Ashtabula weekly telegraph. (Ashtabula, Ohio) 1880-1886, 1880-12-17
The Treasury.


the fiscal year ended June 80, 1850, were $685.
| b98,Gl0.9s
Tho ordinary expenditures for tho same
period were s207, ,6f2, ,o57.7e, leaving a surplus
revenue OF S65,sSl6b3.20, which, with an
amount drawn from cash balance I'm Treasury
Of $s,Os4,49I.2l, making eI3s6sOs7.4l, was ap-
| piled to the redemption OF bonds, fractional
currency, loan Of 1s5S temporary loan, boun-
| ty-lnnd scrip, compound-interost notes, 7.30
notes Of iS0t-t6, one and two-year notes, and
old demand notes.
The amount due the sinking fund for this
year was ts7,93i, ,643.55. There was applied
thereto, from the redemption Of bonds and
fractional currency, as shown in tho above
statement the sum of S73,gO4, ,G17.4l, an excess
| OF $j5,g52,Y ,Y73.s8 over the amount actually re-
quired for the year.
The requirements Of the sinzing-fund law
have been substantially observed and the
principal Of the public debt, less cash in the
Treasury and exclusive Of accruing interest,
has been reduced from t2,75s, 48l,57l.t3, its
highest point which II reached on August 81,
1855, to $780, OK, ,TiOsg, on November /, lssO-a
reduction OF SS56, ,4O5, S3O.5i.
Compared with the previous nscal year, the
receipts for 1890 have increased $62,6s0 ,435.23
| Tho expenditures show an increase over the
previous year OF SO, 0,30O.4s.
The act OF February q, 1852, amended by the
act Of July "a, 1870 providing for sinking
fund for the payment Of the public debt, is In
conformity with the policy which has prevail
ed since the adoption OF the Constitution, of
regarding public debt as a temporary bur
den, to be paid on as rapidly as the public in
terests will allow. The provisions Of these acts
have been substantially complied with. They
were executed literally, until the panic of
1873, by largely decreasing the revenues Of the
Government, rendered il impossible to meet
their requirements.
REFUNDING.
A largo portion (t65i $50, 800 Of the public
debt becomes payable or redeemable on or be-
fore July /, next.
The Secretary recommends that provision
be made for the issue of an amount not ex-
ceeding SlOl0JO,OOJ Of Treasury notes in de
nominations not less than ten dollars, bearing
interest not exceeding four per cent. per an
mum, and running from one to ten years, to
be sold at not less than par, the amount
maturing during any year not to exceed
the sinking-fund for that year. and
the proceeds to be applied 20 the
payment Of five and six per cent. bonds, ma
turing in 1881. IL is also recommended that
authority be given TO sell vt par an amount not
exceeding tlOOOO0,0OO of bonds of the charac-
ter and description of the -four per cent. bonds
Of the United States now outstanding, but
bearing a rate Of interest not exceeding three
and sixty-hve One-hundredths per cent per
annum, and redoemable at the pleasure Of the
United States after fifteen years, the proceeds
to be applied to the payment Of bonds re-
deemable ON or before July /, 1881.
RESUMPTION.
Nothing has occurred since my last annual
report TO disturb or embarrass the easy main
tenance Of specie payments. United States
notes are readily taken at par with coin in all
parts Of this country and in the chief COM
morcial marts Of the world. The balance OF
coin in the Treasury available for their re-
demption on the first day of November last
was Sl4l, ,j07 0l3.6l, and the average during
the year has not materially varied from that
sum. The only noticeable change in the re-
serve is the gradual increase of silver coin
caused by the coinage Of the silver dollar and
the redemption Of fractional silver coin.
The amount of notes presented for redemp.
tion for one year prior 10 November l, 1880,
was siO68jS. The amount of coin or bullion
deposited in the Treasury, assay Office and the
mints, during the same period was S7l, ,3g8,535-
81. These deposits have usually been paid for
in coin, through the clearing house, but at
times, when the currency in the Treasury
would allow, and at the request of the deposit
Ors, they have been paid for In United States
notes and silver certificates. Goldicoin now
entors largely into general circulation. The
total coin ia the Treasury, at the close Of busi-
ness, November /, was t21S,7l0,154, OF which
Slu ,5g1, ,0l3.6l constituted the reserve fund for
tho redemption of United States notes, as
above stated.
UNITED STATES NOTES.
United States notes are now, In form, seou-
rity and convenience, the best circulating me-
dium known. The objection Is nude that they
are issued by the Government and that II is
not tho business OF the Government to furnish
paper money, but only to coin money. The
answer is that the Government had to borrow
money, and Is still In debt. The United States
note, TO the extent that It is willingly taken
by tho people, and can, beyond question, be
maintained at par in coin, is the
least burdensomo form Of debt, The
loss of interest in maintaining
tho resumption-fund, and the cost of printing
and engraving the present amount OF United
states notes, are less than One-half the interest
on an equal sum Of four per cent. bonds. Tho
public thus saves over seven millions dollars
OF annual interest, and secures u safe and CON
venient medium of exchange, and has the
assurance that \ sufficient reserve I'm coin
will be retained in the Treasury beyond the
temptation of dlminution, such as always
attends reserves held by banks.
Another objection TO the issue of United
States notes Is, that they are made legal
tender in the payment of debts. Tho Ques-
ton OF the constitutional power Of Congress
to make them such is one for another branch
Of the Goyeenment The Secretary OF the
Treasury isstill OF theOplnion that this quality
Of legal tender does not add to the usefulness,
safely, or circulation Of United States notes.
so fur as IL eXcites distFust and opposition 10
this form OF ciroulating-nOtes II is detri-
ment. The fear that withdrawal Of this at
tribute will contract the currency is as delu-
sive rs was the feHr that resumption would
havo a like enect. The notes would
still be received and paid out by the
Government, and, like bank-notes. would
not bo refused in payment for debts
while they were redeemable and prompt
ly rodeomed In coin ON presentation.
As the quality Of legal-tender was attached 70
these notes when first issued, and was then
essential to their value and circulation, the
public mind is sensitive when any proposition
10 made that by possibility might impair their
value, but II Is their redemption In coin that
makes them now equal TO coin and of ready
circulation In all the marts Of the world
While this Il maintained II becomes oompar-
atiVoly immaterial whether they are a legal
tender or not, and II by the action OF Congress
or tho Courts they are deprived of this quality
they will still DO the favorte money of tho
people,
Another objection to United States notes Is,
that the amount OF the issue may be enlarged
by Congress, and that this power is liable to
abuse. This objection may be made to all the
great essential powers Of the Government. A
sufficient answer Ia that, since their hrst issue
they have been carefully limited In amount,
and invested with every quality 20 improve
their value and circulation. Every effort to
increase tho amount, made during period Of
great depression, failed. Now that they are
redeomable In coin there is no temptation for