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In other words, the fourth column shows the sum that would have been saved to the United States in interest had the net gold in the Treasury been used to reduce the public debt in the corresponding year.

Very respectfully,

Hon. JAMES H. ECKELS,

Comptroller of the Currency.

Jos. S. McCoy,

Government Actuary.

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If the banks were allowed to issue circulation up to the par value of their bonds, and the whole of the 1 per cent tax on circulation was removed, the profit to banks under those conditions and under the Walker bill is shown as follows:

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These figures show that by using United States bonds bought at the prices obtained by the Government when its credit was depreciated, as on February 1, 1896, the profit to bankers on circulation, provided they can get currency notes up to the face value of their bonds and also be relieved of the 1 per cent tax on circulation at 1.11 for bonds, would be as follows:

In 4 per cent localities the profit would be 9.67 per cent more than in 6 per cent

localities.

Under the Walker bill it would be 53.47 per cent less than in 6 per cent localities.

In 4 per cent localities the profit would be 22.41 per cent more than in 8 per cent localities.

Under the Walker bill it would be 106.95 per cent less than in 8 per cent localities. In 4 per cent localities the profit would be 39.15 per cent more than in 10 per cent localities.

Under the Walker bill it would be 160.42 per cent less than in 10 per cent localities. When the credit of the Government is normally good, and the bonds sell at prices paying the purchaser 24 per cent, or at 130.8749, the profit to banks on this currency would be as follows:

In 4 per cent localities the profit would be 43.99 per cent more than in 6 per cent localities.

Under the Walker bill it would be 50.47 per cent less than in per cent localities. In 4 per cent localities the profit would be 174.35 per cent more than in 8 per cent localities.

Under the Walker bill it would be 106.95 per cent less than in 8 per cent localities. In 4 per cent localities the profit would be 6555.55 per cent more than in 10 per cent localities. Under the Walker bill it would be 160.42 per cent less than in 10 per cent localities. CALCULATIONS OF PROFIT ON CIRCULATION PROVIDING THE TAX ON CIRCULATION IS WHOLLY REPEALED AND THE BANKS ARE ALLOWED TO TAKE OUT CURRENCY NOTES TO THE PAR VALUE OF THEIR BONDS.

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Profit on maximum circulation obtainable, 2.95 per cent.

United States 4 per cent bonds of 1925.

[Sold February 1, 1896, for 111.100; money at 6 per cent.]

4, 444.00

2, 953. 07

$100,000 fours, at 111.100 interest

Circulation, 100 per cent on par value

Deduct 5 per cent redemption fund..

Loanable circulation....

At 6 per cent

Gross receipts....

Deduct

Expenses..

Sinking fund (reinvested quarterly) to liquidate premium.

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Profit on maximum circulation obtainable, 2.69 per cent.

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Profit on maximum circulation obtainable, 2.41 per cent.

United States 4 per cent bonds of 1925.

$4,000.00

$100,000.00
5,000.00

95,000.00

7,600.00

11, 600.00

$198.48
99.22

297.70

11, 302, 30 8,888.00

2,414.30

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Sinking fund (reinvested quarterly) to liquidate premium.

Net receipts..

$198.48
67.12

265.60

13, 234. 40

$111,100 loaned at 10 per cent...

11, 110.00

Profit on circulation

2, 124. 40

Profit on maximum circulation obtainable, 2.12 per cent.

United States 4 per cent bonds of 1925.

[February 1, 1896, at a price to realize 2 per cent to investor; money at 4 per cent.]

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Gain on maximum circulation obtainable, 1.80 per cent.

7,032.82 5, 235.00

1,797.82

United States 4 per cent bonds of 1925.

[February 1, 1896, at a price to realize 24 per cent to investor; money at 6 per cent.]

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Profit on maximum circulation obtainable, 1.25 per cent.

United States 4 per cent bonds of 1925.

[February 1, 1896, at a price to realize 24 per cent to investor; money at 8 per cent.]

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Profit on maximum circulation obtainable, 0. 66 per cent.

United States 4 per cent bonds of 1925.

11, 125. 55

10, 469.99

[February 1, 1896, at a price to realize 24 per cent to investor; money at 10 per cent.]

655.56

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Expenses

Sinking fund (reinvested quarterly) to liquidate premium.

$198.48
186.69

385.17

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Profit on maximum circulation obtainable, 0.03 per cent.

13, 114. 83 13, 087.49

27.34

APPENDIX R.

[Copy of a letter from a prominent banker in the West.]

March 23, 1896. DEAR SIR: In reply to yours of the 20th instant, I beg to say that the substantial facts concerning the incident you refer to are as follows: In the late summer or early fall of 1893 an Illinois national bank, which was a Government depository, was directed by the Secretary of the Treasury to pay to the treasurer of the United States at New York $25,000 of the Government funds then on deposit in the Illinois bank. This bank then had plenty of money to its credit in a New York City bank, and it immediately sent a draft on its New York bank for the $25,000 to the United States treasurer at New York. This draft was duly received and presented for payment by the treasurer. The New York bank refused to pay it in anything but clearing-house certificates, according to the custom then prevailing in New York. The treasurer refused to receive the certificates, but demanded currency, and this being refused the draft was protested, and the Illinois bank was compelled to obtain a change in the Secretary's order so as to pay the money to the United States treasurer at St. Louis. This being done, a draft on its St. Louis correspondent was sent to the treasurer at St. Louis, and was promptly paid in currency on presentation.

These are the facts. The precise dates I can not give, and the names of the banks I prefer not to mention.

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Had the Bland-Allison bill been reenacted for the bill enacted on November 1, 1893, repealing the purchase clause of the silver law of July 14, 1890, as there was a desperate effort made in the House of Representatives to do, there would have been coined silver dollars, with

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