OCR Text |
Show CLEVELAND'S MESSAGE. Comprehensive Discussion of Monetary Affairs, But No Silver Lining to the Financial Cloud. The Surplus Eevenne Should Stop, and the Taxes of Every Family Be Lightened. . Recruits, Deserters, and the General Status of the Army Touched Upon. (.Continued from yesterday's edition.) Some of the principal exports with their values and the percentage they respectively respect-ively bear to the total exportation are given as follows : - ABTIOIiES. VALUE. PEB CT. Cotton and cotton manufactures man-ufactures .........$213,799,019 29.42 Manufactures and bread-stuffs bread-stuffs 160,370.820 22.07 Provisions 107,332,456 14.77 OiL3 Mineral, vegetable and animal 64,326,202 7.48 Tobacco and its maim- factures 24,767,305 3.41 Wool and its manufac- turea...., 21,464,322 '2.95 " OUK IMPORTS During the year were as follows : Merchandise, Mer-chandise, $579,580,053.80; gold, $26,691,-896 $26,691,-896 ; silver, $15,550,627. Total, $622,822,-376.80. $622,822,-376.80. The following are given as prominent articles of import during the year, with their values and the percentage they bear to the importation : i AETICLES. VALUE. pEB CT. Sugar and molasses. . . : . $ 76,738,713 13.29 Coffee j. 46,723,318 8.09 Wool and its manufactures manufac-tures 44,656,482 7.73 Silk and its manufactures manufac-tures 40,393,002 6.99 Chemicals, dyings and medicines 35,070,816 6.07 Iron and steel manufactures manufac-tures 34,503,689 5.09 Flax, hemp, jute and their manufactures... 32,854,874 5.69 Cotton and its manufactures manufac-tures V 28,152,001 4.88 Hides and skins other than fur skins 20,586,443 3.56 Of the entire amount of duties collected, 70 er cent, was collected for the following follow-ing articles of import : Sugar and molasses, molas-ses, 29; wool and its manufactures, 15 ; silk and its manufactures, 8; iron and steel and their manufactures, 7; cotton manufactures, 6; flax, hemp and jute and their manufactures. 5. The fact that our revenues are in excess of the actual needs of an economic administration ad-ministration of the Government justifies a reduction in the amount exacted from the people for its support. Our Govern-jnent Govern-jnent is but the means established by the will of a free people by which certain principles are applied, which they have adopted for their benefit and protection, and it is never better administered and its true spirit is never better observed than when the people's taxation for its s"pport is scrupulously limited to the actual necessity of expenditure and distributed dis-tributed according to a just and equitable plan. The proposition with which we have to deal is the reduction of the revenue received re-ceived by the Government and indirectly paid by the people, from customs duties. The question of free tradeis not involved, nor is there now any occasion for the general gen-eral discussion of the wisdom or expediency ex-pediency of a protective system. Justice and fairness dictate that in anv modiina- tion of our present laws relating to revenue, the industries and interests which have been encouraged bv such laws, and in which our citizens have large investments should not be ruthlessly injured in-jured or destroyed. We should also deal with the subject in such a manner as to protect the interests of American labor, which is the capital of our workingmen. Its stability and proper remuneration furnisli the most justifiable pretexts for a protective policy. Within these limitations limita-tions a certain reduction having been determined, the inquiry follows, where can it best be remitted and what articles can best be released from duty in the interest in-terest of our citizens ? I think the reduc tion should be made in the revenue derived de-rived from a tax upon the imported necessaries neces-saries of life. We thus directly lessen the cost of living of every familv in the land and release to the publicm every home a larger measure of the rewards of industry. THE NATIONAL BANKS. During the year ended . November 1st, I8S5, 145 National Banks were organized with an aggregate capital of $16,937,000, and circulating notes have been issued to them ameunting to $4,274,910. The whole number of these banks in existence exist-ence on the day above-mentioned was 2,727. The very limited amount of circulating cir-culating notes issued by our National banks, compared with the amount the law permits them to issue upon a deposit of bonds for their redemption, indicates that the volume of our circulating medium may Te largely increased through their instrumentality. THE SILVER QUESTION. Nothing more important than the present condition of our currency and coinage can claim your attention. Since rerjruary, 1878, the Government has under the compulsory provisions of law, purchased silver bullion and coined the same at the rate of more than $2,000,000 every month. By this process, up to the present date $215,759,431 in silver dollars have been coined. A reasonable appropriation appro-priation or a delegation of power to the General Government would limit its exercise ex-ercise without express restrictive words, to the people's needs and the requirements require-ments of the public welfare. Upon this theory, the authority "to coin monev" given Congress