Vj
M 1
fevs
ELECTRIC FLASHES
NEWS FROM ALL PARTS OF
THE WORLD
JUMPED TEE TRACK
THREE KILLED
JURED IN
AND TWO
A WRECK
IN-
fearry Hayward the Murderer of
Catherine Gingf to Be Hung De
cember 11 Condemned Mans Ter
rible Execrations Against His Pa
rents and Brother
Bad Wreck in New York
New York Three men were killed
und two more were injured in a railroad
wreck on the New fork and New Haven
Railway in Harlem QThe killed are
Thomas Fitzgerald engineer 38 years
old
Frederick Maples 40 years old Drake
man
Thomas C McNally 40 years old Drake
man
The injured are
Thomas Bannon conductor cut and
scalded
Thomas McEeon fireman cut and
scalded
All of the killed and injured were resi
dents of this city The accident occurred
between One Hundred and Thirty second
and One Hundred and Thirty third
streets The engine with a switching
crew was bound east to Tannest station
-when without any warning it left the
track and went bumping along over the
ties Bannon the conductor and Mc
Keon the fireman leaped for their lives
the moment the engine toppled over across
the westbound track before the others
of the crew -were able to save themselves
from being crushed beneath the weight of
the boiler
All the bodies were crushed and scalded
death evidently having been instan
taneous Fitzgeralds head protruded
through the window of the engine cab
-and he was sitting on his seat at his duty
when the accident happened No cause
for the accident could be learned every
thing being in proper shape
Society
New Tokk
Girl in Disgrace
A young woman who has
figured prominently in society m Uhme
beck N T is occupying the attention of
the Society for the Prevention of Vice be
cause a young man named Dodd formerly
one of her admirers has charged that she
gave him to read a poem and a bit of prose
of alleged shocking tendencies
He showed the Tnanuscript to a friend
and in time the matter was turned over to
a printer who is said to have written to a
15-year-old boy in Rhinebeck offering
him the agency of a proposed publication
which was to include the writings of the
Rhinebeck belle
The mother of this boy found the letter
and sent it to the Society for the Preven
tion of Yice When tl case comes up in
court the young womans name will be
given She was educated in one of the
best known colleges for women in the
state While correct in grammar and
rhetoric the manuscripts coutain depraved
sentiments
Hayward Hangs Wednesday
MrxxEAPOris Gov Ciough Saturday
afternoon sentenced Harry Hayward the
murderer of Catherine G ing to be hanged
December 11
Harry heard the news of his doom from
Sheriff Holmbergs lips when the latter
read to him the death warrant The pris
oner evinced no signs of bieaking down
but on the other hand repeated the awful
execrations against his brother Adry
which of late have been the only indica
tion that he appreciated the seriousness of
his position
I know that I have little time- said
Hayward There are a few things Id
like to straighten out and a few folks Id
like to get even with Im not quite so
madatBlixtas folks think but if my
father mother and brother Dr Hayward
were dead I would be the happiest man
in the -world
National Live Stoolc Convention
Chicago At the meeting of the Na
tional Live Stock Convention in this city
the following officers were elected Pres
ident Wm H Thompson Chicago treas
urer L B Doud Chicago secretary
Chas W Baker Chicago vice presidents
D N Palmer St Louis TV B Stickney
East St Louis J G Martin Omaha J
H Nason Sioux City L B Doud Chi
cago John Payne Kansas City W E
Skinner Fort Worth Tex
The next annual convention will be
held at Fort Worth
May Bar Our Sbeep
Washington It is reported from
London that Great Britain intends to pro
hibit after January the importation of
American sheep It is quite probable
there will be vigorous protest from this
Government The Agricultural Depart
ment has not as yet received official noti
fication of the proposed prohibition but
the subject has been informally discussed
by the officials The reason given for the
proposed prohibition is the prevalence of
scab disease in the sheep
Concession froin China
Pokt Towxscxd Wash A conces
sion from the Chinese Government to
build a line of railroad from tidewater to
Pekin has been obtained by a syndicate of
American capitalists The road will be
about 209 miles long and will tap a valu
able coal mining district Among the
men of prominence said to be in the deal
are Senator Calvin S Briee of Ohio
Whitelaw Reid editor of the New York
Tribune ex Secretary of State John Fos
ter and others
Cardinal Persico Dead
Rome Cardinal Ignacio Persico pre
fect of the Congregation of ludulgence
and Sacred Relics is dead
1
Wishes to Be a State
Oklahoma O T A large
convention adopted resolutions earn
estly urging on Congress to admit the ter
ritory to statehood A committeo will bo
ent to Washington to push the claims of
Ihe territory
Durront Denied a New Trial
San Francisco The court has denied
Theodore Durrant a new trial He will
appeal to the Supreme Court
Guilty olMtmy Murders
Fort Wayae Ind Wm Stone ior
Wr Y
II liM NW tiMlmuvMtm
mmmtmmmmammmmmmmmmmmmmmmmmm
xler sentence of ten years hero for shoot
ing Deputy Sheriff Harold has confessed
to committing murders in Chicago Cleve
land Kansas City and several other places
His story is one of a life of murder bur
glary train and stage robbery and is a
startling confession
Stone says he and his partner William
Walrath killed a man at Kansas City in
1883 and robbed him but later gave the
money to Henry Donnelly a policeman
for protection He confesses to the mur
der of Mrs Stewart and her son Clarence
in Cleveland The bodies were cut to
pieces and thrown into Lake Erie He
says the following day he killed a boy in
the Big Four yards in Linndale Ohio
In Buffalo he and Walrath and a man
named Burns a saloonkeeper killed a
