The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1883-11-03
WHAT'S TO BE D0NEg
aGath" Discourses on the Question
of National Currency.
The Worry OF the Currency Comp.
troller--.How TO Continue the
National Banks---Our Tax
Paying Power.

New YORK, Nov. s. -"Gath,n discussing
the matter of the rapid paying of the public
debt, says; The comptroller of the currency
is a good deal exercised at the way we ara
paying-of the national debt The surplus
viii amount to about sec, 00o, 900 this year
as against Sl45, 600, 900 last year. The i'm
preston prevails, however, that the surplus
this year will be larger than theabovqs cures
Indicate, and it is certain to be unlsss thu
pension office makes much heavier demands
upon the treasury than it has been doing.
Notwithstanding the reduction of taxation,
Secretary Folger goes on calling bonds He
has nothing else to do Each month the
figures are brought to him they show a sur
plus He can not let that money lie idle in
the treasury. 1t is all plain sailing for him
He has already called 500, 900, 600 Of bonds
this fiscal year All the three-and-a- halls ara
wiped out, and hole is made in the threes of
$50, 90, 900, with possibility of an increase
before January l. Money keeps rolling
into the treasury.
But while the debt is being wiped out at
this prodigious rate by the secretary, upstairs
in the treasury building sits an officer who Is
tworried at the outlook. That officer is Comp
roller Knox, the guardian ana official head
of the national banking system. This rapid
wiping out of the debt. be fears, is cutting
away all too rapidly the foundation of the
system OF the $50, 000, 900 of the 3
per cent bonds that Secretary
Folger has called the banks hold
nearly $12, 000, 600, which are deposited to Sc
cure their circulation. They have got to do
one of two things-they must either give up
so much of their circulation as is secured by
these bonds, or they must get hold of other
bonds to take the place of them. The latter
step is almost impracticable. To take the
former means contraction of the currency
within the next few weeks of more than
| $40, 00O,0 600
Nor is this the worst of it, These bonds
calls, according to the present light, must
continue; and the rather startl ing contingency
presents itself, in the immediate future, of a
very large contraction of the currency, due
to the fact that money flows into the treasury
in much greater sums than are needed for
the expenses of the government. Comptroller
Knox must be worried when he suggests thai
the banks be allowed to deposit foreign bonds
to secure their circulation.
While the national banks may be somewhat
alarmed at the outlook, there does not exist
any great apprehension at the treasury Of
such a contraction of the currency as would
imperil business. The mint is making up the
deficiency. Silver and gold certificates fol
the past year show an increase over the yeal
before; and this notwithstanding a de
crease in United States notes and o
national bank notes of more thar
$4,000, 900 But while nobody at the treasury
has any idea that business need alarm itself il
is clear that something must be done righ
away to help the banks. Comptroller Knox
expects to make some recommendation t.
congress. So does Secretary Folger; bu
neither has any thing more than male-shif
remedy to propose now.
All this shows, however, the enormous tax
paying power of our country, and the solid
ity of the public credit Nothing has eve
been seen like it. AT the same time we hav
not corrected any of our fiscal habits VIVA
made the failure of Jay Cooke has been re
peated by Willard and others, except witt
foreign money.
Is it possible to relieve the banking system
by substituting the better grade of such rail
road bonds for the government bonds we ar
calling in from the banks! Night not thi
expedient create cooperation between rail
road property and government, and settle tn
subject of transportation also2 The railroad
might concede matters they ara not jealou
of for this enlarging of their fiscal credit
A return to the banking methods and cur
rency of ante-bellum times would be the tri
umph of one of the lines of secession, and al
most wipe out the bridges that span betwee
| the SactiOus