Weekly Chillicothe crisis. (Chillicothe, Livingston Co., Mo.) 1878-19??, 1882-01-12
F0LGeR'S FIGURES.
They are all in favor Of the Money
Mongers, the Goldltes and
the Bondholders,
A Grand Scheme for Contraction
Panics, Bankruptcy and Ruin.

Panics. Bankruptcy and Ruin.
We publish such portions of Secre
tary Folger's report as refer more par
ticularly to the finances. 1t may be
characterized as mastery document
in behalf of grand scheme of con-
traction and complete surrender 10
the goldites and the national banks.
1t looks very much as though Folger
may prove to be a second edition of
John Sherman. 1t also looks very
much as though Mr.. Arthur is going
to be.a mere puppet in the hands of
his finance minister-for his message
is nothing more nor less than a mere
echo of Folger's views.
But we let our readers examine the
document for themselves. Here it is:
NATIONAL BANKS.
The corporate existence of 396 banks
will expire previous to Feb. 25, 1888.
1t is recommended that an act be pass
ed 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
amending its articles of association by
the votes of shareholders owning two
thirds of the capital of the association.
If such association, upon examination
of its affairs, shall be found to be in
satisfactory condition, the law provides
that the comptroller shall issue his
Certificate authorizing any banking as
sociation to commence business if it
shall conform in all respects to the le-
gal requirements. Banks may, there
fore, under the present law, continue
their existence, and in the absence of
prohibitory legislation, many of them
undoubtedly will, on the expiration of
their corporate existence, organize new
associations and obtain from the comp
trOller authority to commence business.
The passage, however, of an act di-
rectly authorizing the extension of the
corporate existence of the banks would
in many instances save much labor and
avoid the distribution of the present
large surplus fund among the share
holders which would result from liqui-
dation, and the passage of the bill au-
thorizing such renewal OF their char.
ters is recommended.
RESERVE FOR REDEMPTION PURPOSES
The policy pursued by this depart
ment has been to retain as a reserve
for the redemption of United States
Notes about 40 per cent of the notes
outstanding, and, in addition thereto
10 have sufficient money in the treasury
to meet all other demands and obliga.
tions outstanding. This policy has
been adhered to as rigidly as practic'
able. The reserve has never fallen
below sc per cent, nor has il
been above As per cent of the outstand
ing notes. The silver certificates is
sued are payable only in silver coin
and gold received for these certificates
is available for resumption purposes
Thoro is now in the treasury caSf
about $4,000 fractional silver coin
having only limited legal tender value
and not available for resumption pur
poses. The remainder of this reserve
consists chiefly of gold coin. 1t is gen
orally conceded that for safe banking 1
reserve of 40 per cent to meet curren
obligations is necessary. The govern
ment, by this issue Of its notes payabl,
on demand, and its obligation to NEE
them, when presented, is in portion
analogous of that banking, and SHOULD
therefore act upon principles found t,
be sound and safe in that business.
SILVER CERTIFICATES.
The department has issued silve
certificate, at the several sub-treasur
offices upon a deposit of gold coin il
like amount with the assistant treasur
at New York, and through this mean
certificates were issued for nearly al
the silver held by the treasury. Thes
certificates amount to about $4,000
600, and are now outstanding. Abou
$34,000,000 of silver dollars are now i
circulation. The total result of thi
silver coinage is to increase the cul
rency of the country to the extent c
about 800, 100000 and to require tn
treasury of the United States to hol
the silver coin in which the certificate
are payable. On Nov. l, 1881, the d.
partment held in its cash about $1,000
600 for certificates and about $3.50, 90
of the coin for which certificates ha
not been issued. The act of Feb. q
1878, requiring the issue of silver ce
tiicates upon the deposit of standar
silver dollars was part of the polio
of the government to maintain I'll
standard of the silver dollar at or nei
the value Of the standard gold dolla
The same act provided that such certi
Gates should be receivable "for Gu
toms, taxes, and all public dues" TT
liberal purchase of bullion, and ii
coinage of silver dollars by the COVER
ment, and the receipt of them by it f
public dues, has failed to raise the pri
of silver bullion to any great extent
the market of the world. AS is sa
elsewhere herein, the circulation
some s66,000,000 OF silver certifcat
seems an inexpedient addition to t
paper currency. They are made
gal tender for the purpose named, y
have for their basis about 88 per ce
only of their nominal value. There
no promise from the government
make good the difference between the
actual and nominal value. There ne
be no apprehension of too limit
paper circulation. The national ban
are ready to issue their notes in su
quantity as the laws of the trade {
mand, and as surety therefor, t
government will hold an equivalent
its own bonds. The embarrassment
which are certain to follow from
endeavor to maintain several stands
of value in the form of paper curren
are too obvious to need discussion.
? is recommended, therefore that me
ures be taken for repeal of the ,
requiring the issue Of such certifcat
and the early retirement Of them FRI
circulation.
GOLD CERTIFICATES.
Immediately preceding resumpt
the issue of certificates upon depos
of gold was discontinued. 1t v
feared that parties might present leg
tender notes, based upon 40 per c.