National Republican., 1881-12-07
SECRETARY FOLGER.
TREASURY DEPARTMENT REPORT.
Tho Financial Needs Of the Country Ably Set Forth
by the New Head Of the DCpartment-Thc
Question Of Bonds and Reduction
OF Taxation Presented.


was submitted to Congress yesterday by Secretary
Tulgor. The ordinary revenues from all sources
for the fiscal year amounted to $780, 7S2, ,202j7 The
ordinary expenditures for the same period were
sB0.7l2 $3.50, leaving surplus revenue ofs10O,-
C69, ,i0i.gs, which was applied rs follows: TO the
redemption of bonds for the sinking fund.- s7l,37l,-
200; fractional currency, siO90Ol 05; loan of Feb
ruary 1861 s74isOO0 l0A0s of1s6i, s2Ol6,15O; 520s
of 1862, slsS0O; 52Os Of 1854 $780, 52Os of 1865.
sS7 3OO consols Of 1867 $685. lJO consols of 1868,
Ss37 400; Texas indemnity stock 81 600; old de.
mand compound interest and other notes, sls,33O,
and to the increase of cash in the Treasury, sli.
6S7,0239S. Total S1O0,o69,4Oi9s. The report says:
SINKING FUND REQuIREMENTs
"The requirements of the sinking fund for the
last fiscal year including balance Of Sl9S17 12S7S
not provided for up to the close of the previous
year, amounted TO Sg07S6,O6i.O2. There was APP
piled thereto from the redemption of bonds and
fractional currency, MS shown in the above state
ment the sum Of S744SO,20l0 0t, leaving deficit OF
SG,S05 S73l7 II is estimated that the requirements
of the fund FOR the presentyear, including the bal
ance from last year, will amount to S596A $3.50.
The amount of bonds redeemed during the
months of July, August, September, and october of
The present year is in excess OF the requirements OF
the sinking fund for the entire year by the sum Of
which may hereafter accrue during the year will
be applied to the purchase or redemption of the
public debt as contemplated in section OF the act
approved March 3, 1881 C2l Stats, p 45T. Com
pared with the previous fiscal year, the receipts
for 1881 have increased s293J2, ,6Ol16 in the fol-
lowing items: In customs revenue, Sll 637 AZ;
public lands, 81, ,3j657; in tax on circulation
aud deposits Of national banks, sl,l0l,lH2si in
proceeds Of sales Of Indian lands o2O2 loi In
lands sl,32o,jssSj; in fees on letters patent,
sjOAl5.a; in profits on coinage, G7629S.s3; in
revenues OF the District of Columbia SOC, 1853;
aud in miscellaneous items, sS555il.70. There
was decrease Of s2097,2l9,5i, as follows: In re-
payment of interest by Pacific railway COM
Indian trust fund stocks, s63l 1876 in registers
and receivers fees, S15I 79S %; and in unenumcr-
ated items, sill l,292 .oS; making net increase in
the receipts from all sources of S27 ,255, SO.
The expenditures show decrease over the pre-
yious year Of s2l 700 300 S9 as follows In the In
terror Department (pensons), s6,7l 7,S0Ls2 in pre-
mium OH bonds purchased, 81 ,73l 071 Ga; and In
the interest on public debt, 32is,s3393. There
was an increase of Sll,770 1000, as follows; In
Department, s2.l4g 6SG.o2: in the Interior Depart
ment QndianS), Sj6S,704 and in the civil and mis-
eelianeous, s9,702 7gisj making net decrease in
the expenditures of S6030,070.l0"
DISBURSEMENTS OF PUBLIC MONEYS.
On the subject of public money the Secretary
says by act OF Congress- approved March o
1857, public disbursing officers were required tc
place all funds entrusted to them for disburse-
menti on deposit with public depository, and tC
draw for them only in favor of the pcrsonS tc
whom payment was to be made. The provisions
of this law remained unchanged until the act Of
June II, 1896, reproduced us section 1920, Revised
Statutes, was passed, removing the restrictions as
TO the method of drawing checks. BY an net ap.
proved February q, 1877, that section was SC
amended US to re-enact the provisions of the act o
March g. 1857, concerning discussing officers
checks, which the Department had found imprnc.
