Show BY TELEGRAPH TEL PER WESTERN UNION UMON TELEGRAPH LV UIE N r 1 ara A M JF hlll rac CAIN A 31 washington WASHING TOx 23 abram S hewitt representing the minority of the committee on ways and means today tu to day submitted admitted a report on the morrisa 11 bill directing the payments of the surplus in tue treasury exceeding in liquidation of the national debt the effect of the resolution says sas the report if esrael ed into law would wadid be to reduce leduce the balance in the treasury available av flable for the payment of its curlent indebtedness and tor for the redemption demp tion of legal tender notes to it makes no provision for re tile the treasury gaeu the available balance shall fall below the question thus presented is whether in view of the functions of the Tre treasury abury as now defined by law tile the prop proposed omed limitation or balance naw held for meeting the liabilities le payable on demand is prudent and sate safe in view of tile the pledge of tile the united states to redeem ull its indebtedness in coin or its ita equivalent T tue lle under signed believes that such auch a limitation would be unwise dangerous and at variance alike with the experience ol of solvent nations and of sound noan floan cial institutions the ordinary disbursements bur of tile the treasury Tie abury may be roughly totaled stated to amount to 1000 daily to meet this it is necessary that a reasonable reabon able working balance should be kept on hand because ati at times we the current expenditures largely lai gely exceed the daily receipts Car careau efti business firms u usually baily carry a balance equal to rooue one months disburse ments measured by this stal stai dard dadd and a lower one could bately be adopted because the secretary of tile the treasury U hai power to inake temporary temp orar th the woi wo boiku ikU king balance in thi th treasury should be about that this amount la is not too large iare will wili be appareti app areni the hut lu ill tile pension bureau alone drafts for foi 10 will ne be made on oil tile the first 01 ol march aud and that tile amount of probable payments under nude r tile arrears ai rears ac count cannot be axed for any specified data but besides the current ex benses pi provided ov aided tor for by jaw the united states has a totally obligation obligA liou to provide for the debt payable on de mand in tile the shape of of legal tender notes chest notes forin about one half of paper cu nency tuey constitute the anal 1 means of payment between them thein and of the settlement in all transactions tran actions it is absolutely necessary therefore ore that the ability to re these notes iu in coin should he be al all times assured beyond peradventure the only question is ia as to the ar amount of coin bilich will constitute a reasonable and adequate reserve to determine r this point we have another guide than that of usage and experience in tile the case of gold eold and silver certificates the treasury keeps dollar for dollar but in case of legal tender notes it has not been usual to have at any time in the treasury a reserve iu ili coin exceeding one half tile the whole issue of such notes when specie payments were resumed the bonds of tile the united states were sold so as to provide a fund amounting to in gold lor for the purpose of as assuring surins the redemption of notes which as tte the law then provided were to be reduced by the cancellation of it was certainly not safe to begin resumption with less than one thud third the reserve and as a matter mattei of fact the available balance in the treasury amounted to over 40 per cent at the ane present tune time under tile practice of tile treasury claimed to be in accordance with tilt tile bank ban act of 1882 in gold coin is set ajaib acarl for the redemption ot leguil lecul te ader note being beius bauier les I 1 than J 19 ayi percent ct nt this thib reserve would be regarded reg aided by prudent bankers as tile minimum amount in an easy money market but if the financial prospects should be threatening prudence that it should be enlarged and strengthened the practice of the treasury under secretary sherman who put the redemption ori act into operation was not to allow the reserve to fall off below 40 per cent and all things considered this is probably pro bally the smallest amount consistent with absolute safety if this ratio should be adopted the amount of reserve in coin would be adding this thib amount to the a mount amount heretofore stated as a reasonable working balance we have the sum of as the minimum balance which the treasury should carry in order to be in a condition of ease and safety any other conclusion is at variance with the lessons of experience and well established rules for the sate safe conduct of business the main argument for infringing on this balance must be the saving of interest inte iest on ta which after allowing for the tax on bank baak circulation is ai 2 per cent per annum amounting to annually but bat it is to be remembered that the demand debt of the united states represented by the legal tender notes bears interest so that tae government could well afford the outlay required to keep its finances in the strongest possible c condition ondi tion and should certainly cena never approach t tte ie point where