wp'Imfa$K
Volume XYlI-ga 83.
Lancaster Intelligencer.
TUESDAY EVENING, DEC. 7, 1880.
IE NATIONAL MANGES.
BEPOKT OK THIS SECRETARY Or THK
TREASURY.
TREASCBY IEPAITMENT, t
VTasuimites, U. C. Dec. 6. 1880.
Sir : I have the honor te submit the
following annual report :
The ordinary revenues, from all sources,
for the fiscal year ended June 30, 1880,
were:
Frem ctibteuia $ 186,522.051.60
Frem Internal revenue 124,009,37X02
Frem galea of public lands l,0IC,50C.CO
r rem ibx en circulation ami uc uc uc
posltsef national banks.
Frem repayment of interest by
Pacific Itullwav Companies....
7,011,971.14
1,707.307.18
Frem sinking lunil for 1'ucilic
Kailwav Companies
780,021.22
1,143,800.16
2,337,029.00
282.010.50
2,792,160.78
1,509,409.70
Frem customs tees, fines, penal-
Fimn leeH consular, letters-pat-cntuml
lauds
Frem proceeds of sale et Uovcrn Uevcrn
mciit piepcrty
Frem profits en coinage, Ac
Frem revenue or tin: District e!
Columbia
Frem miscellaneous be u ices
4,039,003.88
.$ 3CJ.52I5.C10.SS
Tetul ordinary receipts.
The ordinary expenditures for the same
period were :
Fer civil expenses l5,r.!(.;,!W3..M
Forferoigu lnlerceiir.se 1.211,490.58
Fer Indians 5,913,457.09
Fer pensions, including $19,311,
025.20 arrears of pensions 50,777,171.41
Fer tlie military establishment.
Including river and harbor im
provements and arsenals 38,113,914.22
Fer the naval cstabllslinient, in
cluding vessels, machinery and
improvements at navy yards.. . 13,500.951.71
Fer miscellaneous expenditures.
Including public buildings,
light houses and collecting the
revenue 11,533,691.00
Fer expenditures en account et
the District el Columbia 3.272,384.03
Fer interest en flic public debt.. !iu,757,57S,ll
Fer premium en bends purchas
cd 2,7!t5,320.42
Total ordinary cxpcudituie-,... 207.64 2,957.78
Leaving a surplus revenue of... $ 05.83,053.20
Which, Willi an amount drawn
Irein cawii balance in Treasury,
of 8,031,43 1.21
Making
73.980.0S7.41
Was applied te the redemption
Of bends ter the sinking fund....
Ol Iractieuul currency for the
sinking tuiul
Ol the lean et 1858
Ol temporary lean
Ot bounty-land scrip
Of compound interest notes
Of 7.30 notes of 18G4-05
Ot one and two year notes
Of old demand notes
r3.052.900.00
251,717.41
40,000.00
100.00
25.00
10,500.00
2.050.00
3,700 OJ
495.00
73.908,087.41
Tbe amount due the sinking fund for
this year was $37,931,643.55. There was
applied thereto, from the redemption of
bowls and fractional currency, as shown
in the above statement, the sum of $73,
904,617.41, an excess of $35,972,973.86"
ever the ameuut actually required for the
year.
The requirements of the sinking fund
law have been substantially observed, and
the principal of the public debt, less cash
in the treasury and exclusive of accruing
interest, has been reduced from $2,75G,
431,571.43, its highest point, which it
reached en August 31,18G5. te 81,81)0,02.1,
740.89, en November 1, 1880 a reduction
of $8GG,405,830.54.
Compared with the previous fiscal year,
the receipts for 1880 have increased $62,
C29, 438.23, in the following items : In cus
toms revenue, $49,272,010.90; in internal
revenue, $10,447,703.31; in sales, of pub
lic lands, $91,725.54 ; in tax en circulation
and deposits of national banks,
$207,471.12; in proceeds of sales
of government property, $101,487.00 ;
in consular fees, $142,551.32; iu custom
house fees, $92,403.03 ; in steamboat fees,
$12,063.39 ; in marine hospital tax, $27,
183.29 ; in interest en Indian trust-funds,
$640,901.59 ; in sales of Indian lands.
$272,883.54 ; in deposits by individuals for
surveying public lands, $380,062 33 ; and
in miscellaneous items. $880,924.55. There
was a decrease of $2,930,011.71, as follews:
In premium en leans, $1,490,943.25 ; iu
repayment of interest by Pacific railway
companies, $999,833.85 ; in profits en coin
age, $132,751.89 ; in premium en sales of
coin, $8,104.38 ; in customs fines, penalties,
and forfeitures, $39,726.78 ; in customs
emolument fees, $4,748.35; and iu un
enumcratcd items, $247,903.21 making a
net increase in the receipts, from all
sources, for the year, of $59,699,426.52.
The expenditures slmw an increase ever
the previous year of $25,190,360.48, as fol fel
lows : In the interior department, $22,
395,040.06 ( Indians, $739,348.01 ; and
pensions, $21,655,692.05) ; in premium en
bends purchased, $2,795,320.42. There
was a decrease of $24,495,286.23, as fol fel fol
eows: In the war department', $2,308,
744.51 ; in the navy department, $1,588,
142.10 ; in the interest en public debt,
$9,570,373.89 ; aud in the civil and miscel
laneous, $11,028,025.73 making a net in
crease in the expenditures, for the year, of
$695,074.25.
