Iowa voter. [volume] (Knoxville, Iowa) 1867-1874, 1870-12-15
81

According to this estimate there will be a sur
plus applicable to the payment OF the principal OF
on that account through the sinking fund Of $10,-
rs, $3.50. 80. An analysis Of the expenditures de-
velopes fact tending to sustain the opinion that
the balance will be considerably larger than APP
pears from the foregoing estimates The sum OF
s22, 33S, S37 Is the estimate for public works,
The appropriations for these objects for the pres
ent year are less than S12 000 and 1t Is reason
able to presume that the appropriations next year
will not much exceed that amount. 1t IL believed,
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 undd any circumstances II such u the
case, there will remain on the goth Of june 1872, an
ury. II 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 $4,000
100.
THE PUBLIC REVENUE.
II Ia a noticeable fact that the estimated expendi
account of the sinking fund and for intcrest on
the public debt are nearly equal TO the receipts
az to justify and demand the greatest caution in
dealing with the revenues and business OF the
country. 1t IL apparent that a disaster, or even
serious check to business, would reduce the revc-
nnes below our necessary expenditures. II is ap-
parent also that tho prosperous condition OF the
country Il largely due to the revenue system in
auguratcd during the war by which manufactures
and the mechanic arts have been extended and es-
tabished 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
The war In Europe has rendered 1t impracticabe
to refund the national debt as authorized by the
act approved July IA, 1870. A portion Of the paper
has been manufactured. and the preparation OF
plates has been so far advanced that whenever q
favorable opportunity arises, loan may be offer
ed and bonds delivered without delay. Inasmuch
~ the war In Europe and consequent demand for
money make u doubtful whether and ~ per cent
bonds will be taken, IL seems to me wise to author
lie the issue Of additional Of the bonds
bearing interest at the rate of per cent. The In
terest can be paid quarterly without Inconvenience,
and therefore respectfully recommend that the
loan act be 80 modified that the payment OF Inter-
eat may be made quarterly instead Of semiannu.
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 FIRST OF July the currency balance In the
Treasury has been unusually and, for immediate
purposes, unnecessarily large. The act Of
July ~, 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 II my duty to re-
serve sum sufficient to enable the department to
comply with the law without rcsorting to extraor-
| binary means. Happily the financial condition Of
the country has not heen unfavorably affected by
| the Accommodations In the Treasury. During the
year ending September 80 1870, the National Banks
paid In interest the sum Of $64 1t is esti
mated that of this sum two millions more were
| paid to private parties. l cannot doubt that the
practice Of paying interest. except upon balances
| due from one government to another, Is a means
| by which large amounts of capital are diverted
| from extreme portions Of the country to CONNER
cial and financial centres, tending to injure
busines1 severely The province of the
bank is to loan money; and its proper
| duty IL, by loans and discounts, to facil-
iate and develop business In the neighborhood Of
its location As matter of fact, under the present
system the banks are agencies by which capital ID
gathered and sent away to distant Cities there to be
loaned on call and used for speculative purposes
| that bills OF National Banks are worn and dcfaced
to such an extent to be no longer fit for crcua.
| ton. Az many new banks are to be organized,
| spectfully recommend that an appropriation be
| made and authority given to Issue new bills upon
such paper and In such form ~ may be designated
Of the Currency, in his report Of 1869, recommend