Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1898-12-14
MONEY OF THE NATION
ANNUAL. REPORT OF SECRE-
TARY GAGE.
Chief of the Treasury Department nt Dis
cusses the Need of Banking Reform
and the Necessity of Meeting New
Conditions.

and the Necessity of Meeting New
Conditions.
Secrc' 4ry of the Treasury Gage has
made public his report on the condition of
the finances of the country and the work
accomplished by his department during
the year. 1t is an interesting document
Upon the subject of currency and banking
reform he says:
The Arguments against government Issues
OF paper money medium for CONNER
ctal exchanges have been fully made and
need NOT be repeated in detail. The pro-
posal to substitute bank issues for govern
ment notes is opposed with many honest
prejudices and assailed by bitter denuneia-
tions. The first arise from failure to COM
prehend the true philosophy of a paper cur
rency and must be pctiently considered.
The latter obscure the question by reckless
statements, charging tIut all propositions
for currency reform are b. nix conspiracies.
If 1t be conceded that the legal-tender
money issued by government does not pos
sess the qualih cations to make it a proper
factor in the countrys exchanges of prod
ucts and manufactures, If tae fact also be
admitted that it Is derangiHg and disturb
ing FACTOR In its relation to Industry and
commerce, then the time has come to sub
stitute for it currency VIII ch will ade-
quately, economically and safely meet with
the ever growing needs of the country, rap
Idly developing, as ii is, in the power of
production, In the number of its people and
the Importance Of It's domestic and foreign
trade.
In answer to the question whether
bank note currency can be established
which will be economical adequate and
safe and serve the public needs in a bet
ter way than is now served, the Secre-
farv noinfc fn ha in ~,
Canada.
The facts set forth by the Comptroller re-
late exclusively to the proposition that the
notes Of a failed bank shall be paramount
lien upon the assets for their full value be-
fore any rights accrue to other creditors.
The Issue of notes upon the general assets
Of national banks may be made perfectly Sc
cure without the requirement that the notes
be first lien upon their assets. 1t would
only be necessary to award to the notehold-
er the same ratable proportion of the assets
which went to other creditors, and to pro-
vide that the amount required to pay the
difference be obtained by an assessment up
on all the national banks, collected ratably
In proportion to their share in the circula
ton of this character. The vital question Is,
What percentage of assessment upon this
circulation would be required in order to
cover the losses to notehoders In the case
of failed banks? The experience of the ma
tiona banking system demonstrates that the
The total circulation of failed banks out
standing at the time of failure up to Oct.
81, 1897, was $20.S93, S27. The loss upon
these notes, If the security for them had
been impaired In the same degree as the
security for other liabilities, would have
been $3.50 165, or an annual average of
about $685. 600. This loss would have been
made good by a tax of about one-twelfth
| of per cent. per year upon the circulation
! of the solvent banks. tax of one-fifth of
/ cent thp PFcIffqtiOn of
| the national banks since the foundation of
| the system would have paid such losses up
| to Oct. 81 1897, and left surplus of about
| $s,00O,00O in the guaranty fund
Urges Former Measures.
In my last report l ventured upon specific
recon- mendations. These recommendation
| Il adopted and formulated into law, would
| In my opinion be curative of the evils herein
| pointed out. In house bills Nos. 10,2S9 and
| 1888 embodied a series of measures In
| some respects more meritorious. The meas
| ures herein proposed are the result of care
| full study by expert and experienced men.
| With some modifcatons-the reasonable
| fruit of full discussion-they would, | be-
| lieve, meet the country's needs. l COM
| mend the subject to the early and earnest
| attention of Congress.
On the point of fractional silver the re-
| port contains this paragraph:
The amount of fractional silver coin held
| by the treasury July /, 1897, was $16,201,-
| 900; July /, 1898, 5000. 600. This stock
| has at present, Nov. IS, been reduced to ST.
| 122,506, much of which is so worn as to be
unfit for circulation. The amount available,
| distributed among the several sub-treasuries,
| gives but small stock to each, and some de-
| nominations are exhausted. The Secretary
| IF the Treasury should be authorized to re-
| coin this uncurrent stock and any such coin
| which may hereafter accumulate in the
| treasury, the difference between It's face
value and the new coin 1t will make to be
| paid out of any moneys in the treasury not
| otherwise appropriated. Further provision
| should be made to add to the stock of frac-
| tiolg! coin, and to that end 1t Is suggested
| that the Secretary of the Treasury he au-
| thorZed to use any silver bullion now In the
treasury for the coinage of such denomina-
tiOns as may be required from time to time
to meet the demand from the different sec
tions Of the country. With an ever-increas-
ing population, which will be added to In
the near future by the acquisition of addi-
tional territory, the demand for fractional
silver coin will be such as to make it essen
TALLY necessary that the stock should be in
creased.
1t is suggested that, at the proper time.
action be taken by Congress to assimilate
the currency of Porto Rico to that of the
United States, so far and so rapidly as
this can be done without unduly disturb
ing existing conditions and contract rela-
tions in Porto Rico. This, it is believed,
ean be accomplished by making customs
dues in the island payable in American
money, yet receiving the silver pesos and
centayos at fixed relation to our dollar.
The revenues of the Government from
all sources for the fiscal year ended June
80, 1898, were S494, ,333, ,95375 while the
expenditures for the same period were
$532, ,3S1 ,201.35. showing deficit of $685.
047 ,247.60. AS compared with the fiscal
year of 1897. the receipts for 1898 in
creased S63, ,946, 1856. There was an in
crease of ST. ,594, 1929 in the ordinary
expenditures. The revenues for the cur
rent fiscal year are estimated at S577,-
S74,641.37, while the expenditures for the
same period are $6S9. .S74 ,647 81, leaving a
deficit of $112000,000. For the fiscal
year 1900 the revenues are estimated at
S610,90S, 112 and the estimates of appro-
priations for the same period aggregate,
exclusive of sinking fund, $641 ,0Q6, 400 GA,
or an estimated deficit of $50, ,04S. .3S7.6
"The first proceeds of the popular loan
of 00,000,0O0," the report reads, were
received June IA, and from that date for
ward the inflow of money from this source
has been rapid and constant. The total
amount received up to Nov. was $780,
444, 1872"
Mint Receipts and Deposits.
The receipts and deposits of bullion at
mints and assay Offices, including redepos-
it's, aggregated S215, 5,566. 261 "a. of which
$19S, TAO, 1928 was gold and SIG,
769.31 silver. The deposits of gold were
greater than in any previous year of our
history. Foreign coins to the amount of
SAT, ,21G,07S We're deposited during the
year. 1t was recommended that an appro-
priation of $4,000 be'made for the erec-
ton of a building for the assay office at
Seattle.
The number of national banks in opera
ton is 1888. During the last year fifty
six were organized. sixty-nne placed in
voluntary liquidation and seven failed
The ca pital of the newly organized banks
aggregates 50, ,665. 900. The Middle States
lead in both number of banks and aggre-
gate capital.
Sparks from the Wires,
Open gambling has once more been stop
ped temporarily in Denver. Colo
Printers in Porto P'eo, who earn from
81 to 81 week, Laf- :truck for an ad-
vance of 80 per cent.
Tn RaIoiuuo tharo a m % 900 T;o-o, 80.