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About Weekly Montanian (Thompson Falls, Mont.) 1894-1897 | View This Issue
Weekly Montanian (Thompson Falls, Mont.), 08 Dec. 1894, located at <http://montananewspapers.org/lccn/sn84036085/1894-12-08/ed-1/seq-1/>, image provided by MONTANA NEWSPAPERS, Montana Historical Society, Helena, Montana.
WEEKLY MONT A _MAN. VOL. 1. ...11,11•••••••••••••••• T 110 M PSON FALLS, MONTANA, DECEMBER 8, 1894. N09. MAKE BANKS RICHER Secretary Carlisle Repeats the Argumert of His Chief. NO BILL UNDER TEN DOLLARS (liv. the Money K u 5 for 625, and Establish t tie (loud st anti- ard, Oa Says. Washington, Dec. 4.—The annual re- port of the secretary of the treasury , was sent to congress today. It is a vol- uminous document. The report deals largely in statistics, the recent bond is- sue and makes recommendations which, In the opinion of the secretary, will im- prove the financial system of the gov- ernment. He calls attention to the in- ability of the secretary, under existing laws, to make adequate provision for support of the public credit. He says the well-known defects in our financial system, and the serious evils threat- ened, have done more than all other things to check the industrial and com- mercial progress of the country. The secretary says: \The only part of the currency pos- sessing in any degree a quality of elas- ticity is that issued by the national banking associations, and it is now gen- erally conceded that it has failed to meet the requirements of the situation at some of the most critical periods in the business affairs of the country. Its failure is credible, in my opinion, to three principal causes: First, to the large volume of United States currency of various kinds kept constantly out- standing, making the contraction or expansion of the comparatively small national bank circulation less effective than it would otherwise have been: second, the difficulty and delay in pro- ducing, and, to some extent, in retiring the circulation; thirdly, and mainly, the provisions of the law which require the deposit of United States bonds to secure circulation and restrict time issue in notes to 90 per cent, of the par value of the bonds. \In addition to existing obstructions to the prompt increase and decrease of circulation, the 9th section of the act of July, 1882. which provides for the exten- sion of the corporate existence of na- tional banks, expressly prohibits them from retiring their notes to a greater amount than $3,000,000 in the aggregate per month, and advocates that no bank which made a deposit of lawful money in order to withdraw its circulation shall be permitted to make any increase In its circulation for a period of six months thereafter. These provisions are so manifestly in conflict with the dictates of sound policy that they re- quire no comment. In view of the fore- going considerations and many others that might be urged in favor of organi- zation and reformation of its paper cur- rency system, I have prepared the out- lines of plan which, in iny opinion, will relieve the government to a great extent from the burdens now imposed upon it: secure within a reasonable time a safe and elastic national and state bank currency andresult ultimately in the per- manent retirement of United States le- gal tender notes of both classes.\ RECOMMENDATIONS. Among the recommendations made by the secretary are the following: Repeal all laws requiring or authorizing a de- posit of United States bonds as securi- ty for circulation. Permit national banks to issue notes to an amount not exceeding 75 per cent. of the paid up and unimpaired capital, but require each bank before receiving the notes to deposit a guarantee fund, consisting of United States legal tender notes, in- cluding treasury notes of 1890, to the amount of 30 per cent. upon circulating notes outstanding, to be maintained at all timea: and whenever a bank retires its chaulation in whole or in part, its guarantee funds are to be returned to it in proportion to the amount of the notes retired. Provide that circulating a. .ti's shall constitute the first lien upon all of the assets of the hank. Impose a tax of one-half of I per cent. per an- num, payable semi-annually, upon the average amount of notes in circulation to defray the expenses of printing the notes, official supervision, cancellation, etc.; no natienal bank nett.. to he of less denomination than $10, and all tides a the same denomination to be uniform jr4 design, but the banks desiring to re - dm their notes in gold may have them made payable in that coin. The secretary of the treasury to have au- thority to prepare and keep on hand, ready for issue upon application, a re- serve of blank national bank notes for , a ch banking association ha % ing circu- lation. To provide A safety fund for imme- diate redemption of the circulating notem of failed banks, Impose a tax up- on the average circulation of each bank until the fund amounts to 5 per eent. of the total circulation outstand- ing. Require each new bank and each bank taking out additional circulation to de- posit its proper proportien of this fund fiefore receiving notes. When