The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-10-26

somewhat More than half the purchases dur
ing the past year or two have been mace in the
London markets, by the United STATES agent
there. There is no difference in the quality Of
silver purchased on the London market and that
bought at New York, Carson City or San Fran
cisco. 1t is bought by the ounce, and generally
in lots of about 2, 600. 900 ounces.
One of the strongest arguments used against
the coinage of the silver dollar, is that it does
not contain the intrinsic value represented on
its face. and that it is liable, therefore,, to f1uctu-
ate. When the standard silver dollar was fixed
upon by Congress, however, it was determined
to make it of the same weight Of light coins
throughout the world. 1t contains 4l2A grains
of silver, and is a legal tender for all kinds of
payments IN the United States. In New York
and other great seaports where the silver dollar
is in prejudice, it is worked off on the government
very largely, in payment of customs dues. The
government is bound to receive this money in
liquidation of any claim it holds against the
people. The government is therefore its great
est customer for this money. There is now in
circulation about $3.50. 900, 900 in coin, of which
about $3.50. 900, 900 is in gold. Under the present
regulation of the Treasury silver is being circu-
lated much more rapidly than in former years,
and is reaching a greater aggregate among the
people. The minor coins have always found a
very ready circulation, and seldom bank up in
the Treasury to any alarming extent. There is
at present less than one million dollars worth of
them on hand. There are about 200. 600. 900
standard silver dollars in the Treasury and at
the different minis. Usually the Treasury holds
about $500, 900, 600 in all kinds of money The
Treasury has now outstanding about $3.50, 900,
600 of its own notes. The outstanding silver
certificates aggregate about $l20. 600, 900. and
there are about 1920, 500, 900 of gold certificates.
The fractional currency the government used to
issue was stopped in 1876. There is yet out
standing about $l5, 900, 900 of this money.
The government is constantly ~profting by
money that is lost and never found, or destroyed
by fire or flood. or through disaster of seine
kind. The aggregate gain is probably g., 600, 900
a year to the government.
The counterfeit money captured each year is
nothing like the amount people generally be-
lieve. The coin and notes captured last year
aggregated scarcely 5000. Large sums of mu-
tilated currency are being redeemed at all times,
however. There is a practice by the banks
throughout the country, and especially in the
West, of imposing upon people who have mutt
lated currency In redeerning it. For instance, !
remember to have been in a bank in Indiana q
few months ago when a customer entered and
produced a $50 bill with the corner torn off the
size of your two fingers. The banker scanned
the note closely. and being satisfied it was genu-
inc said he would take it, but must discount it
300. The owner of the bill looked a little ask
ance, when the banker said he would have to
send it to the Treasury Department for redemp-
ton, and could not get over $4I so for it. The
banker must have been misinformed. Wbenev-
er the government redeems a mutllated or ruined
note it always pays its face value. The govern
ment never scales it's obligations. If they are
taken at all it is at par.
The national banks in many parts OF the coun-
try are designated by the government as depos-
itory banks, or national repositories. This is
for the purpose of affording places where the
government agents can deposit money for the
government, and where the latter can draw or
ders without having to pay express charges or
the expense of exchange. In other words it
affords the government opportunity to
keep it's idle money in many differ
emit places for the convenience of the
people and its own economy. The repositories
are always limited in the amounts of the govern
ment money they may have on hand. When
ever that limit is reached the money beyond it is
promptly forwarded to the Treasury, or some
other depository not having its limit, located
near the Treasury.
It is not generally understood that the govern
menti is a bank of deposit for the people. Citizens
may 90 to the Treasury here. or to any sub
treasury, and deposit money and receive a certif-
icate of deposit. just AS they would receive it at
other banks. The certificates are payable on
demand in current funds. They bear no inter
est.
The Speaker of the House of representative
is a disbursing officer of the government. and his
accounts often become very complicated and
make much trouble. The salaries of the mem
bers of Congress are paid upon certificates issued
by the Speaker, and aggregate about 81, 900, 900 q
0oL hO opSohS 6hNN5 az WILMA Va NookoSg
there could be collision between him and the
members cf Congress, and fraud committed. and
q fleeing to Canada would follow, just as we
often notice in the cases of officers of trust
everywhere. The Treasurer of the United States
has been asking for some time that this duty be
taken from the Speaker of the House of Repre-
sentatives and placed in the hands of a disburs-
ing officer, regularly qualified, and held response
BILE for the faithful performance of the work.
For three or four years the circulation of
national banks has been steadily decreasing. The
government holds bonds to secure circulation of
the banks to the amount of abont $3.50. 900, 900,
The amount deposited each year for some time
has been about $40, 600, 900 less than that with.
drawn. National banks are withdrawing their
circulation because of the uncertain condition OF
the bond market and the likelihood of the gov.
eminent to call in for redemption the bonds de-
posted to secure circulation. Congress-, this
winter, will likely increase the per cent. of cir
c~ulation, which is allowed on bonds deposited, to
| one hundred cents on the dollar, instead of 80
per cent, as at present. 1t is also proposed to
authorize the issue of several hundred millions
Of 2 or y per cent. bonds, and to run about fifty
years. and intended for the use of the national
banks for depositing with the United States
Treasury. This would give a stability to bank
es which they have not now. The bonds held
by national banks at present bear interest at
from 81 to 6 per cent, are worth from 4 to %
per cent. premium. and are liable to be called in
for redemption at any time.
In my next letter / will tell how the army and
navy are managed, the character of the life their
members lead, and the money and fame the men
achieve in the line of duty. p. S. HEATH.
Grant Said Nothing, but His Jaw Clicked.
Philadelphia Special.
Mr.. Purvis made an interesting comparison Of