Fer the present fiscal year the revenue
and expenditures, actual and estimated, is
as fellows :
Total receipt, actual and esti
mated 1350,000,000.00
Total expenditures, actual and es
timated 260,000,003.00
90,000,000.00
39,601,834.48
Estimated amount tine the sinking
dull
Leaving a balance of 50,198,115.52
The act of February 25, 1862, amended
by the act of July 14, 1870, providing for a
sinking fund for the payment of the public
debt, is in conformity with the policy
which lias prevailed since the adoption of
tbe constitution, et regarding a public
debt as a temporary burden, te be paid off
as rapidly as public interests will allow.
The previsions of these acts have been
substantially complied with.They were ex
ecuted literally, until the panic of 1873, by
largely decreasing the revenues of the gov
ernment, rendered it impossible te meet
their requirements. The deficiency en the
sinking fund account is as fellows :
In the fiscal year 1874
$16,305,421.96
5.996.039.62
1875..
" 1876..
" 1877..
" 1878..
" 1879..
- 1,143,709.82;
18,415,557.31
30,231,632.87
Total ameuut due en sinking lund
Less the payment made duringthe
past liscal year In excess of the
amount required, as above set
lerth
87,317,508.21
73.80
Leaving a balance still due en ac
count et the sinking fund of. 51.311,591.35
Or nearly the same amount as the bal
ance of estimated receipts ever the esti
mated expenditures as shown above. Thus
it is probable that there can be applied te
the purchase of bends for the sinking
fund during the present fiscal year an
amount sufficient te cover the whole defi
ciency new existing en the account of that
fund, thus making geed the whole amount
el the sinking tuna as required by law :
Fiscal YeM 1882.
The revenues of the fiscal year ending
June 30, 1882, upon the basis of existing
laws, will be $350,000,000.
a
Excluding the sinking fund, the csti-
mated expenditures will be $259,914,882.08,
showing a surplus of $90,085,117.92.
The secretary respectfully renews his
recommendation of last year that, with
a view te promote economy iu the public
service, a permanent organization of an
appropriation committee ler each Heuse
bi established, who shall have leave te sit
during the recess of Congress, with power
te send for persons and papers, and te ex
amine all expenditures of the government ;
that rules be adopted by the respective
houses limiting appropriation bills te
items of appropriation and excluding
legislative previsions ; that all appropri
ations, except for the interest en the pub
lic debt, be limited te a period net exceed
ing two years, and that the expenditure of
appropriations be strictly confined te the
period of time for which they arc appro appre
priatcd. Reduction et Taxes.
It appears from the foregoing state
ments that the surplus revenue, actual aud
estimated, for the fiscal years 1880, 1881
aud 1882, after providing fur the sinking
fund of each year, is as lollews :
Fertius year ended June 30, 188O..$27,952,O09.6
Fer the year ending .!une ), 1381.. : 0,198,1 15,52
Fer the year ending June 30. IS82.. 4,i.,v:,i.vv
This naturally presents te Congress the
question whether the surplus revenue ac
cruing after the present year should be
applied te the further reduction of the
public debt, or whether taxes new im
posed should be repealed or modified te
the extent of such surplus. The mauy
and sudden changes thai have heretofore
occurred in the amounts realized from our
system of taxation arc a sufficient warn
ing that revenue should uetbc surrendered
unless it satisfactorily appears that the
surplus is iwrmaucut, aud net merely tem
porary. If the taxes imposed by existing
laws are uet oppressive in their nature, it
is perhaps better te bear with them than
te endanger the ability of the government
te meet the current appropriations and
the sinking-fund. A large portion of the
surplus of revenue ever expenditures is
caused by the reduction of the rate of in
terest and the payment of the principal of
the public debt, lhe reduction el annual
intei est caused by refunding since March
1, 1877, is $14,290,453.50, and the saving
of annual interest resulting from the pay
ment of $109,489,850 of the principal of
the public debt, since that date, is $G,
144,737.50. The interest is likely te be
still further reduced during the next year
iu an ameuut estimated at $12,101,429.50,
by the refunding of bends as hereinafter,
proposed. Te the extent of this annual
saving, amounting te $32,539,620.50, the
public expenditures will be permanently
diminished. The laigc increase of reve
nue from customs en a few articles during
the last year may be somewhat abnormal,
and the estimates based upon it may net
be realized. It is a question for Congress
te determine whether any material reduc
tion should be made at a time when the
whole surplus revenue may be with great
advantage applied directly te the payment
of accruing debt, and when Mich surplus
is an important clement in aid of refund
ing. If it should be determined by Cen-
gross te reduce taxes, it is respectfully re
commended that all the taxes imposed by
the internal reveuuc law ether than these
en bank circulation aud en spirits, tobacco
aud fermented liquors be repealed. Tiic
tax en the circulation of national banks is
levied partly in the nature of a moderate
charge for a franchise conferred by the
government, and partly te furnish means
te pay the expense of printing and issuing
national bank notes. It is easily col
lected by the treasurer of the United
States, aud is a just and proper tax,
whether rcgaided as a charge for the fran
chise or as a means of reimbursing the
government the cost of printiug the notes.
The tax en state banks is of the gravest
importance, net for purposes of revenue,
but as a check upon the renewal of a sys
tem of local state paper money which, as
it would be issued under varying state
laws, would necessarily differ as te condi
tions, terms, aud security, aud could uet,
from its diversity, be guarded against
counterfeiting, and would, at best, have
but limited circulation.
Kefumling.
A large portion of the public debt be
comes payable or redeemable en or before J
July 1, next, as fellows :
Lean of February, 1801, 5 per cent.,
payable December 31, 1880, $13,414,000.
Oregon war debt. 6 per cent., payable
July 1, 1881, $711,800.
Lean July and August, 1861, 6 percent.,
redeemable, June 30, 1881, $145,780,500.
