The weekly herald. [volume] (Cleveland, Tenn.) 1876-1888, 1878-12-05


TO convert his money into an Understanding secu-
mtg Of the United States, aud tho money ~ 70
percent. bonds. The Secretary therefore recon-
inends the prompt passage OF such q law.
PUBLIC MONEYS.
The monetary transactions Of the Government
have been conducted without l0ss through the on
depositary. and one hundred and ninet en- National
bank depOstaries, exclusive Of those designated 10
receive onlyloan subscriptions.
o Z the entire receipts OF the Government, during
the year, there was deposited IN National bank de
p~ositoIies the amount OF s90,7sl,O 53 4s,
Deposits received BY tho bank depOsitaries are
secured by = pledge Of United states bonds held by
the Treasurer, and are paid out. from time 20 time,
as the convenience, Of the public service may ne
quire, or transferred by the bank. without expense
Office.
By. an act approved March 0, 1887. public dis
bursting officers were required 10 place oil public
funds intrusted TO them for disbursement. on de-
pOsit with q public dcpOsitary, and TO draw for
the same only In favor OF the person TO whom pay
ment was TO be made. excepting that they might
check In their own names when the payments did
mot exceed twenty dollars.
The enforcement Of this provision according, to
ton of Congress was called to 1t IN the annual re-
ports OF the Secretary for 1857 and 1858, with q
recommendation for it's modification.
No action in the matter appears TO have been
taken by Congress until the ACT OF June Ii, 1866,
reproduced as Section 1920, Revised Statutes, was
NNnTths Lult NIltultu 10 NultIntu0 " Ntl vi
1857, In removing tho restrictions as 10 the method
In which the money was TO be drawn; but by an
act approved February "a, 1877, Section 1920 has
been amended by requiring the checks TO be drawn
only IN favor OF the persons TO whom payments
arc to be made.
The object which the law evidently seeks to 40
c0mpllsh meets the entire approval OF the Depart
ment, but TO carry It's provisions into effect would
require Paymasters In the army 10 draw their
checks In favor OF the soldiers TO be paid, by name,
and Paymasters on naval vessels, even during ali
sences for years from the United States, 10 pay the
officers and men only by drawing checks In their
favor, on depositaries in the United States.
The same embarrassment extends 10 oil pub
lie disbursements, and the attention Of Congress
IS called TO the matter, with the
bursements may be made under regulations To be
prescribed by the Secretary OF the Treasury.
NATIONAL BANKS.
The report OF the Comptroller OF the Currency
presents full and interesting information as 20 the
National banks. The number In existence on Octo-
Der l was 2,O53. The amount Of their circulating
notes outstanding, including those IL liquidation,
was 1929 ,147, 719: the capital invested was Sf6G,-
LAT ,436; the surplus fund and profits were $751;
s33,993; the loans and discounts were $S3O,52l,-
This system of banks, though OF recent growth
and adopted as an experiment amid the necessities
developed by the civil war, has, under wise man
agement, become the most important business
agency in the country. Though still under trial
and subject az all times to the discretion OF Con-
gress TO discontinue and limit its existence and op-
e%ratiOns, 1t may be fairly claimed, as already es-
tablished by experiment, that the system possesses
certain advantages over any other heretofore eX-
listing In this country, and possible only with q Ma
tional system.
FlrstxThe security of the bilholder from loss
through failure OF the bank.
SecOnd-The rapidity and certainty Of the detec-
tiOn and prevention Of counterfeiting, from the
fact that tho notes are engraved, printed and re-
deemed at the Treasury Department.
~Third-The frequent ana careful examination OF
the banks, and the publication OF the detailed state
ments OF their condition.
Fourth-Uniformity ana free circulation Of the
notes throughout the United States, without re-
spect to the place of their issue.
Flfth-The admirable provisions by which fall
ing banks are placed in liquidation, and their as
sets cheaply and promptly applied to the payment
These and other advantages, derived to the pub
lie from a National system of banks over a State
system, seem to he fully demonstrated, and, though
irksome, and apparently hard to the banks, ar, q
The only franchise conferred by this system that
can not be freely enjoyed by private bankers under
State law, is the power to issue circulating notes.
