The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1883-11-26
1IATTERS OF MONEY.
Conp.Y oller Knox Gives Some More
National Bank Figures.
rrsDao:e CONTRACTION ofthe Currency
II Congress Does Not Give Re-
lief -Greenback SHbsti-
tution opposed

WASHINGTON City, Nov. &c. -Comptrcller
Knox is p1r4ning the policy of issuing his re-
port IN ec.i1ls. The portion relating TO
state Rankin he made public a week ago.
II xiv, 5 oua the statistics of national banks,
a'.i by AMI by he will reveal his opinions
Bhcut the effect of the reductions of the
public tlsbs Oh national bank circulation, and
ibis recommendations.
In regard To the contraction of national
baHk eireslation. Mr.. Knox says: More
tina S4i.uii,030 of the 81 per cents held by
tiis Imails on November I, 1882, have been
withdrawn or called for payment. The 81
have Increased less than S22 000eo and the
Is aal as less than S9,6N000 The
reinein LEI sof the boaSs sustaining,
taYai.l,. al The pleasure of the govern
met. consist Of S@5J 100000 of 81, and
nt he national banks hold more than
tao lir IS. Unless there shall be legislation
by the peeso1t congress which shall roluee
the receipts of the government, it is probable
that TIE Uaitei States bonds win continue
to be raid at The same rate as during the
past year, in which event the IS will be
called for redemption within the next
three yeaa This will reduce tho bont|s
held BY the banks from $3J5, 900 900
10 EAbiy 'bOfuJb CAUSE a III lil6
national bank circulGtioa of about S6l,00l,00d
per annum. This large contraction win be
somewhat. reduced by the action of those
banks which substitute and Az per cents in
place OF the IS; bnt the amount of long bonds
held by the banks may also be reduced b.
that class OF banks which may conclude that
il is for THEN interest to avail themselves of the
premium at the time when, i'll their opinion, the
value of said bonds shah reach its maximum
price in the market.
In concluding an argument against the
substitution of treasury notes for national
bank notes, MIR. Knox says. 'Ifit were pos
sible to issue additional treasury notes when
the revenues OF the government are so much
greater than its expenditures, and simultana-
ously with the yearly addition of the silver
dollars now authorized by law, it is evident
that such steps would lead plainly from
gold to q silver standard The gold balance
belonging to the treasury is large, but the
silver balance has increased rapidly, and the
laws now in force will continue to increase
the silver and reduce the gold. The issue of
additional treasury notes win weaken the
treasury and be likely to create doubt
on the part of some of the holders
as TO the ability Of the government
to pay gold on demand, and the government,
by declining to pay in gold, thus taking from
the holder the option of payment, may at
any time bring the nation upon the silver
standard, advancing the price of products
and demonetizing the entire gold of the coun-
try, In such a crisis the reserve of gold in
the treasury viii be continually diminished,
on the one hand by the presentation Of
its notes tor payment, while its revenue, on
the other hand, will not be increased
by customs duties paid in gold, as at present
but by the return of silver dollars and silver
certificates, which WILL under existing laws,
sooner or later, drive away every dollar of
gold coin out of circulation, bringing upon
the country much greater contraction than
that which it Is now proposed to prevent
In the next two years the charters Of 976
banks, having a capital of S2T5, 54S, COO and
Il circulation Of S1s5, 49,, 900, expire