The Portland daily press., 1883-12-05
loss caused by its presence in the monetary
ystem of the country
c0rJs Ant. r,oryAcu

ystem of the country.
COINS AND COINAGE.
The coin circulation of the country in June
last was: United States gold coin $537 ,254,-
1914; q. s. silver coin 1928 216 1879; total, $685.,
470,993 The total amount of U. S. coin and
bullion available for coinage Oct. LIST, was
$846, 595, 749
NATIONAL BANKS.
The greater part of the facts stated about the
national banks have already been given. The
Secretary discusses the effect of the rapid re-
demption of bonds upon the circulation Of the
banks, and suggests that inasmuch as money
can be borrowed upon United States bonds to
the amounts OF So per cent of their face, while
the banks are permitted to have but 80 per
cent. of their face in circulation, which in fact
is but IS pei. cent. of the face, and in view of
the premium is but 70 per cent. of the value of
the bonds, Congress should consider the pro-
priety of allowing the banks more liberal is
sue of circulation on the bonds which they
hold. He is opposed to any other security be-
ing basis for circulation than those of the
Federal government. He holds that the ma
tional banking system has become the policy
OF the country. Cause he believes that some
should be taken to perpetuate its existence ana
usefulness. Holding to the idea that
nothing but United States securities should be
used as the basis of circulation, Secretary Fol-
ger says:
There are other propositions, the vertebral
idea of which is the creation of new form of
public debt. A plausible one is, for the gov
eminent to offer a new bond, OF its own issue,
at low rate of interest, to run long period, in
exchange for its four per cents and four-and-a-
half per cents, allowing such a rate of prem
ium upon the latter, but lower than that at
present ruling, as would induce the holders to
surrender them and take the new and to make
this security for bank circulation. doubt
not that this is feasible In that way holder
of tours or four-and-a-halfs could capitalize
the premium allowed on his bond and draw in
terest at the new rate on that as we'll as on the
principal, whereby there would be an induce
ment to exchange rather than to hold, or, in
the present difficulty of desirable reinvestment,
to sell. am persuaded, from the official ex
perienee OF the last year, that capital 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 principal. The lower mark
ct value which they would have, up
on their first issue at least, would
bring them within the range of profit
able purchase by those who were not
holding the fours and fours-and-a-halfs with
which to make exchange. On the other hand,
| the premium for exchange, to be allo we'd by
the government, may be pnt at such figure
| and still be apt to induce exchange, as that by
| the time to be fixed for the redemption of the
| new bonds the difference in the amount of in
terest reserved on the feurs and four-and-a.
halls, and that paid on the new bonds will
have equalled the amount of premium allowed
l
| considered, details can be furnished. Yet
| am so averse to recommending the creation of
another or differen public debt that as great
rs are in my judgment, the advantages of the
| national bank circulation in safety, in Uniform
| ltY OF value everywhere, and in other matters
of convenience and confidence, I look upon
such project as dernier resort. rather rec
| ommend, and SO do, that the internal reve-
nue. tax upon circulation be taken off in whole
or in part. This is one per cent per annum,
/ tank IN oh ,,af1I 10,
| quarter each year."
The Secretary says that bank circulation
is no longer profitable, and then proceeds to
| show that the government can take off the tex
on the banks and yet recompense itself. The
expense of the bureau of the Comptroller of
the Currency, was $104, 955.07 last year, of
which the banks pay $i6,820. All other ex-
| penses are paid by the banks. The net ex-
| pense OF the government for banking is $174-
S96.97 The gain of the government from lost
| national bank notes is, at a low estimate,
| $4,000, 900 in twenty years, or $2000 coo year
Thus the tax may be wholly taken off the
| banks.
He further recommends that the banks be
permitted to have circulation to the extent of
80 per cent of the market value of their bonds
for the twelve months prior to deposit there
for. He observes that this is not so great
risksas it was for the government to offer 80
per cent of circulation on bonds for the sole OBJ
1ect OF forcing them into circulation. Another
advantage is that bank assets now laid away in
the premiums of bonds could be released and
brought into active use There can be no loss
to the government or note-holder by adopting
these suggestions.