by the Constitution, if" it permits the purchase by the Government of the bullion for coinage, in any event does not justify such purchase and coin- QTa in o n Avfnnf V 1 At. v" ";ut ucjuuu me amount needed for sufficient circulating medium. The desire to utilize the silver product of the country should not lead to a misuse or the perversion of this power. The necesity for such an addition to the silver currency of the nation as is compelled by I THE SILVER COINAGE ACT, Is negatived by the fact that up to the I preslDn tlme onIy about 50,000,000 of silver sil-ver dollars so coined har notnnllw fnn their way into circulation, leaving more than 165,000,000 in possession of the Government, Gov-ernment, the custody of which has entailed en-tailed a considerable expense for construction con-struction of vaults for its deposit. Against this latter amount there are outstanding no r certificatea amounting to about ?93.000,0C0. Every month $2,000,000 of o1 n tne public treasury is paid out for $2,000,000 or more of silver dollars to be added to the idle mass already accumulated. accumu-lated. If continued long enough this operation will result in the substitution of silver for all the gold the Government owns applicable to its general purposes. It will not do to rely upon the receipts of the Government to make good this decline de-cline of gold, because of the silver thus fnrn0tfVingiTn made kgal tender for all debts and dues, public and private. At times during the last six months, 58 per cent of the receipts for duties have been in silver certificates, while the average aver-age within that period has been 20 per Ce- he PP001 of silver and its certificates received by the Government will probably increase as time goes on, for the reason that the nearer the period approaches when it will be obliged to. offer - SILVER IN PAYMENT OP ITS OBLIGATIONS, The greater the inducement there will be to hoard gold against a depreciation in the value of . silver, or for the purpose of speculation. This hoarding of gold has j alreadv begun. When the time comes when the gold shall have been withdrawn from circulation, then will be apparent the difference between the real value of the silver dollar and a dollar in gold, and the two coins will part company. Gold being still the standard of value and necessary nec-essary in our dealings with other countries, coun-tries, will be at a premium over silver. The banks which have substituted gold for the deposits of their customers may pay them with silver bought with such gold, thus making a handsome profit. RICH SPECULATORS WILL SELL THEIR HOARDED GOLD To their neighbors who "need it to liquidate their foreign debts at a ruinous premium over silver, and the laboring men. and women of the land, the most defenseless of all, will find that the dollar received for the wages of their toil has sadly shrunk in its purchasing power. It may be said that the latter result will be but temporary, and that ultimately the price of labor will be adjusted to the change, but even if this takes place the wage-maker wage-maker cannot possibly gain, but must inpvitnVilv lnao cinnp tlao nrire hp is rnm- j pelled to pay for his living will not only be measured in a coin heavily depreciated and fluctuating and uncertain in its value, but this uncertainty in the value of the purchasing medium, will be made the pretext for AN ADVANCE IN PRICES . - ' ' Beyond that justified by actual depreciation. deprecia-tion. ; The words uttered in 1834 by Daniel Webster in the Senate of the United States are true to-day: "The very man of all others who has the deepest Interest in a sound currency, and who suffers most by mischievous legislation in money matters, is the man who earns his daily bread, by his daily toil." The most distinguished dis-tinguished advocate of bi-metallism, discussing dis-cussing our silver coinage, has lately written: writ-ten: "No American citizen's hand has yet felt the sensation of cheapness either in receiving or expending the silver act dollars, and those who live by labor or legitimate trade never will feel that sensation sen-sation of cheapness, however plenty the silver dollars may become. They will not be distributed as gifts among the people, peo-ple, and if the laboring man should receive re-ceive four depreciated dollars where he now receives but two, he will pay in the depreciated coin more than double the price tie now pays tor all the necessaries and comforts of life." Those who do not fear any disastrous consequences arising from " . THE CONTINUED COMPULSORY COINAGE OF SILVER, . " As now directed by law, and who suppose that the addition to the currency of the country, intended as its result, will be a public benefit, are reminded that history demonstrates that the point is easily reached in the attempt to float at the same time two sorts of money of different ratios of excellency, when the better will cease to be in circulation. The hoarding of gold which has already taken placer indicates that we shall not escape the usual experience in such cases.. So if this silver coinage be continued we may reasonably expect that gold and its equivalent equiv-alent will abandon the field of circulation to silver alone. This of course must produce pro-duce a severe