Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1878-12-05
to the government. to M indeDendeNt treasur,

to the government, to III independent treasur
office.
ing officers were required to place all pub
lie funds, entrusted to them for disburse
.nent, on deposit with public deposl
ttary: ana a, to draw for s. the some only il
made, excepting that they might check IN thci
own names when the payments did not excee'
twenty dollars.
The enforcement Of this provision, according t.
its letter, was found impracticable, ana the atten
tion OF congress was called toit in the annual re
ports OF the secretary tor 1887 aud 1858, with rec
| OmMendatiOl for its modification.
No action in the matter appears to have beer
taken by congress until the act OF Jnne IA, 1866,
produced Us section $500, Revised Statues wa
| passed. This appeared to supersede the act G.
1887, in removing the restrictions as to tho methot
| in which the money was to be drawn, but by al
act approved February ~, 1877, section $500 has
been amended by requiring the checks to be
drawn only in favor OF the persons to whom pay
ments are to be made,
The object which the law evidently seeks to
accomp lsh meets the entire approval of the de-
partment, but to carry Its provisions into effect
! would require paymasters in the army to draw
their checks in favor OF the soldiers to be paid,
by name. and paymascrs Oh naval vessels even
during absences for Years from the United States
to pay the officers and men only by drawing
checks in their favor. on depositaries in the
United States,
The same embarrassment extends to all public
disbursements. and the attention of congress is
called to the matter, with the recommendation
that the section he SO amended that dish urSe
ments may be made under regulations to be pre-
scrib I'd by the secretary of the treasury
NATIONAL BANKS.
The report of the comptroller of tho currency
presents full and Interesting information to the
national banks. The number iu existence Oh Oc
tober was 2O3s. The amount of their circulat-
ing outstanding, including those in liquida.
ton, was $'2}l47,7ly; the capital invested was
$i66, lat. 43G; the surplus fund and profits were
fha md
$3.50, b21 ,5l2.
This system of banks, though OF recent growth
and adopted as an experimc-t amid necessities de-
veoEed by civil war, has, under wise management,
become the most important business agency in the
country. Though still under trial, and subject at
all times to the discretion of congress to discon
tinNe and limit its existence and operations it may
be fairly claimed, already established by expert
ment, that the system possesses certain advantages
any other heret fore existing in this country,
and possible only with national system.
First. Tee security OF the Dlli-Aolter from loss
through failure of the bank.
second. The rapdty and certainty Of the dctec-
ton aud prevention OF counterfeitlng, from the
fact that the notes are engraved, printed and re-
dec mt d at the Treasury Department.
Third. The frequent and careful examination of
the banks, and the publication of the detailed
statements of their condition.
Fourth. Uniformity and free circulation of the
notes throughout the United States, without re-
spect to the place of theic issue.
Fifth. The admirable provisions by which failing
cheaply aud promptly applied to the payment of
creditors.
These and other advantages, derived to the pub
lie from national system Of banks over state
system, seem to be fully demonstrated, and,
though irksonle and apparently hard to the banks,
are benefit and security to the stockholders and
safeguard to the public.
The only franchise conferred by this system that
cannot be freely enjoyed by private bankers under
state law, is the power to circulating notes.
This it is conceded is franchise conferred by the
government. but it IL not in the nature of mo-
whohave the means, and will comply with the law.
Whether the power to issue circulating notes
should be granted to private corporations be
exercised only by the government, is purely ques
ton of public policy and public interest. In be-
half of circulation issued by the government, it
the full amount of the notes issued. To this it is
replied that the issue of such notes necessarily
involves their redemption in coin, and this be
secured only by coin reserves and the ordinary
machinery Of banks. If the banks issue notes
they expect to derive profit from their lo2n but
this profit is diminished by the burden of
redemption, by the large taxes imeosed
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
good policy to continue the experiment until that
late, when the public mind will be better prepared
to consider the questions involved.
The remainder OF the report is devoted to
su mmary of the operations Of the various bureaus
Of the treasury department., discussion Of the
Of exports aud imports, coins and coinage, saw
inpS. etc