wealthy western farmer who was look
ing for a good time The money was di
vided and Stone and Walrath returned to
Chicago and with their share started a
restaurant Here Walrath married Stones
sister Mrs Walrath died and Stone and
Walrath left Chicago Later Stone re
turned and was implicated in the murder
of a father and son named Prunty Three
men are now said to be serving life sen
tences at Joliet for the crime but Stone
was not arrested
He then tells of a murder at Dunkirk
N J where his side partner Duffy stab
bed a pal named Buffalo Jack four
times fatally and buried him in the woods
Another murder was committed at Un
ion City Pa the victim being an old man
named Horton or Norton Another mur
der was committed by the trio near
SToungstown 0 the victim being a res
Went of Ashtabula The last murder
committed by Stone and Walrath was on
April 12 1895 on a Pennsylvania fi eight
train
Cripple Creeks Wealth
Colorado Sfrixgs J R McKinney
one of the first practical miners to enter
Cripple Creek and one who has made a
good fortune said in speaking of the re
cent boom in the Cripple Creek mines
I am positive that Cripple Creek will
next year produce 18000000 The values
will bo more from the low grade ores
though the extent of the rich ores already
discovered is astonishing No one not as
familiar as I am with the camp can under
stand the enormous yield in sight of gold
Dres running under two ounces to the ton
ihat will pay a handsome profit to the
mine owners All stocks in companies
formed two or three years ago have a per
manent value because they were honestly
srganized and are honestly managed but
Df the swarms of new companies I hav6
nothing to say The district may enlarge
In area and these companies may develop
good mines I am urging a still more
close watch by the listing committees o
all new companies Many companies will
lot sell their shares here but will go east
o unload upon the ignorant
Bradstrcets Weekly Review
New York Bradstreets report says
Seneral trade continues the ieatures ot
preceding weeks smaller volume quiet
in most lines business being conducted
jonservatively actively only among deal
ers in woolens clothing shoes and hard
ware and new orders generally of a filling
n character The season has evidently
oeen a late oneprolonged mild weather
laving delayed orders until the Christmas
lemand and the belated autumn request
ame together Notwithstanding almost
miform reports of quiet and unchanged
onditions it should be noted that Jack
tonville Augusta and Birmingham at the
louth and Milwaukee Kansas iy and
5t Louis at the west prove exceptions to
he rule by reporting gains in demand for
vholesale staple goods compaied with the
oreceding week
Exports of wheat tlour included as
vheat from both coasts of the United
States none from Montreal amount to
S13600U bushels as compared with
ViGO000 bushels lust week and 301 L0UC
Vushels in the week a vear ago
Not a Paradise ior Miners
Iroxwood Mich Letters just re
ceived from Capt William Knight who
eft here last September with a paityof
juners for the gold fields of South Africa
iidicale that the dark continent is not the
jnineis paradise it has been painted The
Iron wood men were promised desirable
situations at salaries from 5 per day to
55000 per year Many of them have been
mable to secure any work and are in Jo
hannesburg which they describe as a
human bee hive composed principally
Df sharpers of both sexes and the miners
ire principally native Kaffirs who work
or about 80 cents a day and it is difficult
or a white man to get employment at liv
ing wages The letter states they will re
turn to Michigan as soon as they
noney enough to pay their passage
get
Gough Given Eight Years
Chicago After two hours delibera
ndi the jury which tried Geo Gough foi
Jie murder of Geoige Pucik found Gough
guilty of manslaughter and fixed lite pun
ishment at eight years in the penitentiaiy
file verdict was a surprise to all in the
jourt room Roughs face brightened as
he clerk announced the verdict and he
vas greatly pleased Gough was an at
iendant in the Dunning insane asylum
md kicked a patient n armed Geo Pucik to
3eath The crime was at the time con
sidered one of the worst affairs of its kind
hat ever happened in Chicago
A Triple Hanging
Columbus S C Prince Graham
Jason Blake and Wm Frazier were
aanged at Hampton for the murder of F
R Mears committed for the purpose of
obbery On the gallows they persisted
u saying that Win Blake sr had noth
ng to do with the crime lie was con
victed along with the others but received
i life sentence He was taken from the
sheriff and lynched as he was leaving
court by a mob All of the men con
fessed their guilt
Two Counterfeiters Caught
Washington The secret service has
received word that Mike Ford and Wm
Senter were arrested at Atlanta Ga with
a large quantity of counterfeit 10 silvei
certificates on their persons Ford fine
Senter have been passing counterfeit bills
hroughout the West and considerable
piantities are known to have been dis
posed of in Omaha Kansas City and Dal
las Texas
Bean Guessing a Lottery
Springfield 111 In reply to the
query Is it contrary to law to give pur
chasers of 50 cents worth of merchandise
me guess at the number of beansina
jar Assistant Attorney General Newell
says that it is and clearly conies withir
he law regarding lotteries as all suck
contests or guessing arrangements
aa e been held to be lotteries
Diamond Merchant Killed
Peoria 111 Antone Hodenply oj
tfew York a diamond merchant fell from
a truck wagon at the railroad station herc
and received iu juries from which lie dieO
soon afterward Pie had 70000 worth o
MUSSUyJJ1ZDSQSiiDl
PRESIDENTS MESS AGE
GROVEF SUBMITS HIS ANNUAL
REPORT TO CONGRESS
General Synopsis of the Views and
Recommendations of the Head of
the Nation Financial Problem Dis
