Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1886-12-09
THE TREASURY.
Synopsis Of Treasurer Jordon's
Annual Report,
Showing the Receipts and Expenditures OF
the Government for the Past Fiscal
Year-The National Bank
and Silver Questions.

| WASHINGTON, Dec 6-The annual report
| of Mr. Jordan, Treasurer of the United
| States was given to the press to-day. Mr..
| Jordan presents very comprehensive re-
port of the operations of the treasury for
| the fiscal year ended June 80, 1886, and it's
condition ON that and subsequent dates.
| The net receipts of the Government for
| the fiscal year were 1886, 439 727; the net
expenditures We're S242, 4S3, 1873. The re-
| ceipts were S12, 749, 029 greater, and the ex-
penditures were ST, 743, 796 less than last
| year, making an increase in the net re-
ceipts for the past fiscal year over that of
| 1885 of $50, 49,, SIT. The excess of revenue
over expenditures was s92,956,5S9.
| During the year bonds amounting to
| S44, 531 $50 were redeemed and applied to
the sinking fund.
| Treasurer Jordon suggests revision of
| the method heretofore adopted in making
up the sinking fund, by which the sinking
| fund charge for the current year will be
| S37 436, ass instead of $40, S43, 72S, according
! to the present method. BY the present
method the entire debt of the United States
will be retired by the year 1905, and if the
method suggested by Treasurer Jordan is
adopted the debt will be eXtinguished by
the year 1913
| At the close of the year the United States
| bonds held as security for National bank
! circulation amounted to SIZE, 914, 900, a re-
| duction of S36, 10000 duriug the year.
! Three per cent. bonds amounting to S34,
! 45S, $50 were withdrawn during the year,
| most of which was surrendered for re-
! demption. The amount of bonds deposited
during the year was SIG, 924, 900, and the
| bonds withdrawn amounted to SOL ,062, 400,
! showing decrease of S31, 117.5N0 OF the
Of of nj ho,,1
notes of late years Treasurer Jordan says
''The National bank notes presented for
redemption during the fiscal year amount
ed to $3.50, 296, Cos, which was Sl9,912, 523, or
! 1926 per cent less than the amount pres
ented for redemption in the fiscal year
I 1885. That there would be a falling off in
the amount presented durlug the first
three months of the fiscal year, and my
opinion, based thereon, and expressed in
my last report, that the eliminating point
in the second upward movement
been reached in the fiscal year
1885, has been verified. The rate of in
crease in the redemptions of bank notes
during the second upward movement,
covering the fiscal years 1882, 1888, 1884 and
1885, is represented by the percentages 81,
81, % and 10 respectively. A feature of
this upward movement was the constantly
decreasing volume of National bank notes
actually outstanding, from $780,, 421 1888 on
January 1, 1882, to 1919, 069, 932 on June 80,
1885, decrease of S43, 49,, O56 This seems
to indicate that the volume of bank notes
outstanding during that period was
which it could be profitably
maintained. Another fact, however,
should be considered in this connection,
! which is that during these four years of
I increase in redemptions the silver certif-
cate circulation of the country was in
creased S75, 755, 1S2-from $50, 10, 729 on June
80, 1881, to Sl14, $50, OIL on December 81, 1884
| This increase much more than balanced
! the decrease in bank-note circulation, and
, the apparent excessive issue of bank notes
might, to considerable extent, be due to
that fact. The decline in the volume of
bank-note circulation has continued
without interruption, until the amount
outstanding on September 80, 1886, was
1903, 511, 241, making a total reduction of
S5S, $40, TAT since January l, 1882, and also
after December 81. 1884 the silver certifi-
cate circulation gradually decreased until
on July 81, 1856. it had fallen to S27, 301, s67
from SS7, 564,644. The average outstanding
for a year preceding that date was about
Sg 600, 900. Since July l, 1885, the decline
in the bank note circulation has apparently
had the effect to check the decrease in the
bank note redemptions, as they have
steadily fallen off from that date, until
they now are for the current fiscal year
about twenty-cne Per cent. less than in
the preceding year
Still further on, while discussing the
question of the retirement of the National
bank circulation, the treasurer says: GAS
there seems to be on the part of the pub
lie an idea that the treasury is locking up
:,
fund, the whole operation of the retire
ment of the notes of a National bank will
be stated here in order to relieve any ap-
prehension which may be felt on this sub
ject: The three per cent. bonds
of the Washington National Bank of
Westerly, R.. l., amounting to 100000,
were called on the 18th day of September,
1856. On the 18th day of October, 1856, the
bank sent it's duplicate receipt to this
office, the original being held by the Comp
troller of the Currency, with the request
that deposit of ninety per cent. of the
above amount should be made to retire it's
circulation with the Treasurer of the
United States as agent for the redemp-
ton of the notes of the National banks
and requesting check for the ten per
cent difference Accordingly a credit
was placed upon the books of the
trea surer, as agent for the National banks
amount standing to the credit of the bank
in the per cent. redemption fund, in this
case, $3.50, returned to the bank The
amount Of redeemed notes charged to this
account since it was opened is 81, 1872. The
annual percentage of such redemption is
25. %, and it will therefore take at least
four years before the greater part
of the notes of this bank
will be redeemed. The amount
credited to the general fund
thus created STANDS on the books of treas
urer, as agent, as a credit for the redemp-
ton of the notes of the banks, and as the
notes come in for redemption they are
charged to this account, and the National
bank circulation outstanding is decreased
by a responding amount. AT present,
owing to the active business sea-
son, none but mutilated notes
are sent in for redemption.
Persons presenting these notes for re-
demption are paid either by check on New
York or in such form of currency as may
be desired by them. The Indebtedness on
the part of the treasury, created as above
described is, no doubt due in legal tenders,
but is iquidated in the manner stated, and
no attempt Is made to reserve any specific
sum of legal tenders, or any other form of
currency out of the general treasury bal
ance in which to pay these constantly
accruing liabilities. There was on No
vember 30, of the kind of liability, adding
the per cent. fund, which, theoretical
ly, is also composed of legal tenders, the
sum of 1914, 152 $50. The total amount of
legal tenders in the Treasury on the same
date. exclusive of that held tn redeem the