Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1873-12-11


received from Great Britain in payment OF the
Geneva award, under the first article of the
treaty OF Washington, have been used to re.
deem so tar the outstanding public debt. bear
ing SIX per cent. interest, and an amount eoual
to the debt so redeemed has been invested in
five per cent. bonds of the funded loan.
When the subscriptions above mentioned
shall have matured there will have been thus
effected, since January last, a conversion of
the debt bearing six per cent interest into the
new five per cent. loan, of Sl0O, OOp. making
an annual saving in interest to the amount Of
u 100000, and the whole amount converted
IN this loan since the passage of the refunding
act Will be 100000, 900; reducing the annual
interest charge 100000.
On account of the alterations in the tariff
laws effected by the acts of Nav and June 6,
1872, adding tea and coffee and other articles
to the free list, and reduction of duties on
other merchandise, as well as by the removal
of considerable amount of internal revenue
taxation, the receipts have fallen off for the
year ending June 80, 1878, much below those
OF previous years, as was anticipated Since
the close of that year, the recent severe finan-
eial and commercial crisis has caused an adj.
ditional and unexpected diminution in reven-
ues during part Of September and the whole of
October. The revenues have already fallen off
sufficiently to make 1t important and necessary
to exercise the greatest economy in appropria-
tions and expenditures for the future. and
should there not be a revival of business at an
early day. and an increase of receipts over
those OF the past two and a half months add.
tional means will be required to meet expen-
SEES. Should such be the case. recommend
additional taxation, judiciously laid, so as to be
the least burdensome upon the people and bus
inesss of the country, rather than a resort 40
borrowing money and increasing the public
debt
The prevailing practice not only of National
but of State Banks and private bankers, OF
paying interest on deposits, attracts currency
from all parts of the country to the large cit.
les, especially to New York, the great financial
| centre. At seasons of the year when there is
| comparative little use for currency elsewhere
immense balances accumulate in New York
where, not being required by the demands oil
ordinary business, they are loaned on call at
higher rate of interest than that paid te de.
pos!tors, and are used in speculation Every
year, at season when the demand sets il
| from the West and South for currency, to be
used IN payment for the transportation of theiI
agricultural products, there occurs n stringen.
cy IN the money market, arising from calling il
| of su0h loans to meet this demand Until this
year, though annually creating some embarr-
aSsment, this demand has been met without q
| serious difficulty This year there was a great
| demand for currency to pay for the heav,
| crops of bountiful harvest, for which Europe
an countries offer ready market. The sus
| pension of certain large banking houses the
| first of which occurred on the 18th of Septem.
| Der, alarmed the people as to the safety o.
banks and banking institutions in general
Suddenly there began a rapid calling in of de-
mand loans and very general run on the
| banks for the withdrawal of deposits The
| banks found themselves unable to meet thC
demands; currency in circulation became ex-
| ceedingly scarce; and the country became
| greatly embarrassed.
In this condition of things great pressure
was brought to bear upon the Treasury De-
| partment to afford relief by the issue of tht
| United States notes. But it was found i'm
possible to afford relief in any of the man,
forms in which that relief wss asked. 1t wa
| decided therefore 10 adopt the only PRACTICABLE,
course which seemed to be open TO it'll,
purchase of bonds for the sinking fund to sucl
an extent as the condition of the Treasur,
would allow, and thus release considerably
amount of currency from its vaults The pur
| chase of bonds was commenced on the morn
| ing of the goth of September, and continued
until the oath, when it became evident that tn
amount offering for purchase was increasing t
an extent beyond the power Of the Treasur
to accept, and purchasing was closed afte
bonds to the amount of about 81 3,OO0, 900 ha,
been bought, and without the use of any par
of the S44 100000 of the United States note
generally known as the reserve. The curren
cy paid cut of the Treasury for bonds did YER
much to strengthen many savings banks, ant
to prevent panic among our numerous de
| postors who began to be alarmed.