The Donaldsonville chief. [volume] (Donaldsonville, La.) 1871-current, 1873-12-27
MISCELLANY.
Report Of the Secretary Of the Treasury.

The Secretary of the Treasury in his allnnal
report shows that the expenditures for the
current fiscal year will eXkseed the receipts by
S13,530 600. He attributes the falling off in
the revenues to the alteration of the tariff
laws which added tea, coffee, aud other arti-
cles to the free list and to the recent financial
crisis. He says, however, that in the period
of the greatest commercial embarrassment,
the receipts in coin We're greater than the
amount required to meet the interest on the
public debt, and all other expenditures which
are PAYABLE in coin. He thinks that the reve-
nues have fallen off enough to make economy
and reduction in the appropriations and eX-
penditures necessary, and recommends (unless
business should soon reviFe) additional taxa
ton rather than resort to borrowing money
and increasing the public debt
In relation to the refunding of the public
debt the Secretary. says that SS4 100000 of
subscriptions have been made TO the new five
per cent. funded loan, the proceeds of which
as they mature are applied to the redemption
of an equal amount of six per cent. fiye-twen-
ty bonds. The $15,500,000 received from
Great Britain in payment of the Geneva
award has also been used toward the redemp-
tion of the debt bearing SIX per cent. interest.
The Secretary shows thatwhen this subscrip-
ton shall have matIIred there will have been
effected since last January a conversion of
S100,000.000 of the debt BEARING six per cent.
interest into the new five per cent loan.
making an annual saving of 81 ,000, 900 of in
terest and adds that the whole amount con-
yerted into the new loan since the passage of
the refunding act will be S300,000,0 900. and
that the annual interest saved WILDE $4,000
600.
INTEREST ON DEPOSITS.
The Secretary condemns the practice b
banks of allowing interest on deposits paya-
BILE on demand. He says that it tends to ae-
cumulate currency in large cities, where, not
being required by the demands of ordinary
business Is is loaned on call to spectators.
When activity in legitimate business returns.
and the temporary investments are called in,
the business of the banks is ieopardiZed, the an
nual recurring stringencv in the money mar
ket is increased and business generally de-
ranged. He adds that while legislation by
Congress cannot prevent State banks and pr1-
Vate bankers from confirming the practice, it
can prevent national banks from doing SO, and
he recommends that they be prevented from
paying interest on deposits, or that they be
restricted and limited therein, either by di-
rect probation, by discriminating taxation,
or otherwise.
Concerning the prevailing sentiment that
more elasticity should be:given to the volume
OF the currency, he recommends that Con-
gress thoroughly consider the subject. and
that in their inquiry they should avoid any
further imitation of the issue of irredeemabe
legal tender notes, and keep in view per-
manent return to a sound basis of specie pay
ment He thinks that whenever an emer-
gency arises rendering it necessary to tenn
porarlly enlarge the paper money circulation,
provision may be made to permit the national
banks to limited extent to increase their
note circulation by pledge of United States
ponds, bearing no interest while SO pledged
or subeeting the banks to special taxation
upon the circulating notes obtained thereon,
OF upon such other terms as would make it
Tor their interest to recall the notes and re-
deem the bonds 1T the earliest possible day af-
Ter the pressure and their necessities should
have ceased. But he regards any large aug
mentation of the legal tender notes in time
OF peace as departure from the declaration
OF public policy and the pledge of the
PUBLIC FAITH
70 the National creditors made in the act of
1uhe 81, 1854, that the amount of such notes
should never exceed 800, 0,000, 900. and from
lnat more solemn pledge contained in the first
act OIL the Forty-hrst Congress. 6 to make pro-
VISION at the earliest practicable period for the
AeurnlpIlon OF United States notes in coln."
Alindlng to the growing desire among the
people to restore the paper circulation to a
specie standard, he says!
rs not possible to resume and maintain specie
palisents with so large an arnount OF notes in Cir
eonn,e osson and so small m amount of gold In the
5ay S5Ountry he volume of currency mnst he re-
sucea ta or that of coin greatly increased Should
tne national hanks be prohibited from selling the
coln received by them as interest upon bonds
pieoged to secure circulation, retaining the same
az "nole or In part in reserve or leaning it in the
discount of bills and notes payable IN coin, as
SoIhgress might prescribe there would be q grad
uai accumulation of golEf in the banks which
Would do something toward preparing for re-
SUMPTION This, with a constant increase OF
ooin IN the treasury, undertaken with the appro-
VA VA OIL Congress, would ere long lead to the de-
ssrea result, when other conditions required for
sne maintenance of specie payments should be-
The Secretary refers to the uncertainty
winch exists in public sentiment rs to the
right and policy of the Secretary of the Trea-
slry to issue the $44. 100000 of United States
notes called the reserve. and recommends that
congress shall set those questions at rest bv
2 distinct enactment. He thinks that until
that Is done, whenever there is a