Buchanan County bulletin. [volume] (Independence, Iowa) 1869-1891, 1878-12-06
TIE FINANCES.

.iNNt'AL hkl'oET OF SECRETARY SHER nan.
The ANIMAL report of the Secretary of the
Treasury upon the state Of the finances Of the
country is an unusually lengthy document
Upon the subject OF specie resumption the SEQ
Rotary says:
The important duty imposed on this department.
by til. Resumption act. approved Jan. IL. 1876, has
been steadily pursued during the past year The
plain purpose OF the art is to secure to all interests
and all classes the benefits of sound currency
dcem3ble III coin. with the least possible disturb
OF existing rights and contracts. Three of its
provisions have b en- substantially carried into
ecution by the gradual substitution of fractional
coin for fractional currency by the free coinage OF
gold and by free banking. There remains only the
completion OF preparations for resumption iii coin
the LIST day OF January 1873 and its maintenance
thereafter upon the basis of existing law.
At the date Of my annual report 10 Congress In
December Isl. it deemed necessary, a
preparation for resumption, to accumulate in the
treasury coin reserve OF al least 40 per cent. OF
United States notes outstanding. At that time it
anticipated that, under the provisions OF the
Resumption act, the volume of United States notes
would be reduced TO $500 900 by the 1st of Jan
nary 1879 or soon thereafter and that in
coin OF $780, 900 would then be sufficient Con
gress. however in view of the strong popular feel
ing against contraction of the currency. by the
act approved May 81, 1875, forbade the retirement
Of any United States notes after that date leaving
the amount in circulation 1861 ,016. Upon the
principle of safety upon which the department was
acting, that 40 per cent of coin the smallest
reserve upon which resumption could prudently be
commenced. il became necessary to increase the
coin reserve to sl3S, 600 900.
At the close of the year 1871 this coin reserve in
excessof coin liabilities amounted to sos l6 NC.
of which Slb, 400 were obtained by the sale of
Az per cent, and S2J, 000.U00 by the sale of per
cent. bonds, the residue being surplus revenue.
Subsequently. on the 18th day of April 1873 the
Secretary entered into contract with certain bank
ers III New York and Iondon-the parties to the
previous contract Of June y, 1877, already comInu-
ncated to Congr.ss-for the sale of $50 600 900 A.,
per cent. bonds for resumption purposes The
bonds were sold ut premium Of 1r3 per c.nt. and
accrued interest, less commission of y of per
cent. The contract has been fulfilled and the net
proceeds. $3.50 00 have been paid into the treas
ury in gold. The S5.o0oO 200 coin paid on the Hall
fax award have been replaced by the sale Of that
amount of per cent. bonds sold for resumption
purposes making the aggregate amount of bonds
sold for these purposes s!5 600 of which SIS,
600 coo We're AZ per cent bonds, and S"0.b0 600
per cent. bonds. To this has been added the snl-
plus revenue from time to time. The amount s OF
day of November last in excess OF
coin sufficient to pay all accrued coin
liabilities, was s.100, and constitutes the
coin reserve prepared for resumption purposes
This sum will be diminished somewhat on the LIST
of January next by reason of the large amount of
interest accrung that day In excess OF the coin
revenue received meanwhile.
In anticipation of resumption, and in view of the
fact that the redemption of United States notes is
mandatory only at the Office of the Assistant Treas
in the city of New York, it was deemed impor-
tant to secure the cooperation Of the associated
banks of that city in the ready collection of drafts
on those banks and in the payment of treasury
drafts held by them A satisfactory arrangement
has been made by which all drafts on the banks
held by the treasury to be paid at the Clearing
House, and all drafts the TREASURY held by them
TO be paid TO the Clearing House at the office OF
the Assistant Treasurer in United States notes. and,
after the st of January, United States notes are to
be received by them coin This will greatly
lessen the risk and labor of collections both to the
treasury and the banks.
Every step in these preparations for resumption
has been accompanied with increased business and
confidence. The accumulation of coin, instead OF
increasing its price. as was feared by many, has
steadily reduced its premium i'll the market Tho
depressing and ruinous Losses that followed the
panic of 1873 had not diminished In 1873 when the
Resumption act passed; but every measure taken
in the execution enforcement of this act has
tended to tighten these losses and to reduce the pre-
MUM on conn., SO that now it is merely nominal.
The present condition of our trade. industry and
commerce. hereafter more fully stated, our ample
reserves and the general confidence inspired in our
financial condition. seem to justify the opinion that
prepared to commence and maintain re
sumption from and after the first day OF January,
A. u. 1879.
The means and manner CT doing this arc left
largely the discretion of the Secretary. but from
the nature of the duty imposed he must restore
coin and bullion when withdrawn in the process of
redemption either by the sale of bonds. the use
of the surplus revenue, or vi the notes redeemed
ii tir,s IN