Connecticut western news., 1879-12-10
879, under the act of Febmarv 2s

1878, was $45,2O6, 200, of which $13,-
 O02, ,o4l was in circulation and the re-
 mainder, $32, ,203, ,258, in the Treasury
 at that time. No effort has been spared
 to put this coin in circulation. Owing
 to it's limited coinage it has been kept at
 par, but it's free coinage would soon re-
 duce its current value to its bullion
 value, and thus establish 8 single silver
 standard. The inevitable result would
 be to exclude gold coin from circulation.
 THE NATIONAL BANKS.
 The report of the Controller of the
 Currency gives complete statistics re-
 lative to the National banking system
 from its organization until the present
 time. The number of banks in opera
 tion October 2 of the present year, the
 date of their last reports, was 2,048,
 and the aggregate capital, $454, ,067,
 365; surplus, $114, 786, ,528; individual
 deposits, $719, 737, 569; specie, in-
 oludipg United States coin certificates,
 $42 ,173, 731.23; legal-tender notes, in
 cluding United States certificates,
 $95, 973, 446; loans, $866, ,O13, 1O7. The total circulation outstanding on November was $337, 181, AIS.
 INTERNAL REVENUE.
 The receipts from the several sources of taxation under the internal revenue laws for the fiscal year ending June 30, 1879, were as follows:
 From spirits. s..................$ $52, 570 ,2S4 69 From tohacco. .................. 4O, l35, ,002 65 From fermented liquors. ... 10, 7293 32O OS From banks and bankers. .... 3,19S,8 59 From penalties, etc........... 279, 497 9J From adhesive stamps. ....... 6,706,384 O6 From arrears of taxes under re-
 pealed laws. ws.............. 299094 co Total. al..................$ .$113, ,918. .466 87 The amount of collections shown by the foregoing table includes commis- sions on sales of stamps paid in kind as we'll as amounts collected in 1878 but not deposited, till the last fiscal year.
 There thus arises an apparent variation between the amounts of collections given in the table and those shown by the cov- ering warrants of the Treasury. The in- crease of the revenue from spirits during 1879 was $2, ,149, 469.99; the increase from tobacco for the same year was but $42, ,247.98. The chief sources of inter- nal revenue are spirits, tobacco and fermented liquors, which yield this year an income of $lO3, ASA, ,6O7.42 out of g total internal revenue of 113, ,919, ,466. S7. THE LEGAL TENDER CLAUSE.
 The Secretary respectfully calls the attention of Congress to the question whether United States notes ought still to be legal-tender in the payment of debts. The power of Congress to make them such was asserted by Congress during the war, and was upheld by the Supreme Court. The power to reissue them in time of peace, after they are once redeemed, is still contested in that Court. Prior to 1862 only gold and silver were legal-tender. Bullion was deposited by private individuals in the hints, and coined in convenient forms and designs indicating weight and fne- ness. Paper money is promise to pay such coin. No Constitutional objection IS raised against the issue of notes not bearing interest, to be used as part of the circulating medium. The chief ob- lection to the emission of paper money by the Government grows out of the legal-tender clause, for without this the United States note would be measured by its convenience in use, it's safety and It's prompt redemption. In war and during grave public exigency, other considerations may properly prevail, but 1t would seem that during peace, and especially during times of pros perlty and surplus revenue, the promis- sory note of the United States ought to stand like any other promissory note. 1t should be current money only by belng promptly redeemed in coin on demand. The note of the United States is now received for all public dues, and is carefully limited in amount; it is promptly redeemed on demand, and ample reserves in coin are provided to give confidence and security for such redemption. With these conditions maintained the United States note will be readily received and paid on all de- mands. While they are maintained, the legal-tender clause gives not additional credit or sanction to the note, but tends to impair confidence and to create fears of over-issue.
 It would seem, therefore, that now, and during the maintenance of resump- tlon 1t IS useless and objectionable as- sertlon ofpower, which Congress might now repeal on the ground of expediency alone. When it is considered that it's constitutionality is seriously contested, and that from it's nature it is subject to | grave abuse, it would now appear to be wise to withdraw the exercise of such a | power, leaving it in reserve to be again resorted to in such period of war or grave emergency as existed in 1862.
 The Government derives an advantage in circulating its notes without interest, and the people prefer such notes to coin as money for their convenience in use in their certain redemption in coin on demard. This mutual advantage may be secured without the exercise of ques. tionable power, need any inconvenience arise from the repeal of the legal-tender clause, as to future contracts. Contract ng parties may stipulate for either gold 'r silver coin, or current money. In the absence of ar express stipulation fo1 'oin, the reasonable presumption would 'xist that the parties contemplated pay. nent in current money, and such pre- might properly be declared by aw and the contract enforced according y. The Secretary, therefore, respect ully submits to Congress whether the egal-tender clause should not now be epealed as to all future contracts, and arties be left to stipulate the mode of ayment. United States notes should till be receivable for all dues to the ( Eovernment they should be promptly on demand, and ample pro. ision made to secure such redemption.