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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,

Jos. S. MoCoy, Hon. JAMES H. ECKELS,

Government Actuary. Comptroller of the Currency.

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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 27 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 30.47 per cent less than in 6 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CIRCULATION IS WHOLLY REPEALED AND THE BANKS ARE ALLOWED TO TAKE OUT CURRENCY NOTES TO THE PAR VALUE OF THEIR BONDS.

United States 4 per cent bonds of 1925.

[Sold February 1, 1896, for 111.100; money at 4 per cent.) $100,000 fours at 111.100 interest..

$4,000.00 Circulation 100 per cent on par value..

$100,000.00 Deduct 5 per cent redemption fund..

5,000.00 Loanable circulation.....

95,000.00 At 4 per cent...

3,800.00 Gross receipts.....

7,800.00 DeductAnnual cost of redemption....

$137.48 Express charges

3.00 Cost of plates for circulation.

7.50 Agents' fees.

7.50 Examinations.

43.00 Sinking fund reinvested quarterly to liquidate premium.. 204. 45

402. 93 Net receipts ..

7, 397.07 $111,100 loaned at 4 per cent..

4, 444.00 Profit on circulation

2,953. 07 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.] $100,000 fours, at 111.100 interest

$4,000.00 Circulation, 100 per cent on par value

$100,000.00 Deduct 5 per cent redemption fund..

5,000.00 Loanable circulation...

95,000.00 At 6 per cent

5, 700.00 Gross receipts....

9, 700.00 DeductExpenses.

$198.48 Sinking fund (reinvested quarterly) to liquidate premium. 144.02

342. 50 Net receipts ..

9, 357.50 $111,100 loaned at 6 per cent

6, 666.00 Profit on circulation

2,691.50 Profit on maximum circulation obtainable, 2.69 per cent.

United States 4 per cent bonds of 1925.

(Sold February 1, 1896, for 111.100; money at 8 per cent.) $100,000 fours at 111.100 interest...

$4,000.00 Circulation, 100 per cent on par value

$100,000.00 Deduct 5 per cent redemption fund....

5,000.00 Loanable circulation....

95,000.00 At 8 per cent...

7,600.00 Gross receipts ......

11, 600.00 DeductExpenses

$198.48 Sinking fund (reinvested quarterly) to liquidate preruium 99. 22

297. 70 Net receipts ....

11, 302, 30 $111,100 loaned at 8 per cent

8,888.00 Profit on circulation

2, 414. 30 Profit on maximum circulation obtainable, 2.41 per cent.

United States 4 per cent bonds of 1925.

(Sold February 1, 1896, for 111.100; money at 10 per cent.) $100,000 fours at 111.100 interest..

$4,000.00 Circulation, 100 per cent on par value..

$100,000.00 Deduct 5 per cent redemption fund

5,000.00 Loanable circulation

95,000.00 At 10 per cent..

9,500.00

13,500.00

Gross receipts......
Deduct-

Expenses
Sinking fund (reinvested quarterly) to liquidate premium.

$198. 48

67. 12

265. 60

13, 234. 40 11, 110.00

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

Profit on circulation
Profit on maximum circulation obtainable, 2.12 per cent.

2, 124. 40

United States 4 per cent bonds of 1925.

(February 1, 1896, at a price to realize 25 per cent to investor; money at 4 per cent.) $100,000 fours at 130.8749 interest...

$4,000.00 Circulation, 100 per cent on par value..

$100,000.00 Deduct 5 per cent redemption fund...

5,000.00 Loanable circulation...

95, 000.00 At 4 per cent...

3,800.00

7,800.00

Gross receipts.....
Deduct-

Expenses
Sinking fund reinvested quarterly to liquidate premium..

$198.48
568.70

767. 18

7,032. 82 5, 235.00

Net receipts...
$130,874.90 loaned at 4 per cent

Gain on circulation
Gain on maximum circulation obtainable, 1.80 per cent.

1, 797.82 27.34

United States 4 per cont bonds of 1925.
(February 1, 1898, at a price to realize 2 per cent to investor; monoy at 6 per cent.)

$4,000.00 $100,000.00

5, 000.00

95,000.00

$100,000 fours at 130.8749 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..

