The evening times., 1895-12-16

tender notes are outstanding. hut if IL shall
be suid that even with these notes outsfa al ID
ing more gold would be paid in than would
pc taken out. which is not at all probable
under existing conditions. and that cOnse-
auently redeemed paper might be Der-
unnenf3 hoarslsd in the Treasury. the an
swer is that. for obvious reasons. 1t wound
amount of that currency in the Treasury
and at the same time defray the expenses
OF the government
At the New York subtreasury alone:
receipts Amounted 10 s9si .s64. 7sb. and
tue payments on various mounts, includ-
lnC transfers OF funds. ICdcmptions. &C..
amounted 10 $9t 4. 6b3.7GO. OftLeIelcipts.
$500, 3,471 .02i consisted OF United States
notes, $S0,938.493 OF Treasury notes of
1850. and $174.2l4.4iO OF SIN er eertifi-
Gates. from which il will be- seen that The
whole amount OF the United states notes
outstanding. and more than Onc-hIlf of
the Treasury notes and SILVER certificates
passed through that office in single year:
OF the S503.411,O21 received. lin United
States notes. the sum OF $3.50. .194.s l was
on account OF customs and special customs
deposits. and OF the Sc 0.939. .493 received in
was on the same accounts. while the silver
certificates received on these accounts
amounted TO $s5.279.s Sc.
lowing to tEcir great bulk and weight
silver dollars cannot be- Used 10 any tUrsid-
cradle extent in large transactions. and.
consequently only seas. So were re-
CelVeu III IDOse COINS OIL rptH atCOuHts uuT-
ing the entire year. and tlese were received
in small transactions. or in MA k,Hg cbIIiee.
Silver certificates are not egal tehder
except in payments to tie Uhitcd states.
or. in other words. the government is COM
PEELED to receive them when Offered IN
payment of public dues. but cannot compel
any of It's creditors to receive item: and
Dational.baBk notes are not retelv1ble at
all for customs uncer tie law.
THE CONCLUSIONS DRAWN.
''As gold coin and gold certificates are
no longer being paid to the government. all
our customs must DC collected in CDitsd
States notes. Treasury notes. silver certifi-
not he used for the reason that the expense
OF transferring them III large amounts from
place to place would exceed the profits Or
dlnarily made in business transactions
The conclusions Ia he drawnfrom these Facts
must he apparent at glance. OWING 10
the peculiar cha aracter OF our currency the
abilit Y OF the Treasury TO hoa ri United states
and Treasury notes is limited to certain
amount which cannot Ire definitely deter
mined in advances nd II 4 sh ould "A fter that
amount has been reached. refuse 10 pa OUT
these notes in making dlsbtrstiientS az tne
places where our customs arr collected. the
result would De that ne1riv all
pa yments to the government would be made
in silver certificates. which IT is bound to
take. but can compel no one else 10 TAX
There wunld bn Il stream OF these non
legal tender certificates constantly flow-
ing into the Treasury. and IL wouid receive
scarcely any more United states notes OF
Treasury notes rs part OF the surplus
revenue. but would soon be compelled 10
pay out those already accumulated or
pay gold. or break down IN It's Operations
at the subtrea suries. This result has been
avoided heretofore only by Daying out
these notes from the Treasury from time
10 time, whenever the character OF cur
rency coming in Indicated that the point
of danger was about to be reached. and II
will be necessary TO pursue the SAME poilcy
as long as the legal tender notes
are in existence. Notwithstanding all tne
efforts OF the department TO protect tue
Treasury against excessive receipts or
these certificates. 1t has frequently nap-
pened that they constituted more than 80
per cent OF all the payments or customs
iues at New York. where more than two.
III irds OF the total collections are made: Dut
II the United States leg IL tender paper should
be retired and n proper cnrrency system
ldoi,ied gold, and gold certificates, ana
hank notes redeeniable in gold. VIII Ia Ee
their place in the circulation, and the
will have no further troube
in regard to the kind or money used IN
either its receipts or payments.
