Terre Haute Weekly Gazette, Terre Haute, Vigo County, 6 December 1877 — Page 5

THE TREASURY.

Annual Report of Secretary the Treasury for the Past Year.

cf

PMIIUO/

na lonai baalts

if roin repayment of inter si by I' .clfl) Kill way Oomudute Froji atoms' lees, tines, penaide-', etc From fees—consular, iettera-pat-ent, and la ds From proeoed-iof saies of govern acnl propelty From premiums on sales of coin roin profits on coinage, etc Frooi miscellaneous source*

of

Full Iti«cii«*ioii hy liimof the UcHiintplioii Acl,

And

Silver and Go'd, ana the national Banks.

Decided Opposition by Him to the Idea ot* Itemoiictizuifir of liver.

A Number of Important Financial Questions Considered.

WABHJNOTON, Dec. 3—The following in the report of the secretary of the treasury:

7,078,550 90

1,061,993 64

1,041,712 84

1,727,611 97

333, 954 96 249, 8J 78 3,274,239 08 3,U37,782 81

Total orelaary receipts 269,000,586 62 The ordinary expenditures for the same period were: Fjf civil eiftitisefl 15,791.188 84 For fore gn Iutorcour»e 1,2^9 763 79 Forlnliaus 6,27 ,007 21 For ptjasi jut, 27,963,752 27 For the military establish jiont,

Includ.uR river and ua bor imp.ovcments and arsenals 87,C82.733 99 For me naval estabi sbraeut. iucludlng vessels, machinery, an Improvements at navy yards 11.959,935 36 Eor miscellaneous expenditures including public buildings, light-bouses, and collecting tne revenue 89,228,119 47 For interest on tne public debt.. 97,124,5 il 58

Total ordinary expenditures 238,660,008 9J

Leaving a surplvs revenue of..... 930,840,577 69

Which was applied as follows: To the redemption of United States notes etc ...$10,071,617 00 To the redemption of fractioual currency 14,143,458 05 To tne redemption of Bix per cent bonds for ttie sinking fund 447,600 00 To increase of cash balance In the treasuay 5,778 002 64

Sudtng

80,840,577 69

The expenditures show a decrease as follows: In the war department, $988.T152 74 in the navy department, $4,003,374.46 in the interior department$983,194.37 in civil and miscellaneous, $10,706, 307.18 and in the interest on the

ublic debt, $3,11,759 65—due to the of six percent, bond* in new five3 and lour and-a-h If per ceut. bonds— making a total reduction in all of the departments of $19,769,788 40.

RESUMPTION OF 8PEC1E PAYMENTS.

By the resumption act approved Janunarv 14,1876, the secretary of the treasury is required to redeem legal-tender notes to the amount of eighty per centum of the &um of national bank notes issued, and to continue such redemption, as circulating notes are issued,,until there shall be outstanding the sum of $300,000,000 of such legal-iender United states notes, and no more. in obedience to this act, there have been issued, since March 1,1877, to national banks, $16,123,995 of circulating notes, and there have been redeemed, retired, and cancelled. $12,899,196 of United States noted, leaving outstanding, on the 1st instant, the sum of $851,340,288.

By the same act it is provided that, on and after the firdt day of January, 1879, the secretary of the treasury shall redeem, in coin, the Utited States legal tender notes then outstanding, on their presentation for redemption at the office of the assistant treasurer of the Uuited States, in the city of New York, in Mitts of not less than fifty dollars* And, to enable the secretary of the treasury to prepare and provide for tb« redemption in this act authorized or required, he is authorised to we any turplus revenues, from time to in the treasury not other wise appropriated, and to issue, sell, and dis oseOf, at not lees than par, in 'coin, either of tho descriptions of bonds of the United States described in the act of congress, approved July 14,1870, entitled 'An act to authorise the refunding of the national debt,'with like qualities, privileges, and exemptions, to the extent necessary to carry this act into fu'leffect, and to use the proceeds thereof for the purposes aforesaid."

