The evening Argus. [volume] (Rock Island, Ill.) 1861-1871, 1865-12-12
l93.094, 500

States.................... 56,236, 44O
Total. 49s, 1923, O97
Which will snow tho actual circula-
ton to be-. .................. ACC, S44, 229
This favorable exhibit of the amount of paper in
actual circulation owing, in great degree, to
the accumulat Of currency in the hands OF the
banks, in the absence of the great demands OF the
government for currency since the close OF the
war,
At the same date the banks held $40 045,-
800 in excess o. the reserve which they are
required to hold.
1t is believed that the most efficient check
upon the tendency to expansion would be
found in the compulsory redemption of bank
issues in the great financial and commercial
centres Of the country-New York, Boston or
Philadelphia. Under such a system many
institutions established chiefly for the issue
of their own promises. without the expecta-
ton of being called upon to redeem them,
would find that they had exceeded the re-
quirements OF Legitimate business, and OBJ
tain relief III the abatement of their issues
The steady reduction of the volume of ir-
redeemable currency in preparation for q re-
turn tn specie payment is regarded a. the
best policy to be pursued, and tina. the first
step should be the conversion of all the inter
est-bearing legal tender notes into 90 Elk
per cent bonds. Ii is believed that the slight
contraction caused by such conversion would
be hardly perceptibe In view of the urgent
demand that will undoubtedly be made for
an increase of the national bank note crcuIa-
ton, and a. a gentle mode of further reduc-
ing the volume Of legRl tender notes, il j. sug.
gested that the national currency act ie SO
amended a. 10 allow an increase of the limit
to four millions of dollars. on conditions only.
that all the banks he required TO redeem their
notes in New York, Boston or PhiIadeIphia ::
and also that an issue of six per cent. 500
bonds be authorized TO the amount that it
will require to procure the additional circula-
tion under the provisions of the act. which
bonds the banks shall purchase at not less
than par value and pay tor them in United
States legal tender notcs, ali notes so received
to he cancelled and destroyed.
The comptroller is very sanguine of the fu-
ture of the country. and believes that from q
few sources a revenue can be raised that will
pay the national debt in thirty-two years and
a half. The tariff can be so adjusted as to
produce one hundred and twenty millions of
dollars one hundred millions can be raised
on whisky, malt liquors and domestic wines
fifteen millions On tobacco; one hundred and
twenty-five millions ou cotton: fifteen mil
lions on stamps: from licences twenty mil
lions. and from the preuium on the surplus
OF gold, after paying interest on bonds, ten
millions, making four hundred and FIVE mil
lions of dollars, sum probably one hundred
millions In excess OF tue amount that Will he
required under an economical administration
of the government. Three-fourths of the
crops of cotton and tobacco are exported
that proportion, therefore. of the tax ON those
articles would be paid BY foreign countries
and 20 that extent contribute to the liquida
ton OF the public debt and relief Of our own
people.
The attempt to tax government securities
invested in banks is opposed a disgraceful
violation of the public faith. These invest
ments were made on the solemn pledge that
the stocks should be free from taxation by or
under state authority aud banks were re-
quired 20 make such investments IA n funia-
mental condition Of ;heir existence. The i'm
propriety of the proposed taxation is more APP
parent when it is borne in mind that they
are taxed by the general government to a
greater extent than any other corporation or
class of business.
In addition Ia the amendments to the cur
rency act already stated, il is suggested that
penalty should be imposed upon the banks
for issuin: notes with the engraved aud pTIn
ted signatures of the officers. The greatest
protection against counterfeiting is found in
the written signatures of the officers. The
counterteiter must attempt his imitation thro'
the same lnstrumentality on each note; hut
printed signature being once accurately imi-
tated, may be reproduced with each revolu-
ton of the prose-.
The removal OF the bureau 20 New York is
recommended as for the interest of the gov
eminent, the public and the banks.
the system of redemption previously rec
commended be enforced, it is further suggest
ed that banks ontsids Of those cities be reliev-
ed from the obligations to keep on hand
revenue equal to fifteen per cent. of their cir
culatiOn and deposits, it would be hard
ship to require them to be prepared to re-
deem both 1T home and at one of the points
indicated and keep up an idle revenue of fif-
teen per cent against contingencies.