The New York Herald Newspaper, December 5, 1869, Page 4

4 “THE CURRENCY. Report of Hiland R. Hulburd, . Comptroller of the Currency. a Orrice OF COMPTROLLER OY THR CURRENCY, WASHINGTON, Nov. 10, 1809, In compllance with the provisions of section sixty- one of the National Currency act, I have the honor to present, through you, to the Congress of the United States the following report: — Since the last annual report pine national banks have been organized, of which eight are new asso- clations and one @ conversion from a State bank, making ‘he toral number organized up to October, 1869, 1,604. ° From the number of banks organized, above stated to be 1,694, should be deducted 74, leaving the num- ber in active operation 1,620. NOTPS IN CIRCULATION. ‘The following stateimeut exhibits the number and amount of notes issued, redeeared and outstanding September 30, 1869:— Ones. No. of Notes, Issued .. 9,39, 100 Redeeme 904,013, Outstanding... seeeee 9,636,147 Twos, Issued... Redeemed. Cusemenclag: ee 5, 954, 328 Tesued... 118,383,800 Redeewed. 4,929,700 Outstanding. 118,454, 100 Te Issued... 80,946,450 Redeemed. Outstanding, Tw Issued. Redeem Issued... Redeemed. Outstanding... 16,733,200 one 27,479,900 2,596 800 23,883,100 3,831,000 1,292,500 Outstanding............ 11,035 5,541,500 One Thousands. 4,769 4,769,000 2,415 2,415,000 Outstanding........... 2,364 2,354,600 Total amount of all denominations out- standing on the soth day of September, 1869.... ateeecescesccsececees csceee 200, 189,055 Add for fragments of notes outstanding, lost or d@stroyed, portions of whi have been redeemed........ +4. . 840 ‘The following statement shows the amounts aud kinds of United States bonds held by the Treasurer of the United States to secure the redemption of the circulating notes of national banks on the 30th day of September, 1869:— Registered bonds, aet of June 14, 1853. $075,000 Registered bonds, act of Juue 22, 18 35,000 Registered bonds, act of February 8, 3,491,000 Coupon bonds, of March 2 1btl....... . 16,000 Registered bonds, acts of July 17 and August 5, 1861......... +++ 58,830,050 Regwstered bonds, act of Fey 362, 59,228,850 Coupon bonds, act of rebroary 2 . 4,200 Registered bonds, act of Maren 3, 1863.... 88,345,900 Registered bonds, act of March 3, 1864, 5 per cent... ps aeeee 93,579,450 5 per celtt...... é betes 10,000 Registered bonds, act of Marci 3, 1864, 6 per cent..... vas Registered bonds, act of June 30, 1864...) of July 1, 1862, and y vsti = 18,523,000 Registered ponda, ‘ast of Maren 3," 1508, 1° tirst Heries..... baiiok + 25,405,200 Registered bonds, act of March 4, 1585, second series... hope 10,392,800 Registered bonds, act of March 3, 1865, third series... miplakasdos ca cea sa. 2,078,450 Registered bonds, act of March 3, 1565, POUFUD BETES... ieeseesececeeeeeesevess 228,000 Total.... «+++ $342,475, 100 In my report for 1867 | called the attention of Con--| gress to the fact in several instances notes prepared in the usual manner for issue to nationa? banks had been purioimed from this offico. Two amounts larger than the rest were mentioned, to wit:—$4,500 in fifty and one hundred dollar no*es of the Na- Uonal City Bank of Lynn, Mass., and $12,000 in fifty and one hundred dollar notes of the First National Bank of Jersey City, in addition to which several thefts of a single sheet had occurred, making tn all $17,500. Suspicion at that ume was directed ‘to a colored man who had been employed in the oMice from the time of its organization in a confidential capacity, and who was then under arrest. The evidence against him, though very strong, was not considered to be couclusive, and it was thought best not to bring the case to trial at once, but to wait and see what additional testimony might be developed by tne lapse of me. During the past year evorts made by the guilty party wo avail himsell of the stolen notes, furnisuing conclu- siVe proof of bis guilt, ne was tried in the criminal court of the district im Augus: last and convicted, but a motion to arrest of tudginent was granted by the court for some defect in the iudietiment, and the criminal was discharged; he was at onco rearrested ou several other charges, and is pow awaiting his trial om few indictments. Only about $1,400 of the stolen notes have been recovered, and it 1s a serious question whetoer provision should not be made tor tie payment of these stolen notes when found in the hands of mmocent holders. ‘rheir similarity to the genuine issues of the same and other national banks, and the dificulty, to any bui the mostexpert aud skilful, in recogniz- ing the iorged signatures, make it impossible for the great majority 01 those wuo way handle money to disuagiish the spurious irom te genuine issues. The subject is respecttuily submited Lo the con-ider- ation oi Congress, REPORTS. Under the act of Congress of Marci 3, 1869, three reporta have been called for. The ficst ca‘l was made Tuesday, April 20, for a report showing the condition of the banks at the close of business on the previous Saturday, April 17. ‘Tae secon’ cali was made June 15, for a report showing the condition of the bauks on Saturday, the 12tn of June. ‘The third call was made October 13, for a report showing the condition of the banks om the 9 of that mouth. ‘The first report showed a larger number of banks than usual deficient in their reserve of lawful money, but generally in suall awounis. The second aud turd reports, successively, ex- hibited an improvement in tis respect, and as they are regarded as setting fori the actual working condition of the banks, without manipulation or pre tion, the resulis are tur more valuable and gratifying. Jn fact, the two evils mo. complained of under,the former system of reports, to wit:—pre- vious preparation on the part of the banks, and the - opportunity afforded to speculators to manipulate the mo. market, have been aimost entirely done away with. The banks habitually keep themselves in better condition, as @ rale are Jess extended, and have more cOmpiete control Of akwrs. 