In obedience lo this provision, the secretary has eold at par* tor Coin, $15,000,• 000 four and one-half per cent, bonds, or $5,000,000 during each of th| months of May, Juae,and July last, and has sold $25,000,000 at par, in coin, of four per cent, bonds, or $5,000,000 for each of the months of August, September, October, November, and December. Of the coiu thus received, $4,000,000 have been sold for the redemption of United States notes, and the residue is in the treasury. The surplus revenue has also, under the same authority, been applied to the redemp tion of the residue of United States notes, not ledeemed by the sale ol coin a? above stated, and the balance is held in the treasury in preparation for resumption

These operations, aided greatly, no doubt, by the favoraWe condition of oar foreign commerce, have advanced the market value of Waited States notes to 97f ,ier cent., oi within nearly two and a half per cent, of coi«. They have also conclusively demonstrated the practicability of restoring United States notes to par, in coin, "by the time fixed by law, and that without disturbing either domestic or foreign trade or commerce. Every step has been accompanied with whh the advance of growing business, public credit, and the steady appreciation United

of United States notes.

The

bullion has been arrested, and our domestic supply has accumulated in the treasury. The exportation of other domestic products has been largely increased, with great advantage to ^1 industries. The course adopted under the resumption act, as herein set forth, Jf pursued, will probably be followed with like favorable results, and a sutficientlund for the maintenance of -reeumptum wilt

doubtless accumulate in the treasury at or before the date fixed by law. The provision for free banking has &iried this process by allaying imaginaryc ears that would ctherwine have be*n aroused by tbe withdrawal of United States notes.

The secretary cannot too strongly urge the firm maintenance of a policy that will make good the promise contained in the United S ate* notes when issued—a promise repeated in the act *'to strengthen the public credit," approved March 18, 1869, and made definite and effective by the resumption act.

Dishonored notes, less valuable than the coin they promise, though justified by the necessity which led to iheir is^ue, should be made good as soon as practicable. The public credit is injured by fail ure to redeem ihem Every holder who was compelled by law to receive them has been deprived of apart of his just due Now, when our national resources are ample, when the process of appreciation is almost coaiplele, when the wisdom of tbe existing law his been demonstrated, it

in

TREASURY DBPARTMENT, 1 WA9iII.SU A)N, U. C., bc« 3, 1877.

Sis: In obedience to law, 1 ubmit the following report: The ordinary revenues, from all sonnies, for the fiscal ear ending June 30, 1877, were: From customs .... 1130,956,403 07 Frum internal revenue 118,6.k»,4u7 S3 From «alei of public lands 975,25i 05 Kro.ii tax on circulation and de-

the dictate of good.policy and good la.ith to continue thin process of preparation, so that at or before the time fixed by law every Unite*! States note will have equal purchasing power with coin. To reverse this policy in the lace of assured Huccesi will greatly impair the public credit, arrest the process of reducing tbe interest on ihe public debt, and cause anew the financial distress our country has recently suffered

The resumption act contemplates the reduction by the fir.-»t dar of January, 1879, of the amount of Unitsd Sales notes lo $300,000 000, by the cancellation of such notes to the extent of 80 per ceut. of the circulation is ucd to national banks.

The amount of circulation so issued may not be sufficient to accomplish the reduction contemplated the i-ecretary. therefore, recommends that authority be given to gradually fund into four per cent, bonds all Un ted S ates notes in excess of $300,000,000, the bonds lo be issued at par for cin or its market equivalent in United States notes. This will be in harmony with the declared object of exiting law, and will open an easy way by which the people may invest their savings in a public security. Or the reduction of United States notes to the maximum of $300,000,000 may be accomplished if congresswill authorise tbe coinage of the silver dollar, to be exchanged for United State* notes on the demand of ihe holder, such notes to be retired and cancelled.

Existing laws do not olearly define whether Uuited States note*, when redeemed after January 1,1879, may be re-L-sued. The first section of the resumption act plainly provides for the permanent substitution of silver coin for the whole amount of fractional currency outsianding. Section three plainly provides for the permanent reduction of United States notes to an amount not exceeding $3j0,000,000. No distinct legislative declaration is made in the resumption act that notes redeemed after that limit is reached shall not be reissued bu' section 3,579 of the revised statutes of the United States provides that "when any United States notes are returned to the treasury they may be reissued, from time to time, as the exigencies of the public interest may require."