This, II is conceded, IA a franchise conferred by the
Government, but 1t is not In the nature Of a monop-
S SSve the Il % Means NJ e and wIIi comply on SRy WITH WKa R the iaw. VINO
Whether the power 20 issue circulating notes
should be granted to private corporations, or be
exercised only ~ the, Government, Is
and public interest. In behalf Of d cir
%culation issued by the Government, IL is Claimed
that interest is saved TO the public on the full
amount of the notes issued. To this lie replied that
the issue OF such notes necessarily involves their
redemption in COIN and this can be secured only
by coin reserves and the ordinary machinery
Of banks. II the banks issue notes, they expect to
derive q profit from their loan, but this profit is
diminished by the burden OF redemption. by the
large taxes imposed upon the franchise, and by
the risk always incident TO the issue of circulating
notes. These are considerations which will, no
doubt, enter into the question OF the permanency
Of the National banking system, but as the banks
OF this system are each organized under the law
for twenty years, and none OF them expire until
June, 1888, It is respectfully submitted that II is
good policy to continue the experiment until that
date, when the public mind will be better prepared
to consider the questions involved.
COINS AND COINAGE.
The annual report of the Director Of the Mint ex-
hibits In detail the operations OF the several mints
and assay offices, and also presents interesting in
formation relative TO the production Of gold and
silver in the United States, the estimated amOu mt
Of goia ana SILVER CON ana p III no. ~ tne conn nm
American trade-dollar in the Oriental trade and
other subjects connected directly or irdir2ctly
The value Of tho gold coinage executed
gating the last fiscal year was..-...-s525as2S00 90 O.
OF standard.siiyer dollars....-....... S,b73.b00 90
OF fractional-silver cUin.-c....-"....-. S,33gBl5 90
And OF minor 5Oso94 W
Atotal coinage of........"."..."A-..$s1.l2O ,4 400 so
In addition to the coinnge, fine and impaired
bars were prepared for depositors in the amount of
$I2,5 O1, 920 % in gold, and $11 1854, 1886 81 in
silver.
II ia manifest. from the proven capacity Of the
several mints, that our coinage facilities are ample
for all purposes.
The present production of bullion from the mines
of the United States appears to approximate one
hundred million dollars in value. All the gold
bullion produced In the country contains more or
less silver, and the greater portion Of the silver
bullion from our mines contains q percentage OF
gold, making II difficult to determine with hccu-
racy the proportion Of each. 1t Ia safe, however,
to state that the production of the two metals, cal
eulnted at their coming rates, Is nearly equal
Of the present year, trade-dollars, to the amount Of
probably four million pieces, we're placed In circr-
luton in the States east Of the Rocky Mountains,
with a full knowledge on the part Of the parties
engaged in the business that the coin was not a
legal-tender.
This coin is in no sense money Of the United
States which the Government ia bound to redeem
or care for. The Government stamp upon IL is
to certify to its weight, and fineness for
the convenience OF dealers in silver
bullion. 1t Is precisely like any other sill
yer bullion assayed at any assay office or
mint. The limited legaltender quality originally
given to 1t was taken away before any OF the coins
were put into domestic circulation, and 1t should
not now be given any value or attribute ut the ex-
pense Of the public that Is not incidentt to any other
silver bullion. Tho Government has received no
benefit from this coinage, and has neither received
1t nor paid 1t out. The whole connection Of the
Government with this bullion was to perform the
mechanical work OF nssaying and dividing 1t into
convenient form for the merchant, at his cost, ana
for his benefit, for expectation only.
Recent advioes from our Minister to China indi-
cato that q considerable amount OF trade-dollars Is
now being boarded In that Empire, and will be ro-
turned TO ms II q discrimination Is made in their
favor over other bullion. No distinction can be
States and those out Of ;he United States;
be redeemed alike. The bullion Is 35,s53,360
trade dollars outstanding can now BIO purchased
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