Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-11-05
THE NATIONAL FINANCES.
AunuaI RebOrt Of Treasurer Spinner

REAeK OF RECEIPTS AND INCAEAsE OF
NEUTRALITY-SUSPICIOUS. REoONN gYDA-
TON RELATIVE TO THE NATIONAL CUR
RENCY-INCRBAsE OF SALARIES RECON-
NREDED, ETC.
The report of Gen. F. Z. Spinner, United
States Treasurer, just submitted to the Sesre-
ta-y of the Treasury, shows a large failing OH
in the receipts of the government from last
year, amounting to 1913 $50 ,I6i07 on' customs,
sId to Sl6,9 ,s63 IS OIL internal revenue. This
decrease in the revenue is mainly due to the
treat reduction of taxation by Congress. TIE
expenditures are largely in excess OF the pre-
vious year, and this, Gen ). says, is due mainly
to the large appropriations made by the last
Congress in excess OF the estimates made by the
several executive departments of the govern
M mt. The Treasurer says either taxation mu st
be increased, an expedient that can hardly be
tnought Of or the appropriations must be KEEP
largely below the receipts. otherwise tbs rapid
reduction of the public debt will be arrested, If
not abandoned.
CONVERTIBLE CURREsCY RECOMMENDED.
The Treasurer makes long argument in
fay OF of a flexible currency to meet the wants
OF the country, and recommends as a remedy
for the evil OF money being locked up at times,
OF perhaps swamped in disastrous schemes and
wild speculations, the authorization by Con-
gre IS OF the issue of a certain amount of legal
tender notes, that could at all times be converted
into currency interest bearing stock of the
United States, and for which the holder of such
stock so Authorized could at pleasure, at any
tine, receive legal-tender notes, with the
accrued interest, from the day of issue of such
stock TO the day of its redemption. 1t is be-
heved that rate of interest no higher than
3 Co. 100 per cent. will be high enough to absorb
the desired amount of the circulation when not
nee ded for commercial purposes. and low enough
to force the return of the bonds in exchange for
ness wants of the country shall require more
currency.
DEPOSITS IN NATIONAL hanks.
The treasurer thinks the practice on the part
of national banks of paying interest on deposits,
aud especially that of one bank allowing interest
on the deposits of another, whether they be per-
nitted to hold the proposed bonds as part OF
their reserves not, should be forbidden by
law, under the severe penalty OF the forfeiture
OF their charters.
THE POSTAL SAVINGS BANK SCHEME.
He believes that expansion rather than con-
traction would be a much likelier consequence
a. the result of the resumption of specie pay
ments. Referring to the design of the Post.
master General, as expressed to him, of recon-.
mendiDg in his annual report a scheme for post
al savings banks, Treasurer Spinner says by
Il It's plan all persons will be enabled TO deposit
with the postmasteTs in all parts of the country
amounts of money for which, when received ~
the Treasury, will be Issued to them currency
Interest bearing bonds OF like character here
inbefore described. AS this would change
large amount of the Indebtedness of the nation
from six per cent. gold interest bearing bonds
TO others bearing lower rate of interest, paya-
BILE in currency, thus making great saving to
tie nation, and at the same time, giving to all
the people place of safe deposit, and as il will
be an auxiliary and help In the project before
indicated for the Improvement of the currency.
the plan commends itself strongly to his judg
ment.
WHY 1T WOULD Re POPULAR.
This rate of interest, being Just one cent
day for the use OF 500. would be popular with
the masses of the people, because of the ease
with which interest could be computed on any
amount for the known number of days that
bt nd may have to run. 1t is very probable that
the legaily-authorlZed amount of i00, 600 600
of legal tender notes need not be increased 10
order to carry out this scheme; and it is more
than likely that under the then changed condi-
ton of the currency, with no tendency to go
into wild projects and stock speeulations, the
minimum amount of 1856 200, 900 would, on &C
cunt of its being readily obtained in exchange
for the proposed stocks, be sufficient for the
easy transaction of the legitimate business of
the country at times when commercial wants
shall need the largest amount. 1t is believed
that with this new attribute of the legal tender
notes, the parties who are now so clamorous for
more paper currency will become satisfied that
no more Is needed, and that those who believe
that il is mischievously redundant and a hind
rance to the resumption OF specie payments,
will have opportunity to judge OF the correct
ness of their piecoI ceived opinions.
Discussing OFFICERS CHECKS.
The treasurer suggests relative to discussing
officers checks that the heads of the different
departments of the government be asked 10 is
sue orders to all their discussing officers who
make payments by checks on the Treasury, or
on any OF the officers thereof. requiring such
officers TO place the number of the check upon
the receipt received therefor and the number
of the receipt upon the check given in payment
for the same in all cases where claim is made
that credit be given to disbursing officer, on
the settlement OF his accounts, on Outstanding
checks issued by him, on which he may have
before received credit on the receipt taken on
the delivery of the checks.
REDEMPTION OF FRACTIONAL CURRENCY.
The total amount of currency outstanding at
the end of the fiscal year was S38S i24 ,6i9.23.
The outstanding fractional currency in 1854 was
si4,S42 1856; of this amount there was redeemed
in the next fiscal year 81 903 747 a. being at the
rate OF 80 per cent. After that the falling of OF
the amount Of redemptions is shown to be very
a 49, la.., a..
year was 20 per cent, and TOR the year closing
with the 30th OF June last, the actual redemp-
tons on the amount outstanding was a tribe
less than one-third of one per cent. These facts
would seem TO indicate that nearly the whole of
this issue, originally amounting TO S2O, 2lJ. 635
that still exists, has been redeemed, and that
probably about 1000 900 have been destroyed,
and can be fairly deducted from the actual
circulation of the fractional currency, and that
the national Indebtedness is reduced by that
amount.
In high contrast to this stand the REDEMPTION
and percentage of the outstanding circulation
of the OLD demand notes. These are the other
extreme, and the redemption has been greater,
and is nearer up to the full amount issued, than
that Of any of the issues Of United States cur
rency.
DEFAcED NATIONAL BANK NOTES.
The Treasurer suggests that unless national
banks can be induced to provide for the prompt
retirement of such of their notes as are and NAV
become unfit for circulation, Congress should
be asked for the passage of a law compelling
ment through which the exchange of new for
old and detaced notes of all the natianal banks
can be made through the instrumentality OF the
Treasury department.
He also recommends that, to prevent frauds
the former rules and regulations in regard to
the redemption Of United states notes and frac-
tional currency from which parts may be miss
ing, may be again put in force, or that Congress
may be asked to pass such a law as NAV at least
in part prevent, in this regard. frauds upon the
Treasury.
In closing, the Treasurer urges increased
compensation for his employees, and says not
cent has been stolen by them during the year.
The CONTROVERSIES CAsE.-The November
term OF the superior court OF Litchneld county
begins at Litchteld to-day. 1t Is expected that
the Colvocoresses case will then be tried, il the
dispositions which are now being taken relative
to the Connecticut Valley railroad bonds are
completed in time. A Litchfeld correspondent
Of the Hartford Post writes: "On the memo
randnm which Captain Colvocoresses left of his
securities, and Of which it is claimed he was
robbed, was the item of twelve thousand dollars
Of Connecticut Valley railroad bonds. TO show
that this memorandum was false the insurance
companies have found all the bonds issued
a orvfix 70 AoY.