New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-12-05

I
size and so much resembles the ten-cent silver piece
The report ~ the prscor Of the Mint exhibits in
detail the operations OF the minis ana assay OFFICES
metal statistics Of the Unud contains valuable
information received through the repIesenotve,s Oh
coinage and movement Of the precious metals IN the
dnefent countries OF the world.
| DEPOSITS OF PUBLIC MONEY.
The monetary transactions Of the Government nave
been Conducted through the Treasurer Of the United
states, nine subtreasurers and 900 National bank
deposltarles
The amount Of public moneys deposited with Ma,
tonsl banks on the LIST OF January 1857, was about
s20,0oO,ooo Prior to that dae. for a numDer , o.
years, The average was considerably less, purln a
the year 1887 the amount so deposited increased un
had swollen 10 s52, 100 ,9I7 The HIGHEST point
posted wa sa 9e OF Boa 1 since T" Shch time il de
creased, until the Dist OF October, lss9. ~ wa
the earliest daT prscticabe. of al least $50 coo
leaving only such amounts as are necessary ior inc
The National bank depositarles have been, and are
Useful auxllares to the subreasqry system eu, o me
largely IN excess OF the needs Of the public service
Is, Wholly lnIusiihsble such POLICY Is 40 Con rnicS
conienpates sub-treasury independent OF the banks
II nscessarily involves temptation to favorithm oil
II makes the Treasury more or less dependent upon
We banks on account OF the difficult and delicate ast
OF Withdrawing the deposits when wanted without
creating serious disturbance OF financial conditions
II Involves tho exercise Of most dangerous power
disposed expand or contract the currency al VII,
ane IN the Interest of certain favortes whom nc may
II is grossly unjust for the Government to grant the
Ire Gse of It's money while it pays to the very parties
mus favored and II per cent interest on us own
ponds which are pledged. as security ;or the MONEY
There seems to be no excuse for this policy, when
inc treasury could the money IN me purchase
OF bonds and thereby return It TO circulation and save
large part OF the interest
1t is maniiestly unfair 10 the people to give the
banks the use Of their money TO- nothing. while
they are required by the banks to pay from u 10
Rad as these features Of such policy are a more
encountered in the withdrawal of such excessive
deposits. Money thus deposited goes at once mo
me channels Of trade, and business is adjusted 10 the
increased supply.
sudden or in,udcious withdrawal would be felt
borrowers than by the banks The latter are money
Lenders, and q strinGency may only increase lher
based their business Ventures upon the accOmmoia-
tions afforded by the banks, be utterly ruined when
Another instance of such excessive deposits occurred
in the administration Of Jackson. on the 1st Of No
posted in banks was 40 81 .056 30 TO dispose Of
this largo the act of June 90 1885 was passed pro
vidng for the distribution OF S37 ,4Gs.75O o. among
the states. This Of course made necessary witt
drawa from the banks, and In order to make slr'h
withdrawal easy and safe possible, It was pro
videl that tho money should be distributed in quarterly
instruments. commencing January 1. 1857. Three OF
1854 o. but just after payment Of the third. the
teposiary banks suspended, aud the terrible financial
I Had the warnings of history been hceden. the
present administration might have been saved from
which TS ii IN f no sense P espoSoe
OF course there IS no danger Of any such results
at this time as occurred in 1887 The amount on de.
post then many times greater IN proportion to
Inc wealth and population OF tie country. than It
would be now. while the actual excess at present Is
only about half as great as wa then:
Wat would. under The conditions Of 1871 produce
widespread disaster and ruin, might in 1889 produce
only temporary disturbance, stngency, ana possible
\ careful and conservative administration Of orr
National finances should, however seek to AVOID such
disturbances II possible. ,
Finding myself confronted with this inherited Qlf
Guilty and though thoroughly dsapl rowing the policy
which created It. have NEVERTHELESS, felt compelled
10 move with great caution. lest the cure OF mo evi
might prove more detrimental to tho public interests
han tie cvl Itself II Is my nnIP2se noweyer
The withdrawal Of these funds In such limited amounts
and under such conditions. as win be Least Ik,y 10
and unless Concresl shall otherwise direct TO inveSt
tho money in the purchase OF bonds In case they can
II tbe hanks which have bonds deposited to secure
This money inclined 10 re"procate the fnyorS they
70 the Treasury at the liberal offered. Tho with
drava will considerably increase rather than diminish
lie money in circulation. and relieve their borrowers
from all danger and Inconvenience
NATIONAL BANKS.
