Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1898-12-15

corditio1s Nss
Secretary OF the Treasury o..
made public his report on the co nsse b
the finances of the country and tba
accomplished by his department e S@
the year. It is an INTERESTING da uais
! Upon the subject of currency and ' tu
reform he says: ''uFN
The arguments against governmeD, :,
OF paper money as medium for con ,see
cia4 exchanges have been fully ms Saas
need not be repeated in detail A %S ~
posal to substitute bank issues f., iae ~
ment notes Is opposed with NAM gwen
prejudices and assailed by bitter Gon noas
lions. The first arise from faiIrr "eauNd
prehend the true philosophy of a Sn " ~
renoy and must be patiently c p~pa CO
The latter obscure the question INV DSNPfs
statements, charging that all nron negSa
for currency reform are bank cOnSniroHaN
If it be conceded that the le r%la ..ss
money issued by government does nnt
sess the qualifications to make if NV n,i Nv
factor in the country's exchanges ~ pvs
ucts- and ma nnfactures, If the fact a,i pNe
admitted that 1t Is derangng and d ,sv
ing ldcIoE III us felatlOn TO Industry A., l.
commerce, then the time has come "a ' aa
stitute for it a currency which viii sSs
Quately, economically and safely moo S Ss
the ever growing needs of the county, VIII VIZ
idly developing, as it is, in the nov.'
production, in the number of IFS naon's =.
the Importance Of its domestic and fn vsa
trade.
In answer TO the question wheAp
bank note currency can be establish
which will be economical, ADEQUATE o.,
safe and serve the public needs in a h.
ter way than is now served, the Ses,
tary points to the system in force
Canada.
The facts, set forth by the ComptrN}s ;,
late exclusively to the proposition that ~
notes of failed bank shall be a paran@t
lien upon the assets for their full valDeG
fore any rights accrue to other credDo
The issue OF notes upon the general ass
of national banks may be made perfectly
cure without the requirement that the NOT
be a first lien upon their assets. 1t won
only be necessary to award to the notehI
er the same catable proportion of the asset
which went to other creditors. and to uvI
vide that the amount required to pay N'
difference be obtained by an assessment wI
on all the national banks, collected atab,|
In proportion to their share in The CrUaI
tion OF this character. The vital question: N
What percentage of assessment upon thb|
circulation would be required in order h
cover the losses to noteholderS in the caa
of failed banks? The experience of the m
tional ba mixing system demonstrates thattk
assessment would be insignificant.
The total circulation of failed banks out
ct III Of no of Cot ma
81, 1897, was $40, 500, SGT. The loss upop
these notes, if the security for them bad
been Impaired in the same degree as the
security for other liabilities, would han
been $5,3l9, 165, or an annual average
about 1858, 900. This loss would have been
made good by tax of about one.twelfl
of 1 Per cent. per year upon the cTculatOl
of the solvent banks. A tax Of one-ffth d
per cent. upon the. average circulation b
the national banks since the foundation D
the system would have paid such losses D
to Oct. 81, 1897, and left surplus Of abOl
@,T0,OOO In the guaranty fund.
Urges Former Measures.
In my last report l ventured upon sped6
recommendations. These recommend&ml
II adopted and formulated in;to law, Noll
In my opinion be curative Of the evils heeI
pointed out. In house bills Nos 1929 40
1888 are embodied series of measures
some respects more meritoaious. The Iea
ures herein proposed are the result Of can
ful study by expert and experienced mel
With some modifica tions-the reasOnaN
fruit OF full discussian-they would
leve, meet the country's needs | con
mend the subject to the early and earns
attention Of Congress.
On the point of fractional silver the \
port contains this paragraph:
The amount Of fractional silver coin be
by the treasury July /, 1897, was $1GZO
800; July I, 1898, $12,O70,6 800. This So:
has at present, Nov. 49, been reduced toy
122, 506, much Of which is so worn as toll
unfit for circulation. The amount aVallaol
distributed among the several sub-treaSurlee
gives but small stock to each, and some
nominations are exhausted. The Secreal
Of the Treasury should be authorized to
coin this uncurrent stock and any such CO.
which may hereafter accumulate ID u
treasury, the difference between its raj
value and the new coin it will make 10
paid out of any moneys in the treasury u
otherwise appropriated Further proVsy
should be made to add to the stock OF La
tional coin, and to that end it Is sugges'
that the Secretary Of the Treasury be a. y
thorized to use any silver bullion now III u
treasury for the coinage of such denoMI
lions as may be required from time TO u.
to meet the demand from the different 81
tions of the country. With an eyer'lncfeI
ing population, which will be added 10 ga
the near future by the acquisition OF aau
tional territory, the demand for fraction
silver coin will be such as 10 make u EST.
TALLY necessary that the stock Should VI il
creased.
1t is suggested that, at the proper lin'
action be taken by Congress to asSlmlIa az
the currency of Porto Rico to that Of u
United States, so far and so raplaS i
this can be done without unduIy dl''ui.
ing existing conditions and CONTRACT ls ,1
tons in Porto Rico. This, it IS oellt's.
can be accomplished by making custom
dues in the island payable in AneEn va
money, yet receiving the silver pesos ,,, az
centavos at fixed relation to our uo ,',
The revenues Of the Government lluD
all sources for the fiscal year ended '4 .b
80, 1898, were $494, 333 $3.50, VINE ~
expenditures for the same perou @ zoe
$751;, 381 ,201.35, showing a dctlcIt oi f sv@,
OH, 247.60. AS compared with t IcoU U'f n
year Of 1897. the receipts for l'yo n n
creased $63, GAG, 1856. There was ' a. n
crease of SIT ,594, 4232 % in the o[uiD mr.
expenditures. The revenues for Tue es -
rent fiscal year are estimated at =. %D N,
S74 ,647.37, while the expenditures w ,i, a.
same period are $3.50, S74, G47.37, iea' sseo
deficit of $112,OOO,000. For the I'D nI 4
year 1900 the revenues are eSthll's, nnrt,
$61O, 1851 and the estimates Oh "rr
priations for the same period assI loG g.
L.. L. Aftl | lLNl