11 Luey carry out this policy @ littie more thorougialy they will be jess at the mercy of the borrowers, Will be betier able to protect the legitimate interests of tieir cus- tomers and better entitied to the fostering care of Ube government, LIQUIDATION. As the law now stands, @ bank may, by a vote of the shurehoiders owning two-tiirds of its stock, go into ii waped and close up its affairs. after the oxpleal jon of One year from the publication Of notice to its piliholders and creditors, as required id the statute, it may depos:t with the ‘Treasurer of the United states jezal tender notes for its outstanding circu:ation, and take up the bonds held as eecurity thereior, ‘This secon Was undoubtedly intended to provide for the winding up of banks under the ordinary conditions incident to specie payments, The natural flow of holes to the place of their at when banks are paying specie, would cause a large portion of them to redeemed during the year; acd and if the bank is solvent, and in good fwith eadcavoring to close up its affairs, the most of its creditors would provably be paid by the expiration of that period. So that, aup- posing the liquidation w have progressed so far that the bank Is ready to distribute its capital among 1 stockholders, the Jaw provides the manner in which the hiqaidation shal! completed, and the share- holders discharged trom ali further lability on account of Its circulating notes, within a reasonable ume, Tn this view of the case the provisions of the stat- ute are reasonable and proper, But, under existing circumstances, when bank notes remutn in circula- tion until they are worn out, and wien the use of the notes as money is so much more valuabie to the holder than any gain he may reaiizo from ahewr redemption ihat he will not send them home for Tia purpose, the year provided in the law, and the purpose of that pro- vision, are Ol no moment whatever. Banks go into liqaigation, and call upon note nolders to present their notes for redempuon, by published *, as required by law; but, during the whole year that Tollowa, are not obliged to redeem anytulng exce, t now and then ® Worn out or defaced note. This fa- NEW YORK HERALD. SUNDAY, DECEMBER 5, 1869.—TRIPLE SHEET. cllity Of ctroulation, and the abeence of all cost of red aseccia: empuons, have provally lodueed some ons to taxe tho steps for going tute hquida- on, with tne © on of COMLRUINE tO Toap the uistau ling circulation, Whe they cusuces under State la OF a privace bankers. TUls 18 an abase that could only be A suspension of yy payments, ace OLB! Fenty uf Tedem pions; bat for the ime (1s none Lhe less an abuse that requires: Congress provided by law for the banking associations Waied shoald certain resirictions, and whict saouid be author to Issue notes for Circulation a# Rafteaal curreney. ‘The priviege of teuing cirewlauen wae up certal® conditions Fee peer ee diaons go togetner, The taw does not conte that the condiuons should be cast aside garded walle the priveege is retamed. nate y the pliraseolozy of Lae law seems mot to forved such Operations, and (he interierence of Congress 19 hecessary to pr Vent its wrivileges from betng abused und to prove>t those banks wld are 1a goo ale it is respecuully d pass an ac avy other subj liquidation te di oulstanaing cHrcul red with the Ty security for such ehrow r a the vote of ion. D OF COLLSOTING UNITED TATRA TAKER, Section 41 of the Nattona) Banking law provides for taxing We circulation, deposit aud capita: uA in vested in United staves bonds of nabeual banks. ‘The banks ure required to report and these 1axes Semi-anoaally bo the surer uf the Puited States, This they have done regulary simce (acu orgauizadion, payiag inte We Treasury several mu- lions every year without trooble and without ex- pease to the govern.nent, Under the internal reve- hue ‘aw they are required to pay @ special tax aod @ dividend (ax to Uie colleetors of the several dis- tricts in which they are located. Ic 18 recommeaded that all taxes tm) on national beuks by the United States be mate reiuruable and payable to he Treasurer of tue United States, ia the same manner that the ta poruon of them now are, Tals © avoid Confusiun, Save expease and tou! the taxes more prowply, and py more Uh roughly, and place the Wavle bua.ness under the su- pervision of one of iMfOruiaUOn OD Lhe subjo one oilice, and so be more SPEOLAL EXAMINATIONS, Perhaps no one tuing has done more to promote the safety and sound management of national banks tuan Cuelt LabdUILy bo @Xamination Withoat previous hotice by a agent appointed for that purpose, aud probably uo provision of the jaw was more Unpopaiar among the banks when thé law first Weal 1nt0 effect; but tue good results Drought about, directly and indirectly, by such examinations, have tully vindicated the wisdom of the provision. The examiner's Work 18 done silently, anh the puolic are bot aware of cither the amount or the importance of the work done. In quite @ iarge number of cases examinations have brought facts to light that have enabled the Comptreiler to interpose n time to save banks from failure. Defaications have been ex- posed, aruses, irregularities and violations of law have becn discovered and corrected, The compensauon allowed by law ia totally insum- cient to pay the right Kind of men lo undertake this duty. The iabors of examiners are very severe, in- volving work by day and travel by nighi while the rigid and careiul scrutiny requi to investigate fully the condition and ac counts of the banks is young aud exhausting. In New York. Boston and Philadelphia the banks have cheerfully acknowledged the value and eilict- eacy of examinations by making voluntary pro- Vision somewhat commensurate with the arduous nature of the work aud the importance of the re- suits attained. An laocrease in the amount of thelr compensation is a matcer of ngcessiiy as well ag a matter of justice; and Congress 1s urged to make provision for that All the expense involved in these ions is now defrayed by the banks, under the law, aad no appropriation of the public moneys will be necessary. An increase m the rate of compensation should be authorized by law, and pro- vision made for its asses¥ment upon the several banks exauuned, in proportion to We time and labor Spent in the examination. SALARIES. In the organization of the National Currency Bureau the Comptroller was authorized to “employ from time to ume the necessary clerks to dischargo such duties as he shail direct, which clerks shall appoimted and ciassified by the Secretary of the Treasury in the maaner aow provided by law.’? Under this provision of law the highest salaries that could be paid were already fixed by laws passed nearly seventeen years ago. Periups in the beginning such provision was adequate for all practical pur- poses; but as the nature of the duties to be per- ‘ormed became more arduous, and the responsibi'i- ties greater, More diificuity bas been experienced in securing the services of competent men in the vari- ous positions to be filled. The leading places in this ofice, now filled by clerks receiving Salaries of $1,500, require abilities of a high order aud iotegzity of the most undoubted character—abilities and integrity that in other pur- suits command much higher compensation. ‘The Salaries paid by banks to oilleers for the perform. ance of dutles nO nore dificult and no more respoa- sivle than those devolving upon the cierks in tuis ollice are from one hundred to three hundred per cent greater. ‘The ol uence has been that, even alter ihe services of the right Kind of men have beea secured by & course of in- struction and waining, the higher prices offered by private interests outside of tue department con- stanly draw them from the department, and leave the same diliiculties to be again encountered. It secias to me evident, If the salaries fixed seven- teem years ago were not then too high, when ail tie necessaries of life were much cheaper «than no that at the present time they are totally Inadequa in view of the enormous advances in the expen: of