258 



FINANCES OF THE UNITED STATES. 



any one year not to exceed the amount required 

 for the sinking fund for that year; and also 

 $40,000,000 of bonds of the character of the 

 outstanding 4 per cents, but bearing a rate of in- 

 terest not exceeding 3^ per cent, per annum, 

 redeemable at the pleasure of the United States 

 after fifteen years. Under this plan the Sec- 

 retary believed the outstanding bonds could be 

 refunded, and the interest of the public debt 

 thereby reduced $12,000,000 per annum. 



The proposition was at first favorably re- 

 ceived in Congress, but owing to the continued 

 advance in the market value of outstanding 

 United States bonds, that of the 4 per cents 

 having reached a point at which purchasers 

 could realize only about 3-25 per cent., the 

 belief soon became general that the interest 

 could be reduced to 3 or 3 per cent. 



The changes in the character of the public 

 debt during 1880. will be seen by the following 

 comparative table, compiled from the monthly 

 debt statements : 



Net debt ; $2,011,798,504 87 $1,899,181,735 99 



The table below is also of interest in con- 

 nection with the national finances as showing 

 the principal items of assets held by the Treas- 

 ury on January 1, 1879, the day of resumption 

 of specie payments, and the first day of each 

 year since. 



The monetary transactions have been con- 

 ducted through the Treasurer, nine assistant- 



treasurers, one depositary, and one hundred 

 and thirty national-bank depositaries. The 

 gross receipts for the fiscal year amount to 

 $545,340,713.98, of which $141,039,558.61 were 

 received through the depositary banks. The 

 deposits of public moneys in these banks are at 

 all times amply secured by deposits of United 

 States bonds with the Treasurer of the United 

 States, and no loss has been suffered by the 

 Government on account of such deposits of 

 money since 1866. The moneys thus received 

 by a depositary bank are paid out upon Treas- 

 ury drafts, or transferred to the credit of Unit- 

 ed States disbursing officers, and by them dis- 

 bursed to public creditors ; or, if not needed 

 for disbursement by these methods in the vi- 

 cinity of the bank, they are without expense 

 to the Government transferred to an assistant- 

 treasurer in a locality where they are needed 

 for such disbursement. At the close of the 

 fiscal year there stood in the depositary banks 

 and sub-Treasury offices to the credit of the 

 United States Treasurer, subject to draft, the 

 sum of $204,683,836.34, and to the credit 

 of United States disbursing officers $28,581,- 

 290.93. 



As agent for the redemption of national- 

 bank notes the Treasurer of the United States 

 redeemed during the year $61,585,675.68, as 

 against $157,656,644.96 in 1879. 



Jt is worthy of notice that the amount of 

 gold coin held by the Government, as before 

 stated, is the largest accumulation of such coin in 

 the world. In addition thereto the banks held 

 of coin on October 1st, $108,000,000, of which 

 about $100,000,000 was gold. At the same 

 time both gold and silver coin was circulating 

 freely in the hands of the people throughout 

 the entire country ; and, thus far, since resump- 

 tion, all the several kinds of currency have 

 been kept at par with gold coin. 



The monetary transactions of the country, 

 other than those of the Government, have been 

 conducted mainly through national banks, State 

 banks, private bankers, and trust companies, 

 supplemented by clearing-houses in several of 

 the large cities. During the year ending No- 

 vember 1, 1880, fifty-seven national banks have 

 been organized, with an aggregate capital of 

 $6,374,170; three, having a total capital of 

 $700. 000, have failed; and ten, with a total capi- 

 tal of $1,070,000, have voluntarily discontinued 

 business, leaving in operation 2,095 banks, with 

 a total capital paid in of $466,365,085. 



* Of this amount $41,996,846.67 was on account of subscriptions to refunding bonds. 