cussed at Length
The Message
The following is the text of the message
in part of President Cleveland delivered
to the Senate and House of Representa
tives Tuesday
To the Congress of the United States
The present assemblage of the legislative
branch of our government occurs at a
time when the Interests of our people and
the needs of the country give especial
prominence to the condition of our foreign
relations and the exigencies of our nation
al finances The reports of the government
officials fully and plainly exhibit -what
has been accomplished within the scope
of their respective dutes and present
such recommendations for the betterment
of our countrys condition as patriotic
and intelligent labor and observation
suggest
I therefore deem my executive duty ade
quately performed at this time by pre
senting to congress the Important phases
of our situation as related to our inter
course with foreign nations and a state
ment of the financial problems wlzlch con
front us omitting except as they are re
lated to these topics any reference to de
partmental operations I earnestly in
vite however not only the careful con
sideration but the severely critical scru
tiny of congress and my fellow country
men to the reports concerning these de
partmental operations If justly and fair
lv examined they will furnish proof of as
siduous and painstaking care for the pub
lic welfare I press the recommenda
tions they contain upon the respectful
attention of those charged with the
duty of legislation because I believe their
adoption would promote the peoples good
The Oriental Struggle
The close of the momentous struggle
between China and Japan while relieving
the diplomatic agents of this government
from the delicate duty they undertook at
the request of both countries of render
ing such service as the subjects of either
belligerent within the territorial limits of
the other as our neutral position per
mitted developed a domestic condition in
the Chinese empire which has caused
much anxiety and called for prompt and
careful attention Either as a result of
a weak control by the central government
over the provincial administration iohow
Ing a diminution of traditional govern
mental authority under the stress of an
overwhelming national disaster or as a
manifestation upon good opportunity of
the aversion of the Chinese population to
all foreign ways and undertakings there
have occurred in widely separated prov
inces of China serious outbreaks of the
old fanatical spirit against igoreigners
which if unchecked by the local authori
ties if not actually connived at by thm
have oulminated in mob attacks on for
eign missionary stations causing much
destruction of property and attended with
personal injuries as well as loss of life
Although but one American citizen was
reported to have been actually wounded
and although the destruction of property
may have fallen more heavily upon the
missionaries of other nationalities than
our own it plainly behooves this govern
ment to take the most prompt and decided
action to guard against similar or per
haps more dreadful calamities befalling
the hundreds of American mission sta
tions which have grown up throughout
the interior of China under the temperate
rule of toleration custom and imperial
edict
The demands of the United States and
other powers for the degradation and pun
ishment of the responsible officers of the
respective cities and provinces who by
neglect or otherwise had permitted up
risings and for the adoption of stern
measures by the Imperial government for
the protection of the life androperty of
foreigners wore followed by the disgrace
and dismissal of certain provincial of
ficials found derelict In duty and the pun
ishment by death of a number of the of
ficials Adjudged guilty of participation in
the outrages
This government Insisted that a special
American commission should visit the
province where the first disturbance oc
curred for the purpose of investigation
This latter commission formed after
much opposition has gone overland from
Tien Tsin accompanied bv a suitable Chi
nese escort and by its demonstration of
the readiness and ability of our govern
ment to protect its citizens is believed to
be a most influential deterrent of any
similar outbreaks The energetic step
we have thus taken are all the more likeh
to result in future safety to our citizens in
China becauce the imperial government is
I am persuaded entirely convinced that
we desire onlv the liberty and protection
of our own citizens and redress for any
wrongs they may have suffered and that
wo have no ulterior designs or objects po
litical or otherwise China will not forget
either our kindly service to her citizens
during her late war nor the further fact
that while furnishing all the facilities at
our command to further the negotiation
of a peace treaty between her and Japan
we sought no advantages and interposed
no counsel
The governments of both China and Ja
pan have in special dispatches transmit
ted thiough their respective diplomatic
representatives expressed in a most pleas---
their jr ateful appreciation
of our assistance to their citizens during
the unhappy struggle and of the value
of our aid in paving the way to their re
sumption of peaceful relations
Uncle Sam and Great Britain
Our relations with Great Britain al
wavs intimate and important have de
manded during the past year even a
greater share of consideration than is
usual Several vexatious questions were
left undetermined by the decision of the
Behring sea ai bitration tribunal The ap
plication of the principles laid down by
that august body has not been followed by
the results they were intended to accom
plish either because the principles them
selves lacked In breadth and dehmteness
or because their execution had been more
