act Secretary
Carlisle continues as follows:
The great loss of revenue, instead of be
ing the cause of our financial difficulties,
is one of the effects produced by a de
fective currency system, and a failure to
recognize this Important fact will lead
us further astray in our search for an
adequate remedy. It is true that the
tariff act of 1890, which remained in force
until after the cIosp of the fiscal year 1894,
had greatly reduced the revenue derived
from customs, and that the expenditures
of the government wererincreased from ,
$318,040,710 during the fiscal year 1890 to
$383,477,954 during the fiscal year 1893;
still it is not probable that there would
have been any considerable excess of ex
penditures over receipts if the business
of the people had not been interrupted
by the disturbances growing out of the
unsatisfactory condition of our currency.
Remedies which might have been more
or less effective under other circum
stances cannot be in the least degree ef
fective now, and it would be futile and
dangerous at this time to attempt a cor
rection of our financial disorders other
wise than by a total removal of their
causes.
No surplus revenue, however large,
could extricate us from our present dif
ficulties or give assurance of safety in
the future unless it should be required
to be paid in gold under a system which
would exempt the government from the
obligation to furnish the gold when de
manded to be used in making the pay
ments; and it is scarcely necessary to
suggest that such a system is impossible
as long as the United States notes and
treasury notes are kept in circulation
and are redeemable in gold by the gov
ernment itself on presentation.
Possible Dangers.
Owing to the peculiar character of our
currency the ability of the treasury to
hoard United States and treasury notes
is limited to a certain amount—which
cannot be definitely determined in ad
vance—and if it should, after that
amount has been reached, refuse to p_ay
out these notes in making disbursements
at the places where our customs are col
lected, the immediate result would be
that nearly all payments to the govern
ment would be made In silver certifi
cates, which it is bound to take, but can
compel no one else to take. There would
be a stream of these non-legal tender
certificates constantly flowing into the
treasury, and it would receive scarcely
any more United States notes or treas
ury notes as parts of the surplus revenue,
but would soon be compelled to pay out
those already accumulated, or pay gold,
or break down in its obligations at the
sub-treasuries. This result has been
avoided heretofore only by paying out
these notes from the treasury from time
to time whenever the character of the
currency coming in Indicated that the
point of danger was about to be reached,
and it will be necessary to pursue the
same policy hereafter as long as the legal
tender notes are In existence. Notwith
standing all the efforts of the depart
ment to protect the treasury against ex
cessive receipts of these certificates, it
has frequently happened that they con
stitute more than 80 per cent of all the
payments of customs dues at New York,
where more than two-thirds of the total
collections are made; but if the United
States legal tender paper should be re
tired and a proper currency system
adopted, gold and gold certificates and
bank notes redeemable in gold will take
their place In the circulation, and the
government will have no further trouble
in the kind of money used in its receipts
or payments.
nut even it mis aimcuuy couiu De od
vlated, an attempt to Impose taxation
upon our people sufficient in amount to
enable the treasury to take up and per
manently hoard all the legal tender mon
ey, now amounting to about $485,000,000,
would be the most remarkable financial
experiment of modern times, while an at
tempt to secure by taxation within any
reasonable period a sum sufficient for
their redemption and cancellation as
they may be received Into the treasury,
although not quite so Impracticable as
the other, would just as certainly fall to
accomplish the object Intended.
The Bemedy.
In regard to remedial measures Secre
tary Carlisle says: There is but one safe
and effectual way to protect our treasu
ry against the demands, and that is to
retire and cancel the notes which con
stitute the only means through which
withdrawals can be made. Many partial
and temporary remedies may be sug
gested and urged, wLth more or less
plausibility, but this is the only one that
will certainly remove the pause of our
troubles and give assurance of perma
'TconUnued^nlPifttf Page.)
HOKE SMjJIT HARD
Delegate Flynn of Oklahoma
Calls on the Secretary
TO ANSWER A GRAVE CHARGE
He Was Severely Criticised for Not Attending
to His Business.
