L68 



CONORBSa fTm PEEsiDEjrr'a MESSAGE.) 



Our new tariff pol- 



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iMMlilad by the graataat pojail 



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vbieb oorproducto and manafoctare. may be, Iran*- 



which baa been protacted to 

 wived by the proapect of 

 for abipa when buftt, and 

 'd ba feaamotod and again take hi. place 

 and indaetrioae citiaen in time of neace 



. 



Mb*7toahipa built .broad and owned by An, n- 

 cea appear, in the light of preaant condition, not 

 only tobea failure for good at every point, but to be 

 nearer a raUe of barbarbm than anything that exist. 

 oodar tbe paratoaion of a atatute of the United State*. 

 1 earoeMly recommend it. prompt repeal* 

 Daring tbe bet month the goldraaerve in the 

 ntaaiy for tbe porpoae of redeeming the not 



the: notej of 



irculating aa money in the hand, of 

 tbe peoc4e became ao reduced, uid its further deple- 

 tion in the near future aeemed ao certain, that in the 

 exarciM of proper care for the public welfare it be- 

 to replenish thi. reserve, and thus 

 in the ability and determma- 



tion of the Government to meet, a* agreed, it. pecun- 



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MO well if in thi. emergency au- 

 to toeue the bond, of the Govern- 

 a low rate of interest and maturing 

 a abort period; but the Congreaa having 

 feUed to confer each authority, resort was necessarily 

 bad to tbe reeomptkm act of 1875, and pursuant to its 

 piovieton. bond, were toaoed drawing interest at the 

 rate of ft par cent per annum and maturing ten yean 

 tbeirtoaae, that being the ahorteat time author- 

 , t I am clad to sy. however, that on 

 of tbeae bond, tbe premium received operated 

 the rate of iatereat to be paid by the < 

 to lea. than S percent. 



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relations exiating bet 

 meat baa waned, the gold 

 bald for ha redemption, and tbe mean, whi.h m.M be 

 reaortad to for tbe purpoee of rtplenuhin^ such re- 



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rauon. meant their cancellation, the fund would U- 

 Rut theae obligation, when received and 

 ir-.bl are not canceled, bat are reissued, 

 . H by way of drawing 

 < Treasury. Thus we have an endlea. 

 chain la operation oonatantlv depleting the Treawiry 1 . 

 old and never near .final rert. A. if thi. was not 

 bad enough, we have, by a statutory declaration that 

 it to tbe policy of the Government to maintain the 

 parity between mid and aflver, aided the force and 

 i of thi. cxh.wting proeeaa and added 



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"d redemption. Oar email gold reaerve to 

 to drain from every aide. Thedemand. 

 oar danger atoo fncreaae the neceaaity 

 Jfeb reaerve ajrainst depletion, and it M 

 u> know that the protection af- 



vary amalL Rut i 

 redaam.d in gold 







old from the Tr, 



replenbhed i. thmuirh 

 of the bond, of the Governr. 

 ; and yet Congrew ha. not only thun far declined 

 ae the iaane of bond, beat raited to rach a 



in some quar- 



ter, to deny both the necessity und I>W<T for the 

 toaaeofboodaatalL 



loan n<>t I-T a m<>ment believe that any ..four citi- 

 wna are deb .:iinc that their Government 



It in its pecuniary obligation, or that its 



operation* .-h"iill l U) :t -i!\.r 



At any rate, 1 .lioul.l n<>t t.. 1 tlmt my <luty 

 wan don- it [omitted ai .i.i make 1 



\- long, thi-n-lon-. ju. in. IT 

 i. made lor the final rrlrm|.ti<.M .r tin- puttm.- 

 of the riirn-n.-y obligation now UM-<! t.. r. p. ntr.llv 

 and oonnUntly draw tr<>ui ti . nt Itagold, 



anda.longa.no better authority t.. r i.n.l i^ue. i. 

 allowed than at praaent exfot., Mii-Ji autliority will !., 

 ami ax.t^n a > it beoomea neoea- 

 .ary to maintain a pullirii-nt gnM n-w TV,-. i,n<l it 

 lant tinu- to >a\r lli .-n-ilit ..f..ur -.untry an<l iniikn 

 good the financial dcclarationH of our Qovammanti 



Queation. relating to our l^ank- :m<l urn-iir\ ;in- 

 closely connected with tin- Mil.jcct ju 

 aixl nay also present m>tne un.nt aturee. 



rriiiii)'iit amoim thrin an- tin- la-k of elltttldtj fan 

 our rnrn-ncy <-ir > ulation, and it** froqiu i ' 

 tion in rtnancial ri-nt-r> \\ln-n it i> nio.t nc<-ll in 

 otlu-r part.-, of tin- country. 



The absolute <liv..r-i i t from 



the businem >t l.ankin^ is the ideal relutionHhip of 

 the Government to the circulation of the 

 the country. 



Tim condition can not bo inum iliatcly r. i 

 but as a step in that direction and as a means of se- 

 curing a more elaMic currency and obviating other 

 ohji-ctions to tin- pn-M-nt arranV r -iiM-nt <t' liank <-ir-u- 

 lation. tin- > in liis 



n-jK.rt a scheme mo<lif\ iiiu' ]'r^-nt hanking hi 

 t>rovilinjr for tlie if-.-iit- 't' ctroniatillff noto l-y State 

 bonks free from taxation under rertain liiuitat'ioii.s. 



ary explains his plan so plainly, and its 

 advantages are developed by nini with mob remark- 

 able clearness, that any effort -n my part to 

 argument in its aoppott \sould ha hujx-rtluous. 1 

 shall therefore content myself witli an unqualified 

 indorsement of the Seen fan's projmscd ohai 

 the law and a brief and impt-rfect statement : 

 prominent features. 



It is proposed to repeal all la\\s providing for tfat 

 deposit of United States U.ndsa.s seeurity for circula- 

 tion; to permit national bank.- to issue circulating in-tes 

 edin^r in amount 7"> j>-r cent, of their paid-up 

 anl unimpaired capital. ]'ro\ide<l they d posit with the. 

 (io\ernnu-nt, as a fruarantce fund, in United State. 

 Ic^al-tender notes, including Treasury notes of 1890, 

 a sum ejual in amount to ;;n j.-r cent. .f tl.- 

 they desire to issue, this defiosit to be maintained at 

 all times, but whenever any bank retires an\ 



ulation a proj-ortional j-art ot 



fund shall be returned to it ; to permit the Secretary 

 ;ry to prej-are and keep on hand ready 



. reaat in circulat: 



blank national bank note- f.. reach bank ha\ 

 eulation and to repeal the provis; 

 law itii|K>tiin(; limitations and restrictions uj^.n bank. 

 duce or increase their circulation thu. 

 pajmitmig MMil increase orn-duc-tion within the limit 

 of 75 per cent, of capital to be quickly made a- 



arise. 



In addition to the guarantee fund required it is 

 proposed to provide a safety fund for ti 

 n-demption of the circulating notes of failed banks, 

 by itn}M>sint; a small annual tax, say, one half of i j,cr 

 cent, upon the average circu l.ank until 



the fund amount, to 6 per cent, of the total circula- 

 tion outstanding. When a bank fails its guarantee 

 fund i. to be paid into this safety fund and its note. 

 are to be redeemed in the first ''. 

 safety fund thus augmented any impairment of such 

 fund caused thereby to be made good from the imme- 

 diately available cash assets of said bank, and i: 

 should be insufficient, such impairment to be made 

 good by pro rota assessment amontr the other banks, 

 their contributions constituting a first lien upon the 