or less Imperfect Much correspondence
has been exchanged between the two gov
ernments on the subject of preventing
the exterminating slaughter of seals The
insuiTiciencv of the British patrol oi Behr
ing sea under the regulations agreed on
by the two governments has been pointed
out and yet only two British ships have
been on police duty during this season in
these waters
The need of a more effective enforce
ment of existing regulations as well as
the adoption of such additional regula
tions as experience has shown to be ab
solutely necessary to carry out the intent
of the awards have been earnestly urged
upon the British government but thus
far without effective results In the
meantime the depletion of the seal herds
by means of pelagic hunting has so
alarmingly progressed that unless their
slaughter is at once effectively checked
their extinction within a few years seems
o be a matter of absolute certainty
Should Pay tho Behrlnp Claim
The understanding by which the United
States was to pay and Great Britain to
receive a lump sum of 425000 in full
settlement of all British claims for dam
ages arising from our seizure of a British
sealing vessel authorized under the
award of the Paris tribunal of arbitra
tion was not confirmed by the last con
gress which declined to make the neces
sary appropriation I am still of the opin
ion that this arrangement was a judicious
and advantageous one for the govern
ment and I earnestly recommend that it
be again considered and sanctioned If
however this does not meet with the
favor of congress it certainly jyill hardly
dissent from the proposition that the gov
ernment Is bound by every consideration
if honor and good faith to provide for
tln sdhistment of these claim
Dy arbitration as the only other alterna
tive A treaty of arbitration has there
fore been agreed upon and will be imme
diately laid before the senate so that in
one of the modes suggested a final set
tlementmay be reached
International Sea Rules
Notwithstanding that Great Britain
originated the proposal to enforce inter
national rules for the prevention of col
lisions at soa based on the recommenda
tions of the maritime conference of Wash
ington suggesting March 1 1S95 as the
date to be sot by proclamation for carry
ing these rules Into general effect
her majestys government having en
countered opposition on the part of Brit-
T I mi I O l JU J I I Il i ii i -- Ji J
ability to accept that date which Tra
consequently cancelled The matte U
now in abeyance without prospect of i
better condition in the near future
The commissioners appointed to marl
the international boundary In Passamai
quody bay according to the description oi
the treaty of Ghent nave not fully agreed
Alnaka Boundary Surveys
The completion of the preliminary sur
vey of that Alaskan boundary which fol
lows the contour of the coast from the
southernmost point of Prince of Wales
Island until it strikes the 141st meridian
at or near the summit of Mount St EHas
makes necessary a further appropriation
which is urgently recommended This
survey was undertaken under the provi
sions of the convention entered into by
this country and Great Britain July 22
1892 and the supplementary convention of
February 3 1894 As to the remaining
section of the Alaskan boundary which
follows the 141st meridian northwardly
from Mount St Ellas to the frozen ocean
no conventional agreement has yet been
made
Tho ascertainment of a given meridian
at a particular point Is a work requiring
much time and careful observations and
surveys Such observations and surveys
were undertaken by the United States
coast and geodetic survey In 1890 and 1891
while similar work in the same quarters
under British auspices are believed to
give nearly coincident results but these
surveys have been Independently conduct
ed and no international agreement td
mark those or any other parts of the
141st meridian by permanent monuments
has yet been made In the mean
time the valley of the Yukon Is
becoming a highway through the
unexplored wilds of Alaska and
abundant mineral wealth has been dis
covered in that region especially at or
near the Junction of the boundary meridi
an with the Yukon and its tributaries In
these circumstances it is expedient In
deed imperative that the jurisdictional
limits of the respective governments in
this new region bo speedily determined
Her Brittanic majestys government has
proposed a Joint delimitation of the 141st
meridian by an international commission
of experts which if congress will author
ize it and make due provision therefor
can be accomplished with no unreasona
ble delay It is impossible to overlook the
vital Importance of continuing the work
already entered upon and supplementing
It by further effective measures taking
to the exact location of this entire bound
ary line
Vexatious Disputes with Canndn
I call attention to the unsatisfactory dd
limitation of respective Jurisdictions oi
the United States and the Dominion ol
Canada In the great lakes at the ap
proaches to the narrow waters that com
nect them The waters In question arq
frequented by fishermen of both nation-
alitles and there nets are there used Ow
ing to the uncertainty and ignorance as to
the true boundary vexatious disputes and
injurious seizures of boats and nets bj
Canadian cruisers often occur while any
positive settlement thereof by an accept
ea standard is not easily to be reached
A joint commission to determine the linq
In these quarters on a practical basis by
measured courses following range marka
on shore is a necessity for which imme
diate provision should be made
The Date Hawaiian Uprising
Early in January last an uprising
against the government of Hawaii was
promptly suppressed Martial law waa
forthwith proclaimed and numerous ar
rests were made of persons suspected of
being in sympathy with the royalist party