the bank fails, its guarantee fund held on deposit to be paid into the safety fund and Weal in redemption of its notes. \Repeal the provisions imposing limi- tations upon the reduction and increase of national banking currency. Repeal all provisions of the law requiring banks to keep a reserve on account of deposits. IS A GOLD BUG. The secretary further says: \So long as there are in circulation under au- thority of the government two coins unequal in value but equal in legal ten- der qualities, every consideration of good faith and sound policy requires a prompt redemption of the notes on presentation in the kind of coin de- manded by the holder and the constant advance of such administrative meth- ods as may be necessary to preserve the purchasing power of the less valuable metal. This is essential to the continued circulation of our standard silver dol- lars and their paper representatives at par and to abandon this policy without substituting a better one would not only fail to cure any of the evils now existing but would entail additional and greater ones. \This situation is the direet result of our currency legislation and it can not be permanently avoided or even temporarily improved without material changes in our laws relating to that subject. These features are: First, circulation of United States notes as currency and their current redemption in coin on demand.; second, compul- sory re -issue of such notes after re- demption; third, excessive accumula- tion and coinage of silver and the issue of notes and certificates against it upon a ratio which greatly over values the amount as compared with the standard unit of value in this and other princi- pal countries. \Frequent issues of bonds for the pur- pose of procuring gold, which can not be kept after it has been obtairfed, will certainly cause increased distrust alining our own people as well as among the people of other countries and not only swell the volume of our securities returned from\ abroad, for sale or re- demption, but increase the withdrawal of foreign capital here, before invested in domestic enterprises. We can not preserve our trade relations with the best eustomers for rim' surplus priducts unless we maintain a monetary sys- tem substantially in accord with theirs, and until they manifest a disposition to co-operate with the United States in effecting a change upon terms just. and fair to all our interests we ought to continue our adhesion to the gold standard of value with as large a use of silver as is consistent with strict maintenance of that policy. \Since the resumption of specie pay- ments United States legal tender and treasury notes have been redeemed in gold to the amount of $60,000,040 and all notes redeemed have been reissued and are now outsanding. They are a con- stant menace to the gold reserve and tio scheme of financial reform can be complete or effectual which does not provide at least for their gradual elim- ination front our currency system.\ \I am convinved that the interests of the country requires such change in our organization as will discharge the sovernment entirely from the business of issuing or re -issuing these notes and thus relieve its financial department of the periodical demands on its resources which, under the existing system, must continue to disturb the financial and general business affairs of the people. Arbitrary regulation of the value of circulation to be kept outstanding is wholly inconsistent with the mainten- tenance of a healthy financial condition and is the exercise of a function which does not properly belong to the gov- ernment or any other public authority. Its effect is to force paper currency on the people when it is not needed and deprive them of it when it is needed, thus establishing and maintaining an improper and unwarranted connection between the government anti the pri- vate business affairs of its citizens and making their successful prosecution largely dependent on the caprice of a superior authority having no interest In the transaetien, except perhaps par- tisan interest, not in harmony with sound financial arrangements. - AN UNJUST TAX. \in my opinion the imposition of the tax by the federal government upon the use of circulating notes lawfully Issued by the state banks is an unjusti- fiable if not an unconstitutional inter- ference with the authority of the sev- eral states, but its validity has been judicially sustained and as it does not appear to be practicable to repeal abso- lutely at this time, it is proposed to avoid its prohibitory except by exempt- ing .rom taxation the notes of such banking Institutions as may be organ- ized and coal acted under conditions, which amply protect the holders their paper. It will be observed that the plan submitted proposes a repeal of all the provisions of existing laws which require national banks to hold it fixed reserve against deposits, and, as this is a departure from the practice which has prevailed continuously for more than 30 years, it is proper to state the reasons which have prompted me to make these suggestions.