The secretary is of the opinion that, under this section, notes, when redeemed alter the 1st day of January, 1879, if the amount outstanding is not in excess of $300,000,000, may be reissued as the exigencies of the public service may require A note redeemed with coin is in the treasury and subject to the same law as if received for taxes, or as a banknote when redeemed by the corporation issuing it. The authority to reissue it does not depend upon the mode in which it is returned to the treasury. But this construction is controverted, arid should be settled by distinct provision cf law. It should not be open to doubt or dispute. Tne decision of this question by congress involves not merely the construction of existing law, but the public policy of maintaining in circulation United States notes, either with or without the legaltender clause. These noteB are of great public convenience—they circulate readily are of universal credit area debt of the people without interest are protected by every possible safeguard against cotinterfeiting and, when redeemable in coin at the demand of the bolder, form a paper currency as good as has yet bean devised. It is conceded that a certain amount can, with the aid of a simple reserve in coin, be always maintained in circulation. Should not the benefit of this circulation inure to the people, rather than to corporations, eithet state or national? The government has ample facility for tbe collection,custody,and care of the coin reserves of the country. It is a safer custodian of such reserves than a multitude of scattered banks can be. The authority to iPBue circulating note^ by banks is*not given to them for their benefit, but for the public convenience, and to enable them to meet the ebb and flow of currency caused by the varying crops, productions and seasons. It is indispensibii that a power should exist somewhere to issue and loan credit money at certain times, and to redeem it at others. This function can be performed better by corporations than bv the government. The government cannot ban money, deal in bills of exchange, or make advance on property.

The Eecretary ventures to exprers the opinion, that the best et»rrency for the people of the United Slates would be a carefully limited amount of United States-notes, promptly redeemable on presetitatfon in coin and supported by ample feserves ot coin, and supplemented by a system bf national banks, organized Under general laws, free and open to -all, with power to issue circulating-notes secured by United States bonds 'deposited with the government, and redeemable on demand in United States notes or coin. Such a system will secure to the people a safe currency 'of equal value in all parts of the country, receivable for all dues, and easily convertible into coin. Interest can thus be saved on so much ef the public debt as can be conveniently maintained in permanent circulation, leaving to national banks the proper business of such corporations, for the varying changes of trade.

of providing currency tnges, the ebb and flow

The legal-tender quality^ given to! to

States

notes was intended

export of maintain tham in forced circulation,

at

a time when their depreciation was inevitable. When they are redeemable in coin this quality may either be withdrawn or retained, without affecting their use as currency in ordinary times. But all experience has shown that there are period* when, under any system of paper money, however carefully guarded, it is impracticable lo maintain actual coin-re-demption. Usually -contracts will be!

In establishing a system ot paper money designed to be permanent, it mum be remembered that heretofore no expedient has been devised, either in this or other countries, that in limes of panic or adverse trade, has prevented the drain and exhaustion of coin reserves, however large and carefully guarded. Every such system must provide for a suspension of specie payment. Laws may for bid or ignore such a contingency, but it will come and when it comes it canno be resisted, but should be acknowledged and declared, to prevent unnecessary sacrifice and ruin. In our fre? government the power to make this declaration will not be willingly intrusted to indi vidua Is, but should be determined by events and conditions known to all. *lt is far beter to fix the maximum reserve of legal tender notes at $300,0(0,000, supported by a minimum reserve of $100,000,000 of coin, only to be used for ibe redemption of notes not lo be reis sued until ihe reserve is restored. A demand for coin to exhaust such a reserve may not occur, but, if events force i', its existence would be known and could be declared, and would justify a temporary suspension of rpecie payments. Some such expedient could no doubt be provided by ccn^res* fur au exceptional emergency. In other times the general confidence in these notes would maintain them at par in coin, and justify their use as reserves of banks and for the redemption of bank-notes.

NATIONAL BAN1C4.

In this connection, the secretary calls ihe attention oi congress to tbe report of ihe comptroller of the currency.

The number of national bsnka in existence on the first day of November last was2,080. Ihe amount of their circula-ting-notes retired within the year prior to November 1,1877, la $20,681,637. The amount of circulating-notes issued to national banks during the same period is $16,306,030. The aggregate amount of their circulation outstanding is $316,775,111. Their loans and discounts amount tj $888,243,290.17.

