Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1883-12-06
UNCLE SANS MONEY.
The Annual Report Of the Sec
rstary Of the Treasury.
MILLIONS OF SURPLUS REVENUE.
Some Remarks on that DECEASED Coin,"
the Trade Dollar, ard How its
Redemption May beIhOroughly
Effected,

WASHINGTON, December S. - Secretary
Folger's report comprises seventy-hve
printed pages. The more important fea-
lures of it are considered in brief in the
Presidents message. The other features
of interest to the general reader will be
found below:
National Banks.
The number of National Banks in opsr.
alton November l, 1888, was 1892, an in
crease over all former years. The number
of banks organized during the year is 26l,
the greatest number organized during any
year since 1865.
The National Banks hold, as security for
circulation, s352. .s77 800 of United States
bonds, reduction of s9,6l3, $50 during the
year. They hold s2Ol, $50 Of United
States 3-per cent. bonds as basis of circu-
lation. All OF the latter are likely to be
called for payment during the next four or
five years, unless the surplus revenue OF
the country is diminished. There is little
or no profit on circulation based upon
and 4H-per cent. bonds, at the present
premiums therefor A continued payment
of the 3.per cents will probably result in
A Large Reduction OF the Bank Cir
eulatiOn,
unless some counter stimulus is applied
Many propositions have been made to that
end.
The National Bank act at first provided
for the issue of circulation equal to 80 per
cent of the current market value, but not
to exceed the par value Of United States
bonds bearing per cent. interest, and the
subsequent act OF March 8 1865, lirite the
circulation to $345, 600, to be issued in
the same ratio to capital upon five and SIX
per cent. bonds. Since then the rate of
interest upon bonds and the profit on cir
cula,ion have decreased. With that de-
crease the ratio of circulation issued upon
the actual or market value OF bonds has
also decreased, until it is probable that
without Helping Legislation.
loss, instead OF gain, will ensue FROM de
positing bonds as security for circulation.
These re marks are predatory to the recon
mel dstion am about to make, of a mode
of keeping National Bank notes in circula-
ton without loss 10 the banks thereby,
and with safety 10 the Government and
bill-holder. In all that have to say | as
now adiudged to be constitutional crea.
ton of the legislative power, and that the
country has acquiesced in il as such; that 1t
is looked upon with favor by the greater
part of the people; and that there is almost
a universal desire to continue the circula-
tion of these notes, rs
Convenience and n Benefit
which it would irk US to be without.
The public mind is naturally turned to
the inquiry: How shall the National Bank
notes be kept in circulation; what shall be
taken as a safe foundation therefor, and yet
be so low in prices as that the banks can
sttord to buy and deposit; or what can be
Iroposed which will give 10 the banks safe
guard against loss in taking and issuing
circulating notes? am not in favor OF
anything but the interest bearing obligs-
tions of the United States Government. To
60 abroad for the securities of other States,
TO go out OF our political and judicial iurls-
diction, and to subject ourselves to the
hazards of their inte stine commotlon OF
Their international Conflicts
OF possible hostility to this country, and
of going before strange tribunals as, per.
haps, an unwelcome suitor. The sound
policy of many OF the States OF the Union
is that trustees and other like tiduciary
persons, who are more Immediately under
the hand guidance of the sovereignty, shall
not place their moneys in securities whose
habitat is in other jurisdictions, not even
| in those OF sister States. In as large De.
gree is that fitting policy IN this great
| matter. To rely upon the debts OF the
States is to look to a basis not much more
permanent than that which the United
States bonds now offer, and one which will
call for scrutiny and investigation not
easily 10 be made, and which, If
Fully and Fairly Made
are likely to excite jealousy and other i'll
feeling. TO take the obligations of muni.
cipahties al d other corporate bodies is of
like mprscticability and result. and is also
TO rely upon the good faith, prudent con-
duct and solvency of debtors over whom
the government has but little, If any,
direct and efficient control. To take secur.:
| ty on real estate is TO launch on sea Of
III &C cer,anty and fraud that is sure to wreck
! the adventuTer. Other propositions have
been made which are reducible 10 some OF
these categories, and need not be specially
considered. There are other propositions
| II e vertebrsl idea of which is the creation
| OF sLew fern OF public debt. plausible
one is for the government to offer new
bond. Cf its own issue, at low rate OF in
| ttreSt. To run a long period, in exchange
| for its four per cents and four and half
per cents
Allowing Such n Rate OF Premium
upon the latter, but lower than that at
prese Mt ruling, as would induce the hold
ers to surrendcr them and take the new,
and to make this a security for bank circu-
| lation. | doubt not that this is feasible.
| In that way holder OF fours and four-and'
| s-halfS could capitalizs the premium al
| lowed on his bond. and draw interest at
| a. thaf Upll the
cipal, whereby there would be an induce
ment 70 exchange rather than to hold, or
| in the present difficulty of desirable rein
vestmert, TO sell. | am persuaded from the
official experience of the last year that cap
ital is ready and willing to take, at low
rate OF interest, all the United States bonds
! that can reasonably be issued provided
they be at long time of payment Of prln-
| cipal.
The Lower Market Value
which they would have, upon their first
issue at least, would bring them within the
range OF profitable purchase by those who
were not holding the fours and fours and-a-
halls with which to make the exchange.
! On the other hand the premium for eI-
| change, to be allowed by the government,
may be put at such a figure, and still be
spt to induce exchange, as that by the
| time fixed for the redemption OF the new
| bonds, the difference in the amount OF in
| terest reserved on the fours and fours-and-
halls and that paid on the new bonds will
| have equalled the amount OF premium 81
| lowed in exchange. Should this project
be fsvorably considered, details can be fur
| nished. Yet am so ayerse to recon-
mending the creation Of another or differ
| ent public debt that as great as are, in my
| Judgment, the advantages Of the National
Bank circulation in safety, in
Uniformity Of Value Everywhere,
and in other matters of convenience and