DEPOSITION OF THE SURPLUS.
The report says there is likely to be a con-
tinuing surplus in the Treasury over the ordi-
nary expenses of the government, so long as
the present revenue laws remain, is seen by
those attentive to fiscal affairs. This has
called out propositions for the disposal of sur
plus or public moneys; two of which may be
noticed. One is, that the surplus be parceled
out among the States of the Union. This
though it has been iDgenfously argued, has not
so approved itself to the common sense of the
people, as now to call for elaborate statement
of reasons why it should not be adopted. In
the Judgment OF this department, it is not a
legitimate function of the federal government,
to raise money by taxation to be donated to
the States, or to thus use money already raised
in that way. Nor is this uttered in ignorance
or forgetfulness, OF what men of might in the
affairs and councils of the Union have hereto
fore done and said on this subject. 1t is to be
borne in mind, that they spoke and acted upon
an existing surplus not needed for any pnblic
use then sactioned by law; not upon prospect
i've one to be avoided by legislation; and in
view of the temptation which that idle money,
incapable of lawful use under any existing law
held out for the broaching of new, and, in their
Judgment, unwarranted, perhaps improvident
governmental enterprises.
REVENUE AND CUSTOMS.
The receipts from customs have decreased
during the last fiscal year, have fallen below
the amount received the previous year in the
sum of $5,704, 228.32. The treaty made with
Hawaii has improved our trade with that gov
eminent, and the carrying business has been
an advantage to American vessels. Fixed sal
aries for custom officers are recommended, also
the consolidation and reduction Of districts and
elimination of ports of entry where little or no
business is done. The operation of the tariff
act OF last March has been very satisfactory.
The increase of revenue from spirits during
the last fiscal year was So. 495, 1867 02 from fer
mented liquors was $746, $3.50; the decrease
from tobacco, $5,287, 1912 and from banks
and bankers, 81. so, 463.S7. The total decrease
of internal revenue from all sources up to June
80, 1883, was 81 1863, 92S.S6. The cost of col
Letting the internal revenue for the fiscal year
was Sc, lib, 73488. The estimated cost for the
same work for the current year ia 50, 1896, 100.
1t is recommended that the taxation be re-
duced in order to reduce the revenue of the
government, and that the reduction be made
on articles entering into general consump tion
as sugar, molasses and the like, rather than
upon luxuries. An immediate revision Of the
tariff act is not recommended.
COMMERCE.
In foreign commerce the value of our exports
still exceeds the value of our imports. There
was an increase in the excess of the value of
exports over imports during the last year as
compared with the year before. The number
of documented vessels built the last year was
less than the year before, but there was an in
crease of the enrolled and registered tonnage
OF the combined imports and exports of mer-
chandise 1854 per cent. was conveyed in
American and 81 So per cent. in foreign ves-
sells. 1t is suggested that the abolition of the
tonnage tax and the removal of some of the
burdens OF pilotage would be relief to our
shipping, and that our foreign shipping might
be increased by subsidies and allowing the
free purchase Of foreign ships.
The regulations for the quarantine of i'm
ported neat cattle are well spoken of, also the
further recommendations Of the Cattle Com
mission, one of which is a provision for the
previous domestic inspection of cattle exported
from this country to Great Britain. The reve-
nue. marine service has performed satisfactory
work during the year; also the life saving SER
vice. The lighthouse establishment contin-
ues to be improved. The coast and geodetic
survey has been efficient and successful. The
success of national quarantine has been shown
during the past two years.
VARIOUS MATTERS
During the last year, work has been in pro-
gress upon twenty-seven buildings, under di-
rection of the Supervising Architect, of which
number ten have been commenced and four
completed, and two of the largest government
buildings, those at Philadelphia and st. Louis,
are practically completed. The expenditures
1urtpo for xuor NJ, oil huiId lin