The general solvency of the national banks, as now organized, and their benefit to tbe people, have been demonstraied during a period of fourteen yeare. No one has lost a dollar by receiving their notes. They have been less subject to revulsion and failure than any other corporations or firms. Their organization under a general law containing every safeguard which experience has suggested—the supervision over them by the comptroller oi the currency, the frequent and unforseen examinations to which they are subject, the sworn statements required of ihem of every detail neces: sary to disclose their condition, tbe absolute security of their issues—makes this system ot banking as safe and effic ient as any yet devised. The remaining condition to perfect this system is, that their njtes should be readily convertible into coin. While United States notes were irredeemable and depreciated, it was not possible that bank notes should rise above the par of United States notes. Tl\e true test of this system of banking will come when the United Stales notes are maintained at par with coin then the banks uiuet redeem their notes in coin or United States no es equal lo coin.

The tmple staii tics given by the comptroller, and hb comparison of the reserves and condition of the national banks with the reserves and condition of other systems of banking in specie-pay-ing time?,give assurance that the national banks are able to redeem their circulating notes in coin at any date fixed upon by the government. They certainly should not enjoy the franchise of circulating as tuoney iheir non-interest-bearing notes, unless they are prepared to redeem them. The preset rjfiUm ol redemption of bank aotea at the treasury of the Uuited States etm be continued alter United States notes are at par with ooin as well as now. If experience should show that additional reserves are necessary they can be required. Then, as now, their notes will b3 amply secared by the deposit of bonds, and confidence in thiB security will dispel the lear of failure, which, under former Byateuw, has been the cause of i-udden runs or demands on banks far payment of their notes. If the policy of the government should be to maintain in circulation at par with coin maximum of three hundred millions of United States notes, and to support them with a reserve of not less than one hundred millions in coin, these notes will be the

natural

THE TERRE flAUTE WEEKLY GAZETTE.

based upon current paper money, and it just that, during a sudden panic, or an unreasonable demand for coin, the creditor should not be allowed to demand payment in other than the currency upon which the debt was contracted. To meet this contingency, it would seem to be right to maintain the legal tender qoality of tbe United States notes. If they are not at par with coin it is the fault of the government and not of the debtor, or, rather, it is the result of unforseen stringency not contemplated by the contracting parties.

reserves of the banks, and

more conrenieut for that purpose than a deposit of coin in their vaults. The real danger that in former systems threatened a bank was it* liabilities for deposits. If these were suddenly withdrawn, or greatly diminished, the note holder was the chief sufferer. The first rumor of weakness about a bank brought a demand from depositors and noteholder alike, but under the national banking system the note holder is secure and indifferent whether the bank breaks or not, and th« depositor, who is a voluntary creditor-of the bank, is not likely to hasten its fa& He is usually paid by a transfer of rtwdits, end in mo*tcaee* is a dentor as cell as a creditor of the bank. Scarccly fcve per cent, of deposits are paid ty currency.

Tlie capital stock ol national banks paid in is now $479,46^.771, and the sur«4us fund and other undivided profits now $166,348,799.99. The banks are exceptionally strong in their cash reserves. Their condition fsfes favorable to maintain redemption in coin as in United States notes, and the secretary concurs in the opinion di the comptroller that they ought to be, can be, and will be prepared for redemption of their circulating notes in-coin or in United States notes equal to coin by the time fixed by law, without interfering with their ability or dbposition to render their aid, as now, by loans and discounts, in conducting the business and exchanges of the country. The market value of their circulating note is 97$ per cent. The difference is not e$ual tosix months' interest on the bonds deposited for the security of the notes, and not five per cent, of their surplus on hand. It is scarcely to be credited that the payment ot this will dbturb in any way the even course of their busioe**.

Complaint

is made by the banks of tue

As it was evident that congress intended to provids an aggregate issue of $50,000,000 of such coin and currency in circulation, the sn relary direct, ed the further isfhe of silver coin equal in amount to the currency estimated to have been lost and destroyed.

