Daily national Republican. [volume] (Washington, D.C.) 1862-1866, 1865-12-05


Its outstanding circulation, none Of which
has been presented for redemption, Is $44, 900,
which Ia secured by six and Eve per cont
bonds. H
Under the seventh section Of the act
amending the act to provide internal reve-
nue. to support the Government, nearly all
Of the State banks have voluntarily changed
into national associations, and Il is q graft
flying fact that this transformation has been
accomplished without deranging the business
of these institutions, or affecting essentially
the volume of bank note circulation.
The amount Of national banks notes in
actual circulation on the first day Of October
last was Sl7l, 1921, 003. With the addition Of
Che State bank notes, legal tender notes and
fractional currency; national bank notes In
hand not yet issued, and national currency
yet to be Issued to banks, makes total of
81, 0S3, 452, 1913. Deducting State bank cir
culation now outstanding that will be retired
about as thst as national currency is Issued
to converted banks, SIS, ,S67, 575; also, the
amount Of compound interest notes con-
vertod into $50 bonds since the LIST Of octo-
Der last, S44, 4,417, ,329-$123, 284, ,904; the
amount then loft as tho available currency
Of the country is $500, 167, 326. To ascer-
tain the amount Of actual active circulation
there should be deducted from the last t-men-
toned sum, the amount Of national currency
delivered to banks, and not then in circula-
ton; national circulation not delivered to
banks; amount Of legal tender notes held by
banks, including $74, 26l, BAT compound in.
terest notes; compound interest notes, other
than those held by banks, mostly held as in
vestments by insurance and trust companies
and savings banks, less say $40, 900, 900 in
actual traulattnn md IN N tho q.
ury Of the United States; making total of
s499, 1923, 097. Which will show the actual
circulation to be $500, ,844, ,229.
Tho Northern States will not ask for the
amount Of circulation to which their capital
entities them. Bonds have been deposited
to entitle the banks now organized to S244,-
754, 1875 Of circulation only. In no event
will the limit Of the act be exceeded.
Whatever may have been the intention Of
the trainers Of the Federal Constitution in
respect to the measure of value to be used in
the transaction Of business during time Of
peace and in tho ordinary flow Of events,
there is ample Justification for departure
from metallic currency and bank circu-
lation redeemable in specie on demand, in
the necessities Of the country as superin-
duced by the unparalleled civil war through
which the nation has been called to pass.
Now, however, that tho emergency which
called for this departure from first principles
has happily been surmounted, IL would seem
to be the dictate of sound policy to return, MS
speedily rs the financial condition Of the
Government and the business interests of
the country will allow, to more normal con-
dition Of the currency, so that the pecuniary
relations subsisting between ourselves and
othes nations may be placed upon a more
harmonious basis of value.
The evils resulting from an irredeemable
currency are too we'll known to require
enumeration. They should be tolerated no
longer than absolute necessity requires.
By n gold valuation Of our imports and
exports, the balance that has accrued against
this country during the four years previous
to the 30th day Of June last, including the
interest on American securities held abroad
purchased within that time, and also taking
into duo consideration the difference between
the standard Of our own and that Of foreign
gold, (nine and three eighths per cent, has
been $30S, 900, 900.
By reason of the probable falling of in the
export Of coin, and the increased amount of
interest to be paid abroad, 1t is estimated
that the accruing balance during the present
fiscal year will amount to 1920, 900, 900,
making total for five years of S428, 900, 900.
Our only resource to pay this gold balance
against us has been and still is the sale Of our
abroad. The amount required, If
sold at IN average discount Of forty per cent,
will be $713, 900, 900, and the annual interest
at six per cent will be $42, 7sO, 900. The
discount Of forty per cent. will amount to
S2S5, 200, 900; every dollar of which will be
an entire loss to the country.
As the first step to be taken towards re-
iuction of the Government issues used as
currency would indicate the conversion Of all
interest bearing legal tender notes into $50
six per cent. bonds, it is believed that the
slight contraction caused by such conversion
would be scarcely perceptible, more espe-
cially at this time, as 1t is not probable that
more than five per cent. Of the whole issue is
now in active circulation. 1t would be sim
ply exchanging one security hold as an in
for another.
In view Of this demand that will un-
be made for an increase of the ma
tiOnal bank circulation, and as a gentle mode
Of further reducing the volume Of legal ten
der notes. it is suggested that the national
act be so amended rs to allow an
increase of the limit to $500, 900, 900 on con-
litons only that all the banks be required to
redeem their notes in New York, Boston or
Philadelphia, and also that an issue of six
per cent. $40 bonds be authorized to the
amount that 1t will require to secure the ad-
iitional circulation under the provisions of
the act, which bonds the banks, when or
yanizcd, shall purchase as each may require
Of the Secretary Of the Treasury at such fair
rate us he may, from time to time, prescribe,
but not less than their par value, and pay for
The same in the United States legal tender
notes, and all notes so received shall be can
,elled and destroyed.
1t is believed that from few sources
revenue can be raised sufficient to meet the
interest on the public debt, pay the ordinary
expenses Of government, and contribute thirty
millions Of dollars annually to sinking fund
hat will pay the national debt in thirty-two
years and half.
The tariff can be so adjusted as to produce
one hundred and twenty millions Of dollars;
,ne hundred millions can be raised on whisky,
malt liquors, and domestic wines; fifteen mil
ions on tobacco; one hundred and twenty
i've millions on cotton; fifteen millions from
Itamps; from licenses twenty millions and
rom the premium on the surplus of gold,
lfter paying interest on bonds, ten millions;
making, in the aggregate, four hundred and
i've millions Of dollars; n sum probably one
hundred millions in excess of the amount
hat will be required under an economical
Of the Government, leaving a
iuction. The estimates, however, Of the
'evenue derivable from the several sources
Indicated are not the result Of loose sonjec-
,ure, but each is founded upon careful in
JURY in reference to past productions and
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