contraction of our circulating circulat-ing medium instead of adding to it. It will not be disputed that any attempt on the part of the government to cause the circulation of THE SILVER DOLLAR WORTH 86 CENTS, Side by side with gold dollars worth 100 cents, even with the limit that legislation does not run contrary to the laws of trade, to be successful, mnst be seconded by the confidence of the people that . both coins will retain the same purchasing power and be interchangeable at will. A special effort has been made by the Secretary of the Treasury to put an amount of our silver cpin in circulation, but the fact that a large share of the limited lim-ited amount thus put out has soon returned return-ed to the public treasury in payment of dnt.ifR. lpnrla tn tha Koliof tViof fK nnnnl ' . - vv vv VAicftw pcupitj do not now desire to keep it in hand, and this with the evident disposition to hoard gold, gives rise to the suspicion that there already exists a lack of confidence among the people touching our financial processes. pro-cesses. There is ceitainly - NOT ENOUGH SILVER NOW IN CIRCULATION To cause nneasiness," and the whole amount coined and now on hand might after a time be absorbed by the people without any apprehension, but it is the ceaseless stream that threatens to overflow over-flow the land which causes fear and uncertainty. un-certainty. What has been thus far submitted sub-mitted upon this subject relates almost entirely to a consideration - of a home nature, unconnected with- the bearing which the policies of other nations have upon the question, but it is : perfectly apparent ap-parent that a line of action in regard to our currency cannot wisely be settled upon or persisted in without considering the attitude on the subject of other countries with whom we maintain intercourse inter-course through , commerce, trade and travel. An acknowledgment of the fact is found in the act by virtue of which our silver is compulsory coined.. It provides that the President shall invite the governments govern-ments of THE COUNTRIES COMPOSING THE LATIN . UNION, So called, and of such other European nations as he may deem advisable, to join the United States in a conference to adopt a common ratio between gold and silver for the purpose of establishing internationally in-ternationally the use of bi-metallic money and securing a fixity of relative value be - tween these metals.-.. . ; This conference absolutely failed, and a similar fate has awaited all subsequent efforts in the same direction, and still we continue our coin acre of silver-at. different from that of any. other nation. The most vital part of the silver coinage act remains inoperative and unexecuted, and without an ally or friend we battle' upon the silver field in an illogical and losing contest. To give full effect to the design of Congress on this subject, I have made a careful and earnest endeavor since the adjournment . of the last Congress. Con-gress. To this end I delegated a gentleman gentle-man well instructed . in fiscal proceed to the financial centers of Europe, and in conjunction with our ministers to England, France and Germany, to obtain a full knowledge of the attitude and intent in-tent of those governments respecting the establishment of such an international ratio as will procure . FREE COrNAGE OF BOTH METALS At the mints of those countries and our own. By my direction our Consul-Gen-eral at Paris has given close attention to the proceedings of the Congress of the Latin Union, in order to indicate our interests in its objects and report its actions. It may be said in brief as the result of these efforts that the attitude of the leading lead-ing powers remains substantially un-1 un-1 10 8mce the monetary conference of 1881 ; nor is it to be questioned that the views of these governments are in each ! instance separated by the weight of public opinion. The steps , thus taken have therefore only more fully demonstrated the uselessness of further attempts at I present to arrive at any agreement on I the subject with other nations. In the meantime WE ARE ACCUMULATING SILVER COIN, Based upon our own peculiar ratio, to such an extent and assuming so heavy a burden bur-den to be provided for in any international internation-al negotiations as will render us an undesirable unde-sirable party to any future monetary conference of nations. It is a significant fact that four of the five countries composing the Latin Union, mentioned in our coinage act, embarrassed embarrass-ed with their silver currency, . have just completed an agreement among themselves them-selves that no more silver shall be coined by their governments, and that such as has already been coined and is in circulation circula-tion shall be redeemed in gold by the r conntry of its coinage. The resort to this expedient by these countries maywell arrest the attention of those who suppose we can succeed without a shock or injury in-jury in the attempt to circulate, upon its merits, all the silver we may coin under the provisions of our silver coinage act. THE CONDITION IN WHICH OUR TREASURY MAY BE PLACED. By a persistence in our present course is a matter of concern to every patrotic citizen who does not desire his Government Govern-ment to pay