ying. It 18 not wise to piace men upon a salary meagre and barely suMcieat to furnisy the necessaries of life—perhaps even insufiicient for tnat—in positions of responsivility where the most thorougutiotegrity is regaired. Itis exposing them to temptations to which they ought not to be subjected. And I earn- estiy recommend a general 1ucrease of salaries, and especially an increase in the salaries of those men who have the most important positions in the bureau. ‘the salary of the Deputy Comptroller is not equal to Lhe jmportance and responsibility of his position, It is less (uan that now paid to men in the office of te ‘lreasurer of the United States, Whose positions are bo more respouzible and no wore important, and very much less than the salaries paid by banking institutions 1a the large cities. ‘The position of the cashier of the division of issues js also one of jabor and responsibility, as is that of the casuter of the division of redemptions, The di- vision of reports requires for its chief a man of pecu- liar qualifications, Jt ts his duty to examine all reporia received from the national banks, and he has charge algo of ail the correspondence growing out of them. ‘The position ts one of great labor, re- quiring no ordinary judgment and skill. The vartous accounts kept in the oflice are exteusive and com- plicated, requiring vast labor and akili. The corres- Ppondence of the oflige is very extensive, and cannot be carried On a3 @ mere maiter of routipe. it re- uires knowledge, intelligence and ability to con- juct 1¢ properly. I would recommend that the Deputy Comptroller should be paid a salary of $3,500, the head of each division $4,400, two correspondents $2,200 each, aud two bookkeepers $2,000 each. I do not think the governuient Would lose anything by @ fair compen- gation for honest labor. The duties would be more ably and satisfactorily performed, and the efficiency of the public service Would be increased, ORNTRAL REDERMING AGENCY, The recommendation comtaimed tn my last an- Nua report, looklug to the establishment of an gs in the city of New York in the interest of the national banks, owned and controlled by them, for the redemption of all thetr issues and for the transaction of all their business, is again submitted to the consideration of Congress. Careful observation and study during the year have confirmed the opinion then expressed as to the practicability and usefulness of such an institu- tion. In the first place, it would be the clearing house for all the bank circulation in the country— the reservoir to which it would flow, and from which it would be distributed again whenever and wherever needed. A common misapprehenston prevails as to the effect or practical result of general and uniform redemp- tions tn New York, the impression betng that suct an arrangement would be enerous upon the country banks, and would compel them to pay tribute to that city. No apprebension could be more unfounded. As long a every bank redeems independently at its own counter, or at the nearest redemption city— Clevelans, Pittsburg, Cinemnatl or St. Louis, and not im New York—funds that are par, that will pay depts in the latter city, will command @ premium; aud the old ume system of asserting and returning the notes of couutry banks for the purpose of pro- curing New York exchange, will be renewed. The brokers, finding they can make @ profit in this way, will divide the territory between tuem and will cum- pel the banks to supply themselves reguiarly with gold and exchange to meet (he deman On the otver hand, if all agree to establish their own agency 10 New York, to take care of and to protect thelr own notes, ali currency will be par in New York. There will be no running upon the banks, for there will be nothing to gain by it, A certain amount of currency will always be required to transect the business of the Countey this will be fernished proportionately by ail the banks, ‘The excess of circulation unly, rand above this amount, will have to be releemed; and this excess wiil also be cqually apportioned to ali the bunks. So that by the adoption of one general agency, as proposed, every bank in the country will have its just portion of the vencit to be derived from the circulation, #haring aiso, in the same pro- rtion, in the se OF redeciming any excess hat there may be mm time to time, And that is allthere 1 ina uniform system of redemption in New York—equal rights and equal privileges to all, special hardanips or heavy expense to none. While such would be its salutary effect upon the banks, the people at large would rejoice in a cur- rency of uniforin value all over the country. All In- conveniences growing out of local values would disappear, and we should have a truly national cur- rency, The proposed agency, being controlled and managel by. the ‘aint’ banking interests of ‘the 10 dae section, nacoDRected wih requinng Ol Dates 1b legal tend shai dulder ty go tie country as their own fiscal agent, would neces sariy be highly conservative institution, which would operate as @ check upon the eculative #ydencies of the times, and exercise a healentul infludnce upon the toterests of trade. The banks would attend tw their own business in New ’ sion in the public | mended that Congress | York, thas saving the expenses and profits hereto- fore to their nts; and they would kno’ that their reserve were not tia bankers, when 0, “Take care the currency; make that as secure as possible, As far as practicable business should bo left Gnd wusramme!ied; Out in this country the bust- hee of — circulating notes ts so involved with money; the ability to redeem on de- ent on the amount of reserve kept oa ie character of the loan, that it is im- possible to apply safeguards to the currency, with- | Oat applyiag pracence and INTEREST ON DEPOSITS AND CALL LOANS. | * peeeweane vestricsions to the business of sending. a ledges its capital by Lae deposit of bonds for the Hs jon of Ne cifeeiation, & must so use that circulation as not to lose It; so InVest If as to Dave it coming back with Profit, mast use it jud.ctously and ly, 80 that it will protest itself, ‘be government, In delegating the power to issue notes the right to preseribe the conditions upon which they shall be Issued, If barsh or unnecessar, condiions are Imposed they should be abrogated. If the conditions are wise and wholesome they should be hoaesuy ooserved, In prescribing rules | reference sacald be had to the object to be attained by the orgacization or incorporation of banking josteutions. A charter to carry on the business of ir mg does not rive power to buy and sell real ie, to ship goods to a foreign port or to engage of promote any speculative operation, The busi- ness of beating, property cond ia just as sare God just as safe as any other business; but it must be confined to its proper and sphere. In the care of An ince banking assuciation, tte powers are prescribed m ts charter. Tue law for the organ of national banka ‘eines tueir powers wil) prectsiou. They are empowered to ex- ercuse, Under