New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1866-03-24

| sJs, about .lvN.DJI IN cirCll ffiOn.
! lOos about b O0o 90 10 circulation.
| 5)0s about % 90 IN circulation.
l.c00L about 81 Co GO in circulation.
Total. s427 90 go in circulation.
The Government. having thus iaaucura,ed return 20
specie payments the National Banks should be required
to redeem aso upon the following terms:
After sufficient previous notice 70 enable The business,
OF the country become prepared for the change ana
TO enable the National Banks 70 accumulate SIX months
or years inHro1 upon the gold. bearing boncs
held by tLen tbsn thse banks and 81 Others issuing
notes shoal, be requred FOR the frst Six months 70
redeem per cent In coin o! al their notes presented
az their Own counter for redemption In sums OF so and
in .lpes Of $40 over s2o-giyng to the banks tie
ben t OF the fractional amounts between the even tens
for the second Fix uODihs the redemption should be ~
per cent and Cor each speeding period OF SIX months
increase Of 10 per cent should be made until the III
redemp.iOns were reached.
Thai the Natiosai Banks would DO able 20 meet this
legislation. and tat Il would not break tbem down wiz
be evident even If AZ extreme view be taken OF their
position.
Let u. suppose that ct the end of year they ara
called upon to this redemption, and that the
suggestions Of the Secretary in regard TO tleir being
compelled TO redeem in legal tenders at one OF the three
Eastern commercial centers and IN regard - the iund
ing Of the uterestbearing legal tenders have been
adopted.
II is then reasonable to suppose that the National
Banks under the influence Of the action OF the Eastern
redemptons. and IN view Of their beng called upon 20
redeem in part in specie. would have so prepared
against the coming demand that they would have re-
suced their Giro gation to at most s2OcnOW Wheh
the ten cent redemption WOL.l commence.
To meet this redemption they would have as lo0vs;
First whole year OF interest upon their bonds de-
posted 10 circulation being say SS530oOJo az
6 per cent OF about SO 900 90 10 gold.
Second. whole ear of interest upon those bonds
deposited with the Treasurer OF the United States as
security for National deposits and these bonds being
about Sl9 900 900 the interest would be 81 10000.
Third The report Of the Controller Of the Currency
shows that on the morning Of the INST Monday IN
October the National Banks had on hand $1,000 fi IN
oo2. and let It DO supposed THIS Las only increased 10
Fosr:i They had also on tho morning Of the first
Monday in October over Sljj 0C0DD OF bonds ana
other United States securities Let be supposed that
but $4,000 900 Of these were godbearins yielding an
annual interest Of =, 100000.
Then TO meet the resumption Of specie payments. the
National banks would have coin 81 hand as follows:
l. Interest on bonds deposited for circulation, Sl9
100000. -
.. Interest on bonds deposited for deposits, sl,loo.
5. Coin accumulated and retained on hand. $4,000
l. Interest from gold bearing bonds on hand. $500
0CO.
Making total of IS. 10000 on hand to meet their
Let Ms now suppose that during the first six months
the whole 5000 600 OF National bank currency are
nresnnted AT the respective counters Of the National
banks FOR redemption. and that they would pay the ia
10 per cent of the amount in coin they would yet have
/ TO begin the next six months at 20 per ceH.
| Balance on hand .............-......el.iW 10000
Six months interest on bonds. n.7OO.OOO
Making total s3o,IOoO0o
Tn this exhibit no estimate has been included that
during the process Of redemption AMI undlng ol
Tenders TO the amonnt OF s9Oo9oOw IN g0d, VIC "a.
onal banks would have secured many millions OF that
with which 20 orfy themselves-tkat the gold interest
paid on the redemption bonds would be malnv theiIs
Also and that the accumulated coin s lar more To-Day
Even supposng the National banks a, the close Of the
first six months OF partial redemption had receiTed tue
whole of their circulation they would the! prepares
o. it have an ample specie basis on which to 90
sotSe articulation won h@ carefully restricted 10 .as
specie basis upon which i was to DO rcueemeG 20 o.
euatioI OF the country would have become virtually
balanced between the demands for it to carry on the
business Of the country and the demand for coin Oh
tanned by the redemption aud funding OF the Legal
Tenders and The hanks Of The country U0uid once none
rs1pGte their issues BIZ de amount Of coin in Their vaults
this amount under the influence of the policy indicated
would gradually accumulate the volume Of paper in cir
culation would gradually diminish, until the funding
and redemption of Legal Tenders would PROBABLY be
reduced to the limit of s3c3 oOO 0OObeng the amount
gof tens and all above tens now in circulation not
bearing interest by estimates obtained from Official
sources.
All this would have been accomplished after dne
tice given 90 the country, ana by such gradual pro
cess after that due notice that the business o the nation
would have become adapted 90 the change without any
sudden shock OF unforeseen contraction.
Under any policy of contraction, it Is broadly init
mated by the Secretary Of the Treasury tba. many
National banks would find banking Improbable and
would wind up their institutions. Many BANKS that
paw TO their stockholders handsome dividends while
banking with an irredeemebe nominay irredecmsbe
issue that under the present system never returned
to them would find that banking upon specie basis
WINS improbable. because on return 10 this system.
banking in the North would be found to be very much
in excess OF the commercial wants Of the people and
many banks would thus find il 10 their interest to close
The banking capital and circulation thus retired from
the North could be re.represented in the South and
thus portion of the demand Of the South for banks
would be supplied and time and experience would show
what their further needs were and how they could be
best supplied.
The volume of the currency having been thus grad
ualy reduced TO a specie basis and the redemptions
having gradually advanced 10 full specie payments Tor
all sums above $40 the steps should be 10 require
the National banks TO retire their 81 and - bills while
at the same time the Government could commence the
funding ard liquidation Of first, its three cent cur
reney then the five cent currency. next tie tens.
twenty fves and ffties in order. Full specie payment
for ali amounts could then be restored by the nnal fund
ing or liquidation by the joint operation Of both OF
ali the outstanding legal tender circulation, in such
manner as policy and experience would then dictate
Finally at later period the National banks might be
required TO withdraw their ves and later yet, Their
tens from circuation and We should then have what
has long been most needed bank circulation on
specie basis with abundance Of coin for the people,
aided by paper for large amounts ard commercial pur-
poses. very respeculH! L.
STATE Of Feeling in Louisiaru.