Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1869-12-08

Fo II lIOili anu lIu
practically the coin will be increased o
the Atlantic coast, and paper circulatio
in States east Of the Rock
Mountains be materially reduced. Thes
changes viii tend to diminish the differ
1 ence between paper and coin, the abilit
OF the country TO resume specie paymeu
1 VIII not be due 10 any special legislatiO
| on that subject, but to the condition Of il
industries and to the finsneial relation
10 other countries. These Of course Wi
be more or less dependent on the genera
] policy Of the Government. The war ex
/ hausted the country of its materia
/ wealth and the States of the South yer
4 literally Impoverished. A necesSaft
/ condition for the resumption Of siieci
| payment was he development of tbs in
I dustry of the nation, both South an,
I North, and the consequent accunula
! ton of movable products of industry {,
/ such an extent that our export
! of those products should be equa
( substantially to our imports.
There are TWO evils in the present bani
/ system which require remedy by promp
F5tnd efficient legislation. the irst is tn,
! practice on the part OF banks of allowing
interests on deposits. The effect OF thi
| practice is that monies in the hands of in
dividuals, which otherwise might b'
loaned for regular mercantile and othel
! business purposes, are diverted into TIA,
custody of banks upon the idea that il
the security is not better, payment can b,
obtained at a moments notice. Country
| banks and others remote from the large
centers of trade having received money
on deposit for which they pay interest
are anxious to transfer such funds tC
other banks, from which they will re-
ceive an equal or larger amount OF inter
est in return. They are stimulated also
by the desire to place their funds where
they can be at all times commanded
Thus Influenced, large sums are placed on
deposit with banks in cities, especially in
the city or New York. which is the great
center of trade and finance for the At
lantic coast. In the ordinary course ol
trade the currency of the country tends
rapidly to the cities. 1t is unwise to
stimulate this tendency by artificial
means. But the evil does not end with
the impOverishment of the country. as
the banks in the cities may be called on
ut any moment to respond to drafts OF
their depositOrs. They decline to make
loans, representing such fund on COM
mercial paper, payable on time, but in
slst on making call loans, as they are
termed, with Government bonds or other
obligations pledged as collateral security.
Merchants generally will not borrow
money in large sums payable upon de-
mand. The consequence is that moneys
thus accumulated in city banks are
loaned to persons engaged in speculative
pursuits. The extent of this evil is seen
in the fact of the bank loans in the city
Of New York in 1868; SOS, 100000 were
upon commercial paper, and SOS. 600 00O on
demand, with pledge of cOllaterals, and
in 1862 500, ,000,0 coo were upon commercial
paper and S59,000,000 in demand. In the
former year, forty-one per cent, and in
the latter year, thirty-seven per cent of
the loan made by the New York bank
were upon demand of three per cent. GER
tificates. The additions to banking ca pi-
tai might be so arranged as not TO pro-
duce serious disturbances in the finances
or business Of the country, while addi-
tionai banking capital would be supplied
to the sections now in need of it, and this
without any increase of the volume of
circulation.
A further result is seen in the fact that
parties borrowing moneys upon CONNER
cial paper for legitinate commercial pur-
poses, pay from three to six cents addi-
tiOnal interest per annum, as compared
with persons who borrow money for spec
ulatiye purposes. | therefore respectfully
recommend that law be passed prohib-
ting, absolutely, payment of interest by
banks upon deposits, and limit, also, their
loans upon coflaterais to an amount not
exceeding 10 per cent Of their capital.
am satisfied, also, that the practice of GER
tifying checks, even if funds are in the
bank to the credit of the drawer of check,
is fraught with evil, ard that it ought to
be entirely prohibited.
