Daily union and American. [volume] (Nashville, Tenn.) 1865-1866, 1865-12-10
UNION&AMERICAN
SUNDAY. DECEMBER 10. 1885.
Finance and Trade.

"A From the report Of the Hon. Freeman Clark
III Comptraler OF the Treasury. relating mainly TO
III the NAtionel Banks, we learn that since the last
<N annual report 2SS aew banks have been organic
ed and 7Sl State banks converted into National.
q Whole number of National banks to November J.
II Is 1G01, of which $40 were new, and w CONVEX
d sions from State institutions Two banks nave
i failed. The result Of tho conversion has been
rather 10 diminish than 10 increase the circula-
tion National bank notes in circulation October
/ were $71 s1 eGS State banks, SIS s67 575; legal
tender ana fractional currency $7Oi,5Si.55s. In
Guiding bank notes not issued, the whole amount
of the nominal circulation at that date was 81
OSS so 2S;from which the Comptroller makes large
deductions in order 10 arrive at the actual crcu
Iation. National bank notes not delivered to
banks are 500 9i5; legal tender held by banks,
$19S0)4 1855; compound interest notes, mostly held
as investments $l2l, 4li,l95; currency in U. S.
Treasury, $5s.2364 40; altogether $499, ,Og7.
leaving the actual circulation $3.50 si4,229.
rs recommended that as the most efficient
means to curtail expansion, system Of compulso-
ry redemption at the financial centers be adopted.
The emergency which required an irredeomablo
paper currency no longer existing, assumption Of
specie payments should ensue the earliest posi-
bic moment. rs one step toward it. the tariff
should be so adjusted as TO discourage inordinate
eign exchange recede in price. Internal taxation
at the same time should be simplifed. In addition
10 $1,000 600 from the tariflhe Comptrollors esi
mates are 100000 600 whisky, malt liquors, and
domestic wines; $15,OO00OO on tobacco; Sl25,0oo,
600 on cotton; SIS 100000 from stamps; $2)OOl,OOO
from licenses; 100000 from premiums
plus Of gold; in the aggregate Sl05, 100000, sum
probably $1OO,OOO.OO0 in excess Of expenses, the
whole or part Of which could go to the yearly re-
duction Of the debt. By restricting the Internal
Revenue tax TO few articles the cost of its cOlec
ton would be greatly diminished. and dissatisfac
ton with the law be abated. The Controller pro-
tests warmly against all schemes Of State taxation
Of National securities as a violation Of public faith,
and proposes the transfer Of the bureau which he
administers from Washington to New York. as de-
handed by economy and convenience.
The following is the New York Ti1buHes synop-
sis of the report Of Secretary McCullcck:
J. The Curreney.-The key to the policy which
the Secretary advocates may be found in the deca-
ration Of his belief that the authority Of Congress
to mako the obligations OF the Government a le-
gal tender resides outside Of the Constitution, and
that the inaation which: has followed upon the
necessary exercise Of that authority during the
war is prejudicial TO both public and private in
forests While therefore. he does not advocate
the repeal of the legal tender acts nor believe it
possible to reduce the volume Of the currency by
violent measures, he is Of opinion that those acts
should be regarded only temporary, and that
the work Of retiring the notes which have been
issued under them should be commenced without
delay and carefully and persstently continued
until all arc withdrawn. The rapidly of the pro-
cess win depend upon the ability to dispose Of Sc
curitics. The specific measures recommended arc
ns follows:
M 4 L. Al Al. Il
interest notes shall cease TO Rea legal tender from
the dav of their maturity. These notes were in !
tended TO be a security rather thAu CIRCULATING
meuium, and such a declaration by Congress
would be neither injurious 10 the public nor an act
OF bad faith TO the holders.
Second, That the Secretary be authorized in his |
discretion TO sell bonds Of the United States bear
ing interest az rate not exceeding fix per cent,
and rodeemable and payable a. such periods rs |
may be conducive 30 the Interests OF the Govcrn-
ment, for the parppso Of retiring not only com |
pound interest notes but the United States notes.
The amount which the Secretary estimates as
necessary to be retired in ordor to bring the cur
roncy within proper limits is from one hundred to
two hundred millions in addition to the compound |
notes, the amount Of which latter, October g. was
$178Ol214l, all duo in 1867 and 1868. The total |
paper circulation of the United States at that date
was $7Ol,2ls, O3s, to which should be added $780,
oOgO0u. the estimated amount Of compound in |
tcrc,l notes actually in circulation. Tho total is
likely TO be st further increased by the issue Of
notes 20 the National banks now daily going on. |
and destined to continue till the limit Of 100000,
600 authorized by law shall have been reached, as
IL will be ut no distant date. As but lS500OOOO /
Of National bank notes are included in the esti- |
mate Of S78i as 03s 70 there remain Sis U0O 900 to
De added aGd the aggregate amount Of circulation |
viii then be $si9, 2ls,O3s.2o. If the recommended
tons Of the Secretary in regard TO contraction be
fully carried out by retiring S20000OOO0 Of United
States notes and the S3OOOO.oOO Of compound in |
torost notes actually in circulation, there will |
still remain total circulation of S6l9,2S, 03s20,
even surprising that extension Of tho amount |
of National Bank notes now authorized 10 BE- is |
sued be granted by Congress. 1t is. PERHAPS, in /
view Of these or similar calculations that the Sec
rotary adds 10 his suggestions the remark that |
neither the amount Of reduction nor the time |
that will be required to bring up the currency TO |
the specie standard now be estimated with
any degree Of accuracy. The first thing 10 be done
81 70 establish the policy Qf contraction.