COMPETITION FROM CHINA AND JAPAN
Called Forth, a Passionate Speech From Sen
ator Stewart Suggesting That Free
Coinage of Silver Is the Only
Remedy for the Evil.
Washington, Dec. 16.—The evils with
which our manufacturing industry is
threatened by competition from China
and Japan were passionately portrayed
in the senate today by Mr. Stewart, pop
ulist, of Nevada, in connection with his
resolution instructing the finance com
mittee to inquire what the effect of the
difference of exchange between gold
standard countries and silver standard
countries has been on the agricultural
and manufacturing industries of thil
United States. Mr. Stewart's contention
was that the expenses of labor and mate
rials arc paid for in silver by those coun
tries and as the products are sold in the
United States and Europe for gold or its
equivalent the orientals have, in the dif
ference of exchange, an advantage of 50
per cent, and that this advantage, joined
to their mechanical skill, their low wages
and their cheap mode of living, enables
them to undersell all competitors, and
will, if not checked, transfer the manu
facturing of the world from the west to
the east. The only way to prevent such
ap evil, Mr, Stewart argued, is to restore
till' parity between gold and silver.
No action was taken on the resolution,
which lies on the table, to be called up
at any time for further discussion. The
other proceedings in the senate today
were of a routine character. Petitions
were presented for a restoration of thet
wool and woolen scherjule of the Mc
Kinley tariff act and for 1 cent letter
postage. Hills were introduced to exclude
aliens from public employment and to
protect public forest reservations, and
a resolution was offered by Mr. Caffery
and agreed to calling on the president
far a report as to why the law providing
for the payment of a sugar bounty has
not been executed.
Mr. Call presented a written state
ment. the name of the writer being with
held. asserting the unreliability of the
press dispatches relating to Cuba, and
also asserting ‘‘the complete organization
ard success of the revolutionists.” Re
ferred to the committee on foreign rela
tions.
Among the numerous bills introduced
and referred was one by Mr. Gallinger,
republican, of New Hampshire, exclud
ing aliens from public employment.
At 2:30 p. m. the senate adjourned until
tomorrow.
TheHouBe.
The session of the house today lasted
an hour end forty minutes and was de
voted chiefly to routine business. Dele
gate Flynn of Oklahoma offered a reso
lution. which was adopted, calling on the
secretary of th<^ interior for the reason
why that officer had not thrown open to
settlement the Wichita Indian reser
vation in Oklahoma, and inquiring
whether any of Secretary Smith’s rela
tives were interested in delaying the time
of its opening. He severely criticised the
secretary for dereliction in executing the
laws of congress and asserted that there
never was a secretary of the Interior
since the foundation of the government
who had devoted less time to his public
duties than Secretary Smith, who. he
said, was “parading around the country
changing his mind on the money ques
tion."
Tomorrow was set apart for the con
sideration of amendments to the rules
of the Fifty-first congress so as to per
mit an enlargement of the list of com
mittees and an Increase of membership
thereon.
A hill was passed to legalize certain
practices in vogue of Importing fishes,
packing them in bonded warehouses for
export.
Unsuccessful attempts were made to
haveprlnted in the Record various memo
rials and petitions on the Cuban and
Armenian questions. Th" house then at
1:40 p. m. adjourned until tomorrow.
A GOOD STORY SPOILED.
Officials of the Foreign Office Deny That Gi
braltar Will be Swapped for Cuba
and Her Debt.
London, Dec. 16.—The officials at the
foreign office, when questioned on, the
subject today, declared that they knew
nothing save from newspaper reports of
the story that has been circulated to the
effect that Great Britain is negotiating
with Spain for the cession of Cuba.
The report above referred to was that
Great Britain, in return for the cession
of Cuba, would turn Gibraltar over to
Spain, assume the Cuban debt and ac
quiesce in the Spanish plans in Morocco.
Prime Minister Canovas Del Castillo,
It was said, was favorable to the idea of
ceding Cuba to Great Britain, but only as
a last resource.
No Concert of the Powers.
