Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1876-12-09

payable and which led the passage of the actlof
credit and il was Intended to diispe ali hesitation
or doubt as to the purpose of the Government
United States was pledged to the payment in coin
OF all It's obligations. except those expressly other
wise provided for. This legislative action was IN
harmony with that OF the Executive administra-
what then, was intended and understood to be
intended, by this pledgs Of the Government Was
1t that the public securities were to be paid In
gold coin, or IN silver, or might be In eitneri
II viii not be questioned by any one conVersant
with the question al that time that the popular
impression, not to say general conVictien, vas
belief may have obtained from Ihe fact that the
interest on this class OF obligations, payable in
customs receipts had been set apart to this end,
and that these. were paid in gold, and that the
fore gone into general disuse. especially in all
large transactions, and could scarcely be consid-
cred as contemDlated in any measure having FOR
its object TO provide for payment OF sums ample
as the interest on the public debt, at that time
million dollars. This view OF the subject receives
nconsderable support. afso IN the legislation Of
Congress in 1873, by which the legaltender quail
" of the silver coin was limited to five dollars.
BY force of the laws of trade quite Independent OF
those OF Congress, the legal-tendef silver dollar
had tualy disappeared from circulation as
mon and. although not abolished by act OF Con-
gress, a. did not, as a matter OF fact, exist Tor
commercial purposes. and did not enter into money
payments. The object ana intent of the act of 1873
was confessedly to give to gold the precedence in
the statutes Of the country il hold in the CONNER
eial world practically, and to declare the gold
dollar 10 Law to be what IL was IN fact the repre-
sentative of the money unit Gold had for many
years been treated as the principal money OF coin
payments IN legislation and in the transactions OF
the Treasury Department
By the act Of 1868 the Treasury was authorized
to receive deposits Of gold com and bullion and to
issue certificates therefor redeemable in gold cOin
thus indicating that It's obligations called for pay
ment in gold and not in silver This provision, IT
VIII be seen, Is in consonanee with the TACT that
our foreign exchanges for many years nave been
made upon the gold basis and thus it is apparent
that the general understanding has been OF late
years. for the consideration stated, that the money
of coin payments was gold, and an obligation TO
As was contemplated by Congress in the policy
declareRin 1863, the public securities then depress-
ed Immediately arose to par in gold, and have
since maintained an enviable position at the
money ceDters or the world. The hve-twenty six
per cent bonds, then selling at eighty-eght cents
on the dollar, soon arose to par in gold coin, and
have since borne the average premium OF five per
cent. at home and abroad. AT the present tune,
the borrowing power of the Government some
thing less than four and One-haf per cent. Its four
and one-half per cent. bonds, on short time, are
readily taken at par in gold, and sold at premium
in this country and in Europe. II no disturbing
element enters into our present monetary system,
affecting the present policy of the Government, i6
is believed thatit will be found practicable at no
remote period TO fund the National debt into per
cent. bond having from thirty to fifty years to
run, and this at an annual saving in the interest
of hs public debt of S25 100000 which, If invested
in sinking fund at four per cent annually, would
pay off the present ational funded debt in frae-
tion over thirty years.
ICY so beneheent in results and advantageous to
the future should receive no detr1ment from con-
hicting interests, policies or theories. Whatever
may be thought OF the right to pay these securl-
ties in cheaper money, it will remain true that it
is lawful to pay them in gold CON- that the belief
that they were to be so paid has practical value
IN The probable reduction Of the public debt equal
TO onefourth of the amount of the annual interest
thereon.
It IS respectfully submitted that the coin paw
ment to which the faith of the Nation was pledged
in 1859 gold, and not silver and that any other
view Of 1t, whatever technical construction the
language may be susceptible of, would be regard
ed of doubtful good faith, aud probable effect
prejudfc1al to the public credit.
ISSUE OF SILVER COIN.