under the law it may become ury nry to sell cited united states stales bonds in order to pre preserve berve specie payments such a contingency would not be an edifying spectacle to the people whose proud boast it is that within 20 yea s from the close of the war it has paid id oft off more than one hau half of the publio debt and reduced the burden of in terest to one third of its it 3 original amount certainly a policy so nu ruminating ruina ting would be condemned by the people when its effect should become apparent the greatest care must be taken not to interfere with the flexibility of the wr currency rency and the only flexible agency rests in the treasury in the power now exercised oy by the secretary to make calls lor the redemption de demp eption tion of the ane public debt it is a great quetin question whether such a power should ever be entrusted to the gohei ariment or to toe the discretion of an official in other conservative commercial countries it has been conferred upon intermediate agencies in ili direct communication with the business in lereste of the people we have no such system and ance h ace the treasury has been forced to become a member of tile the new york dealing clearing house which is the financial center of exen exchanges anges in the country the treasury is thus practically engaged in the banking business not only in the issue of currency hut but in adapting its operations to the general requirements of trade dangerous as this system is it was the he outgrowth of tie ne assily es essaiy and until some other security beside the bonded debt of ie ae united states is devised for far the issue of bank currency cui rency tile the power to the relief of the money mat ket in times of stringency mut must rest with the treasurer one other consideration may be presented as a fatal argument against 11 i ns ll 11 the reduction of the treasury balance 1 1 e e to in coin as necessary at all times to be kept for foi the redemption ot of the legal tender notes the ability of speculators to reduce atals balance below by pre enting demand notes for payment I 1 is avious obvious bv ious and unless the expedient of replacing the amount by the sale of bonds he be rebooted to the mone money market markel call be so manipulated as to impair confidence and bring about general li i sater by which the operators for thi the tall fall would reap an profit at lne ine expense ot of tile the legiLl mate busi burucs of the country the undersigned undersigner under signed being clearly of the opinion that the proposed red reduction will neither be eco Joi too so far fai as the government is couce rued nor advant ag ous to the in eresta chests of the country t but ut in fact lre ifield dangerous in times ot 01 recur ling stringencies in the money market lct that it be laid upon the table the report I 1 ii i signed by mr hewitt massis M sars reed red R ed hiscock hicock brown and IcK iun while agreeing with mr rev hevitt itt that the should not pass differ as to some borne points of hit his aigul argul nuni neuL and attach tile the following wing to his bis report the undersigned undersigner under signed deem that at least are needed as a suitable security for the redempa redemption ion of legal tender note sand think that the securities ought 11 not to be impaired we think anat a sufficient working reserve for the busine s of the government ought to be retained in tile itie treasury in addition to the legal tender lender redemption tile the bill proposed by the committee in our opinion ignores the these conditions and in ili our judgement jud gement will shake public confidence in the stability of our currency in such a way that the saving of interest which the bill might cau causewell sewill be but a trifle compared with the injury threatened threater ked MONTREAL 23 supt bupt stephenson of the grand trunk hallway recently made an application to the treasury department nt at washington to have the cub customs regulations which apply to pass euge edge s and baggage now in ili lorce force in kew en england gland extended to the middle southern and southwestern states duplications of tho the application have just been granted ala on aud and after tile the 1st ast of march next all passengers destined for any point in thy lite united states over the grand railway can have bave their baggage examined h kiy lle U S custom otlie officers urs dimind it t Mon freal hresc toron 0 n o loudon and a id stratford after which thy the baggage will go through without further examination at ahe the united states frontier the suit of mcrae against the canada paci tic railway lor for was commenced yesterday mcrae was one of the contractors on the trestle work north of lake superior and claims that by his contract he was entitled to be paid not only for the permanent trestle but also for all wood work upon which these trestles were built and which has since been removed A large number of prominent engineers from the united states and canada will be examined upwards of I 1 witnesses have been summoned if mcrae is successful in his suit three oiher ocher contractors will take similar ac tion aggregating re over SAN FRANCISCO 23 93 the fie united states steamer bear one of the greeley relief vessels arrived from new york today to day it is expected she will