National Republican., 1875-12-08

would remove present obstruction to the reten-
ficn OF our gold and silver production and create
demand for the return Of gold now abroad thus
pronoting final resumption by preparing the
COUNTY, for Ii.
In firtheranee of the purpose of the act of the
last Congress to provide for the resumption Of
specie payments the Secretary recommends that
authority be given for funding legal-tender notes
into bonds bearing q low rate Of interest Such
bonds should run for a longer period Of time than
those now authorized for refunding the interest
bearing debt, and should be made available to
national banks for deposit to secure their eircula
tion and other liabilities to the Government, and
should bear rate CT interest so low as not to
probable that a bond bearing interest at the rate
Of four per cent. would invite the funding Of
sufneient amount Of legaLtender notes TO lessen
materially the sum of gold which, in the absence
of such provision, must be accumulated in the
Treasury by the 1st Of January, 1873 to carry out
the-imperatiye requirements Of the act of jan
nary II, 1875 lift be apprehended that authority
to the Secretary to fund an unlimited amount Of
notes might lead to too sudden contraction Of the
currency, Congress could limit the amount to be
funded in any given period Of time. The process
being in no sense compulsory as to the holders Of
United States notes. and the rate of interest the
bonds being made low, IL is not probable that cur
rency which could find profitable employment
would be presented for redemption in such bonds
Only the excess Of notes above the needs Of busi-
ness would seek such conversion.
Authority to the Secretary of the Treasury to
notes per month by this process would greatly
facilitate redemption at the time now fixed by
law, and, besides, would have the advantage Of
in any given month Bonds issued for this pur-
pose should be Of the denomination of fifty and
one hundred dollars, and any multiple thereof in
order to meet the convenience Of all classes of
holders Of United States notes. The faith of the
Government now stands pledged to resumption
on and after January l. 1879, and to the final re-
demption and removal from the currency of the
country of the legal-tender notes as fast as they
shall be presented for redemption, according to
the provisions of the act of January II, 1915. To
resume on the 1st of January, 1ST9 without
further legislation, would require the accumula-
r,Nf la-e nf in II,
order to avert the possibility Of failure of the
plan.
Such an amount Of gold can be procured with
difficulty and not without more or less embarrass-
ing effect upon the trade and commerce of our own
and other countries. The present abundance and
favorable opportunity for the withdrawal and
redemption Of a considerable part of the outstand-
ing legaltender notes, thereby making easy and
drawal Of legaltender notes, thus dispensing with
the necessity for aecumulating gold in the Treas
tend to appreciate those remaining outstanding,
and make ii easier to protect and keep in ercula-
tion the silver coin now authorized to be issued.
The act last referred express recogni-
tion Of the duty and obligation of the Government
TO resume specie payment at the day therein
named; and, however widely different may be the
views of intelligent persons upon the means adopt
ed by Congress, ii Is gratifying to know that the
end Sought to be reached has met the concurrence
of the country, and that q majority Of the people,
wherever the matter has been publicly and fully
discussed, have signihed their approval of the
pledges and to relieve them Of the ills of ire
deemable paper currency.
The act in question not only makes express pro-
vision for resumption at a fixed date, but commits
the Government to the use of all such means as
may be needful to that end. If experience shall
show that the means provided by Congress need to
be supplemented by further legislation for the
easier and more certain accomplishment of the
end, it must be assumed that Congress will not
suffer the great purpose to be impeded for want of
such additional legislation. The act eonfers large
powers on the Secretary Of the Treasury, touen-
pose of procuring the supply Of gold necessary to
execute such Of its provisions as go into immedi-
ate operation, and to provide for the redemption
In gold of United States notes outstanding OF
and after the 1st Of January, 1879.
In this respect the power conferred on the Sec
retary is ample; but if for any cause it should be
found impracticable to accumulate in the Treas
ury sufficient amount of gold to carry out the
provisions OF the act the Secretary IS left without
1t may, perhaps, be doubted whether the process
of accumulating large amount Of gold by q
given time could go on without meeting oppOsi-
tion from the financial powers Of the world. 1t is
safe to say that so large an amount of gold rs
would be required to carry out the purpose and
drectiono of the act cannot be suddenly acquired.
1t can be done only by gradual processes, and by
taking advantage Of favorable conditions Of the
money market from time to time.
The loss of interest on large sums boarded in the
Treasury for q considerable period in advance of
January, 1879, Is consideration not to be disre-
garded, although 1t should not be permitted to
outweigh the benefits to result from full and COM
pete execution OF the act.
2 The Secretary regrets that the condition of the
Treasury has been such as to render it necessary
to make sales Of gold coin from time to time to
meet current expenditures payable in currency.
Such sales have been made in New York city,
upon public notice, in accordance with the plan
previously adopted, and have been limited, from
month to month, to the amount necessary to keep
on hand a suficiency of currency to meet probable
demands upon the Treasury under existing ap-
preparations. 1t is the desire of the Secretary to
retain in the Treasury, so far a practicable, the
gold received from customs and sales are diseOn-
ttnued whenever the balance of currelcV in the
Treasury is sufficient to meet currency payments.
THE NATIONAL BANKS.
The report of the Comptroller of Currency con-
tains defense Of the national bank system. 1t
also contains, In addition to The usual bank sta
tsties, tables showing, by States. the ratio OF
national and State taxation imposed upon the
national banks for three different years; tables
showing the amount and rate of dividends made
semi-annnally by the national banks in the States
and principal cities for the last seven years; q
comparison, by States, Of the amounts Of deposits
of institutions other than national banks shown
in returns obtained by the Comptroller with those
reported to the Commissioner OF Internal Revenue
for purposes of taxation; table Of the transae-
tions of the New York clearing house for twenty
two years, exhibiting the percentage Of currency
required in the payment of its large daily balances;
also table exhibiting the percentage Of lost or
unredeemed circulating notes of closed banks; to-
gether with a summary Of the decisions of the
Supreme Court of the United States in reference
to the national banks.
The number of banks organized from the authO-
5zatio1 5ai on St the G system to November iSaS Is
OF October last. From their reports of the date
last named; II appears that the aggregate capital
Of these banks was Sj0Is 100; surplus s134 $50
0T6 circulation outstanding ,579 Individual
deposits, s664 SIS, 69; loans $3.50 @ 95l; specie, in
euding coin certificates; $50 Se9 legal tender
posit, Sl25, 49, and on deposit with the United
States Treasurer, Sl9, ,6S6, 900
The following table exhibits the capital stock
and net deposits, and the classification of the
loans of the New York city banks ut correspond
ing dates for the last six years: