The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1883-11-26
WASHINGTON AFFAIRS.
COMPTROLLER OF THE CURRENCY
Fears that the Rapid Redemption of Boaa. viii
Contract National Bank ClrealltIoa-Ths
Contest for spsak.r-ssrssast Mason
Is PlrdonsI By the Prsaldsat.

fAfdonel bg the PreAldtlt.
WASHINGTON, D. G., November A.-Tht
Controller Of the Currency in his forthcom
ing annual report says: The Secretary O
the Treasury has been compelled, on &C
count Of the large receipts Of revenue IL
excess Ct expenditures, to call in rapidly
for payment that portion Of the bonded
debt which Is payable at the pleasure o.
the United States. During the year ending
November more than los millions ($l05,
322, ,450) Of the public debt has been paid
and all Of the remaining three-and-a-hali
per cent bonds, amounting to SOL 500, $50
have been called for payment, and ceased
to bear interest on November l. Notwith.
standing the fact that 262 new banks were
organizsd during the past year, with capi.
tai Of S2S,654, $50, depositing 50, ,S75. $50 oi
bonds as security for circulating notes,
the aggregate amount on deposit Tor that
purpose has diminished from $S62, 400 $50
TO $780,, ,007 300, reduction Of 50, ,bS3, $50.
More than 40 millions OF three and half
per cents held by the banks on November
l, 1882, have been withdrawn or called for
payment; the threes have increased less
than 90 millions, and the fours and four
and halls less than 0 millions.
REDEMPTION OF BONDS.
The remainder OF the bonds outstanding
payable at the pleasure OF the Government
consist OF 265 millions OF threes, and Of these
the national banks hold more than two
thirds. Unless there shall be legislation
by the present Congress which shall reduce
the receipts Of the Government, it sproba-
BILE that the United States bonds will con.
tinue to be paid at the same rate as during
the past year, in which event all the threes
will be called for redemption within the
next three years. This will reduce the
bonds held by the banks from S5S millions
to 15l millions, and cause contraction Ia
the national bank circulation Of about go
millions per annum. This large contrac-
ton will be somewhat reduced by the ac-
ton OF those banks which substitute four
and four and half per cents in place Of
the threes; but the amount Of long bonds
held by the banks may also be reduced by
that class OF banks which may conclude
that It Is for their interest to avail them
selves OF tie premium at the time when, in
their opinion, the value OF said bonds shall
reach their maximum price in the market
The total amount OF bonds outstanding
held by the banks and by the people,
which are available for circulation, and
not payable at the pleasure Of the Govern
ment, and which cannot be redeemed ex-
cent by purchase in the market, Is 81 ,052,'
570.072.
EFFECT OF LEGISLATION.
It's evident that unless there Is addi-
tional legislation the bonds held as security
fer circulation will rapidly diminish. New
legislation may, however, postpone the
payment Of the public debt, or cause the
profit on circulation to increase sufficiently
to induce the national banks to invest in
the long four per cent?, which are not to
mature for period Of twenty.four years.
The contraction OF the bank circulation
may be avoided by reduction OF the re-
dundant revenue, and there is no doubt
that this is the true policy.
The contraction would also be avoided
by providing for the removal Of the tax on
circulation, and the increase of the amount
OF circulation to be Issued to the banks
upon the bonds deposited by them. :,
Other propositions have been suggested
in order to postpone or prevent the con-
traction OF national bank circulation which
is now imminent, but the Comptroller con-
siders that, 80 long as there Is q sufficient
amount OF United States bonds outstand-
ing, legislation should be 80 shaped as to
continue them in use as basis Tor national
bank circulation.
A law authorizing increase Of issne to 80
or 05 per cent. upon the lowest market
price during the calendar or fiscal year
previous to the deposit, together with the
repeal of the tax upon circulation, would
result in the deposit OF sufficient amount
OF the four and four-and-a-half per cents
to maintain the circulation OF about its
present aggregate.
NON REDEMPTION OF LOST NOTES.
The amount Of the gain accruing from
the non-redemption Of lost national bank
notes can soon be approximately estimated,
and should be authorized to be carried to
tho credit Of an "insolvent bank redemp-
ton" account in the Office Of the Treasurer.
If this fund should be used for the purpose
Of redeeming the notes OF insolvent nation
al banks, the avails Of whose bonds might
be insufficient for that purpose, the issue
could safely be increased to rate not ex.
ceeding the lowest market value OF the
bonds during the calendar or fiscal year
previous to the deposit.
While the Comptroller is Of the opinion
that the addition 10 the circulating medi-
nm OF the country during the last three
wears has been more than sufficient 10 sup
ply the legitimate demands Of business, he
believes that the large contraction ofthe cur.
rency now imminent, should not be allow.
ed 10 take place too rapidly, or the deti-
cheney caus cd by such contraction be re-
placed by q substitute less deairableS than
The bank, notes now, In circulation u 70
said that ifthe deficiency arising from the
retirement ofsnational bank notes during
the next three years should amount to
about sixty million per annum, 1t may be
supplied BY the gold imported from abroad,
by The annual product from the mines, or
BY the coinage Of the silver dollar upon
which silver certificates are now issued.
EosELEorION CAN BE MADE
Az Long M Randall, Cox aud Carlisle
AlIstay In the Field.
specidl DLpdtch 10 he Inteilt0eaee.