the act, “al such incidental powers a8 necessary to carry on the business of bank- discounting and negovaty promissory exchange and evidences and selling ”y Ly | fo noe by buying exchange, com and buluon; by loaning money ou ersona. security; by obtaining, ; ee eireu- fatina notes" &c,~-from whien it will seen taat bational backs are authorized, among other things, “wo receive deposits; that ia, when money is brouglt to them they are authorized to receive it. ‘They are pot, hos ever, autuorized vo hire deposits, and the law does not contewplate that tuey should solicit the guise of de posta, by (he offer to pay interest on them This practice, however, prevails extensively; and, al- thouga by implication the law forbias is, tne pro- hibition 8 not suMcrentiy explicit or positive to went it, The evilof the practice ts this:—All the yanks im the leading cittes and nearty at! the country banks Keep baiances ia New York, which by law coustitate a on of their ‘The oifer of interest on these balances 1s an &s large @ port York as the law wul allow, Son are pore itved tok wall their act, are permit one- reserve New Yora; and all other banks three-fichs of their reserve there. If, thea, New York ‘upon ‘hich the} upon whic! y checked out at Weak points there to against. “ than the strongest fortification agaiust am ever im- beading —_. ‘The most objectionable action, however, lies in with which large loans on call at low tates of mercial ig the fou pve say bef n 101 may be found ia clé$ of the New “Money Was fairly active on call at #ix to seven cent; commercial paper very dull: ber cent to fifteen per cent; jor speculation, six to seven per cent; woney for trade, ten to fifteen per cent, Cail loans are a aoe when Invterest ts paid on deposits. Competition tof the accounts of country banks has led to the ment of interest. York banks see aud deprecate the evils of the prac- tice. ‘They have several tithes attempted to put an end toit; but there will aiways be one oF more banks whitch see their opportuulty in such aa effurt, and will refuse to come into aoy arrangement in- tended to put @ stop to it, The fact that tuo re- serves of the country are hawked on the street and are tendered and used for speculation is suTicient gcound for an intericrence of the law. INTEREST, TAXES AND PROFIT, A bank that has its capital invested im interest bearing securities, upon deposit of waicl it ootalas an issue Of Circulatiug Roies—Which notes are to be used in its banking operations as money—Cau afford to lend ite money at lower rates of interest than a bank that issues no notes for circulation, but lends its capital directly to its customers. The bank with circulation derives @ portion of its profit from the interest on its secarities, and & portion Irom its cas- tomers; whtle the bank Without circulation derives all ite profit from its customers. The ey ap by the government to banking associations of the power to Issue Notes Wo circulate as woney, therefore, nas a tendency to lower the rate of interest, and #0 to fur- nish cheap money to the business community. ‘That this ts actually the case will appear upon in- vestigation. The incorporaved bank, doing business and issuing circulation under the authority of the government, is uniformly regarded as the wot rele avie and reasonable source of accommedauon by the business community. The private bauwer, de- pending upon the active use of bis capital tor p-ofit, mus: charge a much higher rate of mer to realize the same reiative protit, supposing, of course, that the deposits of the two insi- tutions are equal. A bank with $100,000 capital laveated in securities bearing six per cent mterest, upon which it haa recetved $90,000 tn circulation, cau lend that $9,000 at seven per cent and yet realize @ protit of $12,200 on its capital, Tue private banker, lending bis capital of $100,000 directly, must charge his customers twelve per cent to realize the seine profit as the bank. The merchant aod tae tradesman know this aud expect to pay about that difierence for the use of moucy when their neces. es compel them to resort to private bankers or rokers. Tho government, therefore, confers a greater boon upon the business public by enabling it to borrow money at moderate rates of iuterest than 18 gene! realized or aduwitied, If all the banks were deprived of their circulation during, the coming year by act of Congress, the rates at which money couid be borrowed in most sections of the country would be neariy doubled. The as- sumption by the government of the sole power to issue ting notes would in nowise furnish relief, The United States can get ite notes iuto cir- culation by paying them out for its expenses and im a Of tts debts. Not being able to do a bank- ng business, however, it cannot lead them as a bank can, but would have to pay tuem out to its creditors, and, in the end, the notes, would come into the hands of capitalists, wno world lend them to the people at hig rates of interest. Taking the country asa whole, government and People as one, the profit gained by the government On the issue of its own » tO Use an ex- Pression in common use, the amount saved by the use of its own notes 88 & loan without interest— would not compensate for the additional tax upon the business of the country caused by the advance in the rates of tuierest which would likely to fol- low such @ change in the circulation. The amount loaued by the national banks to the business Interests of the country will average about $700,000,000; and for every addition of one cent to the rate of interest a tax of not less thau $7,000,000 would’ be imposed on the business of the country. Ani increase of tive per cent to the rate of interest would make the tax not less than $36,000,000. This Would be the actual money tax. But the depression caused by thie additional borden, while it would be «a very serious drawback to the prosperity of tho couutry, could not wr be estimated in money, As & general thing nauonal banks lend money to thelr Customers at about Lae legal rates, though, of course, there are exceptional Cuses, Heavy taxation, also, 8 a burden on the business Of the country, and, like every other that en- ters into the expense of conducting the burden is borne in tne end by tl consumer, pon gas com) stance, if added to the moataly bill of every sumer, and the tax upon banks is merely the addl- tion of something to the rate of interest. Within ® certain limit the tax Is proper and legiti- mate. Every business should bear its share of the public burden; and if the rates are equitabi, ‘wisely adjusted no complaint can be made. Money ari. York papers almost every day:— c @ United States Hexen, fe nese of the profits of the ks. Linattea by ‘aw to the lega! rate of interest, the bank must wind up, Or its shareholders must be content dividends, Some banks in actually taken the affairs. Others, probabi; to increase their proms ‘stems bad eral States that issued ci of State or United imitation to the number of such banks, or to the amount of circuiation they might issue, deposit