Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1888-04-03

crease the number of bank depositors and
amount deposited in the same was adopted
about October. 1857, after the purchase
bonds, "ln response to inquiry as to reasons
for changing the policy first adopted, to wit
the purchase of bonds he aid was no change
of polcy. The bonds were purchased in
obedience to the revised statutes to meet the
sinking fund requirments for the fiscal year,
ending June 80, lSSS. The reason for en-
deavorng to increase the amount of deposits
in the national banks was that the full
amount of bonds authorized and required by
law to be purchased for the sinking fund
during the fiscal. year ending Juue 80, 1888,
had been purchased prior to Oct. 9, 1887, aud
there was in the Judgment of the department,
no undoubted, lawful power except an iu-
crease of deposits in national bank deposito-
ries TO avert the dangers which threatened the
country because taxation in excess Of the
needs OF the country was rapidly taking the
circulation media from the channels of busi-
ness and locking ii up in the vaults Of the
treasury twelve years ago, and butfew banks
were allowed fixed balances. The practice
for the treasurer was to draw against these
balances whenever funds were needed In
cons, quence the balances were not uniform,
but huctnated from to per cent to par or the
face value, About October, 1856, the prac-
nce became quite general TO allow fixed
balance eqSal 10 80 per cent of the face
value of Ciited States per -ent bonds and
somewhat smaller amount of l-2 aud 4
per cent. bonds. This rule WAS changed in
1887 and balance equal to par allowed on
four per cents. Later, in October. in view
OF the stringency of the money market, and
the amount of surplus in the treasury, and a.
an induccment to the banks to become de-
positors, the rule was again changed and
balance allowed equal to | 10 per cent. of the
lace value OF per cents and par of l-2
per cents, whenever sufficient margin remain
ed to cover the largest deposit likely to be re
ceived in any one day. The number of ma
ionai banks designated since October =,
1887, is 50; number designated prior to that
time, that have availed themselves of the
increased rate, is 1913. The increased per-
centage of deposits allowed has somewha
the circulation of national bank
notes, not more than four or five millions, In
my Judgment the increase of deposits re-
suited IN large money supply available
for the business of the country, and for the
time being a,erted the serious financial dis
tress and neither increased nor diminished
permanently the circulating media of the
country. BY the use of all lawful powers
and expedients, this department during the
past year has earnestly and anxiously striv-
en- to avert the dangers and difficulties which
cannot be cured or long prevented from
working great harm no matter what devices
are attempted unless the revenues of the
government be SO reduced as nearly to equal
the ordinary and necessary expenditures.
About 100 woman sunragists assembled in
the ladies reception room of the Senate at
: A. NJ, where they were given an audience
by the Senate committee on woman suffrage.
Miss Anthony, Mrs. Stanton, Mrs. Shattuck,
Mrs Groto, of Norway, Miss Trigg, of Fin
land, Mrs. Chant of England, Mrs. Julia
Ward Howe, Mrs. Merrick. of Louisiana,
Mrs. keeterd, of Toronto. and Miss Will
Hard in turn addressed the committee in
favor of woman suffrage. The remarks
were geographically reported AMI will
probably be printed as u public document
for distribution.
Notes.
The President today detailed the army re-
lripg board composed of Major General
John NJ. Scbofeld, Brig. Gems. Bennett and
MacFeely, Col, Baxter and Maj. Greenlcaf,
. meet III Washington Wednesday next to
examine Maj. Gen Alfred II. Terry for re-
Iirement.
The debt, less the cash in the treasury,
April lst was 81 100, ,s6s, ,l55.l4.