, 1869-12-28
TUESDAY. DECEMBER Is, 1863.

/
1-.-- 49, c-s-
Since the introduction IN Cong,~ns ui
Mr.. Summers bill, providing for an increase
II National Babk circulation concur ent
With corresponding contraction Of green
hacks, We have taken sumo rains I, aseer-
tain with what degree Of favor such
measure would be recrived hy bankers and
business men generally, and are not sur
pnsed to meet with evidence that the
ttsnnGest opposition it would encounter
w.uld l'c frum the present National Banks.
This is 10 br expected. because these insti-
free from any IRE abo 1t th- redemption Of
their circulation As long as there Is
practically no redemption for National
Rank nutes, no banker need ever give that
last and oily conclusive test Of the sound
ness Of currency single thought Theirs
are, undoubtedly, hero and there-and par
ticnlarly in the cit,es-National Bankers
~ho Eould willingly give up their share OF
the uo1orols Of circulation, in order to get
back to currency that would be at paz
with guild; brt, ~ class, it may be as
snmed that they would be opposed to any
change in the present proportion Of Nation
I'll Bank poses 10 g1eeub.cks, because any
din ninution OF the volume OF the latter brings
them nearer to The time Eheu the must 10
prepared to REDEEM their own no;es, and
any increase of the National Bank
circulation implies the withdrawal
Of further amount Of greenbacks. Let
Us supi,use that, in accordance with the
proposition uhich the Finance Committee
Of the S. nate sse pow said to favor, there
should be n withdrnesl Of : t5, ,oo0, 900 Of j
per cent ceItilc lies (beld nov as reserves
By tie banks, tic same as legal tendess>,
and concurrent and corresponding increass
OF circulation 10 new National Banks in the
West and South. These new National
Banks would requtre, IN accordance with
the Law, resereof % Per cent against their
$4,000. .oooof circnlatiun, Sll, ,250,-
DOO,-apd as the establishment of enough
rex National Bal Ks to take S45, ,0o0, 900 Of
circulation would also imply the holding Of
about Sl0o. 1000 Of deposits, against
which reserve Of :..5 PER cent in legal TIN
atss is also required, tho practical effect
upon the totAl volume Of government
cusr. pcy world be contraction Of
S3G, o,oD. Following cut this line Of ar
gumtnt, some Of the present National
Bakers are ready TO argue that d ooutiuua-
tion uf the process, in accordance with Alr.
Summers bill, .'would b:eak half the Ma
tionni Banks" for the following reason:
There are now, ray, S44o. 600, 900 Of govern
ment currtpcy available for the reserves Of
the National Banks Nhough only about
$3.50, ,000, 900 is actually held ss such, the
rest being in circulation, and in the Treaa~
my>, and it is argued that as soon as the
proportions Of National Bank notes and
sr+enb11=a ,@c1e ci.suGed, 80 tnat shuis
would be, say, s5co, ,0OO, 600 Of the former
and S.40,0oO, 900 ii the latter, or Just
enough cres1.h--s~s to furnish reserves for
command premium, and ahere would he
run OF tho Sassonal Tanks by parties
=ro uopll so,4 =s4nonsl Bank 2ci.s end
present them for redemption in greenbacks.
Now, though this idea Of the effects OF q
change in the proportions Of National Banl
notes and greenbaeks in accordance viii
the provisions Of Mr.. Summers bill, is en-
oou1sged by National Bankers, who do no
want to rnhka any preparations for redeem
ing their cus1e1cy, it ia plain that it is er
rureous in its conclusion that it will bteol
any National Bank ,hat ought not to break
because, l. $e40, 0,ooo, ,o0o Of Rreenbace
Is too large sum to be held by the sp.cu
IL r1f h