It is submitted that the limitation upon the amount of fractional coin to be issued in exchange for United States notes should be tepealed. This coin is readily taken, is in great favor with the people, its is^ue is profitable to the government, and experience has shown that there is no difficulty in maintaining it at par with United States notes. The estimated amountof such coin in circulation in the United States in 1860, at par with gold, was $43,000,000. Oreat Britain, with a population of 32000,000, maintains an inferior fractional coin to the amount of $92,463,500,* at pBr with gold, and other nations maintain a much larger per capita amount. The true limit for f=uch coin isthedenund that may be made for its issue, and if only issued in exchange lor United States notes there is no danger of an excess being issued.

By the coinage act of 1873 any person may deposit silver bullion at ihe mint to be coined into trade dollars of the weight of 420 grains troy, upon the payment of the cost of coinage. This was made at a time when such a dollar was worth in the market $1.02 13-100 in gold, and was designed for tbe use of trade in China, where oilver was the only standard. By the }omt resolution of July 22, 1876, passed when the trade dollar in market value had fallen greatly bvlow one dollar in gold, it was provided that it should not be thereafter a legal tender, and tbe secretary of the treasury was-authorised "to limit the eqitiage thereof to such an amount as he may deem sufficient lo meet the export demand for the same." Under the laws the amount of trade-dollars issued, mainly for exportation, was $30,710,400 In October last it became apparent that there was no further export demand for trade-dollars, but deposits of silver bullion were made, and such dollars were demandtd ot the mint for circulation in ihe United States, that tbe owner might secure the difference between the value of such bullion in the market and United States notes. At the time, the mints were fully ecctipied by the issue of fractional aiid other coins on account of the government. Therefore, under the authority of the law referred to, the secretary directed that no further issues of trade-dollars shoaid be made until necessary again to meet an export demand. In case another •rfilrer dollar is authorised, tbe secretary Tecom mends that the trade-dolhn* he'discontinued.

country of the tax on their deposits, and stable than that of anv other two com* attention is called to what is said by the I modities still, it doe» vary. It in not in comptroller of tbe currency as to the repeal of this tax. While the necessity exists for collecting the amount of revenue now required, the oecretary is not prepared to recommend such repeal, but whenever a sufficient amount of revenue for the support of the government can ba derived from the other articles now subject to taxation, a reduction of bank tax aii"D will then be advisable.

The cost of tbe redemption of bank notes in Uoited Sates notes at the treasnry,nnder the present system, does not excefd one-sixth of one per cent, on the amouut redeemed, and i« refunded to the government by the banks. The redemption is a great convenience to tnem and to the public, and xhould be continued

Tbe act creating the national banking syctem recognized the character of these banks as government agents or deposita* ries. They could greatly assist in the process of refunding they are conveniently distributed so as to be within eaty reach of the people of the Unitel States. Tbe ecretary is of the opinion that they can be, under existing law, and ought to

be,

made the agents of tbe government in the sale of bonds, upon conditions that will make it for their interest to promote such sales, and will be safe and advantageous to tbe government. Various plsns have been submitted to secure iht-ir co-opcratice, and the best will be adopted.

COINS AND COINAGE. I±M

The secretary calls the attention of Congress to the report of the director of the mint. Tbe general management of the mints and nssay office.-*, and the amount, accuracy, and perfection of their work, are highly satisfactory. The coinagp of gold and silver, their relative filue to e»-ch other, and their legal tender qualities are now the subject of discussion and legislation in all civilized countries. These questions are especially important to the United States, now in transition from an irredeemable paper currency to a mixed currency, redeemable in coin, and will justifv the secretary in a luller presentation of the topic than is usual in his annual report.

The resumption act of January 14, 1875, provided for the exchange and substitution of silver coin for fractional currency. To facilitate this exchange, the joint resolution appioved July 22, 1876, provided that ^uch coin should be issued to an amount not exceeding $10,000,000, lor an equal amount of legal tender notes. It ajso provided that the aggregate amouut of such coin and fractional currency outstanding should not exceed, at any time, $50,000,000. Tha' limit would have been reached some time since, if the whole amount of fractional currency issued and not redeemed, had been held to be "outstanding." It was well known, however, that a very large amount of fractional currency issued had been destroyed, and could not be presented for redemption, and could hardly be held to be "outstanding*" The treisurei of the United Stato, the comptroller of the currency, and the director of the mint concurred in estimating the amount, so lost and destroyed, to be not less than $8,083,513.

