The Government is feeling the effect of the new interstate law enacted by the last Congress. The Great Northern Railroad and Steamship Company has notified the Insular Department that it can no longer transport Government employes at contract prices east of Tacoma. The Government's contract with all the railroad and steamship lines provides for the transportation of officers and Government employes from Manila to San Francisco at the rate of $125 each, to Denver, $145; to Chicago, $165, and to the Atlantic coast for $175. The Great Northern now quotes a rate of $155 from Manila to Tacoma, and full railroad rates east from there.

The Japanese Government is pleased with the action of the Washington authorities, and believes that a satisfactory result may be confidently expected from Secretary Metcalf's mission to San Francisco in connection with the exclusion of Japanese children from schools attended by white children. It is believed that the acute stage in the matter has passed, and that no anti-American feeling exists in any form in Tokio. The action of the San Francisco school authorities is deemed to be a violation of the treaty between Japan and the United States.

The pressure from bankers and others for larger and more regular supply of small denominations of currency continues unabated. The Treasury is without resources for the issue of small bills to comply with their urgent requests, until Congress enacts legislation that it has under consideration, which will bring full relief from existing conditions.

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November 10, 1906

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