Lean of 1863, (1881's) 6 per cent., re
deemable June 30, 1881, $57,787,250.
Funded lean of 1881, 5 per cent., re
deemable May 1, 1881, $409,051,050.
Outstanding November 1, 1880, $687,
350,600. The bends maturing December 31, 1880,
will be paid from accruing revenue. The
surplus revenue accruing prier te July 1,
1881, estimated at about fifty million dol
lars ($50,000,000), will be applied under
existing law te the purchase or payment
of the bends above described, thus leav
ing the sum of $637,350,600 te be provided
for. The third section of the act ap
proved July 14, 1870, for refunding the
national debt, uudcr which the five per
cent, bends, maturing May 1, 1880, are
redeemable, requires the secretary of the
treasury te give public notice three months
in advance of their payment. Te enable
the department te avail itself of the option
of redeeming these bends at their ma
turity, the necessary legislation for that
purpose should be passed prier te Fcbru
1, next. The live and six per cent, bends
are net, by their terms, payable at a spe
cific date, but they are redeemable at the
pleasure of the United States after the
dates above named. They bear a much
higher rate of interest than the rate at
which new bends can be sold. Any delay
in providing for their redemption will com
pel the continued payment of high rJtcs
of interest; it will .make necessary the
issue of a new scries of coupons te the
holders of coupon bends, aud may post
pone te a less favorable period the com
pletion of the operations of refunding.
Under existing law, there is still available
for this purpose four per cent, beuds au
thorized by the acts of July 14, 1870, and
January 20, 1871, te the ameuut of $104,
052,200. Thcse could new be sold at a
large premium, and, in the absence of
legislation, it would be the duty of the
secretary, when any bends became
redeemable, te sell the four per
cents and apply the proceeds te the
redemption of such bends; but the
amount of four per cents authorized is
inadequate te the purpose stated. It is
therefore advisable, oynew ana compre
hensive legislation, te authorize the sale
of ether securities sufficient te redeem the
whole sum seen te be redeemable. The
terms and conditions of (the securities tube
authorized for this purpose have received
the careful attention of this department.
Hitherto the policy has been te sell beuds
bearingas lewja rate of interest as possible
running a number of years ; but in view
of the requirements of the sinking fuud,
it is believed that a large portion of the
public debt te be redeemed cau be pro
vided for by the treasury rates, running
from one te ten years, issued in such sums
as can, by the application of the sinking
fund, be paid as they mature. The pur.
chabe of bends net due has heretofore in-
velved the paymeut'ef prcmiums,"which it
is believed can, in future, be avoided by
the issue of such treasury notes. The
large accumulation of money new seeking
investment affords a favorable opportunity
for selling such notes bearing a low rate of
interest. It is believed that they will form
a popular, security, always available te the
holder, and readily convertible into money
when needed for ether investment "or busii
ness. 1 hey should be in such lerm and
denominations as te furnish a convenient
investment for the small savings of the
people, and fill the place designed by the
tcH dollar refunding certificates authorized
by the act of February 26, 1879. Ne ether
United States bends than these stated be
come redeemable prier te the 1st of Sep
tember, 1891, the date of maturity of the
four-and-a-half per cent, bends. The re
quirements of the sinking fund prier te
the maturity of the four-and-a-half per
cent, bends, for a period of ten years, from
1882 te 1891, both exclusive, arc estimated
as fellow :
Fer the fiscal
30.1852
ycarcndmir June
$41,30,015.00
45,122,110.81
40,92-J,993.2l
4s,S0 1,075.01
7,75ti,23S.0l
52,780,487.50
51,837,917.07
57,0!,8'il.9ft
53,377,019.55
01.752,721,33
Fertius fiscal vear ending June
30,18S3
Fer the tiscal year ending June
30. 1SJ4
Fertlie tiscal vcir intlin June
30, 155
Fer the hScal year ending June
3 188.
Fer the lineal year ending June
0, 1887. ........................
Fer the liscal year ending June
30,188.3
Fer the liscal year ending June
.", IS.-.)
Fer the tiscal year ending June
Fer the liscal year ending June
30,1891
520,901,707.58
It may be that during this period, by
the change of our financial condition, or
from unforeseen events, the government
will net be able, as in time past, te apply
sums se large te tli- reduction of the debt ;
but it is probable that any temporary de
ficiency would .seen be made geed by in
creased rcveuut. This contingency may
by provided for by the terms of the bends.
The secretary, therefore, recommends
th.it prevision be made for the issue of an
ameuut net exceeding $400,000,000 of
treasury notes in denominations net less
than ten dollars, bearing interest net ex
ceeding four per cent, per annum, and
running from one te ten years, te be sold
at net less than par, the amount maturing
during any year uet te exceed the sinking
fund for that year, and the proceeds te be
applied te the payment of five and six per
cent, bends, maturing in 1881. It is be
lieved that, with the present favorable
state of the money market, a sufficient
amount of such treasury notes, bearing au
annual interest of three per cent., can be
sold te meet a considerable portion of the
maturing beuds ; but it is better te confer
upon the department a discretionary power
te stipulate for a higher maximum rate,
te avoid the possibility of failure. Such a
discretion is net likely te be abused, while
a power tee carefully restricted may de
feat the beneficial object of the law.