\ THE BANKING SYSTEM. The secretary here takes up the na- tamal banking system from the time that It was originally organized and discusses the many features in de- tail. He says: \It is not my duty nor t he province of the government to rule the people exeept for certain well-de- fined purposes and as the custody and use of funds belonging to depositors are matters which affect only the interests of the intermediate party, they should be left to their own judgment and dis- cretion. Every properly managed bank, if left free to conduct its own deposit and discount business in the manner most advantageous to its own Interests, will keep on hand a reasona- ble reserve to meet not only ordinary demands, but to provide for such emer- gencies as are liable to occur in the community where it is located, but it ought to be prohibited by law from using such reserve for the only purpose it was designed to accomplish. The requirement that banks shall pay their own obligations imposes upon them no greater hardships than is imposed by law upon every other business and financial institution in the country and the only argument that can be plausibly urged against it in case of the banks is that as the government has under- taken through their agency to secure a sound circulating medium it should pledge its credit to keep it good under all circumstances. \The conclusive answer to this is that the government has discharged its whole duty in the matter when it has provided such safeguards as will guar- antee the safety of notes issued by its authority and this is one of the re- sults which the proposed plan is in- tended to accomplish. The experience of this country under the act of Feb- ruary, 1874, which limited silver cer- tificates to denominations of $10, and under the act of August. 1886, which removed that restriction, justifies the belief that the change now proposed will result in greatly increased use of silver coins and certificates and that they would be much less likely to re- turn to, and remain in the treasury than t pri•SPnt. • KOLB MAY CAUSE ANARCHY. .1labannt Friends Not to Pay 'their Taxes. Birinitigharn, Ala.. Dec. V. Kolb. who claims to be governor of Alabama, today eompleted his message to the legis- lature which he signs as governor and which will be transmitted to that body tomorrow. The message is also addressed to the people of Alabama and is a long and in many respects revolutionary document, as it recomtnends that his followers do not pay their taxes for a while, lie fur- ther says: \I further advise those col- lectors who value the cause I represent, and which will asurcdly prevail, to delay all payments of state taxes into the state treasury until an impartial hearing has been heard of our complaint under a fair and hottest contest law.\ When it is rememher i S that the tax collectors in 38 out of '4 'Counties in the state are Kolbites, it will be seen if they take his auvice the Kolb government will find strong support and Alabama will be threatened with anarchy. In his message Kolb says: \The revo- lutionary conditions of our state govern- ment must become the subject of your continued and most anxious contempla- tion. The plans of the usurpers so alarm- ing to you are abating in nothing to re - .Luce you to an abject and final submis- sion to their unbridled will and passions. I declare to you without fear of contra- diction that if the present party in eon - t rol of your government he not arrested in its mad career, no elections can be held in Alabama under the law and constitu- tion.\ He then urges the legislature to enact contest laws and advises his friends to organize clubs to assist in general the object of his appeal. ENGLAND AND THE MESSAGE. sentiment of Papers Over There Divided on the ReeommenJations. London, Dec. 4.—The Pall Mall Gazette, •ommenting on President Cleveland's an- nual message, says: \President Cleve- land reiterates his faith in free trade. but we do not expect to get anything more out of the tariff controversy. That chance Is lost until the democrats return to pow- er with sense in their heads. Amerika Is going to bid for the supremacy of the Aeas. While we do not fear the contest, this policy will in time seriously affeet taw carrying trade. - The (Hobe says: \There is no touch of spread-eagleism in the message or the slightest desire to twist John Bull's nose. On the contrary, President Cleveland has the courage to display a friendly attitude toward (It -eat Britain on certain ques- tions, which, if roughly handled, would easily provoke international umbrage. We advisedly call his language courage- ous, for his careful avoidance of other sort of talk is certain to provoke the wrath of the Irish-Amerieans. As in foreign affairs, so in domestic affairs, is there ample proof that he has the courage of his convictions.