The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-12-07

10 enter upon the work of reducing the tax at the
ON the sOth Of June sos, the amount Of eutstaud-
ing three per cent certificates and compound inte-
rest notes convertible into three per cent certificates
was I'll ,6O4s90. on the 80th OF June, 1861, the
amount outstanding was $500, ,410, showing re-
cSn p bs 1S S in that for form OF
showing total reduction in seventeen months OF
substitute TO a considerable extent, for United
States notes, being largely held by the banks as
portion OF their reserve, and thus indirectly though
not to their full nominal value, they swell the
volume OF currency. recommend that provision be
tGcates within reasonable time, and, as a compul-
sory measure for the reduction in the amount OF
currency which would TINS be caused, that
authority be given to grant charters for
banks in the States where the banking
capital is less than the share to which they would
he entitled TO an amount not exceeding thirty-nVe
millions of dollars in the aggregate. The redemp-
ton Of the three per cent certificates and the addi-
not to produce serious disturbance in the finances
business Of the country while additional banking
capital would be supplied to the sections now in
need of 1t. and this without any increase Of the
volume Of circulation.
There are two evils in the present banking system
which require remedy by prompt and efllcient legis-
ation The first is the practice on the part OF banks
of allowing interests upon deposits; The enect OF
this practice is that moneys in the hands OF ndivi
duas which otherwise might be loaned for regular
mercantile and other business purposes are diverted
into the custody OF banks upon the idea that the
security is not better payment can be secured at
moments notice. Country banks and others remote
from large centres OF UTHue, HHVlDR TeCeNtu
or deposit for which they pay interest," are anxious
to transfer such funds to other hands from which
they viii receive an equal or larger rate OF interest
place their funds where they can be at all time
commanded. Thus influenced, large sums are
placed on deposit with banks in the Cities and espe-
cay the city Of New York. which is the great centre
of trade and finance for the Atlantic coast In the
ordinary course OF trade the currency OF the coun-
try tends rapidly to the cities, and 1t is unwse to
stimulate this tendency by artificial means;
with SH 'hH the eH mpovers6mept Tgs not Of he the
country as the banks in the city may be called upon
at any moment to respond to the drafts OF their de-
positOrs, they decline to make loans representing
such funds upon commercial paper payable on time,
but insist upon making call loans, as they are
pledged as collateral security. Merchants will not
borrow money in large sums payable on demand.
The consequence Is that the moneys thus accumu-
lated in the city banks are loaned to persons en-
gagged in speculative purposes. The extent OF this
eyil is seen In the fact that OF the bank loans in
s9s,O0C,CO0 were upon commercial paper and
s6sOOO0OO upon dema! with pledge of collateras,
and In October, 1SuJ, 99OOO,OOO were upon CONNER
cia paper and S59, 900 upon demand. In the for
mer year 81 per cent and in the latter year 81 per
cent Of the loans made by the New York banks were
upon demand further result is in the fact that
parties borrowing money upon commercial paper for
legitimate commercial purposes pay from to 6 per
cent additional interest per annum compared
with persons who borrow money for specula-
tive purposes !, therefore, respectfully re-
lutely the payment or interest by banks upon de-
posits and limiting also their loans upon coaterals
w s'iih'uh' '' N@NNSSNhb NSh pCi CCuI vi
capital.
am satisfied also that the practice of certifying
checks, even when funds are in the bank to the
credit OF the drawer OF the check is fraught with
evil and that it ought 10 he entirely prohibited.
The following statement exhibits the receipts
and eXpeditures for the fiscal year ending June 3d.
| 1869: = Receipts for Customs s1SOOiS, ,i26'63 ;
direct tax, sI656S56l; miscellaneous sources
s2I752 S297 total exclusive OF loans s37O 943, 4I2l
EXpendi5nre-ciyl ~, service s56,4a,osl %; pensions
sS,5Ol 99 6l; Navy Department, S20,000, 75T 9T in
terest on the public debt 0,694 242SO premium on
$40 u $. Treasury notes, $500, ,OOO total exclusive
OF loans, 1921 800 59IT5 receipts in excess OF ex-
penditures, $40 453, 1896.
The following statement exhibits the receipts and
| expenditures for the quarter ending September 3d.
-Recelpts-Customs, s52, sos, ,92 SO; internal
lands ss %isce
loans, Sl00,sS3, 16262. Expenditures, after de-
ducting the amount Of repayments by disbursing
Indians and pensions, sls,547 94279; War Depart
ment, sl96o5 46sO5; Navy Department. S. 49,, ,68O96:
elusive of loans ss5 4sO, ,545S receipts in excess of
expenditures, s23,35l 10749. The estimated receipts
OF the fiscal year ending June 3O 1870,
| are as follows: - Receipts for customs,
s4,OGo,Ooo; miscellaneous sources s2O,6OO,OOOi
| total, s2S6, 100000. Expenditures-civl service,
24O 900 pensions and Indians, s21OOO,OOO; War
| Department. $40500,0O0 Navy Department, $4,000,
900; interest the public debt, $685. 900; total,
5000 25O OCO estimated receipt in excess OF expend
| ture, $40, 100000; estimated receipts and expendi-
| lures based upon existing laws for the fiscal
year ending June 80, 1871. Receipts-cMus- Gus
lands s5OOOOOO; Miscellaneous sources s2S oO0, 600.
Total, t393,OOO,0OO Expenditures, Civil, Foreign,
ann PENSIONS s8S o6 Soc; War department $50 ooo'
public debt, $l27,oOOO6O. Total s29i 100000. Re:
foregoing estimates of receipts are made upon the
assumption that the laws now in force relating to
as to materially affect the revenue, ond the est.
mates OF the expenditures are based upon the ex-