It is also recommended that authority
be given te sell at par an amount net ex
ceeding $400,000,000 or bends of the char
acter and description of the four per cent,
bends of the United States new outstand
ing, but bearing a rate of interest net ex
ceeding three aud sixty-live one hun
dredths per cent, per annum, and redeem
able at the pleasure of the United States
after fifteen years, the proceeds te be ap
plied te the payment of bends redeemable
en or before July 1, 1881. Though the
amount of the two classes of securities
recommended exceeds the amount of
bends te be redeemed, no meie can be
sold than the beuds te be redeemed, while
the alternative authorized will permit a
limited discretion te sell the securities
most favorable te the government. With
the authority thus recommended, it is be
lieved that the department cau within a
year redeem all the live aud six per cent,
bends new outstanding, and thus reduce
the interest of the public debt $12,000,000
per annum, and leave the debt in a form
most favorableforgralual payment by the
application of the sinking fund without
cost or premium.
Resumption.
Nothing has occurred since my last an
nual report te disturb or embarrass the
easy maintenance of specie payments.
United States notes are readily taken at
par with coin in all parts of this country
aud in the chief commercial marts of the
world. The balance of coin in the treas
ury available for their redemption en the
first day of November last was $141,597,
013.61, and the average during the year
has net materially varied from that sum.
The only noticeable change in the reserve
is the gradual increase of silver coin caused
by the coinage of theVilver dollar and the i
redemption et lractienal. silver coin, mere
fully stated hereinafter.
The amount of notes presented for re
demption for one year prier te November
1, 1880, was $700,658. The amount of
coin or bullion deposited in the treasury,
assay office, and the mints during the same
period was $71,390,535.07. These deposits
have usually been paid for in coin, through
the clearing house, but at times, when the
currency in the treasury would allow, and
at the request of the depositors, they have
been paid for in United States notes and
silver certificates. Geld ceiu new enters
largely into general circulation. Of the
revenue from .customs collected iu New
Yerk for ene year ending November 1.
1880, .57,475 per cent, was paid in geld
coin, .00,125 per cent, in silver coin,
.31,087, in silver certificates, and .11,813
per cent, in United States notes. While
no distinction as te value is made between
coin and notes in business transactions, a
marked preference is shown for notes,
owing te their superior convenience iu
counting aud carrying. Many of the cur
rent payments from the treasury arc nec
essarily made in coin, and much of the
funds held for the redemption of national
bank notes and of notes of banksjthat have
failcdjer suspendedisin coin. The total ceiu
in the treasury, at the close of business,
November 1, was $218,710,15,4, of which
$141,597,013.G1 constituted the reserve
fuud for the redemptieu of United States
notes, as above stated.
All the requirements of the resumption
act have thus far been executed, aud its
wisdom has been fully demonstrated. It
only remains te inquire whether any
further measures are necessary or expedi
ent te secure the maintenance of resump
tion. The secretary expresses the utmost
confidence that without new legislation
the entire amount of United States notes
new authorized and outstanding can be
easily maintained at par in coin even if
the present favorable financial condition
should change ; but, in order te accom
plish this,, the ceiu reserve must be kept
unimpaired except by such payments as
may be made from it in redemption of
notes. Notes redeemed should be tem
porarily held in place of the coin paid out,
especially if it appears that the rail for
coin is greater in amount than the coin
coming in due course into the treasury or
the mints. Ordinarily the superior conve
nience of notes will, as'at present, make a
greater demand for them than for coin;
but in case of an adverse balance of trade
or a sudden panic, or ether unforeseen
circumstances, the ample reserve of coin
en hand becomes the sure safeguard of re
sumption, dispelling net only imaginary
fears, but meeting any demand for coin
LANCASTER PA., TUESDAY. DECEMBER 7, 1880
that is likely te arise. In a supreme
emergency the power granted te sell
bends will supply any possible deficiency.
It is suggested that Congress might de
fine and set apart the coin reverse as a
special fund for resumption purposes.
The general available balance is new
treated as such a fund, but, as this bal
ance may, at the discretion of the secre
tary of the treasury, be nnduly drawn
upon for the purchase or payment of
bends, it would appear advisable that
Congress prescribe the maximum and
minimum of the fund.
United States notes arc new, in form,
security and convenience, the best circulat
ing medium known. The objection is
made that they are issued by the govern
ment, and that it is net the business of
the government te furnish paper money,
but only te coin money. The answer is,
that the government had te borrow
money aud is still iu debt. The United
States note, te the extent that it is wil
lingly taken by the people, and can, be
yond question, be maintained at par in
coin, is the least burdensome form of debt.
The less of interest in maiiituiniug-the re
sumption fund, and the cost of printing
and engraving the present ameuut of
United States notes, is less than one half
the interest en au equal sum of four per
cent, bends. The public thus saves ever
seven million dollars of annual iutcrest,
aud secures a safe anil convenient medium
of exchange, and has the assurance that a
.sufficient reserve in coin will be retained
in the treasury beyond the temptation of
diminution, such as always attend re
serves held by banks.
Anether objection te the issue of United
States notes is that they are made a legal
tender in the payment of debts. The
question of the constitutional power of
Congress te make them such, is one ler
another branch of the government. The
secretary of the treasury is still of the
opinion that this quality of legal-tender
decs net add te the usefulness, safety, or
circulation el United slates notes, be far
as it exeites distrust and opposition te this
form of circulating-notes it is a detri
ment. The fear that a withdrawal of this
attribute
will contract the currency is as
delusive as was the fear that resumption
would have a like effect. The notes would
still be received and paid out by the
government, and, like bank notes, would
net be refused in payment for
debts while they were redeemable and
promptly redeemed in coin en prcsenta prcsenta
tatien. As the quality of legal-tender was
attached te these notes when first issued,
and was then essentia te their value and
circulation, the public mind is sensitive
when any preposition is made that by pos
sibility might impair their value, but it is
their redemption iu coin that makes them
new equal te coin and of ready circulation
iu all the marts of the world. While this
is maintained it becomes comparatively
immaterial whether they are a legal ten
der or net, and if by the action of Con
gress or the courts they are deprived of
this quality they will still be the favorite
money of the people.
