Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1865-12-15


the bank note circulation Of the United st ties in
creased from SOL 900 to Si40 s5,S00 between the
lst Of january, 1880 nnd the first OF January 1897, IN
which hitter year the great financial collapse took
place. fell from sl401 500 in 1887 TO 6sd6i,0OO in
isl3 and rose to s2l477ss22 on the first of January
1857 in which wear the next severe crisis occurred
falling during that year to 52OS 34i, and rising to
500 l02 900 ON the first Of January, 1860
On the first Of January Of the memorable year 1887
the bank note circulation Of the United States was
Sl401S5, $50. the deposits were Sl2T $4,000, the
loaus S5251l5 900 In January 1867, the year Of the
next great crisis the circulation WAS S2l4T73s22, the
deposits were 2303j1,O00, the loans s6S4,i66O0O
There are no statistics to exhibit the amoant otspece
actually in circulation in those pcrods, but it would
be liberal estimate to- put it at S3OOOOOOO Tor 1881
mud $50 000, 600 for 1857.
On the 3Oth Of September, the date Of their last
quarterly reports the deposits and loans OF the Ma
tionnl Banks (hc Secretary has no reliable returns Of
these items from the few remaining State banks) were
rs follows
Deposits, Individual and Government S54l, ,l5Ols4
Loans. S4s5,3l4,029
To which should be added
Investments in L. 5. bonds and other
u. s securities. 42f,f"lbpO
,O45620
These figures are history in themselves, exhibiting
not ony the past and present condition Of the com
try, in matters Of exceeding Interest, hut indicating
unenngly the dangerous direction in which the fnan-
rni current is sweeping.
On the Both Of September last, the deposits of the
National Banks alone amounted rs above stated, to
S544 415O194; their oans-estimang their national
securities ms loan to the Guvernmcn-to e9l3Oi5,-
G29; both Of which items must have been increased
during the month of October; while on the 3lst OF
that month the circulation, bank and national, had
reached the startling amount Of upwards OF 500
100000 Nothing beyond this statement is required
to exhibit the present initiation or TO explain the
causes of the current and advancing prices. II dlsas
ter followed the expansions of 1887 and 1857, what
must be the consequences of the present expansion
unless speedily checked and reduced
the popular and plausible objections To reduction oil
thccurrencv, coming TO the conclusion that every CON
sdemtion that has been brought to his mind confirms
the correctness Of the views lie has presented II the
business Of the country rested upon stable basis or
if credits could he kept from being still further III
creased, there would be less occasion for soctude on
| this subject. But such is not the fact. business Is
no, in healthy condition it is speculative, ieversh,
uncertain. sEvery day that contraction deferred M
crescS the difficulty of preventing nanchu collapse
Prices and credits will not remain rs they are lhe
tide will either rcccde or advance and 1t viii not re
cede without the exercise Of the controlling power OF
| Congress.
The Secretary therefore earnestly recommend
! First. That Congress declare that the compound
interest notes shall cease to be legal tender from the
dav Of their maturity.
Second. That the Secretary be authorized, in his
discretion to sell bonds Of the United States, bearing
interest at Il rate not exceeding six per cent. and re-
deemabe and payable ut such periods may he con-
ducive to the interests Of the Government, for the pur
pose OF retiring not only compound interest notes. but
the United States notes
The public debt, the object for which it was crea-
ted, aud the necessities Of preserving the national faith
inviolate. are dwet upon Mt lcnah
On the 3lst day of October. 1865, since which time
no matoria. change has taken place, the public debt
without delucting funds in the Treasury, amounted
to 50 SOS. $40 437j5. Without attempting nice cal
cuation Of the amount it may reach when all our la
btics shall be accurately ascertained, it seems safe
to estimate it on the l.. Of July, 1866, at three thou
sand millions Of dullarl The Secretary is Of opinion
that the whole sum may be funded at per cent. in
tereSt and paid in full ina little over twenty-eigh
years.
Various plans have been suggested for the payment
Of the debt. but the Secretary way Of accom-
plishing it but by increase of the national income
bevond the national expenditures. In matter Of sc
great Importance this, cXperin 'nts cut of place
The plain beaten path Of experience is the only SAT,
ono to tread.
The first step to hc taken Is, to institute measure.
for fund mg the obligations that soon to mature
The next is, to provide for raising IN manner the
least odous and oppressive to PAYERS, the reve
nues necessary to pay the interest on the debt, aud
certain definite amount annually for the reduction 0
the principal. 1t is Of the greatest importance in TIL,
mana cement Oft matter Of so surprising interest th0
the right Start shoul be made. Nothing bat revenue
will sustain the national credit, aud nothing less than
fixed policy for the reduction OF the public debt vii
be likely tn prevent its increase.
Il is estimated that the deficiency Of income for TN
fiscal year cndng ON the Both iJune, 1866, will be
Sl1219l,9i7,20.
For the fiscal year ending ON the 3Oth ofJunc. 1856,
the receipts from all sources are estimated at 1896,
600 900, and the expenditures Mt S2s4 43lT, ,lel, 81
leaving a surplus of Sill l,6s2, ,slS,l2.
In view Of the fact that the exemption of Govern
mrnt securtic, from State taxation is, 10y many per
sons, com,idere an unjust discrimination in their IA
vor and that efforts may he made 10 induce Congc-
to egislate upon the subject Of their taxation, TIN
Secretary expresses the opinion that the existing cN
cmntiOn from State and municipal taxation should h
/, scrunuouslv regarded, That exemption is part o
the contract under which the securities have been is
sued and the money loaned thereon to the Govern
ment and it would not only he unconstitutional bu
n breach Of the public faith Of the milton to di>rcgau
it. 1t would also, in the judgment Of the Secretary
be unwse for Congress to grant to the Stuesthc pow
cr of imposing local taxes upon securities OF the mi
, ted States which may be hereafter issued. Sucl
taxation would result in serious embarrassment to TN
Government, and, inste nd Of relieving, would eventu
ally niure the great mass OF the people, who are Il
{ bear their iu. proportion Of the publ debt Ever
taX-paver is personally interested in having the pub
lie debt placed NJ home aud mt low rate of interest
which cH"no be done if the public securities are (
be subject to local taxation. Ii local taxation is al
: lowed no considerable portion Of the debt which fall
due within the next four years, he funded NJ HON
at less than eight per cent thus greatly increasing til
burdens Of the people, and causing the securities to
rapidly transferred into the hands of foreign capita
!, ist-
The internal revenue system is then referred to- br
IN consideration of the fact that the whole subject la
been committed to commission appointed under II
act passed mt the last session Of Congress- the Secrc
tary does not consider il proper for in to present h
views upon this important subject in advance Of the
final report which it is hoped will be made early
. the session.
I The course adopted in respect to the collection
= taxes in the lately n'urrcctonory States relate,
: and in view Of the recent and present condition
tho-e States, the Secretary recommends;
First That the collection of internal revenue taS
es which accrued before the establishment Of revenu
= officers in the States recently in rebellion be mdci
= nely postponed.
I Second. That all sales Of property insho.o State
: under the direct tax law be suspended until the Stat,
s1tg ht1. IN Of don