The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1875-11-24


only to the certificates dawn in
conformity to law. The law requiring
that these certificates be paid out OF
the public treasury, and passed as public &C
count, does not req ui-e that they should be
paid before being passed by the proper
auditing officer, and If the treasurer is to be
held responsible for errors that he has no
means OF detecting, IL may be necessary for
his own safety that he submit the certih
Gates or the action OF the auditing officer
prior to their payment. But as this would
cause some delay, and perhaps inconveni-
ence to the members that may be affected,
it Is commended that one of the officers OF
the House of Representatives be designated as
disbursing officer, for the purpose OF these
payments, giving such bonds as may be re-
quired by law. The secretary of the Senate
is, by the present law, charged with the dis
bursement of the compensation and mileage
OF senators, and 1t is not seen that any OBJ
lection exists to the same method OF pay
ment of the members of the House OF Rep
resentatives.
BANK-NoTE REDEMPTION.
The national bank redemption agency,
established by act of congress, approved
June 20, 1874, has been in operation since
few days thereafter, and during the fiscal
year there have been redeemed, assorted,
and counted, 1882 $40 notes, OF an sggre-
gate value of $3.50, 332, 945. The expenses of
the agency has been $3.50 ,965 81. Fer these
expenditures an assessment has been made
upon the banks for express charges in pro-
portion to the amount in value of the notes
redeemed, and for all other expenditures
and charges in proportion to the number OF
notes redeemed, this being considered an
| equitable method ofmsking the assessment.
The items going to make mp these expenses
and charges are set forth in detail upon the
| books of the agency, and a converse state
i ant hQ
for the information of the banks. The full
credit Of the organization of the agency and
the success which has attended 1t in the
past belong to my predecessor, and no and
the law are responsible for the expenses in
CURED. The assessment was made for the
aggregate of the charges and expenditures. as
found upon the books of the agency on the
Both of June, 1875, the day of his retirement
| from Office. Should the banks seriously OBJ
ject to any of the charges or expenses in
Guided in the assessment, it is for them to
take such steps to recover the same as may
seem best. Yet, under the circumstances
and difficulties attending the organization of
the agency, and which they have appreci-
ated, few have made any complaint. If the
agency is to be continued, its practical oper-
alton in the past has
SUGGESTED SOME CHANGES IN THE LAW
for its successful conduct in the future, alike
in the interest OF the public and the banks.
1t has been hitherto estimated that a bank
has fully discharged its promissory obligs-
tions when it has redeemed in lawful money
at its own counter, or designated place OF
redemption. Uuder this law a bank is also
required to pay the cost of transportation OF
its notes to Washington, together with all
other expenses, direct or incidental, attend
ing the redemption of the same, and practi-
cally for the return of the redeeming me-
dunn to the residence of the note holder.
For the notes of 1877 banks which have failed
or gone into voluntary liquidation, prior to
June 80 last, and also of171 other banks that
are retiring all or part of their circulation,
there have been deposited in the treasury
| legal tender notes to the exact amount of
circulation outstanding or to be re-
turned. Such circulation is by law
redeemable by the treasury, yet, as
of them, are presented to the treasury
through this agency; and, as the banks
have no 5 per cent. fund for which to charge
| their pro rata share of the expenses, the
same can only be apportioned and assessed
upon the banks still in full operation.
There was on deposit in the treasury on the
30th of June, 1874, SIS 206, 667 05 in legal ten
der notes, for the purpose of taking up the
circulation of such banks, the government
getting the benefit of this deposit without
interest or expense; and yet, under the law,
the expenses of retiring such circulation are
taxed upon the remaining banks, who have
had no interest or benefit therefrom. This
Is manifeStly uniast. As the profits of the
banking System are diminishing because of
increasing taxation and unfriendly legisla-
ton, the proportion of banks withdrawing
their circulation IN rapidly increasing and
to the same degree the proportion of this
unjust levy upon the remaining banks will
increase. Since the passage of the national
bank act there has been paid, without cost
or expense to the government, by rational
banks tor tax on circulation, 81, 230, Sal As !;
tax on deposits, S2SsA27, GAG lo; tax on capt
tai, s., $50 3sI 50 - making SCI, 36S. 469 46
The original intent OF congress in imposing
this
TAX UPON THE CIRCULATION
was evidently to cover the expense of the
same, and If from the next return of semi
annual duty upon their circulation, the
banks be allowed to deduct the amount of
the late assessment, and thereafter, avs
assessments be made, like deductions be al
lowed, the matter will, I believe, be salts
factory to the banks and Just to the gov
eminent. 1t is the public, not the banks,
that is benefited by the renovation of the
currency, or its redemption.
The rate per cent. on the amount re-
deemed by each bank will be materially less
in future, because much of the permanent
furniture and appliances have been pro-
vided, and because, as the charter numbers
will have been imprinted on the notes, the
labor OF asserting will be greatly dimin-
ished, and consequently q considerable
reduction OF the force may be made. Should
congress refuse to allow the repayment OF
the assessment, as proposed thereon,
the fact that so large num-
Der OF national banks have gone into liquid |
alton, or are retiring their circulation, would
seem to make 1t essential that the charges for |
transportation of currency for redemption be |
paid by the party sending. Otherwise the
remaining banks, as stated, would be re-
CURED to pay the expenses for redemption |
responsibility of the management of this |
ageocy are very great, involving the daily |
receipt, asserting and payment, by currency |
OF checks, OF several hundred thousand dol |
lars, the keeping of over 2, 900 accounts. and