Among them were several citizens of the
United States who were convicted by a
military court and sentenced to death
imprisonment or fine or were deported
without trial The United States while
denying protection to such as had taken
the Hawaiian oath of allegiance insisted
that martial law though altering the
forms of justice could not supersede jus
tice itself and demanded a stay of execu
tion until the proceedings had been sub
mitted to this government and knowl
edge obtained therefrom that our citizens
had received a fair trial The death sen
tences were subsequently commuted or
were remitted on condition of leaving the
Islands The cases of certain Americana
arrested and expelled by arbitrary order
without formal charge or trial have had
attention and in some instances have been
found to justify remonstrance and a claim
for indemnity which Hawaii has not thus
far conceded
Mr Thurston the Hawaiian minister
having furnished this government abun
dant reason for asking that he be recalled
that course was pursued and his suc
cessor has lately been received
Cordial Relations with Japan
Japan has furnished abundant evidence
of her vast gain in every trait and char
acteristic that constitutes a nations
greatness We have rqason for congratu
lation in the fact that tne government of
the United States bv the exchange of lib
eral treaty stipulations with the new Ja
pan was the first to recognize her won
derful advance and to extend the consid
eration and confidence due to her enlight
enment and progressive character
Tho Cuban War
Cuba is again gravely disturbed by an
insurrection in one respect more active
than the last preceding revolt which con
tinued from IbGS to 1878 in a large part o
the eastern interior of the island em
bracing even some populations on thq
coast Besides deranging the commercial
exchanges of the island of which oui
country takes the predominant share
this flagrant condition of hostilities by
arousing sentimental sympathy and in
citing adventurous support among our
people has entailed earnest effort on the
part of this governmnt to enforce obedi
ence to our neutrality laws and to pre
vent the territory of the United States
from being used as a vantage ground
from which to aid those m arms against
Spanish sovereignty Whatever may be the
traditional sympathy of our countrymen
as individuals with a people who seem to
be struggling for larger autonomy and
greater freedom deepened as such sym
pathy naturally must be in behalf of our
neighbors yet the plain duty of their gov i
ernment is to observe in good faith thq
recognized obligations of international re j
lationship The performance of this duty
should not be made more difficult by a
disregard on the part of our citizens of
the obligations growing out of their alle
giance to their country which should re
strain them from violating as individuals
the neutrality which the nation of which
they are members is bound to observe in
its regards to friendly sovereign states
Though neither the warmth of our peo
ples sympathy with the Cuban insurgents
nor our loss and material damage conse
quent upon the futile endeavors thus far
made to restore peace and order any
shock our humane sensibilities may havo
received from the cruelties which appear
to especially chaiacterize this sanguinarv
and fiercely conducted war have in the
least shaken the determination of the gov
ernment to honestly fulfill every interna
tional obligation yet it is to be earnestly
hoped on every ground that the devasta
tion of armed conflict may speedily be
stayed and order and quiet restored to
the distracted island bringing in their
train tho activity and tnrift of peaceful
pursuits
One notable Instance of interference by
Spain with passing American ships has
occurred On March S last the Allianca
while bound from Colon to New York and
following the customary track for
vessels near the Cuban shores
but outside the three mile limit was fired
upon by a Spanish gunboat Protest was
promptly made by the United States
against this act as not being justified by
a state of war nor permissible In respect
of vessels on the usual paths of com
merce nor tolerable in view of the wan
ton peril occasioned to innocent life and
property The act was disavowed with
full expression of regret and assurance of
non recurrence of such acts The offend
ing officer was relieved of his command
Military arrests of citizens of the United
States in Cuba have occasioned frequent
investigation Where held on criminal
charges their delivery to the ordinary
civil jurisdiction for trial has been de
manded and obtained in conformity with
treaty provisions and where merely det
tained by way of military precaution un
der a proclaimed state of siege without
formulated accusation their release or
trial has been insisted upon The right
of American consular officers In the island
to prefer protests and demands In such
cases having been questioned by the in
sular authorities their enjoyment of the
privilege stipulated by treaty for the con
suls of Germany was claimed under tho
most favored nation provision of our own
convention and was promptly recognized
Massacres in Turkey
Occurrences in Turkey have continued
to excite concern The reported massa
cres of Christians in Armenia and the de
velopment there in other districts of fa
natic hostility to Christian influences nat
urally excited apprehension for the safety
of the devoted men and women who as
dependents of the foreign missionary
societies in the United States reside in
of Their educational and religious mis
sions No efforts have been spared in
their behalf and their protection in per
son and property has been earnestly and
vigorously enforced by every means with
in our power I regret however that on
attempt on our part to obtain better In