Considerable progress has been made
upon the foundation of the postoffice
building in the city of New York, and of
the pOstofiice and independent treasury
building in the city of Boston. The SUI
pervising Architect Of the Treasury De-
paTtment Is of the opinion that the walls
and roofs Of the building NAV be COM
pleted during the neEC year il sufficient
appropriations are furnished. The works
having been undertaken, I am OF the
opinion that 1t is economical to make the
necessary appropriations for their speedy
completion. During the month OF De
cemDer the Department will be prepared
TO submit report upon the condition OF
our commercial marine. That report will
show that the navigation interests
of the country have not recovered from
the losses sustained during tho war, and
that eincient measureS are necessary for
its restoration
The following statements exhibit the
receipts and expenditures for the fiscal
year ending June 80, 1859: Custom re-
ceipts $50 64S, 426 G3; internal revenue,
SIi5s Sj6, ,46O So; public lands, SI,020,$4l "a;
direct tax, Sfba.Doa oil miscellaneous
source 81, 752, 500 II; total, exclusive of
loans, $50, ,9i3.747 u. EXpenditures-civi
service 500, ,0ji %; pensions and Indi-
ans, sS5, ,5l9, ,54I 81; war department, SIS
SCI. $40 81 navy department, S20,000,7j7 81;
interest on public debt, Sl5C ,6D4 ,242 so;
premium on 7-30treasury notes So, 900, coo;
total, exclusive of loans, 1921 400, ,597 IS.
Receipts il excess Of expenditures, S49,
45S, ,l39 49,
The following statements exhibit re
ceipts and expenditures for the quarter
ending september so, 1853: Custom re-
ceipts So, ,59S, ,92I Sc; internal revenue,
S47, ,926.352 81; public lands sS93.S64 0S;
sources, s., ,4l2,4S5 50; total
exclusive oFIoans, Sl0S, ,S3l ,O22 03; eEpen-
ditures, after deducting the amount of
repaYments by disbursing officers and
other civil service. SIS. .l02, ,202 co; Indians
and pensions, 1891, ,9I2 70; War De-
partmept, Sl3 s595, ,46S 05; Navy Depart
Inent, s.. 49,. $50 95; interest ON the public
debt, S37, ,4l2,270 "A; total, exclusive of
loans, SS54, sos, 14I 80. Receipts, in excess
of expenditures, 50, ,35i, ,lO7 A.
Estimated receipts and expenditures,
based upon existing laws, for the fiscal
year ending June 80, 1871: Receipts from
customs, SlS5, ,000,000; internal revenue,
Sl75, 900, COZ; lands, Sa,0t0. eco; miscellane-
Gus sources, y, SOC, 600; total, 1895 coo, 900.
i1N ptIlottHAtSg CiNH. icIGl-H anu LllSCti-
IaneOus. S;u 900 600; interior, Indians and
pensions, SO 0eO,eG0J War department,
$50, ,00lGG3; Navy department, SIS, 100000;
interest on the public debt, Sl27, 900, ,O00;
total, sZgl ,000,01 Estimated receipts in
excess of expenditures, $685. 600.
During the fiscal year ending June 80,
IS %, there was an excess of receipts over
expenditures. including the interest on
The public debt. of S49, 453, ,l49 50. OF this
excess SI2, ,y92, $40, as nearly rs can
now be ascertained, arose previous
TO March'lst. and remainder s., GAG, ,077, ,943
between that time and the FIRST daYof
July. This excess was applied, from time
TO time, to the purchase OF fiye-twenty
bonds; and the excess of receipts since
July list has been used in the same man
ner. The purchases amounted, in the ag-
gregate, on the 30th day OF November to
S75, ,476, 500. As a large part of the excess
Of receipts that was realized on coin sales
Of gold have been made from time to
Time, and the proceeds applied to the pur-
chase of bonds. With ththeeXceptiOn of sales
Of moderate amounts of coin in Chicago,
New Orleans, st. Louis and Baltimore, for
The payment of duties, the sale Of gold
and the purchase of bonds have been
made uniformly through the agency
Of the United States Treasurer at New
1 oTk, end without expense Ia the Gov
srnment. Except the comparatively small
amount paid for advertising the proposals,
the average premium on gold sold since
March lst has been 81 S-l00 per cent, and
he average premium paid for bonds has
been 10 9S-l00 per cent; upon this basis of
The sales of gold and the purchase of
bonds, the average prices paid for bonds
ia coin has been IS 55-l0e per cent. The
act of February ., 1862, provided that the
coin received for duties upon imported
goods should be annually set apart as a
sinking fund to the extent of
one per cent. of the entire indebt-
edness of the United States, In conformity
with the requirement | have purchased
bonds to the amount of S2,044,sO and
designated them as belonging to the sink
ing fund. These purchases are a substan-
Lial compliance with the statute from the
ith of March last. / have not felt myself
or required to make any pro-
vision tor the time that elapsed after the
nasaaOp nf the act aud DreyiOuS to the