Manchester, Dec. 16.—The Guardian
says that the Duke of Westminster a
few days ago wrote a letter to Lord Sal
isbury urging that England take decisive
action to put a stop to the atrocities in
Armenia. In reply to this letter the pre
mier admitted that there really was no
effective concei t of the European powers
in regard to Turkey. He was convinced,
he said, that although public opinion In
England was deeply moved at the hor
rors in Armenia, there was no such deep
seated feeling existing In the countries
of the continent.
A Thousand Men Murdered.
Zanzibar, Dec. 16.—Advices have been
received here that on the night of No
vember 26 a caravan of 1200 men en route
for Eldoma was attacked by Chief Masai
and his followers, and that 1000 men com
prising the caravan were murdered.
His Bill Disapproved.
Berlin, Dec. 16.—Dr. Von Boetticher,
minister of th,e interior for the whole
empire, Introduced in the relchstag today
a bill providing for the creation of a
chamber composed ef artisans and em
ployers, whose duty It shall be to decide
disputes. None of the other minis
ters were present when the bill was intro
duced. Disapproval of the measure was
expressed on all sides.
Abyssinia Wants Peace.
Home, Dec. 16.—It is rumored that
Great Britain has agreed to cede the Is
land of Zela, Africa, to Italy for a period,
of several years duration. The Italian
ironclad Etruria, conveying men and
war materials, has sailed, it is supposed,
for Zela. The government is Informed
that Abyssinian Chief Ras Makonnen
has sent a message to General Baratleri,
commanding the Italian forces in Abys
sinia, proposing terms of peace. General
Baratierl has not yet replied to the mes
sage. i
Turks Defeated.
Athens, Dec. 16.—A dispatch from
Syria, capital of the island of Ktna, says
that three battalions of Turkish troops
have been defeated by the Cretans at
Apokorona, Crete, the Turkish loss beinf s
twenty-four killed and thirty-eigt ^
wounded. The Cretan loss was live kill A;
and eight wounded. The dispatch f<SM
says that the Turks have murdered tv. j
women, five children and three men at
Alicampo.
Cuba Is Worrying Spain.
Madrid, Dec. 16.—Dispatches received
from Havana say that the insurgents
are continuing to burn the buildings and
crops of sugar plantations and are de
stroying other property. The cabinet is
discussing the plan of sending further
reinforcements to Cuba.
British Allies Dispersed.
London, Dec. 16.—A dispatch from
Cape Coast Castle to the News Agency
says It is reported there that King Prem
pen of Ashantee has attacked and routed
a tribe of Adansias, native allies of the
British, dispersing them with great
slaughter.
THE VENEZUELA QUESTION
Mr. Cleveland Will Send the Entire Corre
spondence to Congress Without Any
Definite Recommendation.
Washington, Dec. 16.—Secretary Olney
was closeted with the president nearly
all the morning, this conference follow
ing one of equal duration last night.
The Venezuelan matter, it is understood,
was under discussion and it is stated
that the conclusion reached was to send
Into the senate, probably tomorrow, the
text of Secretary Olney’s note to the
British government defining the Monroe
doctrine, and also the text of Lord Salis
bury's reply, in which, after consulting,
as he says, most eminent authorities on
International law, he states the British
view of the legal question presented. The
whole controversy, so far as the British
side is concerned, is stated to assume an
exceedingly technical legal shape and
the belief is that the president will send
the matter to congress for its action
without any definite recommendation,
except such as may be derived from cor
respondence.
Copies of Lord Salisbury's note have
been made at the state department and
are ready for transmission at any time.
The correspondence relating to the Ar
menian situation is also being prepared .
and will follow the Salisbury note in a
very short time._
FEDERATION OF LABOR.
Cincinnati Defeated Nashville for the Hon
ors of the Next Convention.
New York, Dec. 16.—The delegates to
the American Federation of Labor con
vention assembled this morning at 9:30
o’clock, with President McBride in the
chair. Samuel Gompers, the new pres
ident, will not take his office until Jan
uary 1.
Cincinnati was selected as the place for
holding the next convention.
The vote resulted as follows: Cincin
nati 1706, Nashville 381.
