The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1873-12-05
Report OF the Secretary OF the Treas.


Report OF the Secretary OF the Treas
ury.
This report recommends that Nation
al banks be prevented from paying in.
terest on deposits, or that they be re-
stricted and limited therein, either by
direct prohibition, by discriminating
taxation, or otherwise.
The estimate OF receipts for the fiscaI
year ending June 81, 1873. foots ur
1906, l9l, 600; estimate of expenditures
for same period, $3l9,l9S,736. The
Secretary urges Congress to make every
reduction in appropriations which may
be found possible"
The following extract from the report
will be read with interest
There is prevailing sentiment that
more elasticity should be given to the
volume Of currency, go that the amount
in circulation might increase and dimin'
ish according to the necessities OF the
business Of the country, but the differ
euce OF opinion on this subject is 60
great, and the real difficulties attending
its solution are go numerous, that, with
out discussing any OF the multitude oil
plans which have been presented to the
public through the press and otherwise,
l earnestly commend to the wisdom OF
, Congress a careful and thorough con-
sideration Of this important subject,
rendered more obviously important by
the present embarrassed condition oil
large business interests which have suf.
fered by the recent financial crisis, and
that in such inquiry, avoiding further
Imitation of the issue Of irredeemable
legal tender notes, the most desirable o.
all financial results to be obtained
namely, q permanent to a sound basis
OF specie payment and gold standard,
to which all our paper issued shall be
made OF equal value, shall be the aim.
To allow National banks TO use part
OF their reserves at seasons Of greatest
pressure, under proper restrictions,
would afford some feasibility. Rigid
statute laws applied to all banks at all
seasons and in all places alike, often
prove embarrassing and injurious when
they conflict with economist principles
and laws of trade and business which
are stronger than legislative enactments
and cannot be overthrown thereby.
| Associated banks at several redemption
cities named in banking law, which are
the great controlling centers OF business,
might do much to give steadiness and
safety if they were authorized, through
properly constituted boards or commit
tees of their own officers, TO exercise a
large discretion in the use OF their re-
serves, in the rate OF interest to be
charged at different seasons and under
different circumstances, and in other
matters within the limits prescribed BY
! law. Should it be deemed necessary or
expedient to temporarily enlarge the pa
per money circulation, in cases OF great
emergency, provision may be made TO
permit National banks, under certain
cumstanceS, and in limited intent to
lncreace their note circulation by o
pledge Of United States bonds,
| bearing no interest while so pledged, or
subjeciiug the bank 10 special taxa
ton upon circulating notes obtained
thereon, or upon such other terms that
| it would be for their interest to recall
the notes ard redeem tie bonds a. the
earliest possible day after the pressure,
and their necessities should have ceased.
But any large augmentation OF the is-
sue OF United States legal tender notes
in time of peace, would not only be de-
parture from that declaration of public
policy, and pledge OF public faith to the
national creditors, made In the act OF
June 50, 1864 tbat the total amount OF
such notes shall never exceed Jour hun-
dred million dollars, as well as from
that more solemn pledge contained IN
t1e first act of the Forty first Congress
ITO make provision at the earliest
practicable period for the redemption oil
United States notes in coin" but would
postpone the day of specie payments,
and render it more difficult to attain in
the distant future, unsetlle coincidence
IN our national finances, and be 8 serl-
Gus detriment to the public credit al
home and abroad. There can be nc
doubt that during the eight years since
the rebellion, there has been a growing
desire among the people to restore the
paper circulation 10 q specie standard
and that steps taken to accomplish
that object will be received with gener'
al favor 1t is not possible to resume
aud maintain specie payments with &C
large an amount Of notes in circulation
and SO small an amount OF gold IN The
country. The volume OF currency
must be reduced or that OF coin greatly
increased Should national banks b'
prohibited from selling coin received by
them asiinterest upon bonds or pledged
20 secure circulation, retaining the same
in whole o. in part in reserve or loanlpE
il in the discount Of bills and notes
payable in coin, as Congress nigh
prescribe, there would be graded ac'
cumulation OF gold in the banks which
would be something towards preparing
Tor resumption. This, with constsn
Increase OF coin in the Treasury, under
taken with the approval Of Congress
would ere long lead to the desired re-
suit.