Little Falls transcript. [volume] (Little Falls, Morrison County, Minn.) 1876-1894, 1879-12-04

tance OF adjusting he coinage ratio of the
two metals by treaties with commercial M.
tiOns, and, until this can be DONE Of limiting
the coinage Of the silver dollar to such a sum
a. in the opinion of Congress, would enable
the department to readily maintain the stan
dard dollars of gold and silver at par with each
| ether.
The secretary recites with much detail the
refnnding Of portion of the national debt by
| the issue OF four per cent. bonds.
The bonds were rapidly sold in this country,
and the resulting redemptions of five, twenties,
many OF which were held in Europe, rendered
desirable the sale Of the honda in London sui.
hctent to prevent tho shipment of gold from
| this country. To attain this objecta contract
was made on the 2lst day of January, 1879,
| with certain banks and bankers, under which
they agreed to subscribe at once for $4,000
! OOO OF four per cent. bonds, with option of
| taking $l5.000.000 more by monthly subscrip.
lions of 81, 000, 600 during April, May and June
On the part of the government the bonds were
to be delivered free of charge in London, at
which place an agency was to be maintained
during the continuance Of the contract Under
this contract Sl5, 00O. 600 of bonds were taken.
He then gives detailed history of the issue
and sale of the $l0 refunding certificates with
which the public ara familiar.
Thus. since November %, 1878, to which date
the transactions were brought in the last an
nqal report, there have been refunded $780,
$40, 75O six per cent. and $l93, 800, $50 FIVE per
cent. bonds of the United States into bonds
bearing interest at four per cent, making an
annual Saving of interest hereafter of SO, $685.
S77.50.
Under the refunding acts of July IA, 1870
and January 20, 1871, bonds for refunding pur-
poses we're authorized to the amount of 81, $780, =
OOO,O0O. or this amount there have been is
sued, as above stated, 1895, $40. $50, leaving
f0r f,,t,
$lO4, 654, 050.
1t is respectfully suggested that authority be
given at the present session of Congress to is
sue sell, and dispose of, at not less than par
value IN coin, four per cent. bonds of the de-
sclptlon set forth in the act of July
II, lo!O, and refundlng certificate of the de-
scrlption set forth in the act of February 26.
1872 with like qualities, privileges and ex-
emPtlons, except as hereinafter stated, to the
extent necessary to redeem the bonds falling
due on or before July !, 1881, above described.
and to use the proceeds for that purpose.
THE NATIONAL BANKS.
The report of the comptroller of the currency
tlVes complete statistics relative to the OPERA
oions OF the national banking system from its
Organization until the present time. The mum.
per of banks in operation on October of The
2resent year, the date of their last reports, was
gurpius, sl;4, 7S6 ,52s; individual DEPOSITS
$n9,7S7, 56o; specie, including United States
coin certificates, s42, l7S, 1928; legal tender
notes, including United States certificates
1873, $40; loans. 1915, 1O7. The total
circulation outstanding on November l was
1887, l81. 41S.
Among the subjects discussed in the report
are the relations which have existed between
the national banks and the government in the
resumption of specie payments, and in the
funding of the public debt. In both of these
important financial operations the CO. operation
of the national banks has been of essential
service to the government. The banks, in the
aggregate, have constantly kept on hand, as
reserves, nearly one-third of the entire amount
OF iegal'tender notes outstanding, which, to-
gether with the coin, is much In excess of the
amount OF the reserves required by law. They
have constantly held as security for their cir
culating notes, and for government deposits
and other purposes, more than one.ffth the
interest bearing debt of tho United States.
They have maintained their legal reserves in
the treasury for the redemption Of their circu-
latlng notes, and such redemption has been
made without failure or delay at their ex.
pense. In this mode exchanges have been
made between all parts of the country at the
lowest possible rates.
The effect Of the business depression preva-
lent from 1873, until the resumption of specie
payments, upon the national banks, is shown
the dividends which many have been compell-
ed to pass; also by the noticeable dlminution
from year to year, in the aggregate surplus.
Ihe aggregate capital and deposits of banks
other than national, is also given; and such
other information, in reference to these banks.
as could be obtained from the officers who have
charge of the execution of the banking laws in
the different States.
The very large taxes paid by national banks
to national. State and municipal authorities,
have been great aid in relieving other prop
erty from the burden of taxation, and. in the
aggregate, are more than the interest of four
per cent. on their entire circulation. Thus
the large amount of non-taxable United States
bonds held by them became taxable and these
taxes are in effect paid for the franchise they
enjoy of issuing circulating notea.
Ihe cost OF llquldatlng the affairs of ma
tlonal banks which have been placed in the
hands of receivers since the establishment of
the system is, for the first time. given in the
report, and will serve to correct the i'm preston
| which has to some extent prevailed that too
great a portion of the assets Of such banks
have been expende Il III the settlement of their
affairs.
Tables are also given showing tho loss to de-
positors and also other creditors through the
insolvency OF national banks; and these l),s
are compared with similar losses incurred nv
the creditors of insolvent banks other than
favorable to the national system.
The circulation of the banks which, since
the passage Of the actof January IA, 1875 has
largely decreased, Is now increasing in its ac-
gregate amount, showing that the system re-
spends promptly to the varying requirements
of business.
The advantages of this system over any sys-
tenn of banks hitherto devised are that thei,
| circulating notes are secured beyond pcradven.
IF ~ =
country wherever issued; they ale more per-
! fectly protected from counterfeiting; they
equalize exchanges between distant parts of the
country; they are promptly redeemed on de-
mand at one common place; the banks are sub
1ect to strict and vigilant surveillance by in.
dependent officers of tho government; lhei,
| condition ls frequently made known to the pub.
lie; and they contributed very large percentage
of their profits in the way of taxes. A system
of banking thet, after an existence Ct sixteen
years, through war and periods of great infla.
tion and great depression, has produced such
results, may fairly appeal for the confidence
and support OF Congress.
INTERNAL COMMERCE..
The internal commerce of tae country, a.
exhibited by the tonnage transported on rail
roads, has steadily increased in volume, eve,
during the period of commercial depression o.
the last six years. THIS affords an illustration
of the respective powers of the country, as tn
commodities transported ON railroads arc tn,
products of agriculture, Of mining, and Of man
utaoturing industries. More than 80 per cent
of the internal commerce of the country i
now carried ON bY means of railr,ad transpor
talon, and the habits Of the producing ant
commercial classes are becoming more ant
more coIformed to its methods and necessities
The facilities for direct trade afforded by af
engagements entered into between CONNECTING
railroads has greatly extended the trade limit
of the seaports and of oil interior points.
Similar combinations between railroads an,
ocean-steamer lines afford extensive privileges
for direct foreign trade at all the importan
interior points of the country. The competi
ton of rival lines for through traffic has give
rise to grave questions touching inter.Sta com
merce. These questions relate chiefly to tn
matter Of Determinations in rates. As purel,
national questions they demand careful in
vestigation under the authority of Congress.
! A Bafled Parent.
There is baff1ed old man IN Williams
port, and he is disgusted, too. 1t seem