\ • ROYAL MOURNERS DEPARTED. _ Visitors at Petersburg I ert tot 1 li it Native Heaths. St. Petersburg, Dec. 2. --The prince of %Vales, duke of York, the king of Den- mark and Prince Waldemar of Den- mark, all of whom came here to attend the obsequies of the late Czar Alex- ander and who remained to attend the wedding of Czar Nicholas, started for their homes today. The prince of Wales and the king of Denmark were attired in Russian uniforms. The czar and the czarina and a number of grand dukes accompanied the royal party to the railroad stations. Crowds lined the streets, cheering heartily. NORTH YAKIMA CITY ELCCTION. W. P. ti,dman for 31a tr•Llect thuds the Successful candidate , . North Yakima, Dee. 4. --Over en) votes were cast in this city today, resulting in the election of the following ticket: May- or, W. P. Redman; clerk, .1. R. Coe: treas- urer, Henry Pressey; marshal, Charles Lillie; health ()Moo*, Dr. I'. Frank; at- torney, J. M. Newman; councilmen. W. A. cox, Prank Sinclair, John Imsland. l. r. Nieman, Dr. G. J. 14111, D. W. Simmons and William Badger. In the Yakima city election, chitties Lake was chosen mayor. NOT A SHOT FIRED Colonel Oates and Captain Kolb Inaugurated. POLITICAL SITUATION EnliiNG be Attempt to Make a Speech on the State Mouse Steps Was Frustrated. Montgomery, Ala., Dec. 1.—The state of Alabama now has two governors and two separate sets of state officers. Col- onel Oates and those elected on his ticket preside at the state house. Cap- tain Kolb and his contingent have not announced their official headquarters. The political situation in Alabama today has been a most exciting one. This was the day set by law for the inaug- uration of a governor and state ticket. The returns of the August election have shown the election of the demo- cratic ticket, headed by Colonel Wil- liam Oates, by over 20,000 majority. The legislature in joint session had regu- larly counted and announced the re- sult. Captain Kolb. Oates' opponent, the nominee of the populists, charged frauds and claimed that he had re- ceived a majority of the votes and was the rightful heir to the governor's offiee. He determined therefore to be sworn in and was. At high noon, sur- rounded by the members of the legisla- ture and with the usual pomp of mili- tary display, Colonel Oates took the oath of office upon the steps of the state capitol, standing on the very spot on which Jefferson Davis stood when he was sworn in as president of the south- ern confederacy. Numerous therats had been made by misguided friends of Kolb anti to avoid anything like vio- lence, more than 20 companies of troops with cartridges in their belts were pres- ent and participated in the inaugura- tion ceremonies, which were without disorderly event. KOLBITES SWORN IN. Kolb was sworn in by James W. Powell, justice of the peace, in the law office of Warren Reese. At the same time the oath was administered to J. C. Fanville, secretary of state; W. T. Lynch, auditor; J. D. Oliver, superin- tendent of education, and Warren Reese, Jr., attorney general. Kolb and his cabinet then marched to the state house through the ranks of militia. Governor Jones sent for Kolb, who was escorted into his presence by Lieu- tenant Irwin, of the regular army. \I understand, sir,\ said Governor Jones, \that you propose to make a speech claiming to be governor tor Ala- bama?\ \That is my intention.\ I must say to you the moment you attempt it I will have you arrested and carried off the grounds,\ answered the governor. \If you were governor you would do the same thing in a sim- ilar case. I will not permit you or any one else on these greunds to interrupt the inaugural proceeiitngs of Governor Oates .\MOVED OFF THE GROUNDS. Governor Jones' manner was courte- ous but firm. Captain Kolb started off the grounds followed by his adherents. They congregated again in the streets outside of the grounds. They mounted a wagon and there a populist clergyman invoked the blessings of Clod \on a plain people, 0 God.\ he said, \who are here to secure an honest government.\ Captain Kolb made a short temperate address. The only bitterness in it was directed at Governor Oates, whom he termed as a usurper. He would use every means to gain the position which he declared belonged to him. He cau- tioned the people against violence and amid rousing cheers descended from the wagon. There wore not over 300 Kolb - Res in the crowd and no signs of arms among them. They dispersed, but pro- ceeded down town, where they enlisted In a militia company, although the lat- ter has no apparent or definite plan of action. A battery of artillery was swung into position on the hill near the state house and the cavalry with- drawn. DEMURRERS OF THE SUGAR MEN. Teclinieaiities Taken I p Ite tore the Cotirt of I.8st Resort. Washington, Dec. I.—The demurrers in the indictments of President Havetneyer and Secretary Searles of the Amrican Sugar Refining Company anti Broker Sey- mour for their refusal to testify before the senate sugar trust investigating commit- tee, were tiled with the supreme court to- day. They were based mainly on consti- tutional grounds, holding that th indict- ments do not show that the request for the information sought is within the ju- risdiction or authority of the senate. florae , .bon Prizes. San Francisco, Nov. 30.—At the horse show today thoroughbred stallions, 3. year -olds and over, were judged. The first prize was awarded to Emperor of Norfolk, St. Carlo second and Chestet. field third. Ex -Governor Brown Is Dead. Atlanta, Ga.. Nov. 10.