formation concerning the true condition
of affairs in the disturbed quarters of the
Ottoman empire by sending thither the
United States consul at Slvas to make
investigation and report was thwarted by
the objections of the Turkish government
This movement on our part was In no
sense meant as a gratuitous entangle
ment of the United States in the so called
eastern question nor as an officious In
terference with the right and duty which
belong by treaty to certain great Euro
pean powers calling for their interven
tion in political matters affecting the
good government and religious freedom
of the non Mussulman subjects of the
sultan but it arose solely from our desire
to have an accurate knowledge of the
conditions in our efforts to care for those
entitled to our protection
The presence of our naval vessels
which are now In the vicinity of the dis
turbed localities affords opportunities to
acquire a measure of familiarity with the
condition of affairs and will enable us
to take suitable steps for the protection
of an interest of our countrymen within
reach of our ships that might be found
imperiled
The Ottoman government has lately
Issued an imperial tirade exempting for
ever from taxation an American college
for girls at Scutari Repeated assurances
have also been obtained by our envoy at
Constantinople that similar institutions
maintained and administered by our
countrymen 6hall be secured In the en
joyment of all rights and that our citi
zens throughout the empire shall be pro
tected
The government however in view of
existing facts is far from relying upon
such assurances as the limit of its duty
Our minister has been vigilant and alert
In affording all possible protection in In
dividual cases where danger threatened
or the safety of our missionaries was im
periled We have sent ships as far toward
the points of actual disturbance as it is
possible for them to go where they offer
refuge to those obliged to flee and we
have the promise of other powers which
have ships in the neighborhood that our
citizens as well as theirs will be received
and protected on board their ships On
the demand of our minister orders have
been Issued by the sultan that Turkish
soldiers shall guard and escort to the
boast American refugees
These orders have been carried out and
our latest Intelligence gives assurance of
the present personal safety of our citizens
and missionaries Though thus far no
jives of American citizens have been sac
rificed there can be no doubt but that
Berious loss and destruction of mission
property have resulted from riotous con
flicts and outrageous attacks
The Fnancial Proolem
As we turn from a review of our foreign
relations to the contemplation of our na
tional financial situation we aro immedi
ately aware that we approach a subject of
domestic concern more Important than
any other that can engage our attention
and one at present in such a perplexing
and delicate predicament as to require
prompt and wise treatment
We may well be encouraged to earliest
effort in this direction when we recall the
Steps already taken toward improving
our economic and financial situation and
when we appreciate how well the way has
been prepared for further progress by an
aroused and intelligent interest in these
subjects
By command of the people a customs
revenue system designed for the protec
tion and benefit of favored classes at the
expense of the great mass of our country
men and which while inefficient for the
purpose of revenue curtailed our trade re
Jations and impeded our entrance to the
markets of the world has been superseded
by a tariff policy which In principle is
based upon a denial of the right of the
government to obstruct the revenues to
our peoples cheap living or lessen their
comfort and contentment for the sake of
according especial advantages to favor
ites and which while encouraging our in
tercourse and trade with other nations
recognizes the fact that American self re
liance thrift and Ingenuity can build up
our countrys industries and develop its
resources more surely than enervating pa
ternalism
The compulsory purchase and coinage of
silver by the government unchecked and
unregulated by business conditions and
heedless of our currency needs which for
more than fifteen years diluted our circu
lating medium undermined confidence
abroad in our financial ability and at last
oulminated in distress and panic at home
has been recently stopped by the repeal of
the laws which forced this reckless
scheme upon the country The things thus
j cemphshed notwithstanding their ex
treme importance and beneficent effects
fail far short of curing the monetary evils
from which we suffer as a result of long
indulgence in ill advised financial ex
pedients
The currency denominated United States
notes and commonly known as green
backs was issued in large volumes during
the late civil war and was intended origin
ally to meet the exigencies of that period
It will bo seen by a reference
I to tho debates in congress at the
time the laws were passed author
izing the issue of these notes
that their advocates declared they were
intended for only temporary use and to
meet the emergency of war In almost if
not all the laws relating to them some
provision was made contemplating their
voluntary or compulsory retirement A
large quantity of them however were
kept on foot and mingled with the cur
rency of the counti y so that at the close
of the year 1871 they amounted to 3S1
PS9073 Immediately after that date and
In Jaunary 1S75 a law was passed provid
ing for the resumption of specie pay
ments by which the secretary of the
treasury was required whenever addi
tional circulation was Issued to national
banks to retire United States notes equal
Jn amount to SO per cent of such addi
tional national bank circulation until
such notes were redured to 5200000000
