New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-12-07

Ooooo left for that purpose the entire public meo,
1874 and 1881 the TeuFOTty bonds could be paid ana PRO
vision also made for the redemption OF the bOhdS With
Viii become due In the year 1851 IL may bo wise to re-
dnce the proposed loan 30 81 100000 which would men
leave for payment previous To 1881 the sun VI Io.
500 100000, or hardly more than sG0OOC.OCO iii
he for an amount rot exceeding a,soo f = OS
600 GOO each the first SOOOOO to be payable IN
Is years ana TO he paid In 20 years the second Cass o
Years and tie third class OF SOOOoOO0 70 be payable III
. years and to be paid IN 50 years re WI"
dons OF the new loan appear 10 nc TO o o,e in coin
frs I so a9 aa @. ,s s a s SoS
Tid That the pnrp he PAYABLE ibis c'urtry aOd the interest
fo Thai toe rate Of shall exceed a coat
F7nh That the subscribers in Europe shall their interests at
London Paris Berlin or Frankfort as they mas elect
That bon both principal AID interest shall be free from
thought subject nd state to peh tar upon in,
from toe bonds as imposed b e laws o Tue United S''e' upon
incomes r,ed from other money Investments
TAXING U. 5. BONDS.
There are two reasons, and each seems 20 to be
controlling reason why the bonds Of the United States
should be excnnt from state and local taxes II not
exempt the amount of the imposed by the local
authorities Will be added 70 the interest the GOYcfnmehJ
will be required pay and thus the National Govern
ment will be compelled 20 provide for taxes imposed by
the local authorities. Secondly, uasmuch as the ahlty
TO borrow may, under circumstances, be essential
the preservation Of the Government the power should
not even in times Of peace ana prosperity be quane
by any concession to The States Of tho right to tax the
means by which the National Government Is maintained
The right TO its lawful powers free OF any cohuiuo
restriction claim Of another is an essential cOnu0h
of sovereignty. and the National Government should
never qualify It's power IN TINS particulars
In offering the Loan citizens ana SUBJECTS OF othet
Governments should receive thesrOnges assurance that
the interest and principal are TO be pad III CON- Sc9u
ing TO the of the bonds issued without any deuuc
ton or abatement whatsoever. IN order TO AVOID the
necessity of employing agents for the negoilaon OF me
loan, respectfully recommend that liperal colss,1
be allowed subscribers, and that those VINO hSt sup
scribe lie permitted to select the class OF bonds III Wch
their subscriptions respectively shall be mace Iurtct
recommend, In connection with the proposeu loi InaS
the banks established under the act TO pr0Vu9 uo
currency be required to substitute the bonus lae may
he issued under the proposed loan act I9r Gso NOV
deposited as security for the redemption OF thclr DIS
Should any bank be unwilling to accept lne De" cVni
ton provision should be made for the surrender OF us
charter and authority given for the organization Oh LIE"
banks to supply the deficiency thus created
TIE NATIONAL REVENUE.
An essential condition to the success OF the proposed
new loan is the continuance Of the present revenue ys
tenn chief by which tho present holders OF INC
Fycwenty bonds can be induced TO surrender them ana
receive bond upon longer time ana at lower rae Oh
interest is the certainty furnished by me magnitude o
deemed We must be prepared TO offer them the aerha
tive either Of accepting the new bOhd AT i1NeI Iac
interest, or payment OF the pliAc!pai Oh ho eAl'"s
When the Fyctweniy bonds shan have been funded TO
the amount Of s0O00Oo00O or Sl2OeOOOUO me revenue
can be reduced materially and yet sufficient sums be
raised meet the ordinary expenses OF the GOEetnhen
10 nav the interest on the public debt and also 20 pay
S25OOOOOO TO S5JOOOOO Of the principal annually ohonId
lions based upon the fact that FEE ability and DISPOSE
ou of the people of the United states 10 pay the phDhc
! bonds Of the United states will command the highest
rates in the markets OF the world We shall then be IN
condition enter upon the work OF reducing aNauoh at
the commencement of the next session OF Congress.