—Ex-Governor Joseph T. Brown died at 2:30 p. m. He was a Georgia war governor and was since then a rnited States senator. MADE GOVERNOR AT LAST. tom' f.ary I.sans Installed as chief 1.xecutise of south Carolina. Columbia, S. C., Dec. 4.—Benjamin Ryan Tillman is no longer governor of South Carolina. At 1:30 p. m. today he was succeeded by His chief debutante, John Gary Evans. Several thousand people assembled in the hall of the house of representatives to witness the cere- monies of inauguration. After the oath of office was administered, Governor Evans spoke as follows: \Gentlemen of the General Assembly: After obtaining the will of the people in three separate elections, I am here to- day to assume the governorship of the proudest people on the globe. There are some who still regard the political contest of 1892, which gave to us an aristocracy of brains instead of lands and money, as an hallucination, and that it was a reign of a demagogue. This gentle slumber will result in good, and the Rip Van Winkles of the state will awake to find themselves monu ments of antiquity surrounded by youngsters of modern progress and de- velopment, who have nothing but love and reverence for them. It is a matter of congratulation to the people that this effort to stay the course of reform, by appeal to the ignorant and pur- ehasea hie vote, has been rebuked the second time in a manner un- mistakable in terms, and let us hope that in the future there will be found in the state no man so ignoble as to dare threaten us with a return of the dark days of 1S62 to 1876. It is unfort- unate indeed that the foundation of our social and political institutions is the unity of the white people. I say here on the threshold of my adminis- tration that it is time for our people to come together and be a united peo- ple and let the responsibility fall on those of the opposition who insist upon 'rule or ruin' policy. The party that a as true to us is the party we must look to in the future or suffer defeat from one extreme of the land to anoth- er, and today- not a democratic state is left north of the Mason and Dixon line. The northeast seemed to be deaf to our appeals and 'the ray of light' which we had hoped for in the west, has proved as fickle as an aurora bor- ealis. \I am thoroughly satisfied, after an active canvass of the state, that the dispensary law is now written in the hearts of the people and is favored by fully 85 per cent. of the population.\ In closing, Governor Evans says: \If when I return this commission I can say, 'Behold a happy people in peace, love and unity,' my reward will he great and sufficient.\ CARDINAL GIBBONS DID NOT SAIL. Trip to Rome Postponed for Reasons Not Made known. Baltimore, Md., Dec. ::.—Yesterday was the date originally set for the de- parture of Cardinal Gibbons for Rome, hut it was announced a couple of days ago that the trip had been indefinitely postponed. No special reason was as- signed for this change of plans, al- though it was said unofficially that the cardinal had been asked to await the eompletion of the encyclical upon which the holy father has been engaged for several months past, and which, it is said, will deal particularly with the church in the United States, and ex- plicitly define once for all the duties and position of Papal Legate Satolli. Another report has it that there is like- ly to be important developments in the contest between Father Ducey and Archbishop Corrigan, and that the views of the cardinal upon the imbrog- lio will be required by the vatican. HONORS HIS PARENTS. Rome, Dec. 2.—The pope has given in- struetions that solemn funeral services for the repose of the souls of his parents shall take place two weeks hence in the church of St. Stinnate, where the moth- er of the sovereign pontiff is buried. A large number of cardinals, the diplo- matic representatives of Spain. Portu- gal and Brazil, heads of religious or- ders, deputations of the two branches 'if the Peed family and delegations of varieus municipal bodies will take part in the service. INAUGURAL ADDRESS OF KOLB. If thibainti Denies Hun lie %%ill Appeal to the General Government. Montgomery, Ala., Dec. 2.—Captain Kolb, among other things in his ad- dress yesterday, said: \I take the oath of office simply as a protest against usurpation and fraud. and promise that I will use all legal means at my command to set aside and hold for naught the fraudulent elec- tion returns by which Oates claims to I)(' governor of Alabama. If a fair and honest contsst law is passed by the present general assembly that would settle all trouble and be satisfactory to the people as well as myself. If this act of justice is denied us then we will make an appeal to the general govern- ment, confidently relying on the justice of our cause and believing that in the end right will triumph and a true repub- lican form of government will be guar- anteed our beloved state.\ A Royal Princess Dead. Copenhagen, Nov. 30.—Princess Lou- ise, sister of the king of Denmark, and aunt of the dowager empress of Russia. and of the princess of Wales, is dead. Princess Louise was born November 4. 1820. and In August. 1860, was nomin- ated as abbess of the convent of Schles- wig-Holstein.