This low further provided that on and
after the 1st day of January 1S79 the
United States notes then outstanding
should be redeemed in coin and in order
to provide and prepare for such redemp
tion the secretary ot tne treasury was
authorized not only to use any surplus
revenues of the government but to is
sue bonds of the United States and dis
pose of them for coin and to use the pro
ceeds for the purposes contemplated by
tho statute
In May 1S73 and before the date thus
appointed for the redemption and retire
ment of these notes another statute was
passed forbidding their further cancella
tion and retirement Some of them had
however been previously redeemed and
cancelled upon the Issue of additional na
tional bank circulation as permitted by
the law of 1S75 so that the amount out
standing at the time of the passage or
the act forbidding their further retire
ment was 241651016 The law of 1S7S did
not stop at distinct prohibition but con
tained in addition the following enpress
provision Ana when any of said notes
may be redeemed or be received into the
treasury under any law from any source
natever and shall belong to the United
TFtates they shall not be retired can
celled or destroyed but they shall be is
sued and paid out again and kept in cir
culation This was the condition of af
ta n the 1st day of January 1S79
which had been fixed upon four years be
fore as the date for entering upon th
re
demption and retirement of all these
SS hJch uch abundant
unent mu uc proviaea r The govern
waa nnf i c P
rTkv iF LUB sluauon or owing
hoId1er3 of it3 notea delts pavable
retired hPl whIch couId nefther be
retired by receiving such notes in
SorrnoibVSKaUon3 du th WerSnSl
ItWasffl Vy aciual Payment in gold
tl0TaST1id to rfdeem without redemp
tion
and to pay without acquittance
The Gold Reserve
cr ha been lssued and sold 95500000
orto bonds authorized by the resumption
u3 the proceeds of which together
I j r 6iu in tne treasury created a
gold fund deemed sufficient to mot the de
mands which misht be made upon it for
thft redemption of the outstanding United
States notes This fund together with
such other gold as might be from time to
ttime in the treasury available for the same
purpose has been since called our gold re
ifcrve and 5100000000 has been regarded
as an adequate amount to accomplish its
ooject This fund amounted on the 1st
day of January 1879 to 114193260 and
though thereafter constantly fluctuating
nodldno f1 beJow that sum until July
1892 In April 1893 for the first time sinco
its establishment thi3 revenue amounted
to less than 100000000 containing at that
uuio uniy IJlVUMU
t In the meantime In July 1S20 an act
Jnad been passed directing iarger govern-
Turunasr
BllVef treasury notes of GTeTTEItooTState
should bo Issued payable on demand ir
gold or silver coin at tho discretion of the
secretary of the treasury
It was however declared In the act to
be the established policy of th United
States to maintain the two metals on a
fiarity with each other upon the present
egal ratio or such ratio as may be pro
vided by law
In view of this declaration it was not
deemed permissible for the secretary ot
the treasury to exercise the discretion in
terni3 conferred on him by refusing to pay
gold on theso notes when demanded be
cause by such discrimination In favor of
the gold dollar the so called parity of the
two metals would be destroyed and grave
and dangerous consequences would be
precipitated by affirming or accentuating
the constantly widening disparity between
their actual values under the existing ra
tio
It thus resulted that treasury notes Is
sued in payment of 3ilver purchases under
the law of 1S90 were necessarily treated as
gold obligations at the option of the hold
er Theso notes on the 1st day of Novem
ber 1S93 when the law compelling the
monthly purchase of sliver was repealed
amounted to moro than 155000000 Thfe
notes of this description now outstanding
added to the United States notes still un
diminished by redemption or cancellation
constitute a volume of gold obligations
amounting to nearly 500000000 These obli
gations are the Instruments which ever
since we have had a gold reserve have
been used to deplete it
This reserve as has been stated had
fallen in April 1893 to 97011320 It has
from that time to the present with very
few and unimportant upward movements
steadily decreased except as it has been
temporarily replenished byi the sale ot
bonds
Among the the causes for this constant
and uniform shrinkage in this fund may
be mentioned the great falling off of ex
ports under the operation of the tariff
law until recently in force which crip
pled our exchange of commodities with
foreign nations and necessitated to somei i
extent the payment of our balances Ja
gold the unnatural infusion of silver into
our currency and the increasing agita
tion for its free and unlimited coinage
which have created apprehension as to
our disposition or ability to continue gold
payments the consequent hoarding of
gold at home and the stoppage of invest
ments of foreign capital as well as th
return of our securities already sold
abroad and the high rato of foreigr ex
change which Induced the shlpmer ot
our gold to be drawn against as a mat
ter of speculation
The Throe Bond Issues
In consequence of theso conditions the
gold reserve on the 1st day of February
1894 was reduced to 65438377 having lost
more than 31000000 during the preced
ing nine months or since April 1893 Its
replenishment being necessary and no
other manner of accomplishing it belnff
possible resort was had to the issue ana
calo of bonds provided for by the act of
1375 Fifty millions of theso bonds wer
sold realizing foS 03325571 which was
added to the reserve fund of gold then on
hand As a result of this operation this
