The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1884-12-05

of the Government. These bonds win prebl
ably be paid within the next two wears.
even il considerable changes are made In
the tariff; and from 1887 to 1891, when
$3.50. 900, 900 of the AZ per cents mature,
there will be no bonds which the Govern
ment can call in for redemption. No
doubt the accumulation of surplus revenue.
il it continue to accrue at the present rate
during the four years between 1887 and
1891, together with revenues of 1892. will
be more than sufficient to pay off the AZ
per cents; and from 1892 until 1907 it viii
be impossible for the Government to use
any of its surplus revenues for the payment
of its bonds except at the option of their
holders. 1t is apparent that the Govern
ment can not accumulate and hold its sur
plus revenues, even during the short
period from 1887 to 1892, without great
disturbances to the business interests
of the country, and much less can
it do so during longer period from
1891 to 1907. 1t appears. therefore, that
the foregoing considerations should be Civ
en- due weight in any plan for funding the
per cent. bonds maturing in 1907, and the
Comptroller suggests that the principal diff
culties of the situation may perhaps be obvi-
ated, as well as the reduction of interest eff
fected, by funding these bonds into others
which shall mature in prOportionate amounts
at certain fixed intervals. Thus the $685.
600, 900 of per cent. might be funded
into an equal amount of 8 or q per cent
bonds, one-fifth of which, or S147, SOC, 900. to
mature at intervals of five years, the first
installment falling due July 1, 1897, and the
remaining installments of S147, GOO, 900 each
on July l in the last year OF each succeed
ing period of five years. viz, 1902, 1907,
1912 and 1917. The average maturity of
these five classes of bonds would be the
same as that Of the present 4 per cents
July 1, 1907.
Whatever course may be deemed expe-
dent by Congress in regard to the funding
or future payment of the public debt the
Comptroller is of the opinion that it is per
fectly safe and will afford great benefit to
the public to permit an issue by the Nation
al banks of circulation to the extent of 100
per cent. par value of bonds deposited in.
stead of 80 per cent.
In concluding this subject the Comptroller
wishes to have it distinctly understood that
he is not in favor of any measure which will
cause imitation. He is of the opinion that
the present aggregate of paper circulation
made up of legal-tender and National
bank notes and gold and silver certificates
is ample for all the needs of business.
He believes, however, that sudden
contraction of National bank circulation
which, without appropriate legislation, is
imminent, will seriously embarrass the
business of the country, and that if this con-
traction is permitted to go on it may result
in the entire discontinuance of the issue of
notes by National banks. The Comptroller
believes that this form of currency, which
can be increased or diminished in accord
ance with natural laws which control bust
ness. should be continued in preference to
any other now permitted by law
The Comptroller concludes his report
with discussion of the subject of bank ex-
aminations, and a consideration of the finan-
cial troubles of May, 1884.