The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-12-02
gold, and adds that there is at present no sur
plus gold in the Tpeasury. The Secretary saws:

certificates suspended there danger that
and not gold may become metallic standard.
This danger may not be imminent. but it is of so
rious character that there ought not to be delay in
! providing against it. Not only would the national
credit be seriously impaired if the government should
be under the necessity of using silver dollars
titicate in payment of gold obligations but business
of all kinds would be greatly disturbed; not only so,
| but gold would at to be circulating
dunn and severe contraction would be the result
The United States IS one of the most powerful of
nationslts credit is high, its liness; but
it cannot prevent depreciation of silver unless its
efforts aided by leading nations of Europe. If the
coinage of silver is continued in despite of the action
of Germany in demonetizng it and the limitation of
ITS coinage by what are known as the Latin nations,
there can be but one result silver viii practically be-
come the standard of value Our mines produce
large amounts of silver, and it is important there
tore, that there should be good demand for
it at remunerative prices for the OUTLAWS in
obtaining it, The suspension of its coinage
might depress the market price of silver
for time but the ultimate effect would doubtless be
to enhance it. The metal which oriental nations and
some western nations use exclusively for eoin-apd
all nations to eNtent--which COSTS in the labor
and capital required 20 extract from the mines
than its standard value coin, cannot be perma-
nently degraded by artificial means The production
of gold is diminishing that of silver has practically
reached its maximum, and there strong indica-
tens that from this time the yield Of both gold and
silver mines will speedy decline. At the time
the demand for both for coinage and manufactures
will increase. The very necessities of the commercial
world will prevent general and continued disuse of
either as money The European nations which hold
large amounts of silver must, later, to
its rescue and the SUSPENSION of coinage in the United
States would do much to bring about their part
ton in its favor But whatever might be the effect of
the suspension of the coinage upon the commercial
value of silver it is very clear the coinage cannot be
continued without detrinent TO general business and
danger to the national credit.
The coinage of silver dollars under the act of Feb.
%, ISIS has now reached the very large amount of
1874, $50, S29 being increase of $2S, COS, $50
for the year ending Nov. l, 1884. The amount of
these dollars in actual circulation is 81 326 1856
The increase in the circulation for the year has only
been 81 346, against an increase of - l36,321
for the previous year. These figures of themselves
inSuperabe argument AGAINST the continued
coinage of silver dollars.
The Treasury would be relieved in a measure from
the burden of the silver held in the Treasury by
withdrawal from circulation of the and two-dol
lar notes This would not be gain to the Treasury,
but it would be gam 10 the country by increasing
the amount of silver in circulation
The amount Of one-dol ar notes in circulation is
circulation is 500, 77s, 73s 90 Congress would, /
think act wisely in putting end to their circua-
ton. Nor do L hesitate to express the opinion
that the country would be benefited if all fve-dollar
notes should be gradually retired and the coinage of
half and quarter eagles should be increased If this
should be done the circulating medium of the United
States below dollars would be silver and gold and
should be following the example of France in
which there an immense circulation of silver coin
which in all domestic transactions maintains parity
with gold.
The substitution of gold and silver for small notes
would be productive of some Inconvenience. but this
would be temporary only. If the ive-doar ties
should be withdrawn, the Treasury would be relieved
from the burden of silver in its vaults, and it would
not be long before the coinage of silver might be
sumed-
The details of the operations of the minis are
then given, the facts and figures of which have
heretofore been printed in the report oe the Di-
rector of Mint
The Secretary invites attention to the pressing
necessity for the recoinage Of the subsidiary
silver coins of the United States. The decreased
intrinsic value of these coins, owing the marked
decline in the price of silver, renders it advis-
able to increase their weight SO that they will
correspond to fractional subdivisions of the silver
dollar, and he advises the retirement of the trade
1O11a NV flo 4hor 41,ai, h,,1
lion value for surrender at the mints, the offer
to remain open only for one year.
NATIONAL BANKS
The Seeretary's observations under this head
are given in full
The number of national banks in operation Nov.
l, 1854, was 1872. The number of ma
/, 1884, was 1871 with an aggregate Capital
of SIC 042, $50. Circulating notes have been issued
to these new associations amounting to SO S54 $50
These banks located by geographical division
follows: Eastern States ten banks, with capital of
$4,000 Middle States twenty-five banks, with cap
ital of 81 II, $50; Southern States thirty banks
with capital of So. 991 100; Western States, 1O2
banks with capital Of SIS, 9o5, $50: Pacific States
five banks, with capital of $3.50, 600; Territories,
nineteen banks. with capital of 81, IA, 900.
Since the establishment of the national banking sys-
3261 national banks Of these, 4S9 have gone into
voluntary liquidation by vote of shareholders owning
twothirds of their respective capital and 100 have
been placed in the hands of receivers for the purpose
| OF closing up their affairs
The aggregate capital of the national banks of the
United States on Oct l, 1884 was 1924, 266,-
345, the surplus $147,o 1873 %; the circula
ton was $289775, 123j the Individual deposits
1913, 259 295 Ia; the loans and discounts were
vi, 24OO10t79I.O2; the amount of specie SIPS,
09,47473; the United States bonds to secure ercu
lation were 1927 ,435, 600 and the United States
bonds to secure deposits and for other purposes
| $50 ,419 600.
Eleven nationel banks, with aggregate capital of
81 2S5 GOO have failed and been placed in the hands
of receivers during the year ended Nov. l. 1884, The
corporate existence of eighty nine national banks
PRED during the year. of which eighty have been
extended under the act Of July H. 1882 The share
holders of five national banks have permitted their
corporate existence to expire by limitation during the
year. three of which succeeded by other assoca
tons in the same places and with nearly the same
shareholders, and national bank was placed in
voluntary liquidation by vote of shareholders owning
twothirds of its stock The corporate existence of
III national banks, with aggregate capital of
$1s9,07l ,475, viii expire during 1885
1t will be noted that the circulation decreased $25
l56, 432 during the year. The bonds deposited to
cure circulation, which decreased SO 613 $50 in 1888
still further reduced $25 442 800 during 1884
a reduction of $50, 055 $50 in two years.
The per cent bonds Of the United States have now
been reduced to less than two hundred millions, and
they will be further reduced through the operations
of the sinking fund by nearly City millions each year.
The market prices of the 4 per cent. and the Ale
per cent bonds of the United States have declined
somewhat during the past year. but that these bonds
still too high to enable banks to base circulation
upon them at profit is plain from the fact that the
circulation has been voluntarily decreased more than
$25, DOC, 900 during the year.
Among the measures of relief recommended in the
the face value of the bonds deposited bill TO author
ze which passed the Senate duringthe last session of
Congress the acceptance of the 60 per cent bonds
of 1924 of the District of Columbia the payment of
which is guaranteed by the United States; and a re-
peal of the tax circulation. l earnestly commend
these propositions to the wisdom of Congress- beEev
ing that if adopted they viii enable banks which
contemplate surrender of their circulation in conse.
quence of the calling of their per cent bonds to main
tain it on the long time bonds with small profit,
at least without loss.
Inasmuch about $4,000 600 of the circulation
OF 1S has z hon g1ybieh
are redeeInable and being rapidly redeemed,
remedial action cannot be postponed beyond the present
session if a rapid reduction Of banl-note circula
lation is TO be avoided Tie subject is a very i'm
portant one, and should receive immediate attention