Anether objection te United States notes
is, that the amount of the issue may be
enlarged by Congress, and that this power
is liable te abuse. A sufficient answer is
that, since their first issue, they have been
carefully limited iu amount, and invested
with every quality te improve their value
and circulation. Every effort te increase
the amount, made during a period of great
depression, failed. New that theyare re
deemable in coin there is no temptation for
ever-issne.
These objections will, no doubt, iu due
time receive the careful consideration of
Congress, and any practical difficulties in
maintaining resumption will be met by
new legislation. But the secretary ven
tures te express the opinion that the pres
ent system of currency, the substantial
features of which are a limited amount of
United States notes, (with or without the
legal-tender quality), promptly redeema
ble iu coin, with ample reserves hi coin
and ample power if necessary te purchase
coin with bends, supplemented by the cir
culating notes ei national uanKs issuea
upon conditions that guarantee their ab
solute security and prompt redemption,
and all based en coin of equal value, gen
erally distributed throughout the country,
is the best system ever devised, and mere
free from objection than any ether, com
bining the only safe standard with conve
nience for circulation aud sceurity and
equality of value.
The coinage executed at the mints due-'
ing the fiscal year has exceeded in value
that of any provieusycar since the'organi the'ergani the'organi
zatieu of the government. Its total
ameuut, net including the miner coinage,
was $84,100,172.50, of which it is estimated
$62,000,000 was probably from domestic,
and $21,000,000 from imported bullion.
Iu compliance with the previsions of the
act of February 28, 1878, during the last
fiscal year 24,202,571,38 standard ounces
of silver bullion, costing $24,972,101,81
(an average of $2,081,013,48 per month),
were purchased, of which 21,005,5GG,4t
were coined into 27,933,750 standaid silver
dollars. The total coinage of standard sil
ver dollars since the passage of the act, up
te November 1.18S0, has been $72,847,750,
at which date $47,084,450 were in the
treasury. Of the latter amount $19,780,
241 were represented by outstanding silver
certificates, the amount in actual circula
tion at that date being $25,763,291.
Since the passage of that act, the de
partment has issued numerous circulars
and notices te the public in which it has
offered every inducement which it could
under the law, te faciliate the general dis
tribution and circulation of these coins. It
has required United States disbursing of
ficers te pay them out in payment for sal
aries and for ether current obligations,
aud it has offered te place the silver in the
hands of the people throughout the United
States without expense for transportation,
when sent by express, and at an expense
for regfstratien lce only, when sent by reg
istered mail.
Notwithstanding these jeflerts, it isfennd
te be difficult te maintain in circulation
mere than 35 per cent of the amount coined.
While at special seasons of the year, and
fox special purposes, this coin is in demand
mainly in the Seuth,, it returns again te
the treasury, and its reissue involves an ex
pense for transportation at an average rate
of one-third of one percent, each time. Un
like geld coin or United States notes, it
docs net, te the same extent, form a part
of the permaucut circulation, everywhere
acceptable, and when flowing into the
treasury, easily paid out with little or no
cost of transportation. The reasons for
this popular discrimination against the sil
ver dollar are :
1st. It is tee tyilky for large transac
tions, and its use is confined mainly te
payments for manual labor and for market
purposes or for change. The amount
needed for thcse purposes is already in ex
cess of the probable demand.
2d. It it known te contain a quantity of
silver of less market value than the geld in
geld coin. This fact would net impair 'the
circulation of such limited amount as ex
perience shows te be convenient for use,
nnt it does prevent its being held or
hoarded as reserves, or exported, and
pushes it into active circulation, until it
returns te the treasury, as the least val
uable and desirable money in use.
Fer these reasons the secretary respect-
fullybut earnestly recommends that the fur
ther compulsory coinage of the silver dol
lar be suspended, or, as au alternative,
that the number of grains of silver in the
dollar be increased se as te make it equal
iu market value te the geld dollar, and
that its coinage be left as eth?r coinage te
the secretary of the treasury or the di
rector of the mint, te depend upon the
demand for it by the public for conven
ient circulation.
The continued ceinage of the silver dol
lar necessarily involves the expenditure of
two million dollars per month of the cur
rent revenue, the proceeds of which must,
as experience shows, mainly lie idle in the
treasury, involving a large expense for
storage and custody. When issued, a
considerable expense Ter its transportation
is involved, it is taken reluctantly by the
people, and is seen returned te the vaults
of the treasury. The tendency of this
process is te convert into silver com the
reserve of geld ceiu held in the treasury
te maintain United States uetcs at par.
The inevitable effect of the continuance of
this coinage for a few years mere will be
te compel the department te maintain its
special reserve in geld coin, irrespective of
the silver en baud, or te adept the single
silver standard for all government pur
poses. The object manifestly designed by
the passage of the act for the coinage of
the silver dollar was te secure te the peo
ple of the United States the benefits of a
In-metallic standard of value. It was for
cibly urged that te demonetize silver
would increase the burden of debts, and
rest the value of all property upon the
quantity en hand of a single metal. It
was net the intention of the framcrsef the
act te demonetize geld, but te maintain
both geld aud silver as standards of value.
This has been done for theuasnds of years ;
but only by adopting, as nearly as possi
ble, the relative market value of the two
metals as the ratio for coinage, and by
changing the ratio adopted whenever for
a period of years it was demonstrated that
the marke ratio had changed. 1 lie U uited
States has conformed te this custom of
civilized nation!,', and the constitution re
cognized it by authorizing Congress te
coin money aud te regulate its value.
