The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1869-12-07

loan will be for an amount not ex.
ceedlng $1,000, ,00O,00O, I recommend
that i be offered In three classes o
S4OO, ,0OO, ,OoO each; the hrst class Of 800,
O00, 900 to be payable In 10 years, ant
10 be paid In 20 years; the second
class OF $4O0, ,000, 900 10 be payable In q
years, and to be paid In 26 years; thC
third class Of $400, ,000, 900 10 be payable
In % years, and 10 be paid In so years
The essential conditions Of the new
loan appear to me TO be these:
lst, That the principal and Interest
shall be made payable In coin; I'd, thai
the bonds known AZ 8 20 bonds shall bC
received In exchange for new bonds; Sd
that the principal be payable In thiI
country, and interest payable either II
the United States or Ia Europe, as the
Subscribers 10 the loan may desire; 4th
that the rate OF interest shall not ex'
ceed AZ per cent per Annum; 9th, that
subscribers In Europe shall receive
their interest at London, Paris, Berlin
or Frankfort, as they may elect; 9th,
that the bonds, both principal and
interest, shall bo free from all
taxes, deductions or Attachments OF any
sent, unless II shall be thought wise 10
subject the citizens OF the United States
to such tax upon the Income from
bonds NJ Is imposed by the laws ol
the United States upon incomes
derived from other money invests
mentB. There are two reAonH and each
seem 10 be the controlling reason why
bonds should be exempt from State and
local taxes. II not 80 exempt the
amount of the taxes imposed by the
local authorities will be added to the
rate OF Interest which the Government
will be required to pay and thus
1t will be compelled to provide for
taxes Imposed. Much as the ability to
borrow may under some circumstances
be essential 10 the preservation OF the
Government, the powers should not
In time Of peace and prosperity deprive
the States Of the right to tax the means
by which the National Government Is
maintained. The right to use lawful
powers free OF any condition, reAtrlc-
tlon or claim OfAnOther, 10 an essential
condition OF sovereignty and the
National Government should never
surrender or qualify lis power In this
particular. In offering the new loan
citizens and subjects OF other govern.
hhOAAu ohuulA AGCSlN9 ku6 6klOukG6b adS
surRnce that the interest and principal
are 10 be paid In coin according 10 the
terms OF bonds issued without any de.
duotion or abatement Whatever. In
order avoid the necessity OF employing
agents for the negotiation Of loan, 1
respectfully recommend that q liberal
commission be allowed to subscribers,
and that those who hrat subscribe be
permitted TO select the class OF bonds
In which their subscriptions respective.
ly shall be made. further recommend
In connection with the proposed loan,
that under the act to provide national
currency, the banks be required 10
substitute bonds that may be issued
under the previous loan for those now
deposited as security for redemption Of
their bills. Should any bank be unwil-
ing 10 accept the new condition, provis.
ion should be made for the surrender OF
its charter and authority given for the
organization OF new banks to supply
the deficiency thus created. An essen
tlal condition to the success OF the pro.
posed new loan, Is the continuance Of
the present revenue system, chief
means by which the holders OF $50
bonds can be induced to surrender
them q nd receive bond upon longer
time and lower rate Of interest. II is
a certainty furnished by the magnl-
tude Of the national Government rev.
enue, that these bonds are soon to be
redeemed. We must be prepared to
offer them the alternative either of nc.
ceptlng the new bonds at lower rate
Of interest or the payment OF the prIu-
cipal OF tho existing bonds.
When tue 500 bonds shall have been
landed TO the amount OF 1000. 900, 600
or 81, 200 ,0C0, 900, the revenues can be re-
duced materially, and yet sufficient
sums be raised 10 meet the ordinary
expenses the Government, TO pay the
Interest on the public debt, and also To
pay S25. 900. 600 to $50, 900 900 OF the prln.
cipal annually.
Should our success In negotiating u
q loan be equal to my expectations,
based upon the fact that the ability and
disposition Of the people Of the United
States TO pay the public debt are suf-
ticient to Justify us In assuming the
bonds OF the United States will oom.
Inand the highest rates In the markets
OF the world, we shall then be In a
condition 10 enter upon the work OF re
uuCing taxation NJ the commencement
OF next session. ..I...s....
On the 3Oth OF June, 1868, the amount
OF outstanding per cent compound In
terest notes convertible into 5 per cent
certificates was S7l ,604 500. On tho 30th
Of June, 1869. the amount outstanding
was $54 .09l, ,4l0, showing a reduction OF
$l6, ,6l3, ,4S0 IN that form Of indebted ness,
On the 1st OF December, 1860, the
amount outstanding was still further
reduced TO A9.7l6, 100, showing q total
reduction In seventeen months OF $l2,>
S88, 740. The three per cent. certificates
are Il substitute to O considerable ex.
tent for United States bonds largely
held by the banks as a portion OF their
reserve, and thus Indirectly, though
not to their full nominal value, they
swell the volume Of currency. l reo~
ommend that provision be made for the
redemption OF the 81 per cent. certificates
within a reasonable time, and as com.
psusating measure for the reduction In
the amount of currency which would
TO charter banks In the States where
the banking capital 10 less than the
share TO which they would be entitled
Id an amount not exceeding $S5, ,000,.
900 In the aggregate. The redemption
OF the 3 per cent. certificates and the
addition to the banking capital might
be so arranged rs not TO produce seri.
Gus disturbance In the finances or busI.
ness Of the country, while additional
banking capital would be supplied to
the sections now In need ofit, and thus
without any increase oi the volume OF
circulation. .U.
There are two evils lp the present
banking system which require reme-
dy by prompt and efficient legislation.
The irsL Is the practice on the part Of
banks Of allowing Interest upon de-
poslts. The effect of the practice is,
that monies in the hands Of individuals
which otherwise might be loaned for
regular mercantile and other business
purposes are diverted into custody OF
the banks upon the Idea that II the se-
curlty IL not better, payment can be
obtained ut moments notice. Coun-
try banks and others remote from the
large centres Of trade having received
money on deposit, for which they pay
Interest, are anxious 10 transfer such
funds to other banks, from which they
will receive an equal or larger amount
OF interest In return. They are stlmu.
lated also by the desire TO place their
funds where they can be at oil times
commanded! Thus influenced large
sums are placed on deposit with banks