The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1874-12-10

moral sense and impair the natural self-depend-
ence OF the people, and trains them to the belief
that the government must directly assist their
individual fortunes and business, help them in
their personal affairs, and enable them to dis
charge their debts by partial payment. This in
convertible paper currency begets the delusion
that the remedy for private pecuniary distress
is in legislative measures, and makes the people
unmindful of the fact that the true remedy is
in greater production and less spending and that
real prosperity comes only from individual eff
fort and thrift. When exchanges are again
made in coin, or in currency convertible into
it at the will of the HOLDER this truth will be I'M
derstood and acted upon.
While it seems to be very generally conceded
that resumption of specie payment is essential
to the honor of the government and to the gen
eral welfare, the views of intelligent
best method of resumption are SO
widely divergent, and the plans that have been
suggested SO mHltifarious, that the Secretary
feels embarrassed III suggesting, plan, the de-
tails of which will commend themselves
to Congress. But there are one or two funda-
mental ideas underlying the subject which. it is
believed, must be the basis of any practicable
mitted for the consideration of Congress-
1t is obvious that there can be no resumption
by the government so long as the volume of pa
per currency is largely in excess of the possible
amount of coin available for that purpose which
may come into the Treasury in any year and
while no provision is made for the conversion of
this paper money into anything having nearer
or people to resume so long as the large amount
of irredeemable paper now in circulation
continues to be by law legal tender for
all private debts with reference both to
things lasts gold will continue to flow from
us, and find employment where the natural
laws Of trade, unobstructed by restraining
legislation, make it's daily use Indispensable
The Secretary, therefore, recommends Con-
gress to provide by law that after an early and
fixed day United States notes shall cease to be
legal tender as to contracts thereafter made
But this provision should pot apply to official
salaries or to other ordinary expenditures of the
government under then existing contracts or an
preparations Between the day thus to be fixed
and the time OF final resumption a sufficient
period should elapse to enable the people and
banks to prepare for the latter by such gradual
processes in business as will neither lead
to violent contraction in credit and
obligations of debtors. The sudden
and immediate appreciation of the paper
dollar to it's par value in gold is not only no nee
essary element of redemption, but, as flras prac
ticable, should be avoided. If during the period
of the war the legal-tender acts operated as a
bankrupt law, compelling creditors to give ac
quittances upon the receipt of less than the full
amount of their debts this is no reason why the
law for resumption should now compel debtors at
once to pay essentially more than they have con
tracted to pay. The adoption of sucn measuresas
Will not suddenly increase the obligations Ofdebt-
Ors will go far to allay and disarm whatever popu-
lar opposition to resumption of specie payment
may now exist, and besides would be but just to
the debtor class. The day from which new con
tracts must be discharged in coin should be
fixed sufficiently far in advance to give the PEG.
pie and the banks time to understand it and to
prepare themselves for it: 1t is believed that
not many months will be necessary for that
purpose but to avoid the mischiefs already in
Dictated, this day should precede the day of final
resumption by longer period. The time
should not, in the opinion OF the Secretary, be
extended beyond three years, and might safely
be made as much less as in the Judgment of
Congress would sufficiently protect the interest
of debtors and avoid the evils of too sudden con-
traction.
The Secretary states that 1900 national
banks have been organized under the
National Bank act, of which 1904 were in op-
GRAFTON on the I'd of October last. At that
date the aggregate capital of these banks was
$493, 765, III. with a surplus in addition of
S128, 1858, l06: circulation outstanding, $685.
225,298; individual deposits, 1868, 06S 1896;
loans, S949 $40, 627 specie, 1921, 24O ,945 legal
tender notes Gncluding United States certifi-
Gates of deposit) 1922, 846. GAG; redemption
funds with the United States Treasurer 500
349, $780,
The Secretary recommends the imposition
of special tax upon all interest-bearing
deposits, with view to preventing the pay
ment of interest on bank deposits.
The act of June 90, 1874 limits the amount
OF legal tender notes to 1882 900, 000 The
authorized amount of national bank notes was
not changed, but remains at 1854 900. 900. !
This act provides, however, for the transfer
of circulation from the Eastern and Middle |
States to the Western and Southern States. as
may be required to supply applications for
circulation, upon an apportionment based on |
population and wealth according to the census |
returns of 1870. The act also provides for |
the dep sit of legal tender notes in the |
Treasury, and the surrender of the bonds de- |
posted with the Treasurer as security for
the like amount of circulating notes. Under |
this provision the banks have voluntarily |
surrendered $7,714,550 of their circula-
ton; Sc, 1892, 285 of the notes of banks in |
liquidation are still outstanding. and a |
small amount ($2, 072, 754) of the 1854 600, 900
remains unissued. The whole, amounting to |
$16 279, $50, is now at the disposal of the Con-
troller, or will be hereafter available for dis |
tribution as this circulation shall be redeemed;
80 that it is not probable that it will be neces-
sary to withdraw circulation from banks loca-
ted in States which are in excess for some |
time to come.
The operations of the United States Mint |
for the year are recited at length. The |
amount of gold coinage was $50, 442 800; silver |
coinage, 1898, COL; gold bars stamped, $751;
485, 818; silver bars stamped, Sc. 847, 1918. |
The estimate of the Director of the Mint |
shows gain in specie and bullion in the last |
two fiscal years of about $38 600, 900, and the |
stock of specie in the country to be about |
$166, 000 900. With a view to the resumption
Of specie payments, it is important to manu-
facture large quantity of silver coin to take |
the place of the fractional notes; and |
as it's preparation at the minis will require |
considerable time, it is recommended that au-
thority be given the Secretary to commence |
the manufacture of such coinage, beginning
with the smallest denomination, and to grad |
ually withdraw the fractional notes.
For the year ending June 80 1874 the de- |
cline in receipts from the previous year was
considerable falling off from $18S O89, 522 to
1853, 1903, 1873. loss of nearly 1870, 900 900. The
receipts for the first quarter of the current
fiscal year we're two and half millions less
than for the corresponding period of the last
year. The receipts for the months of October
and November, 1873 were 1921, 243, $685. 25. For
the same months of the current year they
were 1922, ,811.
The Secretary alludes to the inequalities
and incongruities of existing laws imposing
duties on imports, and urges a revision of