Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1876-12-14
Report OF the Secretary OF the
Treasury. x ----.


Customs 10 Is: ga o5
internal revenue. ll61OO az Us
Tax on National banks. -. 1890: 7,32S,573 20
Fees-consular, letters patent and =,
Premium on sales Of coin.... =. 3,723,545 so
Total. s277. s34 116 65
From various miscellaneous sources 1861, S22 81
Grand total. :. SIS, AZ, O39 16
The expenditures were:
In fians . $3.50, 558 II
Pensions. NEUTRALITY-SUSPICIOUS.. % ,257 395 b9
Military establishment including
Notifications. river and harbOr
improvements. etc. 3SOIO,SSS %
Naval including vessels ETC.. 1883, 800 81
Miscellaneous civil, including pub
lie buildings lighthouses, and
cost of collecting revenues. 48,315.S72 45
Interest public debt. OO,243,21 %
Foreign intercourse .......... 1,410252 sc
Total S25S. AS, T97 80
OF the public debt there was redeemed and can
ceed during the fiscal year S5l. SS9. 464.S0, and
judgments of the Court of Alabama Claims were
paid to the amount of 1854, 26 The balance
IN the Treasury June 30 1870 was Sl44, 7O2 49,
which on the Both June, 1876, had been reduced to
$121 S07. 30 The net receipts for the first quar-
ter of the fiscal year ending June 20, 1877, were
Sail .52449 and the net expenditure were So
151. 1926. The estimate of receipts for the year
Including actual receipts for first quarterl is
1864 212 50, and of expenditures is 81 ,62s,
1885 leaving estimated surplus OF $26 663 $685.
81. There Will, therefore, in the opinion of the
Secretary be a deficit in the sinking fund for the
year Of 81 042, 110.43.
The estimates for the fiscal year ending June
30 1873, are: Receipts, $270050,000; expenditures
S243. $50 703; leaving a further deficiency in the
amount necessary to be applied to the sinking
fund as provided by law of IS 691 $1,000. The Sec
rotary gives briefly the history of the sinking
fund and OF the acts providing for its establish
ment The act of Feb. p, 1862 provided that after
the LIST day Of July 1852 one per centum of the en-
tire debt should be paid within each fiscal year
But down to the time of the close of the war the
revenues were inadequate to the payment Of ex
penses. and the act a dead letter Had the
letter of the law been observed from the passage
of the act however the reduction If the debt
down to June 80, 1876 would have aggregated only
s433. S4S, 21537 whereas, since Aug. 81. 1865, the
debt has actually been reduced S656 92 226 Al, OIL
s223 ia oil or more than the terms of the law re
Quircd.
REFUNDNG THE NATIONAL DEBT.
On the 9th of August, 1876. the Secretary
entered into contract with Messrs. August i ell
mont & Co., on behalf of Messrs. n. NJ. Rothschild
& SONS, and associates, and Messrs J. & W. Selig
man Co, for themselves and associates. ano
Messrs. Drexel, Morgan & Co., Oh behalf of Mcssrs
j. s. Morgan & Co, and MesSrS. IOrtOn, Bliss &
Co.. for themselves and associates, for the Legotia
ton of S400OO,G0j Of the AZ per cent. bonds
authorized by the acts OF July IA. 1870, and Jan
20 1871, the contracting parties to have the eX
elusive right to subscribe for the remainder
namely $3.50, 100000, any portion thereof. of the
said As per cent. bonds authorized by the aiOre
said acts, by notifying the Secretary on or before
the Goth day of june 1871 the Secretary rcscr, in9
the IlEnt to terminate the contract nj any tlm(
after March 4, 1877, by giving ten days notice
thereof to the contractors.
4 he agreement provides that the Secretary is to
allow the parties named one-half of one per cent
commission upon the amount they may take they
to assume and defray all expenses which may be
incurred III preparing, printing, transporting
and issuing said four and one half per cent
bonds, and ior transmitting to the Treasury De
partment, Washington. coin, United States five
twenty bonds. matured United States coin cou
pons received i'll payment for the four and Cnr hall
per cent bonds issued or which may be issued, tC
the contractors; and the Secretary agreed issue
notices for the redemption of an equal amount o
six per cent. hve-twenty bonds of the United
States, upon the dates of subscription by the con
tracing parties for four and Onc-hal per cent
bonds, MS provided BY the act of July II, 1870.