The committee appointed last week
to confer with the managers of the Amer
ican Tobacco company made a report
through Delegate White. The conference
was held, but President Duke would not
listen to the proposition to have the em
ployes become union workmen. The
committee recommended that the boycott
levied a month ago be continued, and
tho matter was referred to the committee
on labels and boycotts.
The committee on resolutions reported
favorably on a resolution amending the
provisions of the alien law, making it a
penal offense for an Immigrant to swear
falsely about his mission to this country.
The committee also presented a resolu
tion, a substance of which recommends
that there should be more voting out
side of party lines, and that labor de
mands labor measures in preference to
party (measures. This resolution was
being discussed when an adjournment
was taken until tomorrow._
THE SPORTS DISAPPOINTED.
Congressman Boatner and Major Hearsey
Have Kissed and Made Up.
New Orleans, La., Dec. 16—There has
been an honorable adjustment of the
differences between Major Hearsey of
the States and Congressman Boatner.
All arrangements for a meeting on the
field at 11 o'clock today had been made,
when gentlemen of prominence in the
state interfered and brought such
weight to bear as to reach a basis upon
which a settlement of the differences
might be made. The arrangements are
understood to be satisfactory and the ad
justment is honorable to both gentlemen.
AN EDITOR SHOT.
Chief Justice David S. Snodgrass of Ten
nessee Was tho Shooter.
Chattanooga, Tenn., Dec. 16.—Chief
Justice David S. Snodgrass of the su
preme court of Tennessee, at noon to
day, shot Col. John R. Beasley while in
the law office of Brown & Spurlock.
Two shots were fired by the chief Jus
tice, one taking effect In Beasley's left
arm and producing a flesh wound. The
'cause was a long Item in the newspapers
this morning headed: "Some Tennessee
History. Col. John R. Beasley Recalls
Matters Gone By.”
German Opera in New Orleans.
New Orleans. Dec. 16.—This city was
treated to the first German opera per
formance In Its history tonight and it
was greatly enjoyed by a large audlenco
at the St. Charles theater. The op»ra
was "Lohengrin,” which was presented
by Walter Damrosch and his company
In magnificent style. The management!
had promised an Ideal cast for this per
formance and kept Its promise.
A National Bank Failure.
Lincoln. Neb., Dec. 16.—The German
National bank closed its doors this morn
ing, and Is under the care of the national
bank examiner. The capital stock was
$100,000, and deposits about $50,000. The
assets are several times that amount.
The Dolta Bank Burned.
Jackson, Miss., Dec. 16.—A private tele
gram from Greenwood says the Delta
bank was burned this morning. Every
thing was saved except furniture.
A LAND GHUSKEO FOR
By the Board of Trustees of the
Girls’ Industrial School.
THEAPPROPRIATION $15,000,
s _
N.
Whi ^,8 Not Near Sufficient to Sustain the
4; School.
o
j/'
(ARLES BURTON’S DEADLY WORK
I
0
He Shoots Mr. Williams, a White Man, and
Johnson Dalton, an Inoffensive and
Peaceable Nemro— Burton Escapes.
Efforts Made to Capture Him.
_______
Montgomery, Dec. 16.—(Special.)—Gov
ernor Oates has, at the suggestion of the
board of trustees of the White Girls’ In
dustrial school, directed a letter to each
of the Alabama senators and to all of
the congressmen from this state, asking
that they use their efforts to secure from
congress a land grant as an endowment
for the institution. The governor re
minds them that the state appropriation
is only $15,000, which Is not near suffi
cient to sustain the school, and he begs
them to do all In their power to urge
congress to act in the matter. The gov
ernor also calls their attention to the
fact that the negroes have three flourish
ing industrial schools in the state, and
the white people have, excepting the in
stitution In question, not one. It is
earnestly hoped here that the school will
be handsomely endowed by congress,
and that it will be made one of the fore
most educational Institutions of the
state.
New Council National Union.
A new council of the National Union
is to be instituted In this city tomorrow
night by Mr. T. Gardner Foster, with ai
long list of charter members. The Na
tional Union is one of the most flourish
ing orders in the country, and it has one
of the largest local memberships of any,
order in the city.
