Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1890-12-03

| cent. bonds TO accept prepayment Of inter-
est on those bonds to July /. 1891. privi-
lege which was subsequently, extended to
the holders Of currency sixes. Under this
circular, of August 80, there were redeemed
SlS,67s 100 four and one-haif per cert.
bonds. and under that OF September there
vss prepaid on the four per cent. bonds
and currency skies interest amounting to
| SI2. 2.009 ,95l SO
| These prepaymepts of interest are ex-
pressly authorized by section 3699 of the
Revised Statutes. They were deemed ex-
pedient because Of the disposition Of the
holders Of bonds to demand exorbitant
prices for them.
The amount Of public money set free
within seventy DAYS by these several
disburssme nts was nearly s76 $50, 900. and
the net gain 70 circulation was not less
thsn forty five millions of dollars, yet the
| financial conditions made further prompt
disbursements imperaiively necessary. A
circular wss therefore published, Septem-
Der l3, 1890, inviting proposals, to be con-
sidered on the l7th for the sale, to the
| Government, of sixteen millions Of four
per cent. bonds. The offerings under this
circular amounted to S35, 5l4 300. of which
| Sl7 OIL ,l50 were offered at l263. or less.
and were accepted. The total disburse-
men,s made BY the means above set forth
amounted to sos 276 6S2 10.
The monetary transactions of the Gov
eminent have been conducted through the
| Treasurer OF the United States, nine sub
treasury officers, aud two hundred and sew
enty-hve nstionsl bank depositsries, includ-
ing those to credit of the .Treasurer's gen.
eral account and disbursing officers bal
The amount of public moneys held by
national bank depositarier. including those
to cFdit of the Treasurer's general account
March l, 1889, was 4s,slS, ,99l IS,
which. being largely in excess of the
| needs of the public service. have endeav-
ored, as far as practicable, to reduce to
the amount necessary to BE- kept with sncb
| depo.itsries for the business transactions of
| she Government. To accomplish this pur-
pose without seriously disturbing the busi-
ness of the people, who may have been
borrowers of theee depositaries, by any
sudden withdrawal Of large amounts, each
| depositary holding any public money, in
excess of that needed, was notified on No
vember 80, 1889. to transfer to the sub
| treasury on or be fore January 15. 1890, an
| amount equal to 10 per cent of the excess,
| or, if preferred. the whole amount could
| be transferred at once. This gave ample
tine for the adjustment of any business
changes made necessary by the Withdrawal
of funds. and resulted in reduction of
| about So 000, 900. No further notifications
for Withdrawals have yet been made, bu'
| the holdings OF the depositsries have been
| further reduced by the purchase and
redemption of United States bonds held
in trust as security for deposits, and
the payment Of the deposits, with these
depositsries, from the proceeds Of the pur-
chsses or redempfiors. so thst on Novem-
her /, 1890. the amount held By banks was
800 937 .6S7 6S, a reduction since March /,
1889. of SlS,a 1908 %
The entire amount, thus withdrawn from
the banks, was in excess of the needs Of
the public service with those depositaries,
ard was used in payment of United States
interess-bsa'ing bonds purchased either
from the banks relinquishing the deposits
OF from others and resulted in saving 10
the government. by reason of the purchase
of these bonds and the consequent stoppsge
of interest of about $500 600 per snnum.
Such withdrawal also increased the circula-
ton, for in no case was q bank allowed to
hold public funds to the amount of the mar
ket value of the United States bonds fur
n.hed as security therefor. On four-apd-
a-hslf per cent bonds a balance equal to
par was allowed and on four per cent
bo7ds balance equal 10 ITO pef cent of
the face value, so that for each 800 900
Withdrawn from the banks, payment from
the Treasury was made for like amount of
bonds with premium at an average rate of
| l051 for four and-a.haif per cent and l27
| for four per cent bonds, thus returning TO
! the channels of trade the amount of the
d posit and from 5000 to $1,000 sddi-
tional on each 10000. The increase of
circulation By these operations was about
81 0o0, COO.
The amount now held by the national
| bank depositaries is still in excess of the
requirements of the public service and fur
ther withdrawals will be made whenever it
can be done without detYiment to business
interests.
In my last annual report, 1 presented,
for the consideration Of Congress, a plan
| for the utilization of the silver product of
! United States.
The measure proposed was briefly this :
| To purchase, at the market price, the sill
yer bu lion product Of cur mines and smelt
ers, and to issue, 10 payment legal tender
| notes, redeemahle in quantity of silver
bullion equivalent in value, at the date of
presentation, to the face of the notes. or
IN gold. at the option of the government, or
in silver dollars, at the option Of the holder.
| THIS measure was suggested with view
| to promote the join. use Of gold and silver
as mon ay, to increase the volume of paper
currency by the annual addition of an
amount equal TO the value of our silver
prcduct, TO provide home market TO. the
! American pre- duct of silver. ard. by so Do
ing, enhance the value of that metal, until
n point were reached where we could with
safety open our mints to the free coinage
of both metals at a fixed ratio.
A bill embodying. with some modifcs-
tions, the measure suggested vas favorably
reported in the House Of Representatives
of the Fifty-frst Congress from the COM
mittee on cninsse, weights and measures,
and was adopted By the House.
The bill was amended in the Senate by
the substitution Of fire., coinage measure.
As the result; of conference bet~ cen the
tro bodies, bill was passed. and approved
by the President. July IA, 1890. the essen
tal provisions OF which are The monthly
purchase by the Government Of 4 500 600
ounces Of silver, at the market price, to b.
paid for in Il gal tender notes. redeemsble
in coin, and the repeal. after July l, 1891, 4,
Of the mandatory coinage Of silver dolisrs.
I The material points of difference between
the measure recommended and the one
adopted by Congress. are that the new sill
yer lsw limits the purchases of silver to
4.50o, 900 ounces per month, without dis
tnc'ion as to domestic and foreign prcduc.
I ton. instead Of taking the entire silver
bullion product of the United States as
proposed, and omits the bullion redemption
feature.
Il Immediately on the passage Of the law
rev forms of legal-tender notes were de-
signed, in determinations of one, two, Eve,
ten, twenty, fifty, one hundred, and one
thousand dollars, and we're engraved and
printed at the Bureau of Engraving aHd
Printing. Oring to the fact that the pur-
chases under the act were to commence
thirty days after is passage, IL was neces-
ssry that :hs lsr9sr denominations of notes
should be engraved first. but, at this time. 4
sufficient supply Of the smaller denomina
| lions of notes are being received. and il vii
| be the policy of the Department to pay ou
: small notes, As far as practicable, ia tht
: purchase Of silver.
: Regulations were also prepared inviting
L offers for the sale of silver for considefa
, ton At the Treasury Department, at
o'clock r NJ, on Mondays, Wednesday
and Fridays of each week, and the edor
, has been to distribute the purchases q
nearly ~ possible throughout the month.
; Under the operations Of this law, th,
amount Of silver purchased from Angus
> l3. 1890. to December l. 1890. aggregate,
D 1918, ls5 fee auocss. costing Sl5. .S7l ,o75
an average Of ei.l12s per fne ounce.