Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-12-01

lar provided for by law having been executed,
the coinage Of this money has been suspended.
Inc demand for minor coins, particularly
Tor the one cent piece, has been pressing.
The bullion production from the mines of
the United States for the last year is estimated
proportions Of gold and silver being about
equal. The years total production is less than
that OF the preceding year, caused by dimin-
utlon In the yield of the mines of Nevada,
which was not compensated by increased pro-
ductlon In other places
The director estimates the coin In the coun-
try on October 81, 1879 at 1906, 75O 497 of gold,
and Sl2l ,45S, 1856 of silver. The bullion in the
mints and New York assay Office at that date
awaiting coinage amounted to $40 93l, O35 of :
gold, and 1858, 1872 of silver, making the
total amount of coin and bullion SiSl ,69l ,C69.
He again respectfully calls the attention of
Congress to the Importance of further limiting
the Coinage of the silver dollar. The market
value of the bullion in this coin has been dur
ing the past year from ten to sixteen yer cent.
less than the market value of the bullion in
the gold dollar. The total amount Of silver
dollars coined to November !, 1879. under the
act of February %, 1878, was $45,20G 200. of
which $13, OO2, $40 WAS in circulatian, and the
remainder, 1872. 2Us, 1853, in the treasury at that
time. No effort has been spared to put this
coin in circulation. Owing to its limited COIN
age 1t has been kept at par; but its free coin
age would soon reduce its current value t. its
bullion value and thus establish single sill
yer standard. The inevitable result would be
to exclude gold coin from circulation. 1t is
impossible to ascertain what amount of silver
coin, based upon the ratio of sixteen of silver
to one of gold. can be maintained at par with
gold, but it Is manifest that this can only be
done by the government holding in its wants
the great body of the silver coin. Il would
seem that nothing would be gained by
limited coinage unless it is desirable to me-
sure all values by the silver standard. The
secretary cannot too strongly urge the impcr-
lance of adjusting he coinage ratio of the
two metals by treaties with commercial ma
tiuns, and, until this can be DONE of limiting
the coinage of the silver dollar to such sum
the department to readily maintain the stan
dard dollars of gold and silver at par with each
other.
The secretary recites with much. detail the
refunding of a 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 bonds in London suf
tcient to prevent the shipment of geld from
this country. To attain this object contract
was made on the 2lst day of January, 1875.
with certain banks and bankers, under which
they agreed to subscribe at once for S10,CO0,-
600 of four per cent. bonds, with option of
taking Sl5, 600 more by monthly subecrip-
tions of S., GOO, 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 $15, GOO. 900 of bonds were taken
He then gives detailed history of the issue
and sale of the 80 refunding certificates. with
which the public are familiar
Thus. since November %, 1878, to which date
the transactions were brought in the last an
nual report, there have been refunded $780,
S48, $50 six per cent. and Sl93, $50. $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 50 355-
877.50.
Under the refunding acts of July Il. 1870.
and January 20, 1871, bonds for refunding pu--
poses were authorized to the amount of 81, 500
OOO. 900. Of this amount there have been is
sued, as above stated, 81 1896, 345, $780, leaving
available for future refunding operstlons'
$104, 654 $50.
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
scription set forth in the act of july
IA, 1870, and refundlng certificate of the de-
scription set forth in the act of February d.
1879, 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 l, 1881, above described.
and to use the proceeds for that purpose.
THE NATIONAL BANKS.
The report of the com ptroller of the Currency
gives complete statistics relative to the opera
lions of the national banking system from its
organization until the present time. The mum.
Der of banks in operation on October 2 Of he
present year, the date of their last reports, was
2,04s, and the aggregate capital, 1854 ,O67 ,3G5:
surplus, $li4, 7S6, 52S; individual deposits.
$7l9,737, 56S; specie, including United States
coin certificates, Si2, l73, 1928; legal tender
notes, including United States certificates.
$95, 973, 446; loans. $S75,013, LOT. The total
circulation outstanding on November l was
1887, l81. AIS.
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 legal-tender notes outstanding, which, to-
gether with the coin, is much IN excess of the
amount of the reserves required by law. hey
have constantly held as security for their cir
L
and other purposes, more than one-ffth the
interest bearing debt of the 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 1878, until the resum ption of specie
payments, upon the national banks is shown
in the losses which they have sustained and
the dividends which many have been compell-
ed to pass; also by the noticeable diminution.
from year to year, in the aggregate surplus.
The 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 notes.
The cost Of liquidating the affairs of ma
tional 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 impression
which has to some extent prevailed that too
great portion of the assets of such banks
have been expended in the settlement of their
affairs.
Tables are also given showing the loss to de-
positors and also other creditors through the
Insolvency of national banks; and these losses
are compared with similar losses incurred by
the creditors of insolvent banks other than
national, and the comparison is exceedingly
favorable to the national system.
The circulation of the banks which, since
the passage of the act of January II, 1875, has
largely decreased, is now increasing in its az
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 their
circulating notes are secured beyond p"radven.
ture Of loss; they are of universal credit in the
country wherever issued; they are 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
ject to strict and vigilant surveillance by in
dependent officers of the government; their
condition is frequently made known to the pub
lie; and they contributes very large percentage
OF their profits in the way of taxes. A system
HAyH 90 AI-A-