The report OF the Controller Of the Currency eX'
his the operations Of the Bureau for the year ending
October 81 1850. During this period 2ll new asso-
Citations entered the system 81 TeIg TS averso
yearly increase Of the last eleven years mas neeh lo
Forty one tanls went into voluntary LIQUIDATION: ana
two failed and were placed In the halds Ol rtNsIs
There were IN existence, October ~ le19 J"'Is Nd
tonal banks tie greatest hunter since m" intuE1ra
ton OF the system with an aggregate capfM oil SozY
l743Gj on The 3Otn day OF efP'elhp'E I99o' uIo
da'e Of the la,t reports the numosI SPC,ik r T1S
opened for business summary Of these reports shows
total capital Of 1912 3s4 o95 surplus OF $iS, -,
ncaii Gs s a V due banks 81 o5o655 lo1 loans
ard discounts, ~ sos 100 73D an Increase III oao" Vi
these particulars over auy previous report ,,oo
The amount OF circulation outstanding was S2GJc
0e2722 of Which $l3l3s3ii was secured ~ ~ III III
30s represented by deposit Of Lawful monrS III
the Treasury The banks he'd TlO1 0'!DUO ID Sm cTc
states bonds, OF which SAC ~ 100 were @ SUI
circulating notes: also. S164 326.140 IN Spece. Son,
552d03 in lecal-tendcr notes and nied 5t d6 III
o,s decrease in circulation including ia@ notes G + ot
gold banks. during the year was - A boD ne
decrease IL circulation secured by United aIae' Donus
was S22 ,I50,O43 .--.,.., +, 4ho
The largo rumber of new banfs organized IN the
Westcrn ard southwestern sections % nc cum tcS5
affords evidence Of the facility win when we slSW
adopts Itself 10 the requirements Of lj,,ne AND
widely separated with varied social cOluluVns aiu
trsnsacting bu.i I'm accordance with IN" dlsSHla
customs that result fom our climatic ana Taos M
organized during the year Pennsylv sna first in mum
er Of active banks, New-lork In deposS' anu -"dNS'
The banks derive profit from their r c :Dasr
ZION and an actual loss is inflicted u9on 'c irs If
banks, and upon those lccaed IN me newer se,us W.
the country by reason OF being obliged 10 Purcnasc
bonds at high and steadily ADVANCING PItinl."U, ~ %
basis for circulation. change in eHsHIE ia"S az y,
necessary TO prevent serious contraction Oh inc cur
rency by Withdrawals from the SYSTEM . -,
The remedies proposed by the Con~o!ier are w. a
reduction in the minimum OF bond, deposited U 9ecu
circulation; 90 an increase in the peNehtSge lssueI
thereon In circulating notes 90 and Ieducuom o.
tho tax levied on circulation These recoth'lenuS
lions are approved. -,.,.a.t 20
II is believed that any probable wnnraWM 90, oi
bonds by existing banks VIII be about cqhaileu by NV
bonds deposited by now banks which "oulu ofstnTTe
moro rapidly under the and moro iavOltOs v"nt
tons proposed and that increased per- niaSe OF
note ISSUE, may be depended upon 10 hsuu"i"0 WV
tendencies 10 contraction. T.. ,oblo |
the Controller supervise the affairs 81 hanAs ~ ~
unary liquidation until all claims are fulY pau nj
the asset, exhausted II IS recommcndcd ,la' IN.
Office OF Assistant Examiner be crcael. AIso tust
tho detailed reports Of the several BANK as'oc'd''"'
DO published scmiannually - -. ..,,.ors |
II IS worthy OF remark that the loss 20 creut,urs
from failure oil National banks appear, TO DC i'ss nan