Under this authority Congress provided,
iu 1793, that the ratio should be one
ounce of geld te fifteen ounces of silver;
aud en the 28th of June, 1834, it changed
the ratio te one ounce of geld te sixteen
ounces of silver.
It would appear that Congress -somewhat
overrated silver in 1793, and under
rated it in 1834, but it is new certain that
sixteen ounces of silver are net worth one
eunce of geld, and if silver were coined
without limit en that basis, it would
eventually bring us te a single silver
standard, aud reduce geld te a commodity
or drive it te foreign countries a result
net intended by the act of February 28,
1878.
The average cost of the silver iu as and
ard dollar, as shown by the purchased for
the government from the date of the re
sumption act te this time, measured by the
geld standard, is $0,900, or in a ratio of 1
te 17.64. Upen this ratio a silver dollar,
in order te be of equal value te a geld dol
lar, should contain 455.3 grains. feVs the
expense of coining a silver dollar is equal
te the value of about five grai::s of stand
ard silver bullion, it is confidently believ
ed that a silver dollar containing 450
grains, based upon a ratio of one of geld te
about 17.5 of silver, could be safely coined
as demanded for use or exportation, with
out demonetizing geld or disturbing con
tracts or business, aud with great advan
tage te the silver-mining interests of the
ctsuntry. Upen the facts stated, it weuldl
seem te us wise policy new, iu the spirit of
the constitution, te regulate by law the
ceiu value of the two metals se as te con
form te the market ratio.
The cost of rcceining the silver dollars
already issued into dollars of the weight
suggested is estimated at about ene per
cent., or $728,477 50. Much confusion
and delusion have arisen from treating as
a profit the difference between the cost of
the silver bullion coined into silver dollars
and the face-value of the dollars coined
therefrem. This difference, from Febru
ary 28, 1878, the date of the act author
izing their coinage, te November, 1880,
is $8,520,871.45. Frem this should be
deducted the expense already incurred in
distributing the coin and by wastage,
which amounts te $262,008.01, leaving as
the net nominal profit the sum of $8,258,
863.44, of which $7,198,294.50 have bceu
deposited in the treasury, and $1,060,563.
88 remain in the mints. This nominal
profit is burdened with the nccessity of re
ceiving, and thus practically redeeming,
these dollars at their nominal value in geld
coin, and of reissuing, transporting and
maintaining them in circulation. This
burden will seen exhaust the nominal
profit. AVhcn held by the government the
coins are of no mere real value than an
equal weight of standard silver bullion. Te
the extent of the difference between their
bullion and nominal value, they arc purely
fiat money. This nominal profit applied
te the purchase of silver bullion would be
sufficient te meet the entire cost of con
verting the present dollars into an equal
number of the proposed dollars ; or, in
ether words, if the present dollars were
converted into the less number of the pro
posed dollars, the nominal less would be
fully covered by the nominal profit new in
the treasury and the mints.
It may be better for Congress at the
present time te confine its action te the
suspension of the coinage of the silver dol
lar, and te await negotiations with foreign
powers for the adoption of an international
ratio ; but, compelled by official duty te
report en this subject, the secretary feels
bound te express his conviction that it is
for the interest of the United States new,
as the chief producer of silver, te recog
nize the great change that has occurred in
the relative market value of silver aud geld
in the chief marts of the world, te adept
a ratio for ceinage based upon market
value, and te conform all existing coinage
te that ratio, while maintaining the geld
eagle of our ceinage at its present weight
and fineness. He confidently believes that
the effect of this measure would be te
make our geld and silver coins the best in
ternational standards of value known.
Already the double eagle, issued without
cost for coinage, and iu greater sums thau
any ether geld coin, and of equal v.iluc te
any ether coin, whether measured weight
or tale, is received without question in all
commercial countries as the most conven
ient medium of exchange. It is believed
that a silver dollar of the weight and ratio
of the proposed ceinage would be the best
silver standard for international exchange,
and that it would tend te fix the market
value of silver bullion at the ratio pro
posed, and.weuIdthus,as far as practicable,
avoid the changing relative value of the
two metals, while giving a steady market
for the silver product of our country.
In this connection, the attention of Con
gress is respectfully invited te the opera
tion of the act approved June 9, 1879, re
quiring the redemption in lawful money,
at the office of the treasurer or any assist
ant treasurer of the United States, of the
silver coins of the United States of smaller
denominations thau one dollar.
When fractional silver coins were au
thorized by the act approved February 21,
1853, they were made te contain 381 grains
of standard silver te the dollar. This was
subsequently changed by the coinage act of
1 873 te 25 grammes or 385.8 grains. They
thus contain 26.7 grains, or nearly 6 per
cent., less than the standard dollar. Prier
te 1853, by reason of the large production
of geld in California, the standard
silver dollar and its fractional parts had
risen in market value above par in geld
and were largely exported. Te prevent
their exportation and in accordance with
the example of Great Britain, the policy
was adopted, by that act, of reducing the
weight of the miner silver coin, and this
policy operated well until, in the spring of
1S62, both geld and silver ceased te circu
late as money. Duringthe suspension of
specie payments a remarkable deorease in
the value of silver occurred, and new the
market value of the silver iu a dollar of
the fractional coin is only 821 cents.