But even II tLis difficulty could be- OBJ
Waited. an attempt to impose taxation upon
our people sufficient in amount to enable
he Treasury 10 take up and permanently
hoard all the legal tender paper. now
To about SiS5.OOO. 900. would
be the most remarkable financial expert.
Io secure by taxation within any reason
able period, n sum sufficient for their re-
icmDtioD and cancellation as they may lie
received into the Treasury. although not
quite so Impracticabie as tb., other. would
Just as certainly fail to accomplish the oh
,ect intended. 1t would be impossible for
he Treasury To hold for any considerable
inip a surplu US OF SiSo,UU0 900. or anything
scar that sum. in opposition to the pop
nlar demand that would pcrsistentIy be
made for its distribution by aDpropria-
ions for pretended public purposes. OF by
lepoSits in the banks to be used By them
I'D making loans to the people.
FuTILITY OF THE SCHEME.
"our own experience upon this subject
,ught to convince US OF the rutility OF such n
scheme. The government has never been
to hold large surplus without
agitation for lis reduction and
t is not reasonable TO suppose that II will
,yer be allowed TO do so. The existence
n "A large sum i'll the public Treasury. not
needed for the public service a [ once devel-
'ps two powerful opposition forces in the
country. one demanding an immediate re-
iuction of taxation. and the other demand
ng an immedia te distribution or the money
IN hand One. anh perhaps both. will GER
iiniy succeed, and the surplus will vanish
ong before the purpose for which il WIS
objected has been accomplished. The dis
of public money among the
states more than half a century ago. and
lie large deposits In banks and purchase of
mDiatured bonds within the last decade
ire familiar examples of the almost inevi-
able effects OF attempts To hold a surplus
n the Treasury.
Nor viii the people he much. If any, less
estlcsS under policy of high taxation to
alsc money for the retirement and cancel
alton of The notes as received. even ir such
policy could be successfully inaucuratcd.
is scarcely possible that 4 surplus exceed
ng 100000, 900 could be collected during
my one year. in excess OF the amount al
cady required 10 dcfray public expenses.
ndcr any practicable system of taxation
bat could be devised. and even that sum
ould not be raised vii hout severe injury |
% our industries, nor without unjust dis |
among them which would at |
nee engender a strong spirit of opposition |
u all parts of The country. Al this rate it |
would take nearly five years 10 retire the |
totes. and it may be safely asserted that no
ucb system of taxation as this plan of re-
irement would require could be main
aimed for even half that time: IL would be |
went away by the first popular assault |
made upon it, and the attempt to retire and |
ancel the legal-tender notes would fail |
gain. as Ii has twice heretofore.
''The opinion seems to prevail to soine eN- |
ent that the mere possession of Il sur |
,lus in the Treasury would prevent with |
lrawais of god. and thus, render the issue |
II bonds for the protection of the reserve |
but this view of the subject |
s founded. in my Judgment. upon an en- |
ire Instrumentation of the causes that have |
reduced the withdra walls. What those
auses were / have already undertaken to |
how, and, unless l am wholly mistaken. |
hey have very little. If any. relation to |
he amount of money held by the govern |
nent, or to the amount of money the gov |
has the ability to raise by taxa |
ion or otherwise, but they relate pri- /
narjly and almost exclusively to the char |
cter of the money that it might be able |
o supply and keep in circulation. In other |
words, it was apprehension as to the kiEd |
II money to be used, and not as to the |
mount of money on hand, that brought |,
ur securities back from abroad for sale. |
ausetl foreign investors to withdraw their |
apital nd foreign creditors to collect their |
ebts, and compelled our own people to |
uspcnd or contract their business opera |
ions, and thus diminish the incomes of |
Employers ard greatly reduce or entirely |
top the wages of labor.
Dre,pr no crcv-pr cnyn