The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1883-10-04

In the iirs, three months OF the currcnl
fiscal year the reduction Of the nAiiona
deb, has Amounted 10 nearly CSC. DOC. 0Oo
and The Secretary Of the Treasury bai
called for bonds 10 the smou nt Of eli. 900,
600. which be has undertaken to redeem
The reduction Tor September was greater
than the reduction made In either July OF
August because only few Thousand dol
lar. wcrc required for pension payments
10 September, while the pension expenses
tor the first two months Of the fiscal year
we're s26, 900, 900. Statements recently
made by the Commissioner OF Pensions
indicat however, that he has again over.
estimated the cost Of the operations OF his
bureau, aud that his demands upon tho
Treasury dnrng the coming niue months
will not seriously disturb estimates 81.
ready made by the Secretary.
Tue amount Of surplus for the entirs
year cannot be- successfully estimated upon
the basis Afforded by the reduction Of
debt effected ID the first three months.
but prediction that the surplus will be
a, least 500. 900. 600. may b. regarded -
sale one. II may be s2O. 0OO, 900 greater,
bat theirs is uos no reason TO believe that
!, will fall below that sum. The last Of
the . per cent bonds were called in
July. sad the government began three
~enks ago TO redeem the per cents by
-aii,.e -. Sis, ooo, 900 of them. Ii ap.
pears. therefore that before the end OF the
year The government may DO forced 10 call
sni redeem at least $50. 0O0, 900 OF the 3
pr cant loan, More THAI two thirds OF
this ioAn % about 300, 000. 000-is held
by the national banks and deposited in
Washington A. security for their circulat.
Ing notes. In less than three years they
must give up these bonds. ard they cannot
afford 10 substitute for them per cents
or 4 IL per cents. Nor can the govern
nett nader present laws avoid undermin-
ing the national banking system by thus
calling the . per cents. for until 1891 there
will bs no others which Il can call. The
work Of redemption must g on. and 1t
will inevitably be accompanied by con.
traction OF the currency, for the banks
will give up their circulation whom they
lind that they cannot keep 1t alive without
loss
The forty.eighth congress will have this
great problem 10 deal with. We cannot
expect. however. that il will approach the
question with any desire TO handle II in .
sensble way To q majority Of the Dem
ocra,s our national banking system--ths
best and most convenient banking systcm
thai this country ever hsd--is an iniqui.
tous institution that ought TO die. The
majority OF the Democratic House will
hail With JOY the statement that serious
contraction OF bank circulation can only lie
prevented by wise Legislation. II, hover.
or. the foity.clgh,h congress we're inclined
10 deal fairly with the banks il would find
the problem very difficult 10 solve Shall
tho banks be allowed 10 deposit ~ security
STATE instead OF Government brnds'
Ought the Government 70 let the three
per cents lie. aud use Its surplus In re.
desming IL per cents bought ha high
premium 10 the common MARKET Shall
new bond be issued for the exclusive use
OF tho bsnksf These are this questions
that would Ne presented. ard thers 10
great deal 10 DO said ia oppositioo 70 any
ono Of The plans suggested by them. -
Adaitsine. however. that II would be
liaIcnls Tor esen . frisudly congress TO de-
wise satisfactory plan for tho relief Of the
BANKS. Il is very plain that this eondi.
I,cp Of things ought to lead the support.
brs Of the banking system and those uhcse
iaty IL Is 70 study such problems to exam
ne the subject carefully on every side and
% continually strive 70 Ind vay Ia which
he system can be maintained and ssri.
BUS eonirsciion Of the bank note currency
~ y. Tsmes