5, 700.00

..... 9, 700.00

$198.48
400. 61

599.09

9, 100.91 7,852. 49

Net receipts
$130,874.90 loaned at 6 per cent

Profit on circulation
Profit on maximum circulation obtainable, 1.25 per cent.

1, 248.42

United States 4 per cent bonds of 1925. [February 1, 1896, at a price to realize 2$ por cent to investor; money at 8 per cent) $100,000 fours at 130.8749 interest

$4,000.00 Circulation, 100 per cent on par value.

$100,000.00 Deduct 5 per cent redemption fund.

5, 000.00 Loanable circulation.....

95,000.00 At 8 per cent..

7,600.00 Gross receipts ......

11, 600.00 DeductExpenses

$198.48 Sinking fund reinvested quarterly to liquidate premium. 275.97

474. 45 Net receipts...

11, 125.55 $130,874.90 loaned at 8 per cent.

10, 469.99 Profit on circulation......

655.56 Profit on maximum circulation obtainable, 0.66 per cent..

United States 4 per cent bonds of 1925. (February 1, 1896, at a price to realize 21 per cent to investor; money at 10 per cent.] $100,000 fours at 130.8749 interest.

$4,000.00 Circulation, 100 per cent on par value

$100,000.00 Deduct 5 per cent, redemption fund..

5,000.00 Loanable circulation..

95,000.00 At 10 per cent...

9,500.00 Gross receipts ....

.... 13,500.00 DeductExpenses

$198.48 Sinking fand (reinvested quarterly) to liquidate premium. 186. 69

385. 17

Net receipts..
$130, 874.90 loaned at 10 per cent..

Profit on circulation
Profit on maximum circulation obtainable, 0.03 per cent.

13, 114. 83 13, 087.49

.........

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.

Yours, truly,

Hon. J. H. WALKER,

Chairman Committee on Banking and Currency.

APPENDIX S.

SHERMAN SILVER LAW.

Period.

Ounces of silver $4,000,- Ounces of silver $2,000,- Amount of 000 would have bought 000 would have bought Treasury and dollars it would and dollars it would

notes have coined. have coined.

required

to buy

4,500,000 Fine Coinage

Fine Coinage ounces of ounces. value. ounceg. value. silver.

Six months ending

Dec. 31, 1890.
June 30, 1891.
Dec. 31, 1891.
June 30, 1892.
Dec. 31, 1892.
June 30, 1893.

Dec. 31, 1893
Four months ending Nov. 1, 1893.
Two months ending Dec. 31, 1893
Six months ending-

June 30, 1894.
Deo. 31, 1894.
June 30, 1895.

Dec. 31, 1895.
From Nov. 1, 1893, to Jan. 1, 1896

21, 957, 908 $28, 390, 022 10,978, 953 $14, 195, 009 $29, 570, 400 24. 004, 636 31, 036, 296 12. 002, 322 15, 518, 147 27, 012. 240 24, 591, 837 31, 795, 505 12, 295, 918 15, 897, 801 26, 361, 090 26, 847, 467 34, 711, 874 13, 423, 738 17, 355, 936 24, 149, 420 28, 224, 772 36, 492, 634 14, 112, 385 18, 246, 321 22, 961, 610 28, 751, 125 37, 183, 269 14, 375, 562 18, 591, 633 22, 541, 860 33, 129, 050 42, 833, 517 16, 565, 023 21, 416, 757 19, 571, 785 21, 746, 552 28, 116, 753 | 10, 873, 775 | 14,058, 375 13, 246, 270 11, 382, 498 14, 716, 764 5, 691, 248 7, 358, 682 6, 325, 515 37, 708, 697 48, 256, 464 18,854, 348 24, 128, 231 17, 211, 230 37, 808, 438 47,944, 165 18, 904, 217 23, 972, 082 17, 145, 585 37, 536. 223 47, 664, 770 18, 768, 110 23, 832, 384 17, 305, 460 35, 518,717 15, 972, 001 17,774, 363 22, 986, 000 18, 229, 800 159, 984, 573 204,554, 164 79, 992, 286 102, 277, 379 76, 217, 650

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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