Immediately upon the passage Of the act of
April IT. 1876, the Department, through its
several independent Treasury offices. began to is
currency the subsidiary silver which had been
coined under the authority OF the Resumption Act
OF January Il, 1878. To further relieve the press
ing demand throughout the country FOR money OF
small denominations the silver coin In the Treas
ury, previous to the passage of the act above
cy obligations OF the Government.
Under the authority for the issue of silver coin
granted by the act of July %, 1876. the Depart
ment, in addition to redeeminR fractional cur
rency, whenever presented for that purpose. has
tender noles as rapidly as the coinage at the
minis would permit.
October 80, 1876 there has been issued OF silver
coin, as above stated, $22 096,712 16, OF which
amount there has been issued for fractional cur
rency redeemed and destroyed, S12, 1858 259 43.
The demand for silver coin for circulation
equal to the capacity of the minis 10 supply it.
Until this demand shall have ceased, the coinage
limit authorized by law.
CURRENCY REDEMPTION.
Owing to the exhaustion Of the appropriation
for transportation of United States notes and Sc
eurities, the express charges on legal-tender and
fractional notes. sent TO this Department for re-
demptiOD, and the returns therefor, have not been
paid by the Governments since the LIST OF March
last. In consequence, the redemption of such
notes has greatly decreased, and the paper cur
reDcy of the Government is rapidly becoming
unfit for circulation. An appropriation sufficient
to meet the payment Of such express charges is
earnestly recommended.
THE NATIONAL BANKS.
The report OF the Comptroller of the Currency
contains full statistics of the reserves, taxation,
dividends, earnings. and losses of the National
banks, together with q summary of their resources
and liabilities for each year, since the system went
into operation. From this report it appears that.
up to October Of the present year, 2s42 banks in
all had been ORGANIZED, OF which 2oS7 were in ope
show that they then had an aggregate capital of
s499 sO9 $780, surplus of 1882 2022s2; circulation out
standing S29l 5i4U3O individual deposits 1851 1885,
2lO loans. S927 5T4, 979; specie GnoludIng
ucates S2l, 800, 1867; leRaltender notes tncludiDR
United States certificates OF depost) s113 400 SAL
redemption fund with the United States Treasurer,
The act Of June 90. 1874, authorized National
banks which desired to withdraw their circulating
notes. in whole or IN part, TO deposit lawful money
with the Treasurer of the United States in sums of
not less than 5000, and 10 withdraw proportion
al amount of the bonds pledged security for
their notes. The act OF January IA 1875, repealed
amount of National bank circulation, and made it
the duty OF the Secretary Of the Treasury to retire
OF the sum of National bank notes thereafter is
sued, until the amount OF legal-tender notes out,
standing should be reduced to three hundred
millions of dollars. Since the passage of
the former acr, s52,s5S,5e9 of legal-tender
note have been deposited in the Treas
ury for the purpose of retiring circulation, and
SS7, I22 O6g OF bank notes have been redeemed and
destroyed. The whole amount Of additional clrcu-
laton ISSUED since the passage OF the latter act is
SIS, 1885, and legalteuder notes equal 10 eighty
per cent thereof Sl4 464 2S4 have been retired,
leaving the amount Of legal-tender notes Outstand
Ing on November 1. 1876, 1867 5S5,716. The amount
or legaltender notes on deposit with the Treas
urer on November l. for the purpose of retiring
circulation, was $20,9lO,946. The amount of Ma
uonal bank notes In circulation on November 1
was S29143 464 less than June 20, 1874 and that
or legal-teEder notes S14,464 ,2S4 less than
January IA, 1885, the total decrease of legatender
notes ana National bank notes, under the opera
ton of these acts, being SIS, 6O7.T4s.
The Comptroller, considering the present year
especially appropriate tor that purpose, devOtes
considerable portion of his report TO a review OF
the banking systems under which circulating
notes were issued previous to the organization OF
the National banking system, and to the presenta-
ton, in concise ana convenient form, OF the sta
tistlcs of the two Banks of the United states and
nf Ia former State banks of the country, far