The semi-weekly miner. [volume] (Butte, Mont.) 1882-1886, 1886-02-27

Indictment by Grand Jury, except in
raa"s in the land or naval forces or in
militia when in actual service in time OF
war or public danger.
Mr.. ElIsbury, from the Committee on In
valid Prisons, reported a bill granting pen
siOns to all invslid soldiers or their widows
or children who are dependent upon their
daily labor for support.
Mr.. Buchanan, from the Committee on
Claims, reported bill for the relief Of the
survivors Of the exploring steamer jean
cite" and the widows and orphans Of those
who perished in that expedition.
UNEARNED GRANTS.
The Committee on Public Lands re-.
ported a bill granting the right Of way in
Montana Territory to the Cinnibar Il
tlark's Fork Railroad Company. The
morning hour WAS consumed in the consid-
GRAFTON Of the hill to annex the northern
part nf Idaho Territory 20 the Territory of
taken. The House then proceeded TO the
consideration OF the business on the House
calendar.
The bill on the calendar forfeiting the un-
earned grant of the Atlantic & Pacific Rail-
way Company was then taken up. On
motion of Mr.. Holman an ame 1dment was
adopted providing that the forfeited land
shall he subject to settlement urder the
homestead law only. A substitute t.f red
by MIR. McRae on behalf of the minority
ommit tee on Public Lands, forfeiting all
the time limited by the granting act, was
debated briefly, and was rejected. aud the
bill was passed without division or rejec-
ton.
HEWITT ON THE TARIFF.
Mr.. Hewitt, representing the minority Of
the Committee on Ways and Means. to-day
submitted report on the Morrison bill
direrting payments of the surplus in the
Treasury exceeding $1OO.OOO,OO in liqui-
datiDn of the National debt The effect
Of the resolution, says the report, ii en-
acted into law, would be to r. duce the
balance in the Treasury available for pay
ment of its current indebtedness and for
the redemption cf legal tender notes to
$lOO,OOO.O %. but it makes no provision
for repIenishing the Treasury when the
available balance shall fall short of $1OO,
600 900. The question thus presented is,
whether in view of the obligations and
functions of the Treasury as now defined
by law, the proposed li,nita tion on balance
now held for meeting the liabilities payable
on demand is prudent and safe. In view of
the pledge of the United States to redeem
all it's indebtedness in coin or it's equva-
ltHt, tHc UUucTHtSuCu UcHctO CudC SuCl u
limitation would be unwise and dangerous,
ami at variance alike with the experience
Of solvent nations and Of sound financial
Institutions.
The ORDINARY DISBURSEMENTS
Of the Treasury. it may be roughly stated.
amount to 100000, and to meet this dis
bnrsernent it is necessa rv that reasonable
working balance should he kept on ha nd,
hecause at times current expenditures
largely exceed the daily receipts. Caref il
business firms usually carry balance
equal to one months disbursements, and
measured by this standard. a lower one
could not safely be adopted, beca use the
8 cretary OF the Treasury has no power to
make Temporary loans. the working hal
ance in the Treasury should be about
So. .OOn,OOO. That this amount is not
too large will be apparent from the fact
that in the Pension Bureau alone drafts
for $40. 900 900 will be made on the first
OF March, and the amount OF probable
payment under the Arrears Act cannot be
fixed for any specified date. But beside
the current expenditures provided for b
law the United States has totally dis met
obligation to provide for a debt payab bic
on demand in the shape Of $346 G81 ,Ol6
of legal tender notes. These notes form
about One-half Of the paper currency.
They constitute the final means OF pay
ment between individuals and OF the settle
ment OF all transactions OF business. 1t is
absolutely necessary, therefore, that the
ability to redeem these notes in coin should
be at all times assured beyond peradven-
ture. The only question 10 as to
The AMOUNT OF COIN.
- - ~ ~. constitute reasonable and ade-
qnate reserve. To determine this point we
have no other g ide than usage and exreri-
ence. In the case Of gold and silver certifi-
e.. tes. the Treasury keeps dollar for dollar.
but in the case of legal tender notes it has
not been usual to have at any time in the
Treasury reserve in coin exceeding one
half of the whole issue OF such notes.
When specie payment was resumed the
bonds of the United States were Sold so Ms
tn provide fund amounting to $95 .OOO,-
900 in gold for the purpose of assuring the
redemption OF the notes, which, az law
then provided, were to be reduced by can
collation. to $3OO,OOO.OOO. 1t was Ger
tainly not considered sale to bring resump-
ton with less than One-third reserve,
and as q matter OF fact, the available
balance in the Treasury amounted to over
40 per cent. At the present time. under
the practice of the Treasury, claimed TO he
in accordance with the bank act OF 1882.
$lOO.OOu. 900 in gold coin is set apart for
the redemption OF the legal tender notes,
being rather less than 20 per cent. This
reserve would be regarded by
PRUDENT BANKERS
as a minimum amount in q y easy money
ma arket, but If the financial prospect should
be threa tened, prudence would require that
it should be enlarged and strengthened.
The practice of the Treasury under ~ecre-
tary Sherman, who put the resumption
act in operation was not to allow the re:
serve to fall below 40 per cent; an all
things considered, this is probably the
smallest amount consistent with absolute
safety. II this ratio should be adopted. the
amount OF reserve in coin would be Sl33,-
600. 600. Adding the amount to the
amount heretofore stated as reasonable
working balance, we havethe sum OF Sl6o,-
900 900 as the minimum baldn"e " hlch the
Treasury should carry in order to be in
condition Of ease and safety. Any other
conclusion is at variance with the lessons of
experience and well-esta blished rules Tor the
sale condition OF business. The main argu'
,nent for infringing on this bal,nc must
he the sa wing nf interest on $6S, 10000
which, after allowing for the tax on bank
circulation il 2h per cent. per annnm,
amounting to Sl,7OO,o 900 annually. But
it il to he remembered that the demand
debt of the United states represe ted ny
the legal tender notes, bears interest and
that the gain in interest between the total
amount and the proper reserve IS over
"a, ,OUO.OO per annum. s" that the Gov.
ernm mt cou we'll afford TO outlaw it. II
required to ke-pits finances in the strongest
prssible condition, and it should certainly
never approach u point, whtr under toe
law it may bee ONE necessary to sell United
States bonds in order
TO PRESERVE SPECIE PAYMENTS.
Such contingency would be an edifying