The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-12-06

must have received very little of the Mozart
vote, and still less of the republican. I'm
doubleday he was put into the market by his
supporters to be Knocked down to the highest
bidder. 1t only remains to be added that out OF
one hundred and five thousand votes registered
only about eighty thousand were polled, and
that an immense amount OF money changed
hands on the election, the republicans being
heavy losers, as they offered large odds. We
may congratulate our citizens upon having
secured Mayor Of great experience and I'M
blemished character, and can now patiently
await that action of the Legislature which will
give us the reform in the departments of the
city government 30 imperatively demanded by
the majority of our voting and taxpaying popu-
lation.
The Condition OF the National Paper
Report OF the Comptroller OF che Cur
rency.
The facts presented in the report OF the
Comptroller of the Currency will surprise the
country and damage great many theories
and propositions for the reduction of the
amount of paper money afoat. The theories
have all assumed that the amount of paper in
circulation was thousand millions, and their
calculations are based on that sum. But it is
now shown that while the whole available cur
rency OF the country, State and national bank
notes, and Treasury notes Of all grades, is nine
hundred and sixty Millions the amount actually
in circulation on the first of last October was
less than four hundred and sixty-one millions
This fact will be serious blow to the financial
theories of those learned fellows who have 30
persistently urged an immediate reduction Of
the currency as the grand cure for the evil Of
high prices. II is also shown that the amount
Of national bank notes in circulation Is smaller
than any estimates have made it. 1t has been
thought that there were afoat ten millions in
excess of the three hundred millions authorized
by law. But instead of this there are hardly
bonds enough deposited to cntitle those insti-
tutions to issue two hundred and forty-fve mil
lions thus leaving large balance in their
favor.
The Comptroller enters extensively into the
discussion of the several questions which bear
upon the condition of the currency. Like the
Secretary Of the Treasury, he has great deal
to say about contraction. He recommends that
the National Banking law be SO amended that
the banks shall be required to redeem their
notes at par at the three great business centres
New York, Boston and Philadelphia. This
question has already been very extensively
advocated in some financial circles and opposed
in others, and now goes before Congress
with the official endorsement Of the govern
ment banking officer. He also urges the
reduction Of the government issues Of paper,
and proposes to commence it by the CONVEX
sion of all the intercst-bearing legal tender
notes into fve-twenty six per cent bonds
This, he argues, can be done without affecting
the money market, inasmuch as there is not
more than five per cent OF that issue now in
active circulation. The great bulk being held
az an investment, II would be simply exchang-
ing one class Of securities for another While
he favors this reduction in the government
issues he also recommends an increase Of the
amount Of the national bank notes to tour
hundred millions. In efecting this he would
require reduction of the regular legal tender
notes to an amount more than equivalent to
the increase in bank currency. The policy Of
the financial officers Of the government evil
IDENTITY is to leave the question Of supplying
paper currency to the banks exclusively at a.
early period as possible. This recommends
ton Of the Comptroller is no doubt the initia-
tory step in this policy. II II receives the
endorsement of Congress 1t will be gradually
put into operation; but all must admit that the
legal tenders cannot be withdrawn until we
again approach specie payments, which must,
by the very nature Of things, necessarily be at
some distant day in the future.
There is one other proposition in this report
that will no doubt attract considerable atten-
ton and be the subject Of discussion. That Is
plan for the payment Of the national debt
Mr.. Clarke gives II as his belief that there can
be raised from few sources Of revenue SUM-
cient to meet the interest on the public debt,
pay the ordinary expenses Of the government,
and contribute an amount annually towards
sinking fund which will pay our entire
national debt in thirty-two years, and at the
same time abolish the income tax. This will
no doubt astonish those GROWERS who have
been claiming that we can never pay our debt
and that reputation is inevitable. But he pur-
poses to do this by adjusting our tsriff, taxing
cotton, whiskey, malt liquors, domestic wines,
tobacco, stamps and licenses, and abolshing
all others. As this mode would be less felt by
the taxpayer than the present system we pre-
sumo that II will be popular among large
class of the Northern people. But 1t will at
the same time abolish large army Of officials,
in the shape Of assessors and collectors, and
there may be some question as to which class,
the taxpayers or the taxgatherers, will have
the greatest influence in Congress.
The question which has already been raised
in many Of the Northern Legislatures in regard
TO taxing United States securities, and that has