in silver such of its obligations obliga-tions as should bejpaid in gold, nor should our condition be such as to oblige us in a prudent management of affairs to discontinue discon-tinue the calling-in and payment of interestbearing obligations which we ImvA t.hfi riirhfc now tn Aiwhurcrp.. and thus avoid the payment of further interest thereon. The so-called debtor class, for whose benefit the continued compulsory coinage of silver is insisted upon, are not dishonest dishon-est because they are in debt, and ; they Bhould not be suspected of a desire to jeopardize the financial safety of the country in order that they may cancel their present debts by paying the same in depreciated dollars ; nor should it be forgotten that it is not the rich nor the money-lender alone that must submit to such a readjustment enforced by the government and their debtors. The pittance of the widow and orphan,and the incomes of helpless beneficiaries of all kinds, would be disastrously reduced. THE DEPOSITORS IN" SAVINGS BANKS And other institutions which hold in trust the savings of the poor, when their little accumulations are scaled down to meet the new order of things would, in their distress, painfully realize the delusion of their promise made to them that plentiful money would improve their conditions. We have now on hand all the silver dollars necessary to supply . the present need of the people and to satisfy those who, from sentiment, wish to see them in circulation, and if their coinage is sus pended, they can be readily obtained by those who desire them. If the need of more is at any time apparent their coinage coin-age may be resumed. That the disaster has not already overtaken us furnishes no proof that danger does not wait upon a continuation of the present silver coinage. coin-age. We have , been saved by the most careful management and unusual expedients, expedi-ents, by a combination of fortunate conditions con-ditions and by a confident expectation that the commerce of the Government in regard to silver coinage would be speedily speedi-ly changed by the action of Congress. PROSPERITY HESITATE? UPON ' OUR THRESH-. HOLD Because of the dangers surrounding this question. Capital timidly shrinks from trade and investors are unwilling to take the chance of the , questionable shape in which their money will be returned to them, while enterprise halts at the risk against which care and sagacious management man-agement do not protect. As a necessary consequence labor lacks employment and suffering and distress are visited upon a portion of our fellow citizens especially entitled to the careful consideration of those charged with the duties of legislation. legisla-tion. No interest appeals to us so strongly for a safe and stable currency as the vast army of unemployed. I recommend the suspension of the compulsory coinage of silver dollars directed by the law passed in February, 1878. STEAMBOAT INSPECTION. The steamboat inspection service on the 30th day of June, 1885, was composed Of 140 persons, including officers, clerks and messengers. The expenses of the service over thn repftlnta wow 41 aa Q99 97 sJn;n the fiscal year. The special inspection of foreign vessels, organized under the law passed in 1882, was maintained :during the year at an expense of $366,4160. Since the close of the fiscal year -reduc-1 tions have been made in the force..em-. ployed which will result in a saving during dur-ing the current year of $17,000, without affecting the efficiency of the service. THE MARINE HOSPITAL. The supervising Surgeon-General reports re-ports that during the fiscal year '41,714 patients have received relief through the Marine Hospital service, of whom 12,803 were treated in the hospitals, and 28,911 at the dispensaries. Active and effective efforts have been made through the I medium of this. service to protect the country from an invasion of cholera, which has prevailed in Spain and France, and the small-pox, which recently broke out in Canada. CTHE LIFE SAVING SERVICE. The most gratifying results have attended at-tended the operations of the Life Saving Service during the past fiscal year. The oDservance ot the provision of law requiring re-quiring the appointment of the force employed em-ployed in the service to be made "solely with reference to their fitness, and without with-out reference to their political or party affiliations," has secured the result which may confidently be expected in any branch of public employment where such a rule is applied. As a consequence this service is composed of men well qualified for the performance of their dangerous and exceptionally important duties.' The number of stations in commission at the close of the year was 203. The number of disasters to vessels and crafts of all kinds within their field of ac- The number of person endangered in such disaster was 2,439, of whom 2,428 were saved, and only eleven lost. Other lives which were imperiled, though not by disasters to shipping, were also rescued, and a large amount of property was saved through the aid of this service" Ihe cost of its maintenance during the year was $828,474.43. . COAST AND GEODETIC SURVEY. The work of the Coast and Geodetic burvey was during the last fiscal year .earned on within