The qwestion of the isspe of a silver dolltr for circulation as money has been much dwctireed and carefully examined by a ooMurission organised by congress, which 4as recommended tbe coinage of the old tfilver dollar. With such legislative provision as will maintain its current Value at par with gold, its issue is respectfully recommended. A gold coin of the denomination of one dollar is too small for convenient circulation while such a coin in silver would be convenient for a multitude of daily transactions, and is in a form to satiny tbe natural instinct of hoarding.

Of the metals, silver of most general use for coinage. It a partof every system of coinage even in countries where gold is the sole legal standard. It best measures tbe common wants ot life, bat, from its weight and balk, is not a convenient mediam in the larger exchanges of commerce. Its production is reasonably steady in amount. Tbe relative market value of silver and gold far more

the^ power of human law to prevent the variation. This inherent difficulty has compelled all nations to adopt one or the other as the sole standard of value, or to authorize an alternative standard of either, or to coin both metals at an arbitrary standard, and to maintain one at par with the other by limiting its amount and legal tenderquality, and reviving or redeeming it at par with the other.

It has been the careful study of statesmen for many yeais to secure a bi-metal lie currency not subject to the changes of market value, and so adjusted that both xinds can be kept in circulation together, not alternating with each other. The growing tendency has been to adop', for coins, tne principle of 'Tedeemability'' applied to different forms of papsr money. By limiting tokrns, silver, and paper money to (lie amount needed for business, and promptly receiving or redeeming all that may at anv time be in excess, all these foru.8 of money can be kept in circulation, in largs amounts, at par with gold. In this way, tokens of inferior intrinsic value are readily circulated, but do not depreciate below the paper money into which they are convertible. The fractional silver coin now in circulation, though the silver of which it is composed ii of less market value thasthe paper money, passes readily among all classes of people and answers all the purpose- for which it^ was designed. And so the silver dollar, if restored to our coinage, would greatly add to the convenience of the people. But this coin should be subject to the same rule, as to issue and convertibility, as other forms of money. If the market value of the silver in it were less than that of gold coin of the same denomination, and it were issued in unlimited quanli ies, and made a legal tender for all debt", it would demonetize gold and depreciate our paper money.

The importance of gold as thestandard of value is conceded by all. Since 1884, it has been practically the sole coin standard of the United Slates, and since

These difficulties in the odjustment of gold and silver coinage were fully considered by corgress prior to the passage of the act approved February 21, 1853. By that act a uew, and it was believed a permanent policy, was adopted to secure the simultaneous eirculation of both silver and old coins in the United States. Silver ractionsl coins were provided for at tbe ratio of 14 88 in silver to one in gold, and were only issued in exchange for geld ooin. The right of private parties to deposit silver bullion lor such coinage wa* repealed, and these coins were issued from bullion purchased by tbe treasurer of the mint, and only upon the account and for the profit of the Uoited States. The coin was a legal tender only in pay-

""As estimated by Mr. Freeman le, ieputy master^! the royal mint, December, 1875 ment for all sums not exceeding five doliais. Though the silver in this coin was worth in the market 313 cents on the dollar less than gold coin, yet its convenience for use as change, its issue by the government only in exchange for, and its practical convertibility into, gold coin maintained it in circulation at par with gold coin. If the slight error in tbe ratio of 1792 prevented gold from entering into circulation for forty-five years, and the slight error in 1837 brought gold into circulation and bani»hed silver until 1853, how much more certainly will an error now of nine per cent, cause gold to be exported and silver to bacome the sole standard of valver? Is it worth while to travel agoin the round of errors, when experience has demonstrated that both met*Is can only be maintained in circulation together by adhering to the policy of 1853?