ticablc to enforce. The attention of Congress ha,
been called to this matter in the annual reports o
the Secretary for the years 1857, 1858, and 1873
fully explaining the impractcability of enforcinl
the law according to the letter as 1t now stands
and II is recommended that IL be so amended tina
payment may be made and checks drawn undel
regulations prescribed by the Secretary of the
Treasury"
The report of the Comptroller OF the Currency 1,
referred to containing full information in refer
encc TO the affairs of national banks and afte
quoting certain portions of it, Judge Folger con
unues: THE corporate existence of 396 banks
will expire previously 10 February %, 1888. Tht
Comptroller recommends that an act be passed
authorizing any national bank, at any time within
two years prior TO the expiration of its corporate
existence, to extend its period of succession by
votes of shareholders owning two-thirds of tn,
capital of the association, If such an association
upon an examination Of It's affairs, shall ri, b,
law provides that the Comptroller shal
issue his certificate authorizing any bank
Ing association to commence business If 1t shal
conform in all respects TO the legal requirements
The banks may, therefore, under the present law
continue their existence, and in the absence o
prohibitory legislation many of them undoubtcdl
will on the expiration oftheir corporate existence
organize new associations, and obtain from th
passage, however, of an act directly authorizing nj
extension of the corporate existence of the bank
would in many instances save much labor ant
be an aid TO the distribution of the present larg
surplus fund among the shareholder which woult
result from the liquidation. The passage Of n bill
authorizing such renewal of their charters
recommended"
RESERVE FOR REDEMPTION.
Relative to the reserve for the redemption of tn
United States notes the report says: "Previousl
to the resumption of specie payments reserv
was accumu ated in the Treasury, by the sale {
S95,5OO0O0 of bonds and by the retention Of an ad
ditional amount of about siO,OC0,0O0 from surplu
repeatedly announced to Congress, has been to re
tain reserve for the redemption of United State
notes about 40 per cent. of the notes outstanding
and In addition thereto to have sufficient none
in the Treasury TO meet all other demand obligu
tions outstanding. This policy has been adhere
20 as rigidly as practicable TheTeserye has neve
fallen below Sc per cent. nor been abov,
45per cent. Of outstanding notes The silver eel
tfcates issued are payable only in silver coin, an
the gold received for the certificates Is now avail
able for resumption purposes: There is now
the Treasurers cash about S2j00O,O00 of fractions
silver coin, having only limited legal tendt
value and not available for resumption purpose
The remainder of this reserve consists chiefly
gold coin. 1t is generally conceded that for sal
banking reserve of4Op cent, to meet current OF
legations Is necessary. The Government by tn
issue of its notes, payable on demand and its obi
cations TO meet them when presented, is in posi
lion analogous TO that of banking, and shoul
therefore act upon, principles found to be SCUM
and safe in that business"
The Secretary treats the subject of silver certif
Gates briefly, and recommends that measures
taken for repeal of the act requiring the issue
silver certificates and the early retirement of thei
from circulation. Referring to the discontinuanc
gold certificates, the Secretary says: "ShOul
the certificates be issued they would at once tai
the place OF this coin, and the Treasury woul
aUy possible demand for the redempaon in r'Vm coi
ofegal- tender notes the issue of these certificate
Is very Objectionable"
NATIONAL BANK NOTES.
Reference to the retirement of national ban
notes is made as follows: Under existing la
any national bank can at any time, upon depos
o. legal tender notes or coin with the Treasurer
the Omitted States Withdraw the bonds held as s,
curity therefor and leave the Treasury to redee
an equal amount Of its notes. This privilege WI
given TO the banks evidently for the purpose of S,
curing proper elasticity of the currency, and
view of The rapid payment of the public debt
would seem that this privilege is necessary for Il
purpose Of facilitating the redemption Of bon,
held by the banks; but should many of the bank
through apprehension Of adverse legislation
from any other cause desire TO retire their circuit
tion the deposit of such an amount of money vii
the Treasurer might cause serious and suddC
contraction Of the currency and grave cmbarrus
menls in business That the apprehension of sue
place on the passage of the per cent. refunC
ing bill by Congress at its last session. If It
thought advisable Congress can enact that M
tional banks be prohibited from retiring their Gu
renOy, except on previous notice of intention
70 do, the length of that notice to be fixed
law"
LEGAL.TENDER NOTES
Brief reference is made to the subject of leg
tender notes. regarding which the Secretary say
THAT they are convenient aud safe for the con
munity Is without doubt. That IL Is for the pro-
ofthe Government TO continue them Is also withol
doubt. Yet there is one cons Liberation that shoul
huye notice, and that Is whether the Governmei
can contnue to claim forthem the quality of beiT
a legal tender for debts. This Department unde
stands that the Constitulionality of making the
a solvent of contracts was found In the eXigenci
ofthe Government rai issdby the civil war Wheth
now, that that war has some time since CEASE
and the Government has resumed PAYNE
of its debts ln gold and silver coin, noiga
the United States shall be maintained
currency with the legal IeHder qun
ity is a question worthy o. attention
tits suggested that peuEaneht appropriation
made for the Ted"m pt'0tn OF ffBctiorAl laper Gu
rency outstHniipS, Similar aetcr II suggesl'
relative TO the pubic debt which matnrcd bcfo
1860 aud remains outstanding,
Referring " Tue payment OF United States bon
i'm gpld the ranDfL SnVg. a. Although tile act