the boundaries and off the coast of thirty-two States, two Territories Terri-tories and the District of Columbia. In July last certain irregularities were found to exist in the management of this bureau, which led to a prompt investigation investiga-tion of its methods. The abuses winch were brought to light by this examination, examina-tion, and reckless disregard, of duty and the interests of the Government developed deve-loped on the part of some of those connected con-nected with the service, made a change of supenntendency and a few of its other officers necessary. - Since the bureau has been in new hands an introduction of economies and an application of business methods have 1 produced an important saving to the Government Gov-ernment and a promise of more useful results., re-sults., This service has never beet regulated by anything but the most in-definite in-definite legal enactments and the moRt unsatisfactory rules. It was many" y"a2 ago sanctioned apparently for a p7ruS regarded as temporary and relatedTa survey of our coast. Having gained a place in the appropriations made by Congress, Con-gress, it ha3 gradually taken j to itself powers and objects not contemplated in its creation and extended its operations until it sadly .needs legislative attention. So far as - - A FURTHER SURVEY OF OUB COAST Is concerned, there seems to be a propriety pro-priety in transferring that work to thje Navy Department. The other duties now in charge of this establishment, if they cannot be profitably attached to some existing department, or other bureau, should be prosecuted under a law exactly defining their scope and purpose and with a careful discrimination between the scientific inquiries which may properly be assumed by the Government and those which should be undertaken by State authorities or by individual enterprises. enter-prises. It is to be hoped that the report of the Congressional committee heretofore hereto-fore appointed to investigate this and other like matters, will aid in the accomplishment ac-complishment of proper legislation on this subject. - THE REPORT OF THE SECRETARY OF WAR Is herewith submitted. The attention of Congress is invited to the detailed account which it contains of the administration of his department, and his recommendations and suggestions for the improvement of the service. The army consisted at the date of the last consolidated returns, of 2,154 officers and 24.705 enlisted men. The expenses of the departments for the fiscal year ending June 30, 1885, including in-cluding $13,164,394.06 for public works and river and harbor improvements were $45,850,999.54. : Besides the troops which were , dispatched dis-patched in pursuit of the small band of Indians who left their . reservation in Arizona and commuted murders and outrages, out-rages, two regiments of cavalry and one of infantry were sent last July to the Indian In-dian Territory to prevent an outbreak which seemed imminent. They remained to aid, if necessary, in the expulsion of intruders upon the reservation who have caused the discontent among the Indians, but the Executive proclamation warning them to remove was complied with without with-out interference. . Troops were also sent to Bock Springs, in Wyoming Territory, after the massacre of the Chinese there, to prevent, further disturbances, dis-turbances, and . afterwards to Seattle, in ! Washington Territory, to avert A threatened attack upon the Chinese laborers and domestic do-mestic violence there. In both cases the mere presence of the troops had the desired effect. It appears that the number of desertions from the army have diminished, but that during the last fiscal year they numbered 2,927, and one instance is given by the Lieu-tenant-General of six desertions of the same recruit. I am convinced that this number of desertions can be much diminished by better discipline and treatment, but the punishment pun-ishment should be increased for repeated offenses. These desertions might also be reduced by lessening the term of the first enlistment, thus allowing a. discontented recruit re-cruit to contemplate a nearer discharge, and the army a profitable riddance, after one term of service. A re-enlistment would be quite apt to secure a contented recruit and a good soldier. The acting Judge-Advocate-General reports re-ports that the number of trials by general courts-martial during the year was 2,328, and that 11,851 trials took place before the garrison gar-rison and regimental courts martial. The suggestion that probably more than half the army have been tried for offenses great and small in one year may well arrest attention, Of course many of these trials before the garrison and regimental courts-martial were for offenses almost frivolous, - and there should, I think, be a way devised to dispose of these in a more summary and less inconvenient incon-venient manner, than by court-martial. If some of the proceedings of courts-martial which I have had occasion to examine pre- aexiB me iaeas oi justice wmcQ generally prevail in these tribunals, I am satisfied that they should be much reformed, if the honor and the honesty of the Army and Navy are by their instrumentality to he vindicated and protected. (Continued on First Page.) |