The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1880-11-23
National
TREASURER GILFHLAN'S ANNUAL REPOI

TREASURER GiLFllIAN ANNUAL REPORT.
WASHINGTON, ID. c., November o.
United States Treasurer Gillian, in his
annual report, shows that the receipts Of
the Government com pare iavOrdbly with
those Of The previous fiscal year and an in
crease from customs, internal revenue, and
sales Of public lands Of Sj9,Sl1 800. IS, and
n decrease in those from miscellaneous
sources Of only S112,079.26 The eXpen-
diturts show an increase Of $685., 074.25 in
the aggregate as compared with The previous
year, caused by an increase OF S22 395 .040 06
in payr ents on account Of the Interior De-
partment, but show a decrease OF S2l ,G9j 81
in expenditures for interest and premium
on the public debt, on civil ard miscella-
neous accounts, and for the War and Navy
Departments,
Tn relation to national banks, he says
"The banks have availed themselves to a
large extent OF the privilege accorded by
the act authorizing any national bank de-
string TO withdraw its circulating notes TO
take upthe bonds deposited for security OF
such notes upon deposit OF lawful money
with the Treasurer OF the United States. and
providing that an equal amount OF oulstand-
ing notes Of the bank shall be redeemed at
the TIeasmy -f The United States; that
more than $4,000, 000 Of circulation have
been surrendered in the manner prescribed,
ard nearly S71.000, 900 redeemed at this
on'ce I'll is provision was adopted in eXpec-
tatiOn ii would act a. q Ieguldt0r OF the vol
| ume OF bank circulation. 1t was expected
when the circulation became redundant the
surplus would be retired, and when a de-
| mard for more circulation should spring up
the banks would increase their issue to meet
it. This expectation has not been realized.
The reduction has been solely 10 enable the
banks to avail themselves OF the ruling pre-
! MUM on bonds Withdrawn; either because
the bonds were exceptionally high or be-
cause the banks needed the premiums to
enable them to meet losses sustained or TO
| reduce their premium account"
alt is plain the action OF the banks would
not be effected by The fact that The volume
| Il cir culation was redundant, for the SIM
| ME reason that the bank has more at its dis
| posaI, after reducing It's clrculatloD,, tban
| before. \ bank which deposits s45.OOO 10
| reduce its circulation takes up $4,000 OF It's
bonds, which it sells for ten per cent. pre-
MUM, and has 100000 more to lend Than
before; while, therefore, The retirement oil
bank circulation diminishes the aggregate
volume Of circulation, ii increases the loan
able funds OF The particular bank whose cir
culation is reduced"
On the same subject Mr.. Gilfllan says
{" Although the exact amount cannot he as
certained, IL is safe TO say that many mil
lions of additional circulation have been Is
sued through the office OF the Comptroller
of the Cur encv to banks which were sill
reducing their circulation through the OF
flee of the Treasurer. The consequence
has been that the new notes thus ISSUED
have TO a large extent speedily been pre-
sented 10 the Treasurer for redemption on
Of the lcgaLtender deposit. The bank
which have applied in vain TO The Treasurer
for the surrender OF their legaI-teuder de
posts have accomplished the sane obiec
by obtaining new circulation from III
COMPTROLLER OF the Currency. The cost o.
printing the aew notes thus lssued Is paid To-
by the UnitedStates,. so that tue Government
though not deriving the remote Oenen
from the transaction, has been Obliged Il
bear the whole expense OF 'heir issue an(
part OF TIE expense OF their redemption
simpiy 10 eGab!e a bahk to do by indlrectiot
what il was not permitted to do directly
In seyersi instances banks have repeated
the operation OF reducing and increaSin!
their circulation several times within q br1e
perjod, 4aking up then bonds and selin!
them, il would appear, whenever ihe pre-
MUM constituted q sueicleDt indueement
and increasing the circulation again when
ever The bonds could he bought st bette
rates, The United States all the while re
DEFINING their notes at ats own expense o
that OF other banks, and Issuing Others ais
at lis w expense whenever ca4ied up0I
by tbem.v