on the 3Oh Of June 1868, the amount OF outstanding
convertible into three per cent ceruicates was OoU
the 3Oth OF June, 1902 the amount Outstanding was
ut outstanding was SIN further reduced TO Si97IG
100 showing total reduction in II months OF s2e9oAo
The three upr cent certificates substitute 10 con-
siderable extent for the United notes. being largely
/ hold bv "a
Indirectly though not To their fun nominal Nac hey
swell me v0lume Of the currency recommend that
provision be made for the redemption Of the three per
cent certificates within reasonable ume' ana as com
neuatpg measure for the reduction IN the amount OF
rnrreucy which would thus be caused that authority be
given grant charters for banks IN the states where inc
banking capital is than the share 10 which they
would be entitled, amount not exceeding s3jWOOJ
in the aggregate. The redemption OF the thce per cent
certificates, and the additions TO the banking capital
might be arranged as not to produce serious as
tubance IN the hnanceso or business OF the country while
additional banking capital Wouu De hulPIeu 10 nv -,
tors now in of It, and tins without any increase OF
| the volume Of circulation.
THE BANKING SYSTEM
There are two evils in the present banking system
which require remedy by prompt and efficient legislation
The first is the practice the part Of banks Of allowing
Interests upon deposits The effect of the practice Is mat
moneys IN the hands OF individuals, which otherwise
might he loaned for regular mercantile and other busl
ness purposes divided into the custody Of banks upon
the idea that If the security Is not better payment can
/ DO obtained at moments notice. country banks ana
others remote from the large ceners OF trade having re.
ceived money Oh deposit Tor Whch hcy pa! nteIe arc
anxious TO such funds TO other banks ana from
|
teTcst in return Ihey are shu!acu also ny c uos,o
place their funds where they can he az all times com
nnst With banks in the cities, especially IN the city Of
NewYork, which the great center OF trade ana finance
for the Atlantic m the ordinary course OF trade
the currency Of tile country tends rapidly TO the ccs
and it Is unwise to stimulate this tendency by artificial
means. But the evil does not end with the inpoYersh
men Of the country As the banks in the cities may be
called upon any moment to respond 10 the drafts Ot
their depOsOTs they decline make loans representing
such funds, upon cOnheicIdI paper Pa!tplo upol I'M
but insist upon making call loans as they are termed
with Government bonds or other Obligations, peugeu as
| collateral security
sums payable upon demand. Tie consequence Is that
the moneys thus accumulated in the city banks are
loaned TO persons engaged I'm speculative pursuits me
loans in the City Of NewYork October 1863. $9S 100000
upon commercial paper, and SCo,O0OOO npOn De
Sg9OOOOOO upon commercial paper, and tj9mO.00
upon demand. In the former year cent aud IN the
latter year 81 per cent Of the loans made py inc new"
| York banks were upon demand
further result in fact that parties borrow
ing money upon commercial paper for legitimate com
mercal purposes pay from three TO six per cent add
tona interest per annum compared with persons who
specially recommend that a law be passed prohibiting
absolutely payment OF the interest by banks upon de-
pOsts and limiting also their loans upon coateras to an
amount not exceeding ten per cent OF their capital.
am satisfied. also, that the practice Of certifying
drawer Of the check faught with OWL and that t
| ought TO be entirely prohibited.
! RECEIPTS AND EXPENDITURES.
The following statement exhibits the receipts and eI'
peudtures for the fiscal year ending June ~, 1862
RECEIPTS. .
Customs gA5 65
Internal l55SStO ~
LaBds................. .................. 40204i
Mseelsaeoas sources 277529 70
Total exclusive Of s37o9437412
EXPESDITUREs.
Pensions and Indians S55l95t "a
N.t 23 @6? 57 o.
Hsy psPat , P5ic i,h 10 SSy2ia 80
Premium On $40 I. 5. Treasury no1es..... 9OoU %
Total exclusive 1921 49esg5 Is