The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1874-12-15

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The aggregate call loans of these hanks ON the
"a OF october last were S56, 1923, corresponding
very nearly in amount with the same class of
s56.5s,S6s, showing that Tfs0 chs sreG T'U of t6 se
loans of the New York CITY banks has not ma
terially changed since the panic of 1873. The
other national banks was 56,2S7,452 1t thus an
pears that nearly the whole amount of the bal
ICES que 10 otner national banks is invested i'm
ona large portion Of the BALANCES due Ai 10
otner banks, and they must be so in
deposits being subject TO far greater fluctuations
in volume than a similar line OF commercial
deposits. The banker thus makes the broker a
convenience for obtaining interest on money
wnIch ne would not pruaentiy invest in com
or interest in New York City, prepared from
daily reports, shows the following results. to- wit:
Inc aSerage rate of interest for the past year
was SS per cent on call loans, and Ga per cent. on
commercial paper, and for the six months ending
Oct. 81, 1874, the average rate was 81 per cent. on
call loans, and 90 on commercial paper. The
attention of Congress has frequently been called
by the secretary and the COMPTROLLER of The cur-
rency 10 the evils arising from the payment OF
interest on deposits, and efforts have been made
by the more conservative bankers to discour-
age the practice. The difficulty in the way of
power TO prohibit the payment of1nterest on de-
posfts by the national banks, by the Imposition
penalties, ii has no such power with reference to
banks and private bankers. The only
practical legislation upon tins subject which
would not discriminate against the national
banks would seem to be the imposition of a
special tax upon all interest bearing deposits.
LIE act OF June 70, 1874, limits the amount
S Sntb tegaz teneer o1 notes to sSS1yOOo,GOo. The
notes was not changed, but remains at
1854 100000. This act provides, however,
and Middle states to the Western and Southern
states, as may be required to supply applications
on population and wealth according 10 the CEN
sus returns of 1870. The act also provides for the
deposit OF legal tender notes in the treasury and
the surrender OF the bonds deposited with the
treasurer as security for the like amount of CIR
culalng notes, Under this provision the banks
have voluntarily surrendered s7,7ls,55O of their
circulation, S6,492, 2S3 of the notes of banks in
liquidation are still outstanding, and a small
amount (S2.O72,7 5D of the A,OOO,60O remains un-
iss1ed. The whole, amounting to l6,279,5S9 is
now at the disposal of the comptroller, or will
be hereafter available for distribution as this
probable that il will be necessary TO withdraw
circulation from banks located in
come. The same act repeats the provision re-
quiring reserves upon circulation, and requires
a deposit equal 10 five per cent. of the circula-
circulation. The effect OF this law upon the re-
serves of the banks, as shown by their last re.
port, October y, is the release of $50, 25B,74 of
legal tender notes, which is about one-sixth of
the amount that would have been required un-
DER the law previously in force. The amount of
cash reserves held by the banks at that time in
excess of the requirements of the act was S55, lO2,-
49,, and the amount held in excess by the New
jill OAty unh WdS ,dUO. IL GOIlk lIOllGI
suggests that the provisions of the act OF June
20, 1874, in reference to the redistri hutton of the
currency reserves and redemption, be more FULLY
tested before any changes shall be made, ana,
accordingly, no amendments are recommended
to that act, unless notifications shall become nee
essary In adopting measures for a return TO specie
payment. The foregoing table and facts fully
establish the conclusion that there is a large
amount of currency in excess of the legitimate
needs of business and should serve to dispel the
fallacy that greater expansion of currency is the
proper remedy, for the general depression and
contraction OF the volume of business.
COINAGE.
The report of the director of the mint presents
in detail the operations of the mint and assay
offices, and contains valuable information rela-
tive TO coinage. foreign moneys and interna-
tional exchanges. The amount of bullion ope-
rated during the fiscal year was:
Oold ..-...----"...... sos, S5l 1874 81
lo,l22,l5I 81
..sS3, sS8, 76 q
Deducting redeposits, bars made at one insti-
tuition and deposited at another, the deposits
were:
Gold SI9l42.5I Os
The gold coinage, including worn pieces re-
coined, was S50,i42,690; silver coinage, S5,9S3, SOL /;
gold bars stamped, Sd, 4S5,Sl6; silver bars
Compared with the previous year there was an
increase In the gold coinage OF SIS, 1882 50; In
liver coinage, s3,OS7,S5 50, andin gold and silver
The estimate of the director of the mint shows
q gain in specie and bullion in the last two fiscal
years of about S3S,C00,0O0 and the stock OF specie !
i'm the country to be about Sl56.oO0,0OO. The esti-
increase of coin and bullion is graft
being one OF the evidences of a gradual
recuperation ofthe country from the effects OF a
destructive civil strife, and, in connection with
an annual production of about S70.U0O,OOO of the /
precious metals, affords encouragement that a
stock OF coin may, within reasonable time and
favorable LEGISLATION. accumulate TO an
extent sufficient to enable resumption of specie
TO be undertaken and maintained.
With a view TO a RESUMPTION of specie pay
ments, 1t is important to manufacture a large
quantity ofsilver coin to take the place of the
notes, and, as its preparation at the
minis will require considerable time, it is
recommended that authority be given the Sec
coinage, beginning with the smallest denomina-
ion, and 10 gradually withdraw the fractional
notes.
RON CUSTOMS.
The past and present condition of the re-
from customs constitute the general guide
% estimates and recommendations respecting
hat branch OF the public revenue. For the year
ending June 80, 1874, the decline in receipts from
he previous year was considerable-falIing off
rom slSSyOS9,5 22 to Sl63, lOS,s3S,a loss of nearly s25,-
10000. Tie receipts for the first quarter of the
current fiscal year were two and a half mill
ions less than for the corresponding period Of
he last year. The TT ceipts for the months of
october and November, 1873, were 81, 2f2,333 D.
we're S22,75oss1. The act of June 6, 1872, adj
nitted large classes OF manufactures 10 a reduc-
ion of ten per cent. of the duties prescribed by
previous statues, without designating specific
ion should apply, leaving much room
or construction in the practical applica-
ion OF the act TO articles OF new de-
pria1s. This act Twas followed nv q system ofl