The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1870-12-15
THE PUBLIC REVENUES.

THE PUBLIC REVENUES
1t is noticeable fact that the estimat
ed expenditures for the next fiscal year
including payments on account of the
sinking fund and for interest on the pub.
lie debt, are so nearly equal to the re-
ceipts az to justify aad demand theg great
est caution III dealing with the revenues
and business of the country. 1t is appar-
emit that disaster, or even serious check
to business. would reduce the revenue
below our necessity expenditures, 1t is
apparent also tina the prosperous condi.
tion of the country is largely due to the
revenue system inaugurated during the
war by which manufactures and the me-
chanic arts have been extended and es-
tabllshed. This policy cannot now be
rashly abandoned or suddenly and rad.
ically changed without great injury to
business and labor, and serious conse-
qncnt losses IF re venue.
THE FUNDING SCHEME.
The war in Europe has rendered it
impracticable to refund the national debt
as authorized by the act approved July
IA, 1870. ABORTION of the paper has
been manufactured, and the preparation
of plates has been so far advanced that
whenever favorable opportunity arises,
4 loan may he offered and bonds q lvered
without delay, In AS much as the war in
Europe and consequent demand for mon
" make it doubtful whether or AZ per
cent bonds will be taken, it srrms to me
wise to authorize the issue of $500 100000
= lditional of the bonds bearing inte, es
at the rate of per cent The interest can
be paid quarterly without Inconvenience,
and l therefore respectfully recon-
mend that the loan act be so modified
that the payment of interest may be mad,
quarterly instead of semi ANNUALLY.
Should these recommendation be appro-
we'd by Congress, it is of great Importance
that an act authorizing the changes be
passed without delay.
THE BANKING SYSTEM
Since the frst o July the currency
balance in the Treasury has been un
usually large The acr of July 10, 1870.
authorizing an increase Of National bank.
notes, imposed upon the Secretary Of the
Treasury the duty of providing for the
redemption of equal amounts of their
present certificates. The certain though
progressive decrease in revenue, both of
com and currency made it my duty to
receive sum sufficient to enable the
department to comply with the law
without resorring to extraordinary means.
Happily the financial condition of the
country has not been unfavorably
affected by the accumulations In the
Treasury. During the year ending Septem-
her 80. 1870, the National BankA paid
IN interest the sum of $6,486,172,66. 1t
is estimated that IF this sum two millions
more were paid to private parties. | can
not doubt that the practice of paying
interest, except upon balances due from
one government to another, is means
by which large amounts of capital are
directed from extreme portions of the
country to commercial and financial
centres, tending to injure business severe
| ". The province of the bank is to loan
money and its proper duty is, by loans
and discounts, to facilitate and develop
business in the neighborhood of its loca
| ton. AS matter of fact, under the
present system the banks are agencies by
which capital is gathered and sent away
To distant citics,there To be loaned ON call
and used for speculative purposes Com
plants are made from all parts of the
country that bills of National Banks are
worn and defaced to such an extent as to
be no longer fit for calculation. AS many
new banks are now to be Organized, under
the act of the last session of Congress.
respectfully recommended that an appro.
priation be made and authority given to
issue new bills upon such paper and in
| form as may be designated by the
Secretary Of the Treasury. The Comp
tioller of the Currency, in his report of
1869, recommended the establishment of
an agency in the city Of New YORK, under
the control of the National Banks for the
redemption of thir issue. The substance
of this recommended on seems to me not
only proper, bnt necessary. The expense
should be borne by the banks. Coupled
with this recommendation, take this
occasion to say that the banking system
ofthe country appears to be we'll managed
and to answ@r reasonably the purpose
for which it was established It is, no
doubt. true that Treasury notes re presen.
ting the equal amount of the public debt
without interest are the most economical
circulation for the government, but it
should be considered that the banking
institutions of the country are agencies
10y which business is established and fos
tered. Upon the whole the system of
banking should be extended only for the
purpose of meeting the demands of
business but, when the demands are
urgent, concessions should be made upon
the ground that the prosperity of busi.
ness is more important than the mere
saving ofinterest arising from the circula-
ton of Treasury notes.
| THE MINT.
Excluding redeposit the amount of