The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1874-12-11


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 10y partial payment. This in
convertible paper currency begets the deluson
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 a currency convertible into
IL at the will of the holder this truth will be I'm.
derstood and acted upon.
While it seems to lie very generally conceded
that resumption of specie payment is essential
to the honor of the government and to the gen.
and well.niormed persons rs to the
best method of resumption are so
widely divergent, and the plans that have been
suggested so multifarious, that the Secretary
feels embarrassed in suggesting a plan, the de.
tails of which will commend themselves
to Congress But there arc one or two funda-
believed, must dc the basis of any practicable
plan for resumption, and are, therefore, sub
mitted for the consideration of Congress-
1t is obvious that there can he 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 i'm any year. and
while no provision is made for the conversion of
this paper money into anything having nearer
relation to coin; nor is it possible for the banks
or people to resume so long as the large amount
of rredeemabe 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 its 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 not apply to official
salaries or to other ordinary expenditures of the
|
preparations. Between the day thus to be fixed
and the time of final resumption a sufficient
period should elapse to enable the people AID
banks to prepare for the latter by such gradual
processes in business as will neither lead
to violent contraction in credit and
values nor suddenly %shS0ry TSr the
| and immediate appreciation of the paper
dollar to its par value in gold is not only nee
essary element ofredemption, but as faras prac.
tcable should be avoided If during the period
of the war the legal. tender acts operated as II
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 forresumpton should now compel debtorsa at
once to pay essentially more than they have con.
tracted to pay. The adoption of sucn measures as
will not suddenly increase the obligations ofdebt-
ors will go far to alay and disarm whatev er popu.
lar opposition TO resumption of specie payment
may now exist, and, besides, would be but lust 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 peo-
prepare themselves for il. 1t is believed that
not many months will be necessary for that
purpose; but, to avoid the mischiefs already in.
dicated, 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 OPP
Grafton on the I'd of October last. At that
date the aggregate capital of these hanks was
$493 765, III. with surplus in addition of
1928, 958 l06 circulation outstanding, $685.
225, $685. individual deposits, 1868, O6s, 995;
loans, $9s9,s70,627 specie, S2l ,240, 945; legal
tender notes (incuding United States certif-
Gates of deposit), 1922, $40, GAG; redemption
funds with the United States Treasurer, 500
349, $50.
of special tax upon all interest-bearing
deposits, with view TO preventing the pay
ment of interest on bank deposits.
The act of June 20, 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, 000
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 superintendent 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 az security for
the like amount Of circulating notes. Under
this provision the banks have voluntarily
surrendered S7,7l4,550 of their circua-
ton; &C. 1892, 2S5 Of the notes Of banks in
| liquidation are still outstanding, and
small amount (92, OFF, 754) Of the 1854, 600, 600
remains unissued. The whole, amounting to
SIC, 279 $50, il now at the disposal Of the Con.
troller, or will be hereafter available for dis
| tribution AZ 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, 600; silver
coinage, 50, 9S3 COL; gold bars stamped, 531,
485 S18; silver bars stamped So S47, 799 18.
! The estimate Of the Director of the Mint
shows gain in specie and bullion in the last
two fiscal years OF about $38, 600 600, and the
stock of specie in the country to be about
Sl66, 900 600. With view to the resumption
Of specie payments, it is important to manu-
| facture a large quantity of silver coin to take
the place Of the fractional notes; and
| as its preparation at the minis will require
considerable time, 1t is recommended that au-
|
the manufacture of such coinage, beginning
with the smallest denomination, and to grad
ually withdraw the fractional notes.
For the year ending June 30, 1874 the de-
cline in receipts from the previous year was
onsderable-falliag off from S1SS. 089, 522 to
S163. l03, 1888 a loss of nearly S25, 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 $2l, 2i3, 333.25. For
the same months of the current year they
we're s22, 1881.
The Secretary aludes to the inequalities
and incongruites of existing laws imposing
duties on imports, and urges a revision of
them.
The decrease from each source Of internal
revenue for the year, as compared with the
fiscal year 1873, was very marked, as will be
seen by the following comparative table,
| Sources 1873 1874.
Spirits ........ $50, 099 ,371.7S $40 444, Os9 s.
Tobacco ............ "a, 1886 303.O9 3242, S75 O.
Fermented liquors.. 9,349T. 93Oi,6797.
Banks and bankers -. 3,77l .46 1887 100 81