New-York tribune., 1867-01-04

Decrease Of surplus in the year $6O6l,S5S
From January 6, 1866 to March 3, 1860, the banks
lost $3OOOOO0 Of legal tenders, the legal reserve
upon $J0,O00,000 of credits. Following the same
course this year they will reach the point when they
must violate the law or force contraction, which
will tell severely upon debtors of all classes.
The proposition TO take from the National banks
the right to count compound notes as part of their
legal reserve is creating alarm among bankers, who
see in it the seeds Of financial revulson-the result
of an arbitrary and violent change in the
law. The withdrawal of the compound notes from
the banks at maturity viii force upon them con-
seryatiye policy which cannot fail to be felt by their
debtors. who must pay up fast as the banks are
Obliged TO contract by the maturing of their interest
bearing reserve The following letter from Mr.. John
Thompson, whose experience in currency and bank
ing gives his opinions great weight, is entitled to
consideration by Congress:
w-YoRK. Jan. !, 1867.
H. g. FAINT esqear Sir: II will not be convenient for
mo 10 come 10 Washington have any taste 10 appear
the advocate or opponent o measures peloe
wish you therefore TO enter my protest to tne NON
Mr. Hooper and Others, against amending the National
Bank law that the banks cannot count l tel reserve
money, their compound interest notes When thry are
due and payable they should not he counted as money
but 10 compel the banks 10 substitute gold or geenDacks
for tho compounds they hold, any faster then hey fl
market and the Government itself Will not be among the
minor sufferers The banks will necessarily violate te
wish also TO enterny protest against taking currency
from the large aud safe banks that IL may be distributed
as Mr. HOsper's bill proposes among small and lar on
banks not that for the interest OF the banks in te
profits on the currency hut do for the safety o e
currency, aud think ii misfortune that the large BANKS
In the large cities not the ssers OF more OF the cur
lions OF the currency issued by the banks in tins cly
Boston and Philadelphia Is certainly freer from casualty
than the same amount issued in the South or west.
Another point in Mr. Hoopers bin think Is against the
spirit the age which the restriction OF the rates OF
H.. far 4
poses should be pleased 10 see uniform rate o inter
est say per cent, with privilege in writing to take 10
Very respectfully yours, j. THOMPSON
The Bank Stock Tax case now before the Supreme
Court in Washington, involves more money than any
case ever adjudcated in the country. The exemption
from or the subsection TO State and local taxation OF
500 OOOOO and that annually for all time at, say,
to average two per cent per annum, is about the
amount involved. Bank stocks must be yitally
influenced in value by the decision and should they
be subjected to the tax will fall in value materially
The Cincinnati Commercial of Tuesday remarks:
The sales OF exchange again large today and the
market s actually close although remain at llOc.
off buying, par selling The exchanges Of the west ana
East urg the past have been adjusted 70 less eX
tent by the produce Of the country than usual yet owing
mainly the large TemittanccS OF Government securities
OF various kinds that bankers nave been making 10 New
York for account and partly To the fact OF the uniformity
Of the circulating medium the rates on exchange nave
continually ruled low. The year closes very tight
money market The desire OF merchants 10 arrange mat
tcrs for the opening OF years business and the ne
cessity of arranging matters for tomorrow In advance,
made busy day a the banks. II is satisfactory 10 De
able To report that, Notwithstanding the close condition
of things, maturing paper was met with great prompt
ness and that too. Learn without much tapping over
of new accommodations to old. The present clOentss
of the money market is m strange contrast to hat OF
year ago when most Of the staples OF our commerce are
materially lower than they were thcu ana when the Du-l
ness the banks u Government paper OF various hnds
NAV be ne grded as very much less Money is worth
full per cent the best Of customers paper ana
frstclass are found in the street on which n@ls
per cent are charged placing Of the paper con
sidercd favor at that.