The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1879-12-04

and sl2l, 456, 355 Of silver. The bullion in the
mints and New York assay office at that date
awaiting coinage amounted to $49, 93l, O96 of
gold, and e4,553,lS2 of silver, making the
total amount of coin and bullion $48l, 69l, O69.
He again respectfully calls the attention of
Congress to the Importance of further limiting
the coinnge of the silver dollar. The market
vaiue Of tho bullion in this coin has been dur.
Ing tho past year from ten to sixteen per cent.
less than the market value of the bullion in
the gold dollar. The total amount of silver
dollars coined to November l. 1879. under the
at Of February 28, 1878, was CAS-, 2O6, 200, Of
which OILS, OO2, S42 was in circuIatian. and the
remainder, eS2 2o3, 1858, in the treasury at that
time: No effort has been spared to put this
coin in circulation. Owing to it's limited coin
age it 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, It is
impossible to ascertain what amount Of silver
coin, based upon the ratio Of sixteen of silver
to ono Ut gold, can be maintained at par with
gold, but it il manifest that this can only be
done by the government holding in its vaults
tho great body of the silver coin. It would
seem that nothing would be gained by an un-
limited coinage unless it is desirable to mca-
sure all values by the silver standard. The
secretary cannot too strongly urge the impor-
q
s"o metals ny treaties with COMMERCIAL ma
tiuns, and, until this can be done, of limiting
the coinage Of the silver dollar to such sum
As. in the opinion of Congress, would enable
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 . 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
s!sS!a!H !? r. 3!
this country. TO attain this obiecta 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
600 of four per cent. bonds, with option Of
taking $l5,O0O,0O0 more by monthly subscrip-
tions Of Is. 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 If she contract. Under
this contract SIS UO0. 600 of bonds were taken.
he then gives detailed history of the issue
and sale of the SO 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 ak per cent. and Sl93, 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 &c. $751;
877.5O.
Under the refunding sets of July IL, 1870
poses were authorized to the amount Of 81, Sol,
OOO,OOO. OF thia amount there have been ia
sued, a. above stated, Sl,395, 3d5, $50, leaving
available for future rcfunding operations,
$lO4. 654O5O.
1t is respectfully suggested that authority be
sue, sell, and dispose of, ut not less than par
value in coin. four per cent bonds of the de-
scription set forth in the act of July
IA, 1870, AID refnnd.ng certificate Of the de-
acription set forth in the net of February %,
1879, with like qualities. privileges and exc
emptlons, except as hereinafter stated, to the
extent necessary to redeem the bonds failing
due on or before July l, 1881. above described.
and to use tho proceeds for that purpose.
THE NATIONAL BANKS.
The report Of the comptroller Of the currency
gives complete statistics relative to the uppra-
tions of the national banking system from its
organization until the present time. The num-
Der of banks in operation on October 2 OF the
present year, the date of their last reports, was
2O43, and the aggregate capital S454, C611 1865;
surplus, $l;4. 7sG, SIS; individual deposits,
$7l9,7s7, 56S; specie, including United States
coin certificates, $40, 173, 73l.223; legal tender
notes, including United States certificates.
$95, 973, 44G; loans. SS75,0l3, l07. The total
circulation outstanding OH November | was
1881, 49, lS.
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 az
reserves, nearly one-third of the entire anne an t
OF legal-tcnder notes outstanding, which, to-
gether with the coin. is much IN excesa Of the
amount OF the reserves required by law. they
have constantly held az security for their cir
culating notes, and for government deposits
and other purposes, more than one-tifth the
interest bearing debt of the United States.
They have maintained their legal reserves in
the treasury for the redemption Of their circu-
lating notes, and such redemption has beeu
made without failure. or delay at their ex.
pcDse. In this mode exchanges bave been
made between all parts of tho country at thu
lowest possible rates.
The effect az the business depression preva-
lent from 1873, until the resumption Of specie
payments. upon the national baniss, is shown
in the losaes which they baye sustained and
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,
rs 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 ban ks
to national, State and munici pal authorities,
have been a great aid in relieving other prop
erty from the burden Of taxation, and, in tie
aggregate, are more than the interest Of four
per cent. on their entire circulation. Thus
the large amount of nnn-taxabe 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 ne-
tionai banks which have been placed in the
bands 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 tou
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; aud these loss 6
are compared With similar losses incurred b1
the creditors of insolvent banks other thai
national and the comparison is exceedinRr,
favorable to the national system.
The circulation of the banks which, sine
the passage Of the act of January II, 1875. la,
largely decreased, is now increasing in its ac
gregate amount, showing that the system re
sponds promptly to the varying requirement.
of business.
The advantages Of this system over any sys
TEN Of banks hitherto devised are thar thei
circulating notes are secured beyond p~radven
ture Of loss; they Of universal credit in tn,
country wherever issued; they are more per
fcctly protected from counterteitine; the,
equalize exchanges between distant parts of th
country; they are promptly redeemed Oh dc
mand at one common place; the banks are sub
ject to \ strict and vigiiant surveillance by in
| dependent officers of the governments; ihei
condition ia frequently made known to the pub
! lie; and they contribute 4 very large percentag
| OF their profits in the way Of taxes. 4 system
! of banking that, after an existence Ct sixtec1
| years, through war and periods of great infla
| ton and great depression, has produced aucl
results, may fairly appeal for the csnfiienc
and support of Congress.
| INTERNAL cosMxRcE.
| The internal commerce of tae country, a
exhibited by the tonnage transported on rail
rosls, has steadily increased in volume, eve,