The amount coined prier te November
1, 1880, under tbe previsions of the re
sumption act, which substituted silver for
fractional currency, was $42,974,931. Te
this has been added a very large sum
issued before the war, and again intro
duced iute circulation since the resump
tion of specie payments. It is difficult te
determine the amount of such old coinage
in circulation, but it is believed te exceed
$22,000,000. Prier te the act of Juuc9, 1879,
this fractional com filled the channels
of circulation, especially in commercial
cities, and gave rise te the passage of that
act. At that date there was in the treas
ury $6,813,589 fractional coin ; en the 1st
of November, 1880, the amount was $24,
029, 1S9, from which it appears that $17,
815,900 has deen redeemed with lawful
money. The whole ameuut in the treas
ury is counted as a part of its rescrve, al
though it is a legal-tender only in sums
net exceeding ten dollars, aud is, there
fore, net available as cash for general pur
poses. It would seem wise that the excess
net needed fur change should be coined
into standard dollars, and that any further
fractional coin, hereafter needed, should
contain silver of approximate relative value
te the standard coin. The nominal profits
heretofore derived from this coinage is
quite sufficient te cover the cost of this
change. It is also respectfully suggested
that the act of July 9, 1879, should be re
pealed. When fractional coin is issued as
r.ioney, it should be treated like ether ceiu
te be received by the government upon the
saine conditions as by the people, but net,
like paper money, te be redeemed. If it
must be classed as money te be redeemed,
it should be supported by a reserve like
ether redeemable money.
National Hanks.
The capital stock of the national bauk,
ou October 1, 1880, was $457,553,850 ; sur
plus, $120,518,583; and the total circula
tien outstanding, $3-13,949,892. '
National banks are ergauized iu every
state of the Union except Mississippi, aud
in every territory except Arizona ; and
the total number in operation is 2,095,
which is the greatest number that has bceu
in operation at any ene time.
The capital stock of the national banks
is $47,000,000 less and the surplus nearly
$14,000,000 less than at the corresponding
date in 1875. The leans of the banks at
the date of their last returns were $1,037,
000,000, and the individual deposits $873,
000,090, the highest points reached since
the organization of the system, the leans
being $207,000,000 greater and the indi
vidual deposits $253,000,000 greater thau
in October, 1878, wuile the capital and
surplus at the previous date were $5,
000,000 in excess of their present amounts.
The individual deposits and the public,
private, aud bauk deposits net deducting
the amount due from banks and the
amount of the clearing house exchanges,
have increased mere thau $322,000,000,
and amount te the unprecedented sum of
$1,155,000,000.
The comptroller states that the abun
dance of money, and the low rates of in
terest, have made it difficult for capitalists
te lind satisfactory investments, aud that
he has, therefore, examined the statements
of the banks for a series of years te ascer
tain if the banks have feuud use for their
increased deposits. The amount of the
leans of the banks iu New Yerk city, in
October, 187ff tnd 1880, was 70.8 per cent,
of the capital surplus, and net deposits ;
while iu 1878 it was 05.4 per cent.; in 1877
OS per cent.; and in 1876 65.1 per cent; and
the leans are new propertionably higher
than at any time since 1873. The resources
of the banks in the ether princial cities of
the country are shown by their reports for
October 1, last, te have been then mere
fully employed than they were at the cor
responding dates for the two previous
years, although their business was net se
much extended as it was during the four
years following the crisis of 1873.
The ratio of the .leans of the banks in
the country districts te their
capital, surplus, and net deposit was, en
October 1, 7.3 per cent, less than it was at
the corresponding date in 1875, and 5.3 per
cent. less than in 1877. The opportunities
for using money in this group of banks is
net in proportion te the increase of their
deposits, and their balances in ether banks
have by no means been diminished.
The tables given by the comptroller
show that, during the past two years, the
leans of the banks in the city of New
Yerk have been extended te a much great
er degree propertionably than the leans in
ether parts of the country, and that the
cash reserves of the banks in New Yerk
have been nnprccedcntcdly low. While
the aggregate lawful money reserve has,
as farjis known, always been held by this
class of banks, it has frequently been very
close, seme of the banks expanding their
leans beyond reasonable limits, and rely
ing upon imports of geld and purchases of
bends by the treasury te replenish their
deficient reserves a
The act of. June 20, 1874, repealed the
law requiring reserves te be held upon cir
culation, thus largely reducing the amount
of legal rsscrve required. The enormous
increase of individual and bank deposits
during the last year should net be accom
panied with a proportional increase of
leans, since such increase would, it is be
lieved, have the effect, indirectly, of in
creasing the market prices of many rail
road and ether stocks and bends
largely beyond their actual value. .The
banks in New Yerk city held mere than
$100,000,000 of the funds of ether banks,
which are payable en demand, and it is of
the greatest importance that they should
at all times exhibit great strength if they
would keep themselves iu condition for an
adverse balance of trade, and for the legi
timate demands of these dealers who con
fide in them.
The comptroller gives seme interesting
tables showing the amount of coin and
currency in the country en the day of re
sumption of coin pay mcnts,and en Novem
ber 1 of thp present year, together with
the amount of coin and currency in the
tresury and in the banks, and the amount
in the handB of the people outside of these
depositories, from which it will be seen
that while the amount in the treasury and
the banks has increased mere than $50,
000,000 during that period, the amount in
the hands of the people has also increased
mere than $195,000,000.
The most gratifying exhibit in the con
ditien of the national banks is, that they
are new doing business upon a specie basis
the amount of geld coin held by the nation -al
banks having increased since the day of
resumption from $35,039,201 te $102,851,
032, which te but about $18,000,000 less
Price Twe Cents.
than the whele cash reserve required by
law.
The national banks held nearly 200,
000,000 of United States bends which will
matare en or before July next.
The whole amount of United States
bends held by the national banks as secur
ity for circulation and for ether palpates
is $403,369,350, aud the average amount of
capital invested by the state banks, sav
ings banks, and private bankers for the
six months ending May 31, 1880, as shown
by the returns te this department for pur
poses of taxation, is 8228,053,104, making
a total of 631,422,454.