be sent to the arctic ocean in search of the crew of the whaler amethyst facts have bale been learned today to day of a number of of disasters in the south pacific ocean the schooner navigator which left this city several mouths months ago for a cruise among the samoan islands was struck by a heavy sea capsized and became a total loss while bound from apia abia to Tortu illa two cities on the samoan islands the crew and seven passengers were saved the vessel was waa recently built and was valued at the schooner Dorma teta cruising cruis ipg among tile the sandwich islands was dis d Is covered bottom up in the hawaiian fla wailan channel she had on board a crew ol 01 six bix men and one passenger all alj ol 01 whom it is believed are lost the att vessel sel was valued at insured for 4 on january steamer A rianner ri anter while bound from kavi to Nei llau in the sandwich asand wibb lalanda islands struck a reef near the latter place during a heavy fog and was completely wrecked no lives were lost the vessel was valued at alil uninsured CHICAGO 23 the atchison topeka asanta santa fe railroad withdrew its rebate today to day the union pacina fell into line hue and the burlington missouri river rate to san francisco from the missouri river of SO limited first class and 20 emigrant became the ruling ligure figure this again reduces the rate late to portland oregon via san francisco below the reduction recently y made inside by the northern pacific to the same point and that line hue will be forced to come down again the last cut drives into the utah territory tile the local rate from council bluffs to ogden has been which is ib if 2150 2160 above tile tiie present ruling rate to san francisco As a consequence all ail the local tates sates to and beyond ogden are disturbed tile the leading officials think that both pas r and freight rates will go down to merely rely nominal figures I 1 at present frei freight ht out of chicago is being taken at about 60 per cent off although heavy shippers can get still lowers figures in cala 23 akrap arrangements cements have been completed for holding a southern california citrus fair at chicago under the auspices of the immigration migra tiou association of southern cadi oruis of which col H HH H boyce of the los angeles times is president nie tair fair will be held about the middle of maian in the exposition building one of tile the features will be a jb bearing earing biange grove giove SAN T francisco 23 by the efforts of it C B B auckland Buc klaud resident agent of the new zealand government in this city aud and tile the operation cooperation co of the local pot poi office the ahti australian mail winch vilich arrived ai rived yesterday afternoon on the mariposa was sent overland on the cast abound train tucson arizona 23 Ile general crook left today to day for mexico to meet the apache chief gerolimo Gero aimo with whom tie lie expects to make terms for the suri render of all the hostile apaches ST hr PAUL 21 24 toe st paul minneapolis ae local passenger agents association ocia tiou this morning issued instruct i eions to sell firby class alais limited tickets to san bau francisco wo via either omaha or 01 kausas city cit for 44 65 and second sei ond class limited for ba the northern pacific still retains the isido 65 passenger I 1 late ale to san isao francisco but has had mada made a cut on the rate to portland as announced yesterday yeste iday washington 24 4 charles francis president of the union pacific railway Compan yand ex senator mc dugald attorney tor for the central pacific roads appeared before tile the house committee ou on pacific railways today to day and expressed their views at length upon the genei general al subject of the in indebtedness debt of the pacific railways adams declared that the present management ot 01 tile the union pacific company was endeavoring deavo ring to fulfil fulfill the companas comp anys obligations to tile the government in goud good faith and that the road was not manip i for speculative purposes I 1 A large proportion ro portion of the stock they said wastell was held by es tates and widows the unaided branch lines constituted the main source of revenue and without them the road could not be operated at a profit washington 24 the general subject of the issue of the treasury notes and silver certificates on small denominations was discussed at to days meeting of the house committee of banking and currency there are now 48 bills before the committee touching the subject under consideration it was the sense of the committee that a general bill or perhaps two co covering verin the should be formulated and ana reported in lieu of these bills and with that chat view VICA the bills wilt will be divided adiong tree hub bub committees for ex the secretary of the treasury has written to representative morrison chairman of the ways and means committee in regard to the probable effect the passage of the morrison tariff bill will have upon the public revenues in the letter he says that the net reduction computed on the basis of last years importations would be about twelve million dollars in regard to the proviso limiting tile the maximum of dus dues to certain ad valorem lorem va rates it says it leaves room for controversy on values but that the values could be |