of United States bonds required as security for the circulation of national banks Is nothing new, either The fact that the Unied ness under similar circumstances. A tional Jact that the amount of circulation that could be issued by national banks Was limited to $200, 000,01 ving LM. A tee cn ane of @ monopoly—operat 0 produce aa im eo pable that national banks were mines of weaith, realizing to their stockholders fabulous dividends. Some of the earlier banks, which soid thelr gold interest at from 100 to 180 per cent premium, and which soid five-twenty bonds for the agents of the government to the amount of mil- lions, probably did realize very large profits. But that day has the last year will probably not exceed ten per cent upon their capital, after deducting taxes expenses. And as the premium on gold sball diminish, and the national banking system shall be made free to all who are able and choose to comply with its conditions, sha nrerere prods will conform to the law which governs ali ness. It will be a fair living profit, and no more, SOUND CURRENCY. The currenoy constitutes a very important part of the financtal system of any country. Without a sound currency @ healthy financial condition is impogsivie, ‘Tuere are two requisites to a sound curreacy—con- vertibility and elasticity, aad either of the two involves the other. The present currency of the United States possesses neither of these requisites. During the pas year it has neither increased nor diminished, but stands about as it did this time last year, as will be seen by the following tabie:— Statement of United io paar Sor 1868 ana passed. The avorage dividends made by the banks anring id Nov. 1, 1863, Nov. 1, 1869, Legal tenders........$356,021,073 $366,113, 253 Fractional currency, 33,413,986 87,085,442 Total se ee eee + $389, 436,058 $393,143,700 9,185 + 8,621,457 Increase of legal tenders. Jucrease of Iractional cur Total increase.. + $3,718,642 ‘The volume of currency thus stands, $390,000,000 issued by the government and $300,000,u00 issued by the banks, neither redeemable nor convertible into anytaing more valuable, and therefore not sucepti- ble of reduction by. ordiaary process, each issued to the fail limit allowed by law, with no power of expansion. The whole amount must be’ employed, whether it is wanted or not, and the mit cannot be exceeded no matter how argenuy more may be required. During the summer montns, when there is rest in almost ali branches of trade, the whole circulation was in market seeking em- joyment; and now that autum nas come, with ite unteous harvests, wien the farmer seeks to realize in money the reward of his labor and the interest of his capital for the whole year, when hun- dreds of millions must be distributed throughoit ‘she length aud breadth of the land, we have tue same unvarying amount of currency to use. There are two kinds of currency in use; one issued directly by the government; the other issued by the banks, One kind would seem to be enough. The best should be preserved and perfected; the other withdrawn, Applying the test first to the government issues, 1t is noted at once that they are not redeemabie, and that no provision has ever been made for that pur- pose. The very moment they are made redeemable, they will cease to answer the pesponee of currency; for, after they are redeemed, they are in the ‘Treas- ury and cannot again be paid out, except upon ap- propriatious made by law, in accordance with tie constitutional ‘sion, and conseq again be may be neveasary to expel government. So that government circulation 1s not convertible, and tut lw not elastic, and cannot be made so without first making @ radical change in we Seen of the United States Treasury, by which i saouid be converted intoa huge banking insticution calcuisted to receive deposits, make loans aud otberwise perform the functions of a national vank. ‘The notes tssued by national banks are nominally redeemapie; and, if the legal tender notes were out of the way, would actually be 80, and being issued by ‘oatitutions in sympathy with trade, would contract aad expand in Obedience to the law of supply and demand, #o that they would also possess the element of elasucity. As to the comparative merits of the two kinds of currency, an consideration would Probably di in favor of a bank cir- it would pos- adapting itself to the If government issues could be possess the same power of adaptation the verdict wouid be in thelr favor. A candid invesit- gation, however, cannot fall to develop the fact that there i No branch of the fiscal service adequate to the direct issue aud care of such a currency as the couniry requires, The treasury system.is so arbi- trary in Us collections and disbursements, so little in harmony with the business interests of the com- munity, that 1 frequently absorbs large amounts of currency at most inop| une seasons aud dis- burses tnem with just as little regard to ihe wants of trade. If the Treasury were redeem: ulation, principally seas eae. of cies of trade. fe bo its issues large amounts would be present for meu: as when money was plenty; but, he return of this money to the nneis of trade would depend upon the disburae- ments of the government, there could ve nocertainty that & would Mod its way back in when needed. In fact, the current operavions of the Treasury of the United States are ied by business men as coustiiutiuag @ powerful, and, at the same ime, a very uncertain element, diticuit to estimate, but Which must neceasarily be taken into cousideration in ali thelr busines# transactions, it 1a but justice, however, to Say that the inconveniences and defects woherent iM tue prevent system have been obviated a8 far as possible bh »-esent admiuistration of tue department, a. ro they couid not be ob- Viated eutirely (ue, Gave been reduced to 4 minl- mum. So long. therefore, as the collection of the reve- Hues Is lable to be @ process of contraction and tuelr disbursement @ process of tufation the agen- cies through which collections and disbursements are effected cannot be regarded as suitable agencies for furaishing @ soyad curreucy to the people. The argument that the government should furnish the currency in order that it may realize the profit Upon its circulation 18 a common one, but will not bear scratiny. There is no proit to ihe government Ou the cireuiation of an Inferior currency. Only a sound currency Will promote the macerial prosperity of the peopie, and the government can realize no rofit from anything detrimental to their interests, @ currency, therefore, government issues are not proftavie. As a loan Without interest they are equally unprodtable, because they are injurious to the bationml credit, and add enormously Lo tie expenses of the government. Hf, however, itis possible for the government to comply With the couditions necessary in order to {urnisi a sound currency, itcan at least provide for the withdrawal ot ils own notes, and prescribe the conditions upon which, and the ageucies through which a better currency may be pfovided. As