The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-07-29

three cities shall send 70 each Of the other two cities the
bills of the banks which provide for redemption in said
cities respectively to be by them returned to the banks
which issued them.
(which notice shall be signed by the committee OF the
associated banks Of the three ces Of this plan Of par
redemption and that all bills shall be received at par on
deposit all the banks Of said three cities which
deemed in either Of said cities and that ali bills thus
redeemed will be Immediately sent home for redemption
according to law
FifA-After the expiration of the time allowed by the
aforesaid notice all national currency which may in
manner into the possession OF any bank in either
city, for the redemption of which provision shall
have been made either in New York, Philadelphia or
Boston, shall be forwarded TO New York and shall be
ing house in New York. the expenses Of each city, in
sending to the other to be borne by the city forwarding
the bills and the expenses incurred by New York in
sending bills OF nOn-redeemng banks to their ctive
locality to be charged by New York pro rata to the
banks Of Philadelphia and Boston, far Us they may
have sent such bills TO New York
The committee were pleased to find the gentlemen at
Washington fully alive to the importance of this subject
and earnestly DESTROYS that prompt and efficient
ures should be speedily adopted to and establish
well arranged system OF regular and efficient redemp
ton of the national currency.
They impressed with the opinion that in order to
the psrmanency and stability OF this currency,
titled to the character of being truly national Of
the utmost importance that all in the manage
of these banks should feel deep solictude to
guard the system from any danger to which IL would be
exposed from want Of foresight and seasonable prepar
alton.
They felt also in common with the committee, that
rapid changes in the financial condition of the country
would demand the most earnest and vigant circum-
specon OF the currency IT'S elasticity and readiness
the lawful money of the country
They felt that the return Of the army and navy and
the withdrawal Of the government from the market
purchaser must of necessity throw large amount Of
this currency, which now has scattered and national
circulation, upon the communities and banks by whom
il was issued thus calling for rapid and large reemptons
and that this return is to take place at once 1t is
wise 10 take immediate measures TO call attention to the
ondh ha nka no ppr haptcn
for the change and contraction which peace and
return TO the normal condition Of things must soon
effect
The heads Of the Currency Department Washington
have promised to lend all the aid In their power and
system of redemption will every bank that issues
a bill to feel bound by regard to its scfpreserva
ton, well as good name, TO be provided with the
means of payment on presentation.
They fully that in other manner can the
system continue to provide genuine Irrational cur
rencyn and thus to fulfill the promises and predictions
of the founders and uine friends OF the national Or
II is now for the banks therefore, to move with har-
mony and vgor assured that they have the counenance
and support of the government
In the arrangement of the necessary details for the
management of this financial scheme, time ana expe'
renee important clements.
We must commence with what knowledge possess,
and time and continued trials to expose errors
and suggest Improvements
express agents. and while they have not been able to
agree upon definite rates. owing to the want OF authority
the part of your committee to contract on any terms,
they assured by these gentlemen that there will be
no practical difficulty likely to arise in the arrangement
of tariff Of prices for the work to DO performed by
them.
the three cities must of course be borne proporonatey
as it may appear trial what amount each city imposes
of the labor and expense necessary to the full accom-
pshment OF thorough and prompt redemption.
These expenses can only be appropriated by very
general estimates till the experiment has been tested
Those conversant with the daily business OF Trans
hitting bills can form general estimate Of cost per
thousand. 49,
agreement those contained In the previous general
scheme for par redemption vIZ:-that 1t shall be obi-
catory upon the banks Of the association not to pay out
nat other than those issued by banks OF
the three cities ami that associated banks decline TO
from bank correspondents the notes Of banks
which shall refuse TO redeem In one OF the three cues
although they take such bills at their counters on &C.
post from regular long required by law
70 receive them in payment of debts due to banks
PLAN FOR AN AssoKTING-uoUsE THE CITY OF NEW YORK
Fiyst-App0nt committee Of nine bank officers, who
may be styled the Redemption Committee OF the Asso
ciacd Banks who shall receive from the several mem
beers of the Clearing House Association such national
bank notes they may desire TO deposit WIN them or
redempton and who shall be empowered to issue Tor
such certificates to be called redemption cerncate
which shall bear at the rate OF six per centum
per annum be paid by the banks 70 whom the certi
such ccrtcacs shall be available for Clearing House
purposes the settlement OF balances and Snail state
their face that they arc payable only in coin or
United States legal tender notes.
The interest received by the committee on said GER
nca,es 10 paid monthly TO the banks according as
to report daily the Of the Clearing House the
The certcaies to be signed by at least three Of the
The issue of certificates not to exceed ninety per cent
of the deposit Of national bank notes.
The Commits TO issue receipt for the remaining ten
DER cent 10 be paid after the redemption and cancclla
ton OF the certificates issued of that date.
Sccond-Estabsh asserting house, under the drcc-
ton of manager with such clerks may be necessary
who shall be appointed by the committee, give such
bonds they may require be subject TO- and under tho
xl,fo Aann .yVsitt
The currency receives by said committee, to DO de-
vcred said manager under such restrictions as the
lection of tho banks be assorted and forwarded for
redemption the banks issuing the same, or TO their
oan OK hose in Bo
and Philadelphia to be sent Asserting House IN
those cities and those in New York. through the Clear
ing House. hereinafter provided.
Third-TAe committee shall call In for payment and
cancellation each morning the certificates in the order
in which they issued in pro rata proportion to the
for redemption and interest shall cease on such certi
Gates from the date Of tine issue OF notice TO that eec
Eurh-Thc committee shall have desk assigned
them at the Clearing House, through which the retire
ment Of certificates, the redemption OF notes redecmabt
in New York. and the return Of the ten per cent margin
| can be made daily.
Ftn-Thc expenses Of the Asserting House, Of tht
committee and for the redemption OF notes shall be PAID
by each bank avaing itself OF Its prvileges IN exac
proportion 10 the amount delivered to the Asserting
House. TO drawn for by the committee or their score
tary on the day of each MONTH as soon therca
ter the expenses be asccrtaned and apporoned
Sizt--hould any bank Sail to redeem its notes wher
presented TINT purpose by agent OF the committed
said committee shall have power to take such action ~
they may deem necessary for their redemption, unde
the National Banking law, and the loss or expense Mt
tending such action by said committee shall be born'
| Ia the same manner and proportion as thu
| regular expenses Of the Asserting House. shoult
any loss occur from FIRE robbery, defacaon or from
any other not provided for In this plan such los
shall pro the amount received from eacf
bank based the OF the previous thirty days
| transactions with the Asserting House
| Sevenh-Bank notes redecmable at New Orleans
| IGavenworth, San Francisco or any point south o
Cairo west of the Mississippi river unless rcdeemable II
one Of the three cities before mentioned shall not
received deposit by the associated banks and shou
any such I've found the packages deposited TO
asserting and redemption such notes shall be rcturne
| by the committee through the Clearing House, 10 Tia
| bank from whom they were received
| E,ohlb-A deposits Of currency made with the com
mce be in scaled packages OF not over i've thou
sand dollars except packages containing notes OF IN
denomination of fifty dollars and upward which may
put In packages of ten twenty thousand dollars each