Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-12-03
An Imperfect Banking System.
Circulation on Assets,


Il see no objection to the issuance of cir
culation based upon general credits, If
properly safeguarded. Neither do believe
1t necessary to make currency thus issued
a first lien upon assets. A very small tax
upon circulation would be sufficient to
cover any possible loss The government
actuary has demonstrated that a tax of
one-eighth of l per cent upon crclua-
ton would have covered all loss from
the beginning Of our national banking
system TO the present time, had each
bank maintained its limit of circula-
t1on Instead of calling this a tax, suppose
it be called premium on Insurance. and
the government the underwater The
banks could be required to redeem their cir
cula ton at reserve cities, and the govern
ment would never suffer injury or en-
barrassment as an insurer against ultimate
loss The lowest tax suggested by any one
would far exceed any possible loss, and the
government could assume responsibility to
the people and still realize profit. When
thus guaranteed and primarily redeemed
by the government at the expense OF the
bank of issue, currency based on general
assets would be acceptable and as Sc
cure as the present national bank notes
based on specific assets.
II doubt, however, the wisdom of making
provision for the issuance Of credit cur
rency to the limit Of the banks capital
Not that l would fear unfort innate results
but in all financial legislation the greatest
caution must be exercised lest the currency
be suddenly and unduly inflated A gradual
increase in circulation Is well-nigh impera-
tive, but a sudden and unnecessary increase
would be most unfortunate Several other
safeguards will naturally suggest them
selves and need not be considered in this
report
Recommendations OF Local Interest.
The following recommendations of local
interest are made.
THE building now occupied by the bureau
Of engraving and printing Is overcrowded,
and additional room is imperative.
An annual appropriation for the sinking
fund to meet the debt of the District of Co
lumbia is recommended; and 1t Is suggest
ed that authority be granted to purchase
outstanding government bonds with the
proceeds of such sinking fund whenever 1t
is impracticable to purchase advantageous
iy the bonds of the District.
The several branches and bureaus of the
Treasury Department are widely separated,
and much valuable time is wasted In carry
ing documents from one division to another
and in securing necessary information
which could be avoided with great saving
to the government by the installation of
comprehensive pneumatic tube system and
the same is therefore recommended. .
The attention Of the Congress Is called
again to the necessity of a Hall Of Records.
The Treasury Department is now seriously
congested. Many of the corridors are filled
with boxes and cumbersome file cases.
The treasury building is poorly venti-
lated Especially during the winter months
'he al III soiaie poiiohS VI Ing puiioiHS Is
very unwholesome and much illness among
employees results. "A modern heating and
ventilating system is therefore earnestly
recommended
Estimated Revenues and Expenditures
THE revenues of the government for the
current fiscal year are estimated at ap-
proximateIy 1904, 100000. Expenditures dur
ing the same period are estimated at $751;
600, eco, leaving estimated surplus for
the fiscal year of s43, 100000.
THE revenues for the fiscal year ending
June 30, 1904, are estimated at approximate
ly $730.0000o0 Expenditures exclusive of