Morning journal and courier., 1883-11-26
News by Telegraph FROM ALL QUARTERS. TRR NATIONAL BANKS. A Plan to Secure Their
 Circulation. A HORROR IN NEW HAMPSHIRE. The. Bloody Ending of Three
 Lives. A LUNATIC WITH AN IDEA. He Accounts Scientifically
 for His Madness.
A LUNATIC WITH AN IDEA.
THE NATIONAL CAPITAL.

CirculatOin of the Banks-PIans of se-
 curity Recommended by Comptroller
 Knox-An Interesting Side of an Inter
 estInR Question.
 WASHINGTON, Nov. 25.-Comptroller Knox in his forthcoming annual report devotes much space to the consideration of the sub ject of security for national bank circulation, suggesting legislation to avoid too rapid of national bank circulati OF. The following extracts from his report give ject: The Secretary of the Treasury has been compelled on account of the large receipts of revenue in excess of expenditures to call rap idly for the payment of that portion of the bonded debt which is payable at the pleasure of the United States. During the year end ing November l more than $105, ,O00, ,000 of the public debt has been paid and the re- maining 34 per cent. bonds, amounting to $91, 596, 25O, have been called for pay ment and ceased to bear inter est November l. Notwithstanding the fact that 262 new banks wore organized dur ing the past year with 8 capital of $2O, ,654,- $50, depositing $9,375, $50 of bonds as secu- rity for their circulating notes, the aggregate amount of deposit for that purpose has di- minished from $362, 49O, $50 to 1856 .907, ,660, a reduction of $9, ,5s3, $50. More than forty million of 31 per cents held by the banks on November l, 1882, have been withdrawn or called for payment. The 3's have increased less than $22, ,0oO, 900 and As and As and less than $9. 100000 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 except by purchase in the market, is as follows: Four per cents payable July l, 1907, $751; 946, 55O four and half per cents payable July l. 1901, S25O, GOO, 900; railway sixes pay able 1895 to 1899, $54, ,623 ,512; total $1, 052,- 57OOl2. It is evident that unless there is ad- ditional legislation bonds held as securi- ty for circulation will rapidly diminish. New legislation may, however, postpone pay ment of the public debt or cause the profit on circulation to increase enough to induce national banks to invest in long per cents, which are not mature for twenty-four years. Tho contraction of bank circulation may be avoided by 8 reduction of the redundant rev snus and there is no doubt that this is the true policy. The radical cure for the evil of an accommodation of large surplus, says the secretary in his last report, Is in the reduc- tioA of taxation so that no more may be taken from the people than enough to carry on the government with economy, to meet all it's obligations that must be met from year to year, to pay with reasonable eelsrity the part of the debt which it may pay at pleas ure and to provide through 8 sinking fund for the payment of that which will become payable by and by. The contraction of the bank circulation may also be avoided by con- version of long bonds into three per cents. by offering inducements to holders of these bonds to exchange them for 3 per cents to mature in 1907, the government paying to the holders thereof reasonable amount for difference in value. The principal objection made to that plan is that tho government would pay to the holders large premiums up
 on the bonds held by them, but it is evident that in the course of two or three years after the three per cents are paid, if there is no reduction in the revenue, the surplus will enormously increase unless long bonds are then purchased by the government.