Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1869-12-07

any way authOritatiYely, upon question
arising in the administration OF the Gus
toms revenue laws. At the present tim
the revenue from customs is as large a
the revenue from the excise system-th
number of men employed and the field 0
its operations nearly as great. II IS i'm
possible for the Secretary ofsthe Treasur.
to give the various questions that arlse II
the administration of the system that at
tention which is essential to tue service
Duties of experimenting the collection
of customs, and revenues are so varied
delicate and important as to justify an'
reuuire the exclusive attention OF tn
most competent person whose services
can be obtained. The experience OF IN
present year in the administration OF lh'
Internal revenue system and collection o
the excise tax justifies the opinion tina
the establishment OF an office of Commis
sioner of Customs and Revenue, CORES
bonding in power and position TO that o
commissioner of Internal Revenue, anC
the appointment of a competent Commits
sioner. would render the execution o
the custom and revenue laws much more
efficient and harmonious, while the reVe
nue. would probably be increased 10 the
amount ofmanY million dollars annually
nor is it probable that the expenses would
be materially greater, excluding interest
accrued and notpaid, and deductlng cash
on hsnds The debt of the United States
on the first of March lastwas S252, $40, ,526,
OOl, and subject to the same condition il
was S245. 355, 81, ,523 on the first Of the
present month, showing a decrease OF
81 ,9U3, ,524 IS. This apparent decrease OF
the public debt is less than the actual de-
crease. Considerable sums have been
paid on account of war and other old
claims not previously ascertained,
and therefore not included in any
debt statement. The account of March
Ist, from the necessity of the case, inclu-
ded only the interest accrued and not
then payable, but as a matter of fact there
were outstanding and over due interest
coupons, ofwhich several millions have
since been paid out of the ordinary rev.
enue. Previous TO March 1st no interest
account had ever been kept with the sew
eral loans. such measures as were found
have been taken to ascertain
the exact condition ofthese amounts. The
bonds issued by the United States in aid
of railroads, amounting to So, o., 300, be-
ing in the nature of loan, are not inclu-
ded in the foregoing statement.
esThe wants of the States of The South
have increased, and consequently a large
Of currency has been Withdrawn
from other sections to supply the demand
1
the purposes of the South will steadily in
crease for the next two years.
The construction of the Pacific Railroad
is likely to result in the substitution of
paper for coin by people on the Pacific
coast. 1t is probable that the demand for
paper for the purpose will not be less than
thirty millions of dollars; as a conse-
luence, a very large quantity of coin viii
be Withdrawn from circulation, and thus
the coin will be increased on
he Atlantic coast, and paper circulation
in States east of the Rocky
Mountains be materially reduced. These
changes will tend to diminish the differ
7nce between paper and coin, the ability
lf the country to resume specie payment
gill not be due to any special legislation
On that subject, but to the conditiou of its
Industries and TO the financial relations
o other countries. These of course will
De more or less dependent ON the general
policy of the Government. The war ex-
laustcd the country of its material
wealth and the States OF the South ,gcre
impoverished. 4 necessary
condition for the resumption of specie
payment was the development of the in
iustry Of the nation, both South and
North, and the consequent accumuIa-
ion of movable prOduCls of industry to
II those products should be equal
ubs tantia4ig 70 our imports.
There are two evils in tho present bank
vstem which require remedy byprompt
nj efficient legislation. The FIRST is the
practice on the part Of banks OF allowing
interests on deposits. The effect of the
practice is that monies IN the hands of in
lividuals, which otherwise might be
oaned for regular mercantile and other
business purposes, are diverted into the
custody Of banks upon the idea that if
he security is not betteE.~payme can be
obtained at a moments notice. Country
lanks and others remote from the large
,enters Of trade h3vi1---- TAoaived money
"a deposit for which they paw Interest.
ire anxious to transfer such funds to
lther banks, from which they viii re-
eive an equal or larger amount of inter
ST In return. They are stimulated also
y the desire to place their funds where
hey can be at all times commanded.
nus Influenced, large sums are placed on
eposit with banks in cities, especially in
he city Of New York, which is the great
enter Of trade and finance for the At
lntic coast. In the ordinary course of
rade the currency of the country tends
1pidly to the cities. 1t is unwise to
,imQlate this tendency by artificial
be impOverishment of the country, as
be banks in the cities may be called on
any moment TO respond to drafts of
leir depOsitors. They decline to make
,ans, representing such fund on com
iercial paper, payable on time, but in
st on making call loans. as they are
.rmed, with Government bonds or other
JligatiCus pledged as collateral security. |
.erchants generally will not borrow
iOney in large sums payable upon de-
Iand. The consequence is that moneys
aus accumulated in city banks are
,aned to persons engaged in speculative f.
lrsuits. The extent of this evil is seen I
the fact of the bank loans in the city
New York in 1858; SOS ,O00, 900 We're /
pom commercial paper, and SOS coo, 900 on
smand, with pledge Cf cOllaterals, and I
1859, $50, 900, 600 were upon commercial f.
iper and S59, ,OOO, 600 in demand. IN the 4
rmer year, fOFty-one per cent, and in 1
ie latter year, thirty-seyen per cent. of |
le loan made by the New York bank (
ere upon demand Of three per cent. GER /
ficates. The additions TO banking capt.
] might be so arranged as not to pro- F.,
lce serious disturbances in the finances
business of the country, while addi- |
onal ban king CaEital would be supplied
the sections now III ueec of it, and this
ithout any increase Of the volume OF
rcu lation.
a further result is seen in the fact that
arties borrowing moneys upon CONNER
al paper for legitimate commercial Dur-
)ses, pay from three to six cents addi-
onal interest per annum, as compared I
ith persons who borrow money for spec /
Iative purposes. 1 therefore respectfully
'commend that a law be passed prohib-
ing, absolutely, payment of interest by
lnks upon deposits, and limit, also, their
ans upon cOllaterals to an amount not
.ceeding 10 per cent Of their capital. !
n satisfied, also, that the practice of GER
fying checks, even If funds are in the
lnk 10 the credit of the drawer of check, I
fraught with evil, and that it ought 10
2 entirely prohibited.
Considerable progress has been made /
pom the foundation of the postotiice /,
hiding in the city of New York, and of /
le postoffice and independent treasury
lilding in the city of Boston. The Su- /
eryising Architect of the Treasury De- /
lrtment is of the opinion that the walls I
al roofs of the building may be COM |
eted during the next year If sufficient 1
are furnished. The works /
lving been undertaken, / am of the |
)inion that it is economical to make the /
5cessary appropriations for their speedy /
'mpletion. During the mopth of De /
amber the Department will bSpreparod 4
submit report upon the condition of /
lr commercial marine. That report will /
low that the navigation interests /
the country have no. recovered from /
le losses sustained during the war, and /
Iat efficient measures are necessary for I
$ restoration,
The following statements exhibit the /
ceipts and expenditures for the fiscal 4
ear ending June 80, 1869: Custom re- !
ipts SlS0,04S, ,426 63; internal revenue. /
q, 1856, 400 S.; public lands, s., ,O20, ,344 81 /
rect tax, sos, ,6S5 81; miscellaneous /
urce S27, ,752, SO a; total, exclusive OF /
ans, $40 9I3,747 q. Expenditures-civil /
rYice $50, ,474, ,06l 50; pensions and IHdi- |
IS, 9sj,5i9, ,5if 81; war department, S7S,- /