The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1873-12-19
Report of the Secretary of the Treasury.

The Secretary Of the Treasury in his annual
report shows that the expenditures for the
current fiscal year will exceed the receipts by
sl3.S}O.OOO. iIe attributes the falling on in
the revenues 20 the alteration Of the tariff
laws which added tea, coffee, and other arti-
cleS 10 the free list and 10 the recent financial
crisis. He says, however. that IN the period
Of the greatest commercial embarrassment,
the receipts in coin were greater than the
amount required 10 meet the interest on the
public debt, and all other expenditures which
are PAYABLE in coin. He thinks that the rcve-
nues have fallen of enough 10 make economy
and reduction in the appropriations and cN-
pcnditures necessary, aud recommends unless
business should soon reviNe) additional taxa
ton rather than resort 20 borrowing money
and increasing the public debt.
In relation 10 the rrfunding of the public
debt the Secretary SAYS that SSi.j00,0O0 of
subscriptions have been made 10 the new five
per cent. funded loan, the proceeds of which
as they mature are applied 10 the redemption
Of AN equal amount Of six per cent. 1--WE
twenty bonds. The SljJ0O.OoO received from
Great Britain in payment of the Geneva
award has also been used toward the rcdemp-
ton Of the debt bearing six per cent. interest
The Secretary show, that when this subscrip-
ton shall have mafured there will have been
effected since last January a conversion of
500 O0N.UoO Of the debt bearing six per cent.
interest into the new live per cent. loan
making AN annual saving Of Sl.0O0.OOO of in
tercst; and adds that the whole amount con-
Verted into the new loan since the passage Of
the refunding act will be $500. 100 900. and
that the annual interest saved will De $1,000
600.
INTEREST on DEPOSITS.
The Secretary condemns the practice by
banks Of allowing interest on deposits PAYABLE
on demand. He SAYS that II tends TO accumu-
late currency in large cities, where. not being
required by the demands Of ordinary business.
II i loaned on call TO Spectators. When ac-
tivity in legitimate business returns, and the
Temporary investments are called in. the bust
ness Of the banks j. jeOpardzed. the annual
recurring stringency in the money market j.
increased and business generally dcrangcd.
He adds that while legislation by Congress
cannot prevent state banks and private bank
ers from continuing the practice, il can pre-
vent national banks from doing 80, and he re-
commend~ that they be prevented from pay
ing interest on deposits. or that they De re-
siricted and limited therein. either by direct
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 irredeemable
legal tender notes, and keep in view a per-
manent return TO sound basis of specie paw
mcnt. lie thinks that whenever an emer- /
gency arises rendering il necessary 10 tenn |
porarly enlarge the paper money circulation. !
provision may be made TO permit the national /
banks to a limited extent 10 increase their
note circulation by a pledge of United States |
bonds, bearing no interest while so pledged. |
or subiecting the banks TO special taxation |
upon the circulating notes obtained thereon, |
or upon such other terms a. would make il I
for their interest 10 recall the notes and re- |
deem the bonds at the earliest possible day af- |
ter the pressure and their necessities should |
h. II Ia.
mentation of the legal tender notes in "A time |
Of peace n q departure from the declaration |
Of public policy and the pledge Of the |
PUBLIC PATH.
30 the National creditors made in the act OF |
june 30. 1854. that the amount of such notes
should never exceed SfO0.000,OO0, and from |
that more solemn pledge contained in the first |
act Of the Forty-first Congress, . TO make pro-
vision at the earliest practicable period for the
redemption Of United states notes in COIN
Abiding 20 the growing desire among the
people 10 restore the paper circulation TO a
specie standard. he SAYS:
IL Is not possible 20 resume and maintain specie
payments with so large an amount OF notes i'm cir
culation and small an amount Of gold in the
country. The volume OF currency must be
duced or that OF coin greatly incre lsed. should
the national banks DE- prohibited from selling the
coin received by them as interest upon bonds
pledged % secure circulation, retaining the same
IN whole or IN part n 3erve or loaning II in the
discount ef bills and notes payable in coin, as
Congress might prescribe, there would be grad
ual accumulation Of gold In the banks which
would do something toward preparing for re-
sumption. This, with constant increase OF
coin In the treasury, undertaken with the appro-
val Of Congress. would ere long lead to the de-
sired result, when other conditions required for
the maintenance Of specie payments should be-
come favorable.
The Secretary refers to The uncertainty
which exists i'm public sentiment a. 10 the
right and policy Of the Secretary ofthe Trea-
sury % issue the $40 900 Of United states
notes called the reserve. ENVIRONMENTS that
Congress shall set those questions at rest by
n distinct enactment. lie thinks that until
that j. done, whenever there j. "a
srRfNGENCY N THE MONEY MARKET
there VIII be- a pressure upon the Treasury
Department by those who favor policy Of
expansion, 10 increase the issue Of notes a.
the maximum limit by the purchase Of bonds
or otherwise; while on the other hand those
who favor the policy Of contraction viii bring
quail pressure 10 keep the issue down to the
minimum limit. He adds;
Assuming that II Is tho settled policy Of Con-
grcss as declared in the act Of June 80 1854.
above cited that the total amount II United
States notes, issued and % be- issued. shall never
exceed four hundred million dollars, I am OF
opinion that Il would be unwise 70 require the
amount in actual circulation 81 be kept up a. the
maximum or 70 any amount above the preseut
minimum. The Treasury depending principally
upon the rcceipis from customs and Internal taxa
ton, without the power oi borrowing or other
wise increasing It's resources, with liabilities
created hy Congressional appropriations which
must be- met IN currency 20 the eNtrnt OF nearly
two hundred mulon dollars a year ought az
ways 10 have a large reserve upon which 10 can ,
draw 20 meet the ordinary demands upon e n
cas- OF efnergvnc ips when the revenues suddenly
and uns Xptctedly diminish by reason OF a ma
tonai calamity or financial deran cement
which from time 20 lime are liable 70 occur IN al
nations.
such reserve Is also rendered necessary by
the tact that the fractional currency authorized
Y be issued 70 he amount 'hty million dollars
now ia actual circulation 10 the extent OF more
Than forty million dollars, Is redccmable in Uni
td >tate- notes AT the option ~ the holders
In order that there may be no misundcrstand- .
ing a. q the circumstances under which The
amount between the minimum and the IN lnum