The subscribers agree to pay for said AZ pc
cent. bonds par and accrued interest in gold coin
matured United States coin coupons, six per cent
five twenty bonds, or United States gold Certih
Gates. Against the subscriptions of the contract
ing parties for AZ per cent. bonds. the following
described notices for the redemption Of Untet
States tivetwcnty bonds, act OF March }, 1865, hav
been issued, viz:
Call dated Sept. l. 1876 ......... $4,000. 90
Call dated Sept. e. 1876. 10O00,O
Call dated Sept. IL, 1S'6................. 'O0Ol
Call dated Sept. 81, 1876. OBSERVATION-DISCLOSURES. 100000
Call dated Oct. D, 1870 100000
Total ........................ oO,OC
Issues to the extent of s35,674,55O Of four and
half per cent. bonds have been made and refund
Ing operations are still in progress.
RESUMPTION OF SPECIE PAYMENTS.
IN Mafcn, 1909, by an act entitled y" An act Z
strengthen the public credit" the faith of tn
United States was solemnly pledged to the pay
ment in coin or its equivalent, of all the obliga
tions of the United States not bearing interest
known United States notes. and of all the in
terest bearing obligations of the United States :;
and, further, Ito make provision, at the earlies
practicable period, for the redemption of tn
United States notes in COIN
BY the act of January, 1875, Congress declare
the purpose of resumption of specie payments OIL
Jan. 1873 and to that end, and in execution o
the pledge of the act of 1869 provided for the re
demption of the United States notes. and for thu
issue of National-bank notes in lieu thereof an,
thus, amid conflicting theories. declared, in ei
feet, monetary system combined of coin arr
the notes to be redeemed, the amount to be pro
yided for is necessarily uncertain, and. i vii
depend upon events or a condition of things owe
which the Secretary has little control mpos 81
Bile for him to determine. He is authorized if in hi
Judgment deemed necessary to carry the act int
effect, TO accumulate an amount of gold equal t
the entire amount of the legal tenders Outstand
ing hat day; but this, if it were not moral
impossible, would be so ineXpedient, finan
cial measure that ii is not to be presumed to hav
been contemplated by Congress, and so not in
cUmbent on the Secretary. Still he is eXpeCte
aud required to meet the demand of redemp
ton by the accumulation of coin adequate i
amount, at his discretion with no certai
data for his guidance in the exercise of L
What is essential for him TO know in order to th
performance of the duty is, wha amount of note
will certainly be presented for reclamation on tn
1st of January, 1879. As this is clearly not a
tainabe, he is left to deal with what is probab,t
determnabe upon the condition of such genera
causes as will be likely to attend that event.
would not be difficult in the present state of none
tary affairs to make probable estimate of tn
amount required If the redemption were to TAX
place in January next; and it is probable that a
accumulation of an amount of coin equal to
moiety of the sum total of these notes would be a
ample preparation; but, while it is to be hope
that the credit OF our bonds may not be less i
1879, 1t may not be known that in other respect
the situation will favor such result. 1t is, however
deemed probable in any supposable condition {
monetary affairs that. If no inconSiderable reiut
ton of the volume of these notes should be mad
in anticipation of the redemption of 1919 th
preparation required by accumulation of coin fC
the demands of January, 1879, and Immediate
thereafter must be at least an equal proportion q
the sum total of the notes outstanding. As to tn
surplus revenues as measure of redemI
ton, such Is the present and probable III
ture of these revenues and the demand
upon them, that it is not deemed at all probabl
that any considerable not otherwis
appropriated could be devoted to this end.
this connection, however, it is proper
observe that now, for the frs time in many years
owing TO the large reduction of currency pay
ments, the sales of gold, to obtain the equivalen
currency therefor, are no longer necessary, an
be anticipated from the surplus from the custom
revenue.
BY the act of Jan. IA, 1878, the limitation upo
the issue of National Bank notes was repealed
and the volume of currency left to be determine
by the business demands of the country. Tn
Secretary OF the Treasury was required to retir,
OF legal tender notes eighty per cent. of the SUI
of National Bank notes then issued in excess
SOOo0,ou0 The amount of additional curreuc
1ssueu siuCe Tile passage OF tnlS ACT Is SlSUoUo5S
and legal-tender notes to the amount of Sl4 464
2S2 have been retired.
BY the act of June "a 1874, National Bank
might withdraw their circulation in whole or
part by depositing lawful money with the Trea:
urer. and withdraw proportional amount of ii
bonds; and it was made the duty of the SecretaI
to retire legaltender notes to the extent of eight
per cent. OF the bank-notes thereafter issued III
der this act S52S5S5 $50 of legal-tender notes ha,
been deposited in the Treasury, and S37. 1e2 $50
bank notes, accordingly, have been redeemed an
destroyed. =
The amount of legal-tender notes outstandin
Nov l, 1876, was $780,. 535, i16. The amount {
said notes on deposit for the purpose of retirin
circulation was S20.9109i6. The amount of Ms
tional Bank notes in circulation on that day W:
S29.1s3 464 less and of legatender Si4 464 ISL les
than on Jan. II. 1S15-a total decrease in circnl