The Republican journal. [volume] (Belfast, Me.) 1829-current, 1884-01-10
Surplus Revenue.
HOW II WAS DISTRIBUTED AMONG THE
STATES. SHALL INSTALMENT NO. BE
PAID.

HOW II WAS DISTRIBUTED AMONG THE
STATES. SHALL INSTALMENT NO. BE
PAID
At recent meeting of the Philoso-
phical Society i'll Washington, ID. G.,
Mr. John Jay Knox, comptroller of
the currency, read an interesting
paper upon the distribution of the sur
plus revenue among the states. He re-
viewed the history of the national tinan-
ces up to jar. l. 1896, at which time
the nation was free from debt, and pos
sessed a surplus of $4,000, 900. which
had been deposited in tavorite state
banks by order Of President jackson.
He next described the passage by Con-
gress Of the act of June 23, 1886, which
provided for the deposit with the treas
urers OF the several states of S37 ,46S $50
III four instalments during the year 1887
the secretary Of the treasury to receive
certificates of deposit theretor-W which
should express the usual legal obligation,
and pledge the faith Of the state for the
safe keeping and repayment of the de
post from time to time, whenever the
same should be required. The first
three instalments were deposited. Be
fore the last lnstalment, payable Gn the
first day OF October, was transferred, a
series OF financial disasters eliminated
in the crisis of 1887, and there was
no surplus to deposit. Further legislat-
ion was deemed necessary, in this EN-
ergency, and an extra session of Congress
was called by President Van Buren.
During this session, a bill was passed pro-
Vidng for the postponement of the de-
nf bn !,
|, l-39, and also providing that the de-
poslts shonld not be subject to the requi-
sitlon of the secretary of the treasury,
but should remain until called for by
Congress. On the lSt of January, 1899,
there We're no funds in the treasury avail
able for the payment ut the fourth install
ment, and since that date there has neV-
er been a surplus in the treasury above
the debts and estimated expenditures Of
the government Thn amount OF the
three instruments was 80, lOl ,643, and
the amount placed in the treasury of
each state has since been carried among
"unavailable funds of the general
treasury" The fourth inStalment has
never been transferred OF deposited, and
recently the states OF Virginia and Ar
kansas have applied TO the secretary of
the treasury for its payment. i is gen
orally believed that the money deposited
by the government with the different
states We're for the most part wasted or
employed in works of internal improve
mentS which We're unnecessary. 1t is
known that the states of Massachusetts,
Connecticut, New York. New jersey.
Pennsylvania, Delaware, Mary land
North Carolina. Illinois, Indiana, Ken
lucky, Ohio and Missouri appropriated
considerable portion Of the income from
this fund TO the support Of pu lie
schools and that in many of these states
the income from the whole fund has been
from the commencement devoted to etiu-
cation. Mr. Knox said that the govern
ment had assumed the Arkansas bonds
formerly held 10y The smithsonian insti-
tute, and that the government also held
a large amount of the bonds of Virginia
and Arkansas, aS in the Indian trust
fund He thought if legislation should
be obtained authorizing the payment ut
the fourth instalmtnt to those states,
such legislation should provide that the
payment be made in the bonds now held
ty the government
Hon. Hugh McCullorh. who partici-
pated in the discussion, said that in In
diana onr-halt If the money deposited
had been loaned to individuals on land
ana mortgage and the other half pat into
stock ct tile state bank. In a financial
crisis the first b. II was practically lost,
but tine loss was made Good UY the bank
stock, upon Nhch dividends ~crr rrgu-
Iarll paid. and hN which the investment