The silver dollar was not mentioned in tbe act of 1853, bat from 17tf2 until 1874 it was not worth more in the market than the gold dollar provided for in the act of 1837. It was not a current coin contemplated as being in circulation at the passage of tbe act of February IS,! 1873.* The whole hmouct of suchdol1-, lar#, issued prior to 1853, was $2,553,000. Subsequent to 1838. and until it was dropped from our coinage in 1873, the total amount issued was $5,492,838, or an aggregate of $8,045,838, and this was almost exclusively for exportation.

By tbe coinage act, approved February 1873, fractional silver coins were 12, authorized, similar in general character to the coins of 1853, but with a slight increase of silver in them, to make them conform exactly to the French coinage, and tbe old dollar was replaced by tbe trade-dollar of 420 grains of standard silver.

Much complaint has been made that this was done with the design of depriving the people of the privilege ot paying their debts in a cheaper money than gold, but it manifest that thb is an error. No one then did or could foresee the subsequent fall in the market value cf silver. The silver dollar was an unknown coin to tbe people, and was not in circulaiiosi even on the Pacific slope, where coin was in common use. The trade-dollar of 420 grains was substituted for the silver dollar of 412& grains because was believed that it was better adapted to supersede the Mexican dollar In the Chinese trade, and experiment proved this to be true. Since the trade dollar was authorized $30,801,-400 have been issued, or nearly four times the entire issue^ of old silver dollars sinoe the foundation of the government. Had not the coinage act of 187-3 passed, the United States weald now be compelled to suspend tbe free coinage of eilver eUllars, as the Lain nations did, or to have silver as the sole coin standard of v*lue.

Since February, 1873, great change* have occurred in the mariet value of silver. Prior to that lime the silver in the old dollar was worth more than a .gold dollar, while at present it is wortn «bout 92 cents. If by law any bolder of

silver bullion might deposit it in the mint and demand a full ltgai tender dolfor everv 412| grains of standard silver deposited, the result would be inevitable that as soon as the mints could supply the demand the stiver dollar would, by a financial law fla fixed and invariable as the law of gravitation, become the only standard of value. All forms of paper money oull fall to that standard or below it, and gold would be demcnetised and quoted at a premium equal to its value in th» markets of tbe world. For a time the run to deposit bullion at the mint would give to silver an artificial valoe» of which the holders and pro* ducers of silver bullion would hatBthe sole benefit. The utmost capacity oil the mints would be employed for years to supply this demand at the cost of and without pro6t to the people. The silver dollar would take the place of gold as rapidly as coined, and be Used in tte payment of customs duties, causing an accumulation of such coins in the trea&»ury. If used in paying the interest 0&> the public debt, the grave questions already presented would arise with public creditors, seriously affecting the public credit.

It is urged that the free coinage of silver in the United States will restore its market value to that of gold. Market value is fixed by the world, and not by the United States alone, and is affected by the whole mass of silver in the world. As the enormous and continuous demand for silver in Asia has not preven'ed the fall in silver, it iA not likely that the limited demand for silver coin in this country, where paper money is now and will be tbe chief medium of exchange will cause any considerable advance hi its value. Tois advance, if any, will be secured by the demand forsilver bullion for coin to be issued by and. for the United States, as well as if it were issued for the benefit of tbe holder of the bullion. If the financial oondition of oan country is so greivous that we must at

iq.e 1every hszird have a cheaper dollar, in. 1815, has been tbe sole standard of Great I

Britain, (iermany has recently adopted the same stnndard. France and other Latin nations have suspended the coinage of silver, and, it is supposed, will gradually either adopt the sole standard of gold or provide lor the convertibility of silver coin, on the demand of the holder, into gold coin.

In the United States, several experiments have been made wi)h the view of retaining both gold and silver in circulation. The second congress undertook to establish' the ratio of fifteen of silver to one of gold, with free coinage of both metals. By this ratio gold was undervalued, as one ounce of gold was worth more in the markets ot the world than fifteen ounces of silver, and gold, therefore, was exported. To correct this, in 1837 the ratio was fixed at sixteen to one, but sixteen ounces of silver were worth in the market more than one ounce of gold, so that silver was demonetized.

or(}er

Ey

lessen the burden of debts al-»

ready contracted, it i* far better, rather than to adopt the single standard of silver, to boldly reduce the number of grains in tbe gold dollar, or tD abandon and retrace all efforts to make United States notes equal to coin* Either expedient will do greater harm to the public at large than any possible benefit to debtors.

