Morning journal and courier., 1884-11-27
News by Telegraph FROM ALL QUARTERS. THE NATIONAL BANKS. A Plan For Funding the
 Debt. MONEY FOR NEW CRUISERS Not To Be Expended By
 Chandler.
X CRANK AFTER CLEVELAND
But Not Admitted To His
 Presence.
THE FUNDING OF THE DEBT.

THE FUNDING OF THE DEBT. Plans Suggested By The Comptroller | Of The Curren ncy I'm His Annual Report.
 WASHINGTON Nov. 26.-Comptroller of I the Currency Cannon has just completed his l annual report. That portion of it devoted to national bank statistics shows that during 1 the year ended November 1, 1884, 191 banks
 were organized with an aggregate capital of ST, ,042, ,23O and with $3, ,867, ,230 circulation.
 Since the establishment of the national bank ing system in 1863 there have been organized 3,261 national banks and of this number 2,671 were in existence November 1 last, the largest number that has been in operation at
 any one time The corporate existence Of
 ninety banks expired during the year, of which eighty-three have been extended. The corporate existence of 154 banks will expire during November and December of this year
 and 720 banks with an aggregate capital of $189, ,0OO, 900 will expire during 1885. Elev- en banks failed and were placed in the hands
 of receivers dnring the year. The items of
 resources and liabilities tabulated in the re- port indicate that the business of national business during the past eleven years has
 generally increased. The aggregate iabili- ties of national banks to depositors and cor respondents were reduced during the year
 more than $94, ,000, ,000. This reduction of liabilities and general reduction of loans by
 banks-which amounted to more than $63, GOO, 900 during the year-was doubtless
 caused, the comptroller says, by the financial troubles of last May and the general depres-
 sion of business. Upon the general subjects
 of circulation and refunding the comp
 troller observes that upon the present
 basis of organization the banks in existence
 would require minimum of but SS0, 1885,
 127 of United States bonds in order to con-
 tinue in banking associations. The time of
 the payment of the debt is, however, the
 comptroller says yet distant and with ap-
 propriate legislation there will be for many
 years no lack of bonds as g. safe basis of cir
 cuIation. Moreover, no feasible plan with
 other security has as yet been suggested af-
 fording @ sound currency by demand in
 specie and he believes it is extremely doubt
 full whether after the experience for the last
 twenty years with the safe and convenient
 currency issued by the national banks the
 people would be satisfied with currency
 based on any security other than United
 States bonds. On November 1 there were
 $194, 19O, 500 of the 3 per cent. bonds paya-
 ble at the pleasure of the government.
 These bonds will probably be paid within
 the next two years even if considerable
 changes are made in the tariff and from 1887
 to 1891, when the $25O, 1000, ,O0O 4115 per cents.
 mature there will be bonds which the
 in for No
 doubt the accumulation of surplus revenue
 if it continues to accrue at the present rate
 during the four years between 1887 and 1891
 together with the revenues of 1892 will be
 more than sufficient to pay off the 41a per cents. and from 1892 to 1897 it will be i'm
 possible for the government to use any of
 it's surplus revenues for the payment of it's
 bonds except at the option of their holders.
 It is apparent that the government canned
 accumulate and hold it's surplus revenues
 even during the short period from 1887 to
 1892 without great disturbance to the busi-
 ness interests of the country, much less can
 from 1899 to 1907 It appears
 therefore that the foregoing considerations
 should be given due weight in any plan for
 the funding of tue 4 per cent. bonds matur-
 ing in 1907 and therefore the comptroller
 suggests that the principal difficulties of the
 situation may perhaps be obvlated as we'll as
 the reduction of interest effected by funding
 these bonds into others which shall mature
 in proportionate amounts at certain fixed
 periods. Thus the $73S, S,000, ,O00 of per
 cents might be funded into an, equal amount
 of 3 or 21a per cent bonds, one-ffth of
 intervals of five years, the first in
 stallment falling due July 1, 1897, and
 the remaining insta1lments of S147, 500, 900
 each on the first of July in the last year of
 each succeeding period of five years, viz, 1902 1907, 1912, 1917 The average matur-
 the same as that of the present per cents, viz, July 1, 1907. Whatever course may be deemed expedient by Congress respecting the funding or future payment of the public debt, the comptroller thinks it perfectly safe and that it will afford great relief to permit an issue by national banks of a circulation to the extent of 100 per cent. of the par value of bonds deposited instead of 90 per cent. as at present. Even admitting that the bonds representing the public debt when funded at lower rates might at times he below par in the market, the government would, if forced to redeem the notes of in solvent banks, always have the right to can eel the bonds in deposit, securing the notes and thus extinguish an amount of it's debt equal to the notes redeemed. Taxation on clrCulaC1On, the COmpbTO1l6r suggests, m1glG be abolished and thus the profit on circula- tion may be increased to a point which will induce the banks to keep up their circulation to maximum and stop the contraction now occurring If this tax be abolished all of the expenses incurred by the government in keep I ing up the national banking system should be paid by assessment of the banks In con I cluding 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 pre- sent paper circulation made up of legal tend CT and national bank notes and of gold and silver certificates is ample for all the needs of business He believes, however, that the ! sudden contraction of national bank ] circulation which without appropriate I legislation is imminent will seriously emhar- rass the business of the country, and that if ! this construction is permitted to go on, it | may result in the entire discontinuance of \ the issuance of notes by national banks. The | comptroller believes that this form of cur | rency, which can be increased or diminished | in accordance with the natural laws which | control business, should be continued in preference to anything now permitted by ! law.
 Logan Gives Up His House.
 ! WASHINGTON, Nov 26.-Genera1 Logan i has given up the house rented by him last summer. He says that being now only a f Senator with three months to serve he has no need of house.