The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1869-12-08

barraSs business, and IN case OF resumption of
specie payment, to cause suspension of the
banks. Its, therefore, in my Judgment, essen
hal that the larger part of the five-twenty |
bonds be withdrawn and that other bonds be |
submitted in their place issued upon terms and |
conditions which admit of no doubt, In fine,
the practical question is not merely the resump-
ton of specie payments. AS a measure by /
itself, it is not difficult, but the problem is, to
resume under such circumstances that the po-
sltlOn can be maintained, not only in times of
but also in periods OF excitement |
and peril. Our course, it seems to me- is plain
upon the subject should tend to appreciate the
value Of cur paper currency. 1t is proDaDle
that some decrease in the volume OF paper VIII
ultimately be necessary. l therefore respect
fully suggest that the Secretary OF the Treasu-
nv be clothed with authority to reduce the Cir |
culation of United States notes in amount not |
exceeding So, 100000 in any one month. Thus |
will the country be brought gradually-and it |
may be, and yet without disgrace-into con- |
dtion when the resumption of specie payment |
will be easy, il not unavoidable.
PROVISIONS NECESSARY FOR THE PAYMENT OF
THE PUBLIC DEBT.
Under the circumstances it does not seem to
to be wise to authorize the funding of the
whole amount of fve-twenty bonds, which; as
is now anticipated, will be outstanding On the
first of July next but that $780, 900 900 at least
should be suffered to remain, either for pur-
chase OF reu0mpClOn previous 10 1913, SQOulQ
the sum of $3.50, 100000 be left for that pur-
pose, the entire public debt would be in a con-
dition to be easily redeemed Between 1874
and 1881 the ten-forty bonds could be paid and
provision also made for the redemption of the
bonds which will become due in the year 1881.
1t may be wise to reduce the proposed loan to
81 .00OOo0000, which would then leave for pay
ment previous to 1881 the sum of about $780,
DOC, 600, or hardly more than $780, 000, 600 year,
assuming that the proposed loan will be for an
amount not exceeding 81 ,200,000,00O. recon-
mend that it be offered in three classes Of $780,,
600, 900 each, the first class of $500 900 900 to be
payable in fifteen years and to be paid in TWEEN
ty years; the second class of $400, 000 900 to be
payable in twenty years and to be paid in twen-
ty-6ve years; the third class of $500, 100000 to
be payable in twenty years and to be paid in
thirty years. The essential conditions of the
new loan appear to me to be these: That the
principal and interest shall be made payable
in coin; that five-twenty bonds shall be receiv-
ed in exchange for the new bonds; that the
be payable in this country and the
in Europe, as the subscribers may desire; that
the rate of interest shall not exceed four and
one half per cent per annum; that the bonds,
both principal and interest, shall be free from
all taxes, deductions or attachments of any sort,
unless it shall be thought wise to subject citi-
zens of the United States to such tax upon
income from the bonds as is imposed by the
laws of the United States upon income deriv-
ed from Otner money investments. t
There are two reasons why the bonds of the
United States should be exempt from State
and legal taxes; first, if not SO exempt the
amount of the taxes imposed by the local au-
thOrities will be added to the interest the gov
eminent will be required to pay, and thus the
national government will be compelled to pro-
vide for taxes imposed by the local authorities;
second, inasmuch as the ability to borrow may,
under some circumstances, be essential to the
preservation of the government, the power
should not be qualified by any concession to
the States of the right to tax the means by
which the national government is maintained.
Some of the conditions of the new loan are
as follows: Citizens and subjects of other gov
ernments should receive the strongest assur-
ance that the interest and principal are to be
ment whatever; commission should be allow
ed to subscribers, the privilege of choice of
classes be given to those who first subscribe;
that the national banks be compelled to SUBJ
deposited as security for the redemption of
their bills, or lose their charters. Another
condition Is the continuance of the present
revenue system. We must be prepared to
offer the present holders of the five-twenty
bouds the alternative either of accepting the
new bonds at lower rate of interest or pay
ment of the principal ofthe existing bonds
When the five-twenty bonds shall have been
funded to the amount of 81, 10000 900 or ST.
100000 900, the revenue can be reduced mate
Aldliy duu ycI SuluCltut SuI1S Do IdlSeU 10 meet
the ordinary expenses of the government, to
pay the interest on the public debt and also to
pay $25,O00,O00 to $50 100000 of the principal,
annually. If success attends the negotiation
Of the loan. and our bonds continue to COM
mand the highest rates in the markets of the
world, we shall then be in condition to enter
upon the work of reducing taxation at the
commencement Of the next session of Con-
gress.
THE THREE PER CENT. CERTIFICATES.
The amount of three per cent. certificates
now outstanding is little less than fifty mil
lons reduction in seventeen months of over
tWenty-one millions. The Secretary recon-
mends that provision he made for their re-
demption, and as a compensatory measure an
increase of banking capital be allowed to a
maximum amount Of $35, 100000.
EVILS IN THE BANKING SYSTEM.
The report discusses two evils in our bank
ing system; first, the practice of allowing in
terest on deposits, which, the Secretary argues,
mas the tendency of attracting money to the
great money centres, to the impoverishment of
country banks. The consequence is that the
money thus accumulated is loaned for specu-
lative purposes. He therefore recommends
that law be passed prohibiting absolutely
the payment of interest by banks upon depos-
its, and limiting also their loans upon coilat-
erals to an amount not exceeding ten per cent.
OF their capital. The practice of certifying
checks, even when the funds are in the bank
" s"o Crcuit VI the drawer OF the checks, is
fraught with evils, and Mr.. Boutwell, thinks
That 1t ought to be entirely prohibited.
RECEIPTS AND EXPENDITURES
The following statement exhibits the receipts
anu expenditures for the fiscal year ending
June 80, 1869: 9.s ~. - - = e-N'-''
Receipts, exclusive of loans. $37O 74;2t
expenditures, exclusive of bonuses 3z1 ,49O597.75
Receipts In excess of exper ditures. $40 1896
The following statement exhibits the receipts
ana expenditures for the quarter ending Sep.
TENDER 80, 1869: w q ~ -! ~ =
Receipts, exclusive OF loans. S108 1881, 62202
~fsnuieo1es. *, ,5l469
Receipts In excess of expenditures 1923 AZ
The amount of repayment by disbursing
officers and other civil service SIS 1O2 2O2 o.
is deducted from the expenditures.
=, The estimated receipts and expenditures for
the three remaining quarters of the fiscal year
ending June 30, 1870, are as follows:
peu'uIes. .'.'''..'.............. 2G9.26O, 10000
Estimated receipts in excess of expen-
S76,750, 900 90
Estimated receipts and expenditures, based
upon the existing laws, for the fiscal year end.
ing June 80, 1871: i-as
neceip!s. 1893 000 900 90
expenditures. 291 200, 000 90
Estimated receipts in excess Of expen-
S102, 000, 00000
THE MCFARLAND-RICH TRAcrDy-
Contrary to general expectation, Rev. Henry
Ward Beecher did not refer to the Richardson