Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1902-12-11

sio,-9O,OOC in gold, and the remainder in sill
lV'r and minor coin. There is no record
to show what has been returned.
| The act of March IA, 1850, has been car
ried out in accordance with spirit and let
ter OF the statute The parity of all
kinds OF currency has boon maintained.
For the present, no silver certificates arc
issued OF higher denomination than s.,
and no United states notes of any other
denomination than So while gold cert
ilcatcs alone are issued i'm the higher
forms. As a consequence, the paper cur
rency is gaining in simplicity Generous
Congressional action has made it possi-
Jblc to provide fair reserve OF finisned
notes OF all denominations ready for issue,
and the treasury has been able to meet
al demands Tor currency without any res
tfictions upon the denominations paid out
OF the kinds of money received in return.
| The receipts for redemption and exchange
during the fiscal year amounted to S133,
80, 24j, All increase of s5i,s6i,S6o over 1901.
BANK NOTES REDEEMED.
National bank notes amounting to sill
500, 25e, equal to ~ per cent Of the aSera ge
outstanding were presented during tho
year for redemption, an increase OF s2i-
| $780, Sl over the previous year. In the first
quarter of the current fiscal year presen-
| tltons for redemption amounted to S0J,-
19l .20l, an increase OF IS. 80 over the
same period In 1901. The volume of notes
outstanding was further increased $40
5-l,5J'. making the aggregates S366g93 -
5S The expenses OF redemption for the
fiscal year were s1j3 7os. which have been
assessed upon the banks at the rate OF
Sl924H per 81 900 of their notes redeemed
There was unusual activity in the move
mont of SILVER minor coin to and from
the treasury. The shipments of silver
dollars reached 5000 525, exceeding all
fOr
change were s1.1lo69o greater than the
issues The amount OF subsidiary coin
outstanding was increased by ss,+Ss0 14 to
S'5,72l,22S. A rcconase Of S3S1 ,0i3 Of all
kinds OF uncuirent coins was executed.
at a loss OF Sl9S.14S on the original face
value There was a marked falling off in
the amount Of spurious coin and paper
money presented.
BANKING.
Recent events not only justify but en-
force the conclusion that our banking
system is imperfect. During certain
months OF the year interest rates dropped
dangerously low-danscrous in the sense
that speculation was invited thereby.
When the time arrived for moving crops,
rates advanced alarmingly high. Moan
time the price Of government bonds rem
dcred the maintenance of national bank
circulation Improbable and this class
Of currency was retired with great rapid
ity.
The department exertcd every influence
within its authority to oounteract this
natural contraction.
During the twelve months from Novem-
Der 20, 1901. to November 70. 11o2 467 new
banks were chartered, with capital of
over $4,000, 900 and an initial circulation
aggregating, in round numbers, S1.jGu COO:
while the capital OF existing national
banks was increased more than si3. 000 90.
The increase in circulation however dur
ing the twelve months was only about
S-O,oOo,O 600. Thus II is manifest that but for
the extraordinary inducements offered
by the department national bank crcu-
lation would have contracted during the
year, notwithstanding the organization
OF new banks and the aggregate increase
in national bank capital of about S,5, 000.-
900. In fact, national bank circulation
did decrease very nearly 5000, 900 during
the fiscal year ending June 80. The efforts
OF the department to increase circulation
were not re.orted to until after that date.
Fully $780, 900 increase could have been
secured had the law permitted it. rapid
retirement when no longer needed.
The reason for this tendency toward
contraction is apparent. Government
bonds are scarce, and those outstanding
are held in large part by trust estates.
savings banks, and insurance companies
and are not available FOR circulation. Tho
bonds that are on the market are held
at prices which render their use as Sc
cunty for circulation Improbable when
ever the rate Of interest approXim"tes 6
per cent
The frequent purchase and retirement
of bonds renders the amount available
for circulation gradually less, while n
rapidly growing population, additional
nanhlhs iacintes' ana expanding trade
suggest the need OF an over-increasinc
circulation, therefore believe the time
has arrived when IT Will be necessary 10
adopt one or two policies; either the gov
eminent d"bt must ne perpetuated as
bs ISIS Tor national bank circulation, and
addltlonal pohdr issued as occasion may
require or some other system must be
PROVIDED
MI, NOT prE1-ND r,rDL.pTEr,>-r-cc
Icy the act of Congress approved March
IA, 1900, the department is n thori2ed to
refund all bonded Indebtedness maturing
prior 70 1925 This discretion would have
been exercised as far as possible but for
the fact that II present conditions con
tnue the government will be in funGs
sufficient to discharge this indebtedes-
at the time ii natures. The question has,
therefore, presented itself for solution:
Shall the department, as the agent OF tho
government, secure additional time upon
an Indebtedness not vet due, when there
is fair prospect that it can be met ac-
co"dinG to its terms?
There is one Other reason why the re
funding Of this Indebtedness is deemed OF
doubtful eXpediency When eyer there
is a surplus OF public funds in the trea-
sury and financial conditions make il