A Desperado’s Deadly Work.
Charles Burton, a negro desperado, be
came Involved in a quarrel with two
white men at Mitchell station, in this
county, last night, and several shots
were exchanged. Burton ran. A Mr.
Williams,a prominent white farmer living
near by, hearing the firing, raised his
window and peered out. As he did so
Burton turned in his flight and shot
Williams in the forehead with a Winches
ter. Half a block further on Burton en
countered a peaceable negro, Johnson
Dalton, whom he shot through the heart.
Williams and Dalton are dead. Burton
escaped.
GOLD GOES A GLTMMEBING.
$3,200,000 Was Withdrawn Yesterday
and More to Follow.
Washington, Dec. 16 —The treasury de
partment was informed this afternoon
that $3,200,000 In gold had- been with
drawn at the New York sub-treasury for
export tomorrow. Most of the gold goes
to Germany. Of the gold withdrawn
$2,800,000 was in bars and $400,000 in coin.
This reduces the treasury gold reserve
to $72,804,766. Talk of another issue of
bonds has naturally been revived by the
heavy withdrawals, but at the treasury
no preparations for this purpose are in
progress. As congress has not had time
to indicate Us intention in this matter
it is probable the president will not act
at once In the matter. There is said to
be absolutely no doubt that should the
gold reserve drop below what is regarded
as the point of confidence, and in the ab
sence of congressional action, either im
mediate or prospective, the president will
direct an Issue of $50,000,000 of bonds to
rehabilitate the gold reserve.
President Carlisle’s annual report to
congress was laid before the senate a
few minutes after noon, and at the sama
time printed copies were laid upon the
desks of senators. The most significant
statement concerning the report was
perhaps that of Mr. Voorhees, the pres
ent chairman of the finance committee,
who expressed the belief that a resolu
tion declaring It to be inexpedient and
unwise to retire the greenbacks would
scarcely receive fifteen negative votes In
the senate. _
A BOMB OK NOT A BOMB.
That Is the Question That Is Agitating
Washington’s Police.
Washington, Dec. 16.—The police are
confident tliat the so-called ''bomb" left
on the Spanish minister’s doorsteps Sun
day morning was a harmless affair, but
they are searching for the perpetrator of
the hoax. The package was a common
pasteboard box, partially filled with
crushed coal, some granular substance
like sugar and two worn-out zinc sticks
for a gravity battery. The fuse was
merely a strip of twisted paper, which
was not burning when the butler dis
covered the package, but which h»d ap
parently been lighted at one time. While
Minister Dupuy DeLome had no Idea the
affair was explosive, he is opposed to
such jokes and Is anxious for the police
to catch the offenders In order that there
will be no repetition of the afTair. The
police place It on a par with the alleged
"Infernal machine” sent to Chief Jus
tice Fuller some time ago. which simply,
consisted of fulminating powder and
shoe blacking._
Fops on a Still Hunt.
Jackson, Miss., Dec, 16.—Delegates to
the meeting of the people's party execu
tive comrinrtee here Tuesday are arriv
ing. They have evidently attempted a
secret meeting, as no call has been pub
lished. They are very reticent as to tha
object of the meeting, stating that State
Chairman Prewitt has not arrived and
do not want to talk without consulting
with him. It Is learned, however, a part
of the programme Is to call a state con
vention to select delegates to the na
tional convention, which they say will
be held early next year, probably In At
lanta; also to provide for congressional
conventions, with the view to placing a
full ticket in the field.
To Prevent an Outbreak.
Louisville. Ky.. Dec. 16—The murder
trial of B. F. French of French-Everson
feud fame was transferred from Hazard
to Jackson this morning by Special Judge
Phillips to prevent another outbreak be
tween the factions, who were on hand in
full force at Hazard, armed to the teeth.
A Fire at tlio Exposition.
Atlanta, Dec. 16.—At 2 o'clock this
morning fire broke out In the Mexican
village at the exposition. The flames
were extinguished hefnre any great dam
age was done, but three or four persons
were injured In fighting the flames.

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