New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-12-31
PRICE THREE CENTS.
THE TREASURY SURPLUS.
Mr.. SCOTS SCHEME TO DISTRIBUTE IT.
PROPOSING TO SCATTER 1T AMONG THE NATIONAL
BANKS IN FIFTEEN CITIES AT PER CENT.
NO tn Tur rpfuuwv


fBr TELEGRAPH TO THE rRrsUSEI
WASHINGTON. Dec. 3O-Congresman w. l.
Scott, of Erie, Penn, proposes the first eppor-
tnnty to introduce bill in the House providing
for the distribution of the surplus revenue. He
believes that unless some plan is adopted this
sion for getting into circulation among the people
the money now going into the lreasury at the rate
hundred millions of dollars annually in excess
of the needs of the Government. an extra session
must necessarily be called TO take action on this
subject. He says that while the emergency may
not be upon at the moment the situation Is such
that Congress will fail IN Its duty to the public II
consideration of this question is postponed Tho
following is q rough draft OF the bill which he IN
tends to offer:
Section THAT the Secretary Of the Treasury be and he
ynits states deposit. MS from time 70 time
the cities Of Boston in the State Of Mssaenaset New
y Yor in the of ra s & 81 % al, sai.
Charleston j" the state So6,h Carolina ia
Ss T. %. 4 ;Ss S;ss b.s s
State Of MIchsSn Miiwaukee IN the state Of wisconsin,
Shicsgo in me state Of Illinois 5. Paul n ,ss state Sf
surplus in the Treasury OF the United states not
S"feS % @ss maturing
n%n nes nf p sSs % re provided
: SPy made e ns %s%h in s s:r
per annum for ye consecutive aud which shall have
ns above s III Ss
sss than Of 20 per Sse The he sag'
H. e, q s .s.S q Ss.. @ rqs @
tine TO time such urpms moneys herein spscaed 70
stock such bank banks such deposits be sab
se sE under a
re.sy o tc ssh bank or banks in which such as
posts are made shall pay Interest at the rate Of .rs ns
@ ,s, @ sasR aepests pos sa aD banks.
made
shall be hrst lien all The Of such hank oanks
banks which such deposits ma 10 and which may f 70
af s ssS1 s9 as herein proSie AMI the said DRAFT traits
the United states shall be receipt re- s or ressp
the money drawn from such bank Or banks -. .r,.,
ua sf'GH the a sf' January S''s ss
depss herein provided shall be made T. D"T;
Saae under the Of hi. act in sac1 bank or banks
an and not Of ais % ans % as % s at nn o SaS
banks by the s Of the Wnsd IN sa s 20 O. Ssoes
the Sub ifessar e. OF the Dited States
n6 so 9 pro q1 o. ses0o ea 81 ,a
three exsnde bonds OF the United states shall
act are hereby repealed
In speaking of the matter Mr. Scott said: :" am
we'll aware that the prevailing sentiment IN Con-
gress is against the bill propose introduce; but
in my judgment these objections are based entirely
on false pre- 1t won't do to associate the Ma
tlonal banking system of to-day with the Bank OF
the United States and the old stare bank system
of the days of JAG 1son whicl virtually caused tho
establishment of our present Sub Treasury system
Banking As carried to-day, is as different from
what it was between the years 1880 and 1910 rs
the existing system of cOmmunlcation telegraph
ing and mail service is different from what 1t was
at that time. The prejudice In the Demo-
cratic party to-day against National banks,
Or in fact any banks. is an inheritance
from the fight that Jackson made against
the United States banks well as State banks and
in favor of Sub treasury But ii we stop minute
and reflect upon what the Sub Treasury is today
and what it was intended by its founders TO be. We
are at a loss to conceive how such radical aud
fundamental change could have been ma lie in tho
Institution The prominent idea of the Sab Treas
ury was to separate the money of the Government
from the money of the people, but to-day the sub
Treasury is the depository of the reserve com OF
the country aud IS doing banking business on
scale thaC would make Nicholas }lddle shake IN his
grave If ne could only be cognizant of what Is GO
ing OH here Ii is undemocratic in every Of
the word.
Now. the money of this country belongs
to the people of the country that
IS, all money not absolutely required
by the Govern nent to meet the expenditures under
an economical administration Of affairs. should be
IN the hands of til people. But under our present
system of taxation the sub b-Trea,u are gather
ing inlo their vaults the very febood Of the peo-
pie, namely their money. to the extent of hundreds
OF millions of dollars and above the necessities
of the Government and as matters stand to-day.
there III no possible way for this money to be redis-
trIbuted, should the demands of the country re-
qure IT, unless by some such bill as propose to in-
troduce. By October out of the surplus money
now 10 the Treasury all the extended per cent
bonds will have been called aud II is estimated
that the surplus for the fiscal year ending June
so next will be from $1oOO0,OOO
to 500 100000 Consequently 1t IS noe
in the power of the Secretary of the Treasury
to afford relief to the business community by the
methods heretofore adopted by him aud which 10
was IN his power to adopt IN connection with bond
calls In my judgment the great question ahead.
and which Is going to be a most serious one Ia with
re ,pect TO this large surplus ich has already ac-
cumulated and which will continue to accumulate
IN tho Treasury. Tue people of this country can
very easily stand unjust taxation to the extent OK
$lOO O00 900 ye and not teel 1t, but they can
not stand having these taxes when they are col-
lected IL the form of money deposited in the Treas
ury, thus being Withdrawn from tho
ordinary channels Of circulation My bill
Is simply intended to provide for any temporary
contingency that may arss before Congress can re-
duce taxation and thus relieve the Treasury vi this
annual accumulation OF l0O,O0O.OOO more than
the Government requires"
do you think there will be an extra session OF
Congress n was asked.
al can see nothing that is likely to require an
extra session OF Congress or which would make It
imperative upon the President To call one except
thus monetary question. II no action by the pres
ent Congress regard to the reduction Of revenue.
some such plan as that suggested by thls measure
will enable us to tide over unril Dccemb r, 1887.
when Congress will Of necessity have to draft some
policy IN connection with the tariff and revenue re-
form II has been clearly demonstrated that efforts
on the part Of the Treasury to anticipate tho
interest on outstanding government bonds can
afford no rauef 10 the husInsss element and tue