before stated, there should be but one paper currency in iY ountry, and that should euianate from a source that is tndueneed by aud is amenable to the lawyof trade, No check or limiéa@tion should be imposed upon it olwer Luan the law of supply and demand, FREE BANKING. The banking system now in operation under the the act of Congress 1a doubtless an improvement upou the coudiuen of things that prevaied prior to its inauguration. It may have imperiections, but most of tiem can be traced to the evils of an trre- deemabie currency. Abuses of various kinds are practiced or tolerated, during a suspension of speci —— that would disappear of themselves in a \thier financial atinospuere; and, as observation and experience bring to light defects, they may be corrected by judicious legislation. Auy radical changes now would affect 0 many and such great interests, that it would be safer © d wiser to build upon and improve tne presentsys: ©, so a8 to it tuily up to the requirements of tue ge aud the coun- try, ban to undertake to build up a newone. It may be made the means of suppiying a safe, con- vertibie and elastic currency tn any volume that may be red by the business of the country. ‘No human inteli.geace can Ax the amount of cur- roncy that is really needed; for it ts continually varying aud is uever fixed. If Congress limita the amount, there Will siways be t who will be dis- satisiied and who will seek legiSation either for cue pu of contraction or expansion. And #0 long asthe volume of currency depends upon legislative enactivemeat, uncertainty and instability wii per- vade all Nuancial operations, If, however, notes for circulation are issued by @ association composed of business men and capitalista, Who are obiiged to furnish security for the prowpt aod easy conversion of their sues into coin on demand, no other limit to the amount of such ge! ro yh inierest. ‘were is w legitimate rency the notes will remain in circulation long enough to make their tasne If there ia hot soch ® demand the notes will be hurried home for conversion inte coin, In this way the business demand for currency wil get ile supply, and (he sur- plas, of oat will alwaye be retired, A seit Obe that Is adapted to the ¢: the wants of the country, at (hs lime. whether fore the return of specie ust ng system of currency ia the only ucies of trade and to itis @ vital question gover: adapted to such ends, And furcher, if possible, it is so uly w toe adoption of @ policy which will tend gradually, but saseir, wo Tesumption of epecie payments, It must be the gradual dereiopment of 4 process which shall absorb legal tenders abd put in their place @ paper currency which sual at aii Umes and woder al. Circummances for coin, elvae. of paper & paper currency whv | graiually increase, while the legal lers for ita redeu| cans ae. gradually decrease ia each ratio asa luaud for banking factiities etermine. rs in wil it dew found principles ou) yout Ww os ia, | a nevere may mane free upon @ specie basis permitted with equal safety and without delay. With yaajasied banks be estab- Getails properiy may es! lished With @uthority to issue and put tp ciroula- tion gold notes—li for a the amount 01 by the ability of tne banks to comely with the necessary conditions, and to redeem their issues. Some provision of this kind is probably necessary in order to supply the Pacific and gold producing States with @ paper currency. A circulating medium, cheaper and more convenient than coin, has long been a necessity in those States, and would undoubt- ediy do much to promote activity, enterprise and development. Experience has demonstrated to them that @ currency composed exclusively of Specie is not exempt from the fluctuations to which money and trade everywhere are subject and has awakened an anxiety on the subject which may lead to the introduction of paper money if the oppor- tunity is afforded, ; By tho establishment of banks ona specie basis the papa tog, of specie payments is only antici- pated, and familiarity with gold values will do much to relieve the subject of the mystery with which It is associated in the ounds of many. Looking torward to the day when uniform values shall again prevail, it may be that, by wise legislation now, @ banking sysiom can be established, truly national in its char- acter and scope, which will furnish a sound currency of uniform value in every State of the Union. HILAND 8. HULBUKD, Comptroller of che Currency. CUSTOM HOUSE MATTERS. A New Government Marine Hospital Pro- Jected—David’s Island the Point Selected— The Drawback Frauds—No New Disclo- surcsWhereabouts of R. B. Caldwell— Where is Samuel T. Blatchford? The excursion of the superintending architect of the government, Mr. Mullett, accompanied by Collector Grinnell and other federal officers from this city and also from Washington, on board @ revenue cutter, on Thursday last, of which brief mention was made in the HERALD on Friday, had, among others, one very important object, which has not hitherto been made known to the public, as it was only ascertained yesterday, ‘This was to select a place where to establish a gov- ernment marine hospital for sick sailors of the com- mercial marine. These sailors at present now pay twenty cents a month each when em- ployed, which is deducted from their wages and paid into the proper fund of the United States Treasury, at the return of the veasel to a home port, and out of this fand those of the craft who are sick or disabled, or are sent home by American Consuls abroad in a condition to need Medical or surgical treatment, are provided with all necessary help and aasistance. At present there are about 150 lors in the City Hospital of Brooklyn, and about sixty in the New York City Hospital. These establishments charge the government one dollar per,day for each patient, and it is thought that by providing a governinent hospital a great saving in this Oe ay cai may be effected. David's island, in the Sound, almost opposite the town of New itochelle, has been selected for that pury and the excursion mentioned above was mainly directed to that island to examine its pre- Sent condition, Here was located, during the late war, @ marine station, and the buildings then erected were found to be still in such tenantable condition that @ limited outlay would render them ppereoey, avaliable for — nospital ui urthermore, it is thought. that sailors, ac- customed to the sea, prefer to be located on ®& spot where they can see the water and the vessels “cutting the waves,” and that in such a location they would feel more comfortable and recover sooner than if enclosed within walls in some crowded tho- roughfare ina city. This island will, therefore, be recommended to the government for that purpose. In the drawback frauds no new discoveries were made yesteruay. It is now an established fact that Mr. Richard B. Caldwell, the head and front of the conspiracy to detraud the government, resides, as stated in the Heraup of Thursday last, at Prescott city, m tae province of Ontario, Canada, and has