reserve which had suffered constant and
large withdrawals in the meantime stood
on the 6th day of March 1894 at the sura
of 107446802 Its depletion was how
ever immediately thereafter so acceler
ated that on the 30th of June 1S94 it had
fallen to 64873025 thus losing by with
drawals more than 542050000 in five
months and dropping slightly below its
situation when the sale of 50000OCC ha
bonds was effected for It3 replenishmeit
This depressed condition grew worse tncj
on the 24th day of November 1S94 our
gold reserve being reduced to 557659701
it became necessary to again strengthen
It Thi3 was done by another sale of
bonds amountng to o0000CC0 from
which there was realized 58538500 with
which the fund was increased to 111
142021 on the 4th day of December 1S94
Again disappointment awaited the anx
ious hope for relief There was not even
a lull In the exasperating withdrawals
of gold On the contrary they grew lar
ger and moro persistent than ever Be
tween the 4th day of December 1894 and
early in February 1SS5 a period of scarce
ly more than two months after tho ee
ond re enforcement of our gold reservt bv
the sale of bonds it had lost by such with
drawals more than G9CC0C00 and had
fallen to 41340181 Nearly 43009000 had
been withdrawn within the month imme
diately preceding this situation In an
ticipation of impending trouble I had on
the 2Sth day of January 1895 addressed
a communication to the congress fully
setting forth our difficulties and danger
ous position and earnestly recommend
ing that authority be given the secretary
of the treasury to issue bonds bearing a
low ate of interest payable by their
terms in gold for the purpose of main
taining a sufficient gold reserve and also
for tho redemption and cancellation of
outstanding United States notes and the
treasury notes issued for the purchase of
silver under the law of 1S50 This recom
mendation did not however meet with
legislative approval
Bargain with the Syndicate
In February 1S95 therefore the situation
was exceedingly critical With a reserve
perilously low and a refusal of congres
sional ad everything indicated that the
end of gold payments by the government
was imminent The results of prior bond
Issues had been exceedingly unsatisfactory
and the large withdrawals of gold Im
mediately succeeding their public sale in
open market gave rise to a reasonable
suspicion that a large part of tho gold
paid into tho treasury upon such sales
was promptly dravn out again by the
presentation of United States notes or
treasury notes and found it3 way to the
hand3 of those who had only temporarily
parted with it in the purchase of bonds
In this emergency and in view of its sur
rounding perplexities it became entirely
apparent to those upon whom the strug
gle for safety was devolved not onlv
that our gold reserve must for a third
time in less than thirteen months be
restored by another issue and sale of
bonds bearing a high rate of interest and
badly suited to the purpose but that a
plan must be adopted for their disposition
promising better results than those real
ized on previous sales An agreement waa
therefore made with a number of finan
ciers and bankers whereby it wa3 stipu
lated that bonds described in the resump
tion of 1875 payable in coin thirty yeara
after their date bearing interest at the
rate of 4 per cent per annum and amount
ing to about 62000000 should be ex
changed for gold receivable by weght
amounting to a nttie more man 65cooOCO
This gold was to be delivered in such in
stallments as would complete its deliverv
within about six months from the date of
tho contract and at least one half of the
amount was to be furnished from abroad
Tt was also agreed by those supplying this
gold that during the continuance of the
contract they would by every means in
their power protect the government
against gold withdrawals
The contract also provided that If con
gress would authorize their issue bonds
payable by their terms In gold and bear
ing Interest at the rate of 3 per cent per
annum might within ten days be substi
tuted at par for the 4 per cent bonds de
screed In the agreement On the day Jia
contract was made its terms were ewn
municated to congress by a special execu
tive message in which it was stated that
more than 16000000 would be saved to
the government if gold bonds bearing- 3
per cent interest were authorized to bo
substituted for those mentioned in the
contract
The congress having declined to grant
tho necessary authority to secure this
saving the contract unmodified was car
ried out resulting in a gold reservd
amounting to 107671220 on the 8th day
of July 1825 The performance of this
contract not only restored the reserve
but checked for a time the withdrawal
of gold and brought on a period of re
stored confidence and such peace and
quiet in business circles as were- of the
greatest possible value in every interest
that affects our people
I havo never had the slightest misgiv
ing concerning the wisdom or propriety
of this srrangement and am quite will
ing to answer for my full share of re
sponsibility for its promotion I believe it
averted a disaster the imminence of
which was fortunately not at the time
generally understood by our people
Though the contract mentioned stayed for
a time the tide of gold withdrawals its
kuuu iuiis uuum not oe permanent
Appeals to Congress
In conclusion I especially entrea the
peoples representatives in
the
con Tess
who are charged with the respoiSity
of Inaugurating measures for the safety
and prosperity of our common countrv
to promptly and effectually
ills of our critical flnanciailig0hntsdi hive
suggested a remedy which
tiress JT
Serate ftlf them In 5gf eKgKSASr
withrthlm to SvepitrtotfeftS tebr
further the InterSt8PSSSS3flgri
fare of our countrymen TE hZ i e
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