The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1884-01-01
THE SURPLUS REVENUE.
Comptroller KsOx Upon Its Distribution
Ameng the States OF she Union.

WASHINGTON, Dec. 31.--At recent meet
ing of the Philosophical Society, Mr. John
Jay Knox, Com ptrolleF of the Currency, read
an interesting paper upon the distribution of
the surplus revenue among the States He re-
viewed the history of the national finances up to
Jan. 1, 1885, at which time the nation was free
from debt and possessed surplus OF SAC, ,OO0.-
GOO, which had been deposited in favorte
State banks by order of President jackson
He next described the passage by Congress of
the act of June %, 1886, which provided for
the deposit with the treasurers of the several
States of $37, ,46S, ,S59, in four instalments dur
ing the year 1887, the Secretary of the Treasu-
ry, to receive certificates of deposits therefor
which should express the usual legal oblga-
tion and pledge the faith of the State for the
safe-keeping and repayment of the deposit
from time 10 time, whenever the same should
be required. The first three instalments were
deposited Before the last instaln1ent pava-
bic on the first day OF October W g transferred
a series OF financial disasters culminate in
the crisis of 1888, and there was no surplus to
deposit. Further legislation was deemed
necessary In this emergency, and an extra ses-
sion OF Congress was called by President Van.
Buren,. During this session bill was passed !
PNON1uiuE lOr pubtpUubnODB OF the deposit
of the fourth instalmenJ until Jan. 1, 1885, and
also providing that the deposits should not be
subject to the acquisitions of the Secretary OF
the Treasury, but should remain until called
for by Congress. On the first of January, 1888,
there we're no funds in the treasury available
foI the payment of the fourth instalment. and
suce that date there bas never been surplus
IN the treasury above the debts and expendi-
tures of the government. The amount of the
three ins'alments was $a8,10i645ss and the
amount placed In the treasury of each State
has since been carried among the unavailable
funds of the general treasury The fourth
instslment has never been transferred or de,
posted and recently the States of Vifpidfa
and Arkansas have applied to the Secresdfy of
the Treasury for its payment. 1t is generally
believed that the moneys deposfted by the
government with the different>States were for
the most part wasted or employed in works of
Internal Improvements which we're unnecessAy.
II is known that the S ateS OF Massachusetts,
Connecticut, New York, New jersey, Penn
sylvania, Delaware, Maryland, North Caro-
lin+, Illinois, Indiana, kentucky. Ohio and
Missouri, appropriated considerable portion
of the .ncome from this fund to the support of
public schools; s..d that in many of those
States the income from the whole fund has
been from the commencement devoted to ed
ucat'on. Mr. Knox said that the government
had assumed the Arkansas bonds formerly
be Id by the Smithsonian Institution, and that
the government also held a large amount of
the bonds OF Virginia and Arkansas IN the
Indian trust fund. He thought if legislation
should be obtained authorizing the payment of
the fourth instal ment to those States, such
legislation should provide that the payment
be made in the bonds now held by the govern
ment
The Hon. Hugh Mccullough, who partici-
pated in the discussion, said thst in Indiana
one-half of the money deposited had been
loaned to individuals on land and mortgage,
and the other half pat into stock of the State
:, : 6 ssiel crisis the first half was
pracf1cai1y fost, but the loss was made good
~ she 3ank stock, ppou which disidends we're
nd ~
was eventually doubled. Since the closing OF
the bank the money has constituted the school
fund Of Indiana.