entered into business on the gains of the frauds. A telegraphic despatch was received in this city yes- terday from him, stating that he had mailed for New York on Wednesday last sworn statements to show that Mr. Romeyn Mulligan was an uncon- scious victim and had no guilty knowledge of the drawback transactions of the firm of R. B. Caldwell & Co. ‘The whereabouts of Mr. Blatchford have not yet been ascertained, but it is known that he had been at Prescott city in communication with R. B. Caldwell and had left there. The extradition treaty with Great Britam not covering such cases, there 1s ho means of compelling Caldwell’s return to the United States, POST OFFICE AFFAIRS. Reduced Postage to England=The New Postal Convention Ratified by our Government— No Maiis to France Direct After January 1—Clerical ChangeeTho City of Brussels Kept Back for Important Despatches From Washington. ‘With the steamship City of Brussels, which sailed yesteruay for Liverpool, the ratification, on the part of tne United States, was sent out to London, of the new Postal Convention lately concluded between the United States and Great Britain. By virtue of this treaty, when ratified in time by the British government, letter postage, from and after the ist of January next, from this country to England will be reduced from twelve to six cents, or making as near an approach to ocean penny postage as is possible under present circumstances. ‘Ile proposed convention with France, offering similar terms, having been declined by tne latter, no maila directly to French ports will be sent after New Year’s, but all letters destined for that country will be sent’ either by way of England or through the poris of Bremen or Hamburg by the German steamers. ‘The foliowing clerical changss in the force of the Post Oiice in this city were made since Friday and up to yesterday afternoon:—Julius Meire, appointed, vice Thomas L, Paulsen; Robert R, Cronyn, vice H. L, Ostrander; Daniel Barker, vice Eben McCreary; Robert Neti, vice Horace Pryor; George B. Haynes, vice J. A. Tillotson; J. H. Strickland, vice J. W. Tator; Reynold Texton, vice E, G. Baldwin; Joseph Newby, vice Edwin B. Lent; Thomas Reynoids, vice James McCausland; Jeremiah Coffee, vice Henry Finken, and R.'T. B. Hancock, vice James McFar- lana. ‘The City of Brussels, by orders from Washington, Was detained over her sailing hour to await the receipt of what are believed to be important des from the State Department to the American representatives in Europe. When these documents hai arrived the steamer at once put to sea, The nature and contents of these despatches have not transpir THE ASYLUM FOR FOUNDLINES. Munificent Subscription to the Fund—A Lady’s Work in the Cause. The treasurer of the Founding Asylum, No. 17 East Tweifth street, begs to acknowledge, with heartfelt gratitude and thankfulness, the following donations, received through the energetic efforts of the secretary, Mrs. Joba Fox:— Hon. W. M. Tweed $1,000 Hon. Henry ae» OE 25 Hon. Denis flon. Walter lion. Joveph Dowling Hon. Edward Hogan. 100 Hon. Johu Fox...... 100 Hon. Henry Smith... 100 Mr. Jamea M, Sweeny 100 Mr. J. MeB, Davidson 100 Mr. Jas. B. Ingersoll. 100 Mr. BE. A. Woodward. 100 Mr. Anarew J. Garvey 100 Mr. Cornelias Corson 100 Mra. Deuis Quinn.... Mr. Charies Hl. Hail.. Mr, Joseph B. Young. Mr. ba. D. a ir, Mr. es He Mr. Francis O'Noill Arnold,Constable & Mrs, J. P. Wilkins, Mr. Geo, B. Raymot Hon. James Brooks Mr. Nath'l Jarvi Mr. T. Kirkpatrick... Hon. isaac J. Olivor.. Hon. James Hayes... Mr, George L. Miller. Hon. Jono K. Hackett + White..... Mrs. T. J. Hollahan. Hon. Samuel Jones.. Mrs. M. Ryan. . ‘ Also a number of smaller contributions, emount- tug up to date to $4,197. BSRIssssesse ‘THE DEATH OF ELIZABETH WOOD. Solving of the Mystery—A Case of Suicide. The mysery surrounding the case of Elizabeth Wood, the woman who was found dead in bed at ‘No. 100 Allen street, has been dispelled by an oMctal investigation before Coroner Schirmer at the Tenta precinct station house. Deceased had long been in poor heaith, and on several occasions Ee has bere meek ae that life was irksome to her, as ene was sick nearly “destitute, and ex- | esas | the opinion Wat death would relteve her of wu De i Cushman mate 8, port mnaetant @Xamination of the boay of as , and found eat incised wound of the anomen, half an aix poe, Pee bd and @ wound was superficial, thrangh the skin and — muscles, eur trating the we im; also found wound, @n inch in length, situated in the ema of typ leit e.oow, severing the brocuual artery; Par net ve of this try. country. bad friends living somewhere in New Jersey. WOMEN’S COUNCIL. The usuai Saturday afternoon convention, known to the public as the Women's Council, or so-called Women’s “Parliament,” met 4 la carte, according to understood agreement, yesterday afternoon, at about half-past two o'clock, in their usual place of meeting, room No. 12 Packard's Building, That ig to say, the lady members, to the number say of about forty or forty-five, made their appearance upon the scene of action punctually at the hour @ppointed, with the intention of publiciy discussing there and then the affairs of State and home; but, owing to the delay caused by the coun teracting and malapropos appearance of some half ja dozen or more black-coated reporters (which gentlemen, by the by, it is understood, could not oz woutd not take the hint of their much-desired with- drawal), some half or three-quarters of an hour's valuable time was instead consumed in restless ex- Planation, nervous courtesy, and unnecessary en- tirely and already too oft repeated apologies to the weekly transgressing, Ashort time after three o'clock, gentlemen hay- ing vanished, the questions of the day were broached, Mrs. Croly acting as vice president for Mra. Dr. Dinsmore. The minutes of the two weeks previous meeting were read and approved, as, also, those of the previous meeting, These weekly meet Ings have about settled now to a regular thing. The audience usually ranges between fifty and sixty im number, but strange faces, drawn thither either by curiosity, genuine interest, or most possibly @ mix- constantly renew the circie of auditory ily relieve the council of much of thas sameness, and in some instances actual dulness of expression, which would be painfully apparent if conducted by the same persons weekly, and the same eaniecks, discussed from the same id} Ue Tn point of matter the sabjects were sttil preig@mi- nary; none of really momentous interests to the welfare and being of the proposed Parliament hay- ing been under consideration. mn the day of the last meeting some rather irasclble and peculiar-spirited indi- vidual took a violent cold in her head, or, it may » an attack of in tion during the evening. The consequence was @ violent newspaper denunciation in one of the dailies of room No. 12 Packard’s Build and ite higiento arrangements—said room, A way, having in reality been well warmed by Mr. Packard during the whole time of the afternoon meeting; moreover, having been a free will