Dodgeville chronicle. [volume] (Dodgeville, Wis.) 1862-current, 1870-12-16
S3O9.639. 319 81

According to this estimate there will be sur
plus applicable to the payment of the principal of
the public debt, in addition to the present made
on that account through the sinking fund of $10,-
T8,6So.39. An analysis of the expenditures de-
velopes fact tending to sustain the opinion that
the balance will be considerably larger than ap-
pears from the foregoing estimates. The sum of
S22, 1886, 27S.37 is the estimate for public works.
The appropriations for these objects for the pres
en year are less than 100000, and it is reason
able to presume that the appropriations next year
also, that the estimates made by several de-
partments, for the different branches of the public
service, are for maximum amounts which will be
required under any circumstances. If such is the
case, there will remain the 3th of June, 1872,
unexpended balance to be covered into the Treas
ury. 1t may therefore, reasonably be anticipated
that the total reduction of the public debt during
the next fiscal year, including payments on ac-
count OF the sinking fund, will be about $50.000,
LOO.
THE PUBLIC REVENUE
1t Is noticeable fact that the estimated expend-
lures for the next fiscal year, including payments
on account OF the sinking fund and for interest on
the pubic debt are nearly equal to the receipts
as to justify and demand the greatest caution in
dealing with the revenues and business of the
country. 1t Is apparent that a disaster, or even
serious check to business, would reduce the reye1
nues below our necessary expenditures 1t is APP
parent also that the prosperous condition of the
country is largely due to the revenue system in
augurated during the war by which manufactures
and the mechanic arts have been extended and es-
taDilshed. This policy cannot now be rashly aban-
doned or suddenly and radically changed without
great injury to business and labor and serious con-
sequent loss of revenue.
THE FUNDING SCHEME. ~ .f
me war in Europe has rendered it impracticable
TO refund the national debt as authorized by the
act approved July H. 1870. A portion of the paper
mas been manufactured, and the preparation of
plates has been so far advanced that whenever
lavoranle opportunity arises a loan may be offer
eo, and bonds delivered without delay Inasmuch
as tho war in Europe and consequent demand for
money make It doubtful whether and Az per cent.
DOnOs Will 20
lze the issue of $500 900 additional of the bonds
Dearing interest at the rate of per cent The in
aerest can De paid quarterly without
loan act be so modified that the payment of inter
est may be made quarterly instead Of semi rnu-
ally. Should these recommendations be approved
by Congress, 1t is of great Importance that an act
authorizing the changes be passed without delay.
THE BANKING SYSTEM.
Since the trst of July the currency balance in tl,e
Treasury has been unusually, and for immediate
purposes, unnecessarily large The act If
July II, 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 coin and currency, made it my duty to re-
serve sum sufficient to enable the department to
comply with the law without resortng to extraor-
binary means. Happily the financial condition of
the country has not been unfavorably affected by
the Accommodations in the Treasury During the
year ending September 80, 1870, the National Banks
paid IN interest the of S. 1856 &C. II is est
mated that of this sum two millions more were
paid to private parties. / cannot doubt that the
practice OF paying interest. except upon balances
que from one government to another is a means
by which large amounts of capital are diverted
from extreme portions of the country to CONNER
Gal and financial centres, tending to inillre
business severely. The province NJ the
bank Is to loan money; and its proper
duty Is, by loans and discounts to facil-
itate and develop business in the neighborhood of
Its location As matter of fact under the present
system the banks are agencies by which capital is
gathered and sent away to distant cities there TO he
loaned on call and used for speculative purposes
Complaints are made from all parts of the corntrv
10 such an extent as to be no longer fit for crcula
ton. As many new banks are to be organized
under the act of the last session of Congress re-
spectully recommend that an appropriation he
made and authority given to Issue new bills upon
such paper and in such form as may be designated
by the Secretary Of the Treasury. The Comptroller
of the Currency, in his report of 1862 recommend
New York, under the control of the National Banks
for the redemption of their issue. The substance
OF TINS Recommendation seems TO me not only
proper, but necessary. The expense should be
borne by the banks. Coupled with this recon-
mendation, | take this occasion to say that the
banking system of the country appears to be we'll
managed and to answer reasonably the purpose
for which it was established. 1t is, doubt, true
mat Treasury notes representing an equal amount
OF the public deDt without interest are tbs most
economical circulation for the government bIT1 it
should be considered that the banking institutions
OF the country are agencies by which business is
estaollshed and fostered Upon the whole, the sys-
TEN or banking should be extended only for the
purpose OF meeting the demands of business; but,
wnen Lne defnasll aye agent, concession should
w made hpon the ground that the prosperity Of