Vol. 56

RESIDENT M'KINLEY'S message to Congress asking for authority to appoint a non-partisan Currency Commission is an extremely cautiously worded document. Apart from the declaration that the "several forms of paper money offer, in my judgment, a constant embarrassment to the Government and imperil a safe balance in the treasury," there is nothing to suggest the line upon which the President thinks the revision of our financial system should be conducted. The report of the Indianapolis Conference, asking for the appointment of a commission, is commended to the favorable consideration of Congress, but the President in no way commits himself to the recommendation of this Conference that the greenbacks be retired. He distinctly states that the Commission he desires to appoint should be made up of representatives of all parties in order that the result of its deliberations should carry weight with the entire public. There is nothing in the message to embarrass the work of our Bimetallist Commission abroad. When the message was received by the House of Representatives on Saturday last a resolution authorizing the appointment of the Commission was promptly passed by a party vote. The opponents of the resolution took the position that the revision of the financial system was the duty of Congress, and that this duty could not and should not be evaded by the appointment of a Commission whose recommendations would be predetermined by the present views of the men appointed thereon. In the Senate no action was taken, as debate could not be restricted, and an immediate adjournment was desired.

The Senate passed the Tariff Bill on Saturday last by a vote of 40 to 30. Thirty

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seven Republicans, two silver Republicans-Jones and Stewart, of Nebraskaand one Democrat-McEnery, of Louisi ana-voted in the affirmative. Twentyeight Democrats and two Populists-Harris, of Kansas, and Turner, of Washington-voted in the negative. After the passage of the Tariff Bill an unsuccessful attempt was made to secure a vote on the resolution asking for an investigation of the agreement made by the last Administration to sell the Government's interest in the Union Pacific to the Re-organization Committee of the Company. Action on this resolution was prevented by Senator Thurston, of Nebraska, the former attorney for the road. At nine o'clock the Senate adjourned, and the special session of Congress closed.

The speeches on the tariff last week were almost exclusively from the Democratic side, the Republicans taking the position that the speedy enactment of the bill was of more importance than appeals in its behalf. The one important speech made was that of Mr. Bailey, of Texas, the young leader of the minority in the House. Mr. Bailey's speech fully justified his elevation to his present position. The part of the speech which dealt with the general principles of free trade covered, of course, familiar ground, but the argument was expressed with exceptional terseness and power. Replying to the protectionist declaration that "the country is suffering beyond description from the industrial invasion of goods from other countries," Mr. Bailey showed that the importations during the 34 months under the Wilson law had been but $2,170,000 as against $2,387,000,000 during the last 34 months under the McKinley law. The existing depression, he said, could not be attributed to the in

vious to the increase in the tax, the distillers took out of the Government warehouses vast quantities of whisky in order to make a profit of twenty cents a gallon from the advance in price certain to result from the change in the tax rates. For several months after the higher rate went in force hardly any whisky was taken out of bond. Since that time whisky has been taken out and taxed only as it has been needed for immediate consumption. But the distillers have gone on making as much liquor as ever and storing it in the bonded warehouses to "age" at the Government's expense. On the first of July last year, there were already 55,000,000 gallons in the warehouses which had been stored for over three years, and which under the old law would now have to be taxed and stored at the distillers' cost. In this way the Government again loses its normal revenue. There is danger, as Mr. Powers points out, that the whisky trust, having secured all possible profit out of the increase of the tax, will soon secure a lowering of the rate, on the ground that a lower rate would yield a larger revenue. As a matter of fact, were it not for the unjustifiable extension of the bonded period from three years to eight, the $1.10 rate would already be yielding a larger revenue than the ninety

cent rate.

The discussion in Congress of the sugar schedules have called renewed attention to the present conditions of the sugar beet culture. As it is to-day, its origin in Europe was due to Napoleon I., who reorganized the industry, being moved thereto by the blockading of importations of canesugar into France. At the present time the sugar-beet industry is one of the leading agricultural departments in most Eurcpean countries. Its export trade has been rapidly increasing. A writer in "Bradstreet's" points out that in 1872 Germany exported less than 15,000 tons of sugar, but in 1895 the export exceeded a million tons, the total production in the same year being less than two million tons. Germany now produces from beets more sugar than the world's total production from tropical cane twenty-five years ago. The influence of the sugar-growing and manufacturing interests of Germany,

Austria, Italy, and Russia, with the Governments of those countries, is shown in the bounties upon exports intended to enlarge the foreign trade in beet-sugar that cane-sugar will be practically driven out of the market. Yet this bounty system is responsible for some peculiar features of the sugar trade. "Where the American pays for granulated sugar 5 cents a pound, the German citizen pays 64 cents, the Austrian 83% cents, and the Frenchman 10 cents." In ten years the world's production of beet-sugar has increased 78 per cent., while that of canesugar increased only 41 per cent. Though the cultivation of beet-sugar in this country dates back to 1835, the industry was a failure until the year 1879. Certainly it would be desirable if we might raise our own sugar. During 1896 fully one hundred million dollars was paid for sugar imports, of which at least onequarter was for beet-sugar.

The discovery of gold in the Klondike region, just over the Alaskan frontier in Canada, has brought the problem of transportation vividly before the public. Crowded steamers have already left from our Pacific ports for St. Michael's, at the mouth of the Yukon (whence passengers are transferred to boats of light draught for the river passage of nearly 2,000 miles) and to Juneau and Dyea, for the shorter but harder journey across country. The Canadians have shown much energy in their plans for transportation, both by boat and overland. The Ottawa officials telegraphed to Washington, requesting that Dyea, at the head of the Lynn Canal, in the disputed territory between Alaska and Canada, be made a sub-port of entry for goods going into the Yukon country. Dyea is about fifty miles north of Juneau. Secretary Gage immediately complied with this request, and also agreed to send a man with the goods over the mountain summits where the fees could be collected at the first post in what we acknowledge to be Canadian territory. It is possible that the Canadian Customs Department will place its officer at Dyea so that fees may be paid there. Two Canadian officers will be sent up from Victoria, one for each of the passes utilized by those sending goods to the Yukon. Cana