Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1881-12-07
NATIONAL FINANCES.
[Oontinned from fourth page

current obligations is necessary.
The Government, by the issue OF its
notes payable on demand, and its objection
to meet them when presented, is in posi-
ton analagous to that of banking house,
and should therefore, act upon the princi-
Piles found TO be sound and safe in that
business.
The Secretary treats the subject of silver
certificates briefly, and recommends meas
ures TO be taken for the repeal OF the act
requiring the issue OF silver.
Gold Certificates.
Referring to the discontinuance OF gold
certificates, the Secretary says: Should
The certificates De ISSUED, ..ih:aay Would a.
( once take the place of this coin, and the
treasury would hold the coin Instead Of the
banks. In view of the possible demand
for redemption in coin of legal tender
notes, the issue OF the certificates is very
Objectionable. Reference to the retire
ment OF
National Bank Notes
is made as follows: Under the existing
law, any National bank can, at
any time, upon the deposit of legal
tender notes or coin with the Treasurer
of the United States. withdraw the bonds
held as security therefor. and leave the
Treasury TO redeem an equal amount OF us
notes. This privilege was given the banks
evidently for the purpose of securing pro-
per elasticity of the currency, and i'll view
of the rapid payment of the public debt, II
would seem that this privilege is necessary
for the purpose of facilitating the redemp-
ton of the bonds held by the banks but
should many of the banks, through an ap-
prehensiOn of adverse legislation, or from
anv other cause desire 10 retire their cir
cuiation. the deposit of such an amount
of money with the Treasurer
might cause serious and sudden
Contraction OF the Currency.
and grave embarraSsments i'll business.
That the apprehension of such action Is not
groundlcsS, is shown by what took place on
the passage of the three per cent refunding
bill by Congress. at the last session. If II
is thought advisable. Congress can enact
that national banks be prohibited from re-
firing their currency except on previous
notice of all intention 20 do So the length
Of that notice to be fixed by law.
Brief reference is made to the subject OF
Legal Tender Notes,
regarding which the Secretary says that
they are convenient and safe for the com.
rnunity. is without doubt; that il i for the
profit OF the Government To continue them
i also without doubt yet, there is one con-
Sidcratiuu which should have notice, and
that =. whether the Government can CON
tinuc to claim FOR them the quality oi be
Ing legal tenders for all
debts This department understands
that the con>tituti0nality Of making them
a solvent al contracts was found in the
cxgenCicS oi the government, raised by
civil war. Whether now. that war has
some time since ceased, and the government
has resumed the payment Of its debts IN
gold and silver coin, notes OF the United
states shall hr maintained a. currency with
LEGAL tender quality. Is Il question worthy
of attention.
Fractional Currency.
II is suggested that the permanent APP
prupyiatiun be made for the redemption of
fractional paper currency outstanding.
similar action is suggested relative To the
public debt. which maturcd before 1850,
and remains outstanding. Referring To
the payment Of United States bonds in
gold the report says: Although the act of
July II. 1870. provides for the issue OF
United States bonds rcdccmabe in coin Of
the present standard value. whereby were
included both gold and silver coin
OF that value. yet, as by the act Of
February L.. 1873, the further coinage
Of silver dollars was prohibited, and the
revised statutes declared gold coin only 10
he a legal tender for sums exceeding five
IOlliiS. equity, IL IlOi Sllltl iOuNlINtNIOu
of the law, requires that the holders of
such bonds should receive payment thcrc-
IF in gold or its equivalent. BY the act of
February IS 1879. silver dollars of standard
weight and tincuc>S were again made illegal
tender nj their nominal valnc for all debts,
public and private. except where otherwise
expressly stipulated in the contract he
tween the adoption al the revised statutes
in June -, 1874, and 1875, silver coin was
NOT n Tender
in pavmCnt Of United States bonds and il
might fairly he regarded especially by
foreign holders, who had acquired bonds
during the interval. ~ a breach Of faith if
the bond creditors were compelled To
receive payment in coin worth. in the
markets of the world, but - per cent Of our
standard value. Thi. government is album
dainty able 10 discharge all its obligations,
at home and abroad in money which is
everywhere accepted n the true standard
Of value.
4 chapter of the report is devoted to the
standard silver Dollar
i'm which Judge folgcr says rs required by
the act of February 18th. 1873, the Depart
mcnt has caused 10 De coined into standard
silver dollars in worth at least 5000 900 in
value of bullion in that metal.
only about thrty-four millions are now in
circulation, leaving more than SGO0,00o
in values and there is no apparent reason
why its circulation should rapidly increase.
The most potential means bringing about
any concerted action among different ma
tiOnS upon the silver question would APP
pear to be for the United States to suspend
for the present further coinage of silver
dollars. This is the decided opinion in
both France and America Of highest author
tiles on h-metallism and Of those who wish
to bring silver into general use and raise its
value. And il IS believed that cessation
Of coinage would at a very early day bring
about satisfactory consideration Of the
whole subject among the chief commercial
nations. The silver question is one that
demand. early attention Of our law makers.
1t is. therefore, recommended that the pro-
vision for the coinage Of q liked amount
each month be repealed and the Secretary
he authorized to coin only so much a. will
lie necessary 10 supply the demand. II IL
believed that the amount in circulation
will be- steadily increased. but not so fast
ms to require for some months. or perhaps
wears any addition to the amount
already coined. After mentioning the re-
Ceipts from customs for the past fiscal year.
A Revision Of the Tariff
seems necessary 10 meet the conditions Of
many branches Of trade. That condition
Las materially changed since the enact
mcnt of the tariff Of 1854, which formed the
basis Of The present tariff az to most arti-
Giles Of import. The specific duties imposed
by that act. for instance on iron and steel
in their various forms. had their proper re-
laton TO adyalOrcm duties imposed on arti-
Giles manufactured from those metals, but
nv large reduction in values, especially.
Of the Cruder form OF iron and steel. The
specific duty imposed thereon now amounts
in many cases To al adyalOrem duty Of
over one hundred per cent.
While al yalorcm duties on manufac-
tu-ed articles have not been changed, the
growing demands Of trade have led also to
the importation OF iron and steel in forms
aud under designation not enumerated in
the tariff. and the great disprOportion be-
tween specific and ad yaloreIn duties is a
constant stimulus TO importers 10 Try to
bring in merchandise under ad yalOrem
rates. This produces uncertainty. appeals
from the action of Collectors and litigation,