The free coinage of silver will also impair tbe pledge made of tbe cuetoms duties, by the act of Februrry, 1861 for thepayment of the interests of the' debt. The policy thus far adhered to^ of collecting these duties in gold coin, h» been the chi?f cause of upholding and advancing the public credit, and making it

ossible lo lessen the burden of interest the process of re-funding. In view of these considerations, the secretary has felt it to be his duty earnestly urge upon congress tne seriouv objections to the free coinage of silver on such conditions as will demonetize gold, greatly disturb all the financial operations of tbe government, suddenly revolt! lionize tbe ba*b of onr currency, throw upon tbe government the increased cost ot coinage, arrest the re-funding of the public debt, and impare ttie public credit, with no apparent advantage to the* people at larire.

Tbe secretary believes that all the Ben-* eficial results hoped for from a libera, issae of silver com can be secured by issuing thin coin, in pursuance of the general policy of the act of 1863*, in exchange for United States notes, coinedi. from bullion purchased in theopen mark* by tbe United States, and maintaining it/ by redemption, or otherwise, at par with gold coin. It could be made a legal tea. der for such sums and on bach contracts as would secure to it tbe moBt general circulation. It could be easily redeemed tn United Ststes notes end gold coin, and only reissued when demanded forpubtfe convenience. If the essential quality ol' redeem ability given to United State* notes, bank bills, tokens, fractional coina,. and currency maintains ihem at par, how much easier it would be to maintain the silver dollar, of intrinsic market value^ nearly tqnal togold, at par with gold coia,. by giving to in the like quality of redeemability. To still further secure a fixed relative value of silver and gold, thfrv United States might invite a convention of commercial nations. Even such convention, while it migbt check the faU of silver, could not prevent tbe open^ tion of that higher law which places the market value of silver above human control. Issued upon the conditions here stated, the secretary is of the opinion that the silver dollar will be a great public advantage, but that if i«*ned without limit, upon tbedamand of the owners ol silver bullion, it will be a great pubE»~ injnry.

A

WANTS TEN DAY'S NOTFCtT.. New York, Dec. 5.—The

National

Trust Company of this citv has posted*a notice stating that in consequ/nce of malicious reports in circulation, regarding: the character of this companv dnd by recommendation of the spt cial bank eataminer of the ate, we require ten da^a notice ynder which all deposits made.

The evening Post'says an examination.! ot affairs of the National Trust Co. was* begun yesterday, has since been in acttye* progress. The superintendentof banking debts Use led to take this step by observing: thJWthree shares of the company's stock, $io8t each, were sold at auction last Saturday at 63^5. The examiner has got throuc with the regular securities ar is now examining collateral securities*, on loans. He will submit Ot statement' to-morrow on posting of the notice morning requiring ten da$u notice followed by signs ot'a run.

A few drops of nitric add in a glass of sweetened water, a coucie of times daily, is an excellent remedy for hoarsenessin singers, speakers and cuaders.

A WRETCHED. EXISTANCE. Other conditions being eq^al, there Is so reason why a health .ma* or

woman shoaid

not enjoy lite, and it nwj well bo donbtCtf whether adverse forty ha? the power entirely to destroy the happtoess of one wfco sleeps sonndly and whose digestion is

gooo.

Bat for the nervoas, leeb'.e, dyspeptic invalTcK there is 00 comfort fa life His extstanca JS indeed a wretched one. But be shomd B0t dispair of relief. That benicaaat restoiative.Hoftetcer'a&'emach Bitters, has imparted healthfnLvicor to many a sef-poe secsed incur bla. It is an uneqnaled bolMer up of broken down pbystooes. aa is besides, a sovereign remedy

lo

dyspepsia, nervoas-

ness, irreafo-ar habit of body, btiliousnesa, and kidney and blad.ler difficulties. It eliminates from the blood the aerfd element which gites rise to rheumatic ai merits, che rtaod relieves the aged and infirm. ndmay be used with gj eat advantage by laJSaa in leebte health lUr frerfcct pnnty also commends it to the aae of invalids.