and courteous from that gentleman through the enttire peo! for the weekly meetings of the ladicw# council, A vote of thanks was then passed, in writing, to Mr. Packard, for his Kindness and courtesy in ren- dering the above, thus giving the free useof nis rooms; blame taken to theinselves as the parties entirely delinquent, themselves having negiected to regulate the proper temperature of the hall; and less Mr. Packard might consider the discourtesy a8 Come ing from any lady member of the association proper & Series of resolutions was adopted by the associa- tion thanking and highly complimenting Mr, Packard for his courtesy and liberality. A letter was then read from Mr. Fuller, of Hearth and Home, in acknowledgment of a vote of thanks passed by the Council at at a former meeting, in re- cognition of what he had done for the proposed Hor- Ucultural School for Women. Mr. Fuller's letter read thus:— I hold that all mankind were created free and endowed with a right to become equal soctally, ‘morally and intelleotue jas Placed ‘a barrier let It be recog: to retard the progress or elevation of elther sex. I loom upon any proposition to extend the field of labor for woman as a step toward her independence, or, in other words, hi ness. Not that woman has been deprived of work—for Knows that our mothers and sisters and wives have had enough to do—but that, owing to prevailing customs ing from barbarians, we nev retained hee! perty acca- nerabip (marriage), man may deprive his wife hall be hers so long as she pro, id our ‘world moves, ani changing slowly and slowly in the right direct! yours, A.B. Fl The meeting adjourned at about half-past four. CUBA. eT Ee Republican Incendiary Proclamation—Appeal to the Slave Population, We have received the following copy of a patriotic appeal, which we translate for our readers, dated at Havana, December 10, 1869, from which it may be inferred that these 1nflammatory documents are to be generally distributed previous to that day:— Carlo Manuel de Cespedes, President of the repub- lic, has ordered that all Cubans faithful to the patriot cause and obedient to its government shail set fire to cornfleida, and cropa of tobacco, in order to drive off the enemy and thereby deprive them of ali re sources wherewith to carry on the war against us. All Cubans should respect and carry out the orders of their first magistrate, and it is necessary that we execution be speedily and punctually effected, so that the whole world may see that we are united and resolved to make the sacrifice. Persons will not be found wanting to denounce these measures, but such will only be those who are instigated by interest, egotism and treachery. Every Cuban (black or white—for we are all equais) has no obligation to account for his plans to any person, but merely to take @ match, and in silence carry out the order of his government, All, with- out distinction of color, age or sex, can in this man- ner serve the cause of our country and liberty, Now 48 not the moment to think, nor to discuss what has tobe done; the moment has now come in which to expel the Spaniard, and by adopting these measures. the odious enemy will speedily disappear from our sight. Will people be wanting for the simple opera- tion of applying @ match to a cornfield? here are then, the patriots? What are the freed mulattos ao- ing, who ever were distinguished for their hatred to the barbarous Spaniard, and for the love they bear to their native soil? What are the plantation slaves doing, who should have already been set free, but who stili sutfer from hunger and the pangs of the , lash, When @ spark, cast in passing, among the canes will suitice to insure their liberty? No more tear. War to the Spaniard and viva Cuba! Fire and blood on allsides! Let us burn to-day and to- morrow we shall be free and Cubans! Viva the Pre- sident! Viva Carlos Manuel! THE REPUBLICAN COMMITTEE. PERSONAL MOVEMENTS. Portland people are complaining about the high price of bread. Cardinal Cullen has issued another manifesto against the Fentans, There are to be ten executions for murder in the United States during December. A woman ts captain of @ canal boat running into Cincinnati and transacts business. Cincinnati nas a milk inspector and the dealers talk of raising their price. Ex-Senator John B. Henderson, of Missouri, is quite {ll at his home in Louisiana, Mo, Aman 18 now in Detroit with his scalp in his pocket. The Indians took It off for him. A man named Richard EB. Hovey, playing the réle of a Baptist preacher, was lately driven from Trax. ton, Mo., for attempting to marry his ninth wife, the Ci former ones being all living. He 1s advised. to go to Utah, collect the scattered remnants of his. family and live in peace. DEPARTURES YESTERDAY, LIVERPOOL VIA QUEENSTOWN—Steamah| Colgan, C _H Whaley, J 8 Huhn, William Searle, Mra Thomas comb, John Jay and Lady, Mr Dueron and Mr. Runnell and two Master Runnells, Livenroor Steamship Miss M Liiwelyn, and child, Miss Kee: France—Mre eDonald, Mise innuock, Fréd Smithers, William inch Master D ueron, City of Brusrel fazelton, P'T Nomer, M Maro, ‘LF Philtp, Me LR Shreve, Miss N Shreve, E Hogg, ‘Hl A Gillie DN kins, Mr Christian, & C Munson, wife and child; M H Moore, Mr Walls and inet, FH Davies, Captain Friend and wifey J Tilney, wife and infant; Mias Tilney oud servant, Mi Lood, ‘St Shaw, GT Grove, Pec fo, two chitdren ap dt ro servants 6 Swan, in M Megargu, Miss 4’ & Thompson, 9 Mt Momargurt He: S hakiaberg. 0 domon b Milmar’ and 4 anlebery R Brooking’ on, 8 0 Martin, Mason, Licutenaut Mar ir, W Smith and wif H Witney, Captain Colaon, JW 4B Sleigh, Mias Corltes, Mr Corll W Wells, 8 $ Greon, J Jones, A Molnnia. ASPINWALL AND SAN FRANOISCO—Steamship Arizona— For Aspinwali-B Flvhman, @ Ortumo, Capt. Is Smith, JA Margnez, wife and_nurne; Fig Bae at a Burges, J Joaquin Swteado, C Hollister, Mr Gillard, Mra Creer, ie Ly Pant ohik ay oe P Pedrow.’ For -Californi Tilton, A Androws, A Levy and wife, and two ‘children, | Mrs B Miss B O'Brie) 0 Webb and wite, col, Wilting, DM Bryant, M. two children, A © Bush, modore Goldabore Nancy Sweelland, Mra’ Howard, Mrs © Brown, J dy, wife my fodammad, 80 Abrahms, Miss Antoinette Metelar, Mr Miss Mary A Debbuldia, Dr How, wife and throw daughters; Charles DB Ames "and wile, KE Harrigan, Ernest Jaooby, Captain & © Harris, Charles Loebenroth, Fanny and Dore Rendsburg, Thomas Smith, Miss Reboooa Skinner, Mea Mary Waila, John Sherriff, © 0 Sherziif, b Tift, Bs Thompaon, Mrs hi U Judson, alster and daughtor ; Alexander, T anconssand wile, Mrs Kahn, Mra Medligott, ‘and child, © Queverty Theo Traclson and wile, A Znall, Mary Howitt, H Whittall, Rev D W Kipp, wife and ohild; Miss Mandeviile, Misa Chapin, and alarge number in the steorage, HAVANA, SIDAL AND Vana Cryz—Steamship City of Mexico JJ Alexandre, J Clement, JJ Bax, ¥ Bary © Kore ero, T Marshal, A Vahin, P Gonaalen, A Kdwards, Miss Darban, JM Cob LG Perey ‘i faintly, © Clark an family, M Raventos, H Cameya, JS , Ede Toure, Mey Salazar, Miss & Saiagar, Mle Mousquiane, © Hirwuman.