The Drefit UDen circulatioe. te the na
tienal banks, at the present price of bends
in the market, is estimated net te exceed
11 per cent, upon the capital invested, and
the amount of state and national taxes is
mere than 4 per cent, upon the amount of
circulation.
The banks aud bankers of the country
have complained that the taxes upon bank
deposits and bauk capital since the pass
age of the first internal revenue act, have
been greatly dispropertioned te the
amount paid by ether classes of property,
aud it would seem that the time has new
arrived, as hereinbefore recommended,
wheu Congress might properly repeal all
taxes en capital aud deposits, retaining
the present tax en circulation.
The national banking system has fully
realized all the expectations of its found feund
ers. It has furnished a safe currency, of
uniform circulation, carefully guarded
against counterfeiting, protected by ample
reserves, aud promptly redeemed both at
the banks and the treasury. Ne ether
legislation in respect te the-se important
corporations seems te be required at the
present session.
I'ubllc Aleueja.
By reference te the table ac
company lug this report, it will
he seen that, since tin; organi ergani
7.ii' ion of the government there
lias liecn paid into the treas
ury te the close of the last fis
cal year $18,570.34.4,047.03
Aud that there lias been paid
out upon warrants in censu
lt iiunce al nppreprlat ions made
bylaw, te
sum of....
ine saint
same date, the
is,.;i,K.)i,aii.ej
Leaving uncxpeiided.charged le
the treasury, thesiini of
115,191,115.43
rilii
This amount, however, is net all in ac
tual cash, but is made up of items as fol fel
lows :
Amount deposited with the
states Under act et Congress
approved June 23, 1830
Amount arising irem defalca
tions, irredeemable bills, 4u...
$28,101,611.91
2,703,931.18
201,683,830.34
235.494,443.43
A "l
As the two first items are net available for.
disbursement, it would seem unnecessary
te carry them longer as part of the balance ;
but neither of them can be disposed of
without authority of law, though the
amounts represented have passed beyond
the control of the department, or entirely
disappeared.
The first ameuut was by law deposited
with the states, net paid te them, and the
department cannot withdraw it without
further authority. The second item men
tioned arose many years age from the fail
ure of state bauks te redeem their notes
which the government held, and of public
officers te properly account for moneys re
ceived by them for the credit of the treas
ury. These items, for ceuvenience, have
already been informally emitted from the
current cash books and the monthly debt
statement of the department. There are
also a few ether items of like character,
still treated as cash, en which no such ac
tion has yet been taken. Te their amount
they would further reduce the available
balance en hand. A full statement of
theso unavailable amounts has been pub
lished for several years in the annual re
ports of the treasurer of the United States.
It is recommended that authority be
given te reimburse the treasurer for these
unavailable amounts, they being no longer
under his control, though he is charged
therewith, aud te charge the ameuuts te
the parties from whom they are respec
tively due. Such a course would take no
money from the treasury, would relieve
no public debtor from any legal liability,
while it would greatly simplify the ac
counts of the treasury, and would cause
the books of the department te show,
always the real instead of the apparent
balance of cash en hand available for dis
bursement. It will be understood that the apparent
discrepancies which have arisen Irem these
unavailable amounts are due te no fault
of accounting or book-keeping. On the
ceutrary, it is worthy of note that the
amount of these unavailable items, to
gether with the actual money in the treas
ury, makes precisely the amount of the
moneys received by the treasury and net
expended, as shown by the books of the
several bureaus ef-tlie department. Ne
better proof of the accuracy with which the
accounts of hc great liscal operations of
the government have been kept could be
asked feV or obtained.
The ameuut of money reported en hand
te the credit of the treasurer is net, how
ever, the entire amount of public moneys
held by independent trexsury officers and
depositary banks. As fiscal agents of the
government these officers and banks have
held the funds advanced for disbursement
te public officers, and also ether funds in
trust for tbe redemption of national bank
notes aud for ether purposes, aggregat
ing a monthly average during the past
year of ever sixty millions of dollars. Un
der the existing system, by which the gov
ernment practically holds and disburses its
own money and that of its officers, the
fiscal operations arc conducted without
disturbance, embarrassment or favoritism,
and with satisfaction te all concerned.
Customs.
The revenue from customs for tbe year
ended June 30 1880, was $186,522,004.60 ;
the revenue for the preceding year was
$137,250,047.70, an increase of $49,272,
016.90. This large gain was due in part te
an exceptional demand for certain classes
of foreign merchandise, principally iron
aud steel and their manufactures, which
is net likely te be maintained duriug the
present year. Of this sum about $42,000,
000 was collected en sugar ; $18,500,000,
en manufactures of silk ; $19,000,000, en
manufactures of iron and steel ; $10,000,
000, en manufactures of cotton ; $29,000,
000, en wool and manufactures of wool';
and $6,000,000, en wine and spirits, mak
ing a total of nearly $125,000,000 collected
en these six classes of articles. The pre
cise amounts, however, cannot be gives,
because the statistics are based, te a cer
tain extent, or unliquidated entries.
The expenses for collection for the past
year were $5,995,878.06, an increase ever
the preceding year of $510)95.03, occa
sioned te a large extent by the increase in
the importation of bulky articles.
The present taiiff is but a compilation
of laws passed daring many sacceealBg
yean, and te meet the necessities of the
government from time te time. These
laws have furnished the greater part .of
our revenue, and have incidentally .pro
tected and diversified hOBM manafactares.
The general principle upenwkick they
are founded Is believed te be wise and sal
utary. Ne marked or sudden change,
which would tend te destroy or injure cUmm
raestic industries built upon faith
ttin.ttv
'i