, 1870-02-04
MONETARY AND COMMERCIAL
MONETARY.

1dGRtDAT hFkSN0, FEl ).
The Currency oni, passed By the Senate Jester.
day, Ia the rrst definite proposal that has been
eliminated out Of Ill tho d1eusson On the SUB
1ecs since the meeting Of Congress. The bill
provides fer s1n EtIds Of bant cu7eucy, 1tx
f1rtt, An nctcase Of ~, ,ooo, 90 n tae volume Of
the present National BanE currency, concurrent
with Withdrawal Of . corresponding amoant Of
per cent eertrcates. Second, Tor M unlimited
amount Of NAt1oual Bank no.es 1t p.r With
Eold, ard IedeeIAble IN gold, to b. fsyaed
a5 new National BAuks os1t.fzed on gpeae
basis, SO far As the rrst part Of The bill which
authct:2es the inc1eas Of $500 o,e51 o. National
Bank currency Il concerned, II BANKING capital nc.
copied The option offered IN the BILL 70 eataoltsn
beW nAnEE and take ont Add.uopM circulation,
tie eject on the geoe11l yo'1me would be con-
traction, becauks reserTe Of Is per cent In green.
becAs would hare 10 be held against
tho ncreafed tssue Of National Bank notes,
The IS o, 900 OF pei. cents are 20 held By the
tanks ~ part OF taeT it.4l tender resesye. II
tte1e arc Ftincsaw1 aud csceet'ed, the b2nke
would, Ct co2rse, BE- compelled 70 replace them
":1h paln Legal tendera iron tbs genera, c.rcalA-
t'on: hut IN addition TO .hIs the banks nas: hold
alegAl tender reserve oi Is PET cent a1alnsI the
locrtae Of f5apo, eco In the Sst'or1i Blul circu-
lauou, which would cAase tae Essad' raj from
general Circulation Of sll,soa oeo mora plain leg1l
terders. naeirg N sgxresste Of IS, ,ao0, 900
wlhdr.x ffon sctus' c!rcc'auop. Against this
~ouid be The itcreAse It {{5poo, ,eep ot National
banf rotes. which would lease rae practical con-
rscuon jas. I'll ~, ,0c. This Is q fxr % the
worsttg Of the nsas half Of The bl1I Il concerned
But, on The oshe- hand, The bill provides for the
tssue-sy cew SaaoaA Bant., orsza.Ied oa =
freede hss.s-of an unlimited amount OF nav
Sa!lonAl Banf currency II par with gold, aud re-
dtenab.e in sold Oh presentation 4. the eoanteil
OF the oaEks, AID also A1 tne redeeulnE agencies
Of the hsrks In New 1ork cry. tbs on!y
differences In the legal requirements - which
'hefe sneee ray'rg b1nfs would be subfcc: ~
COL pared With the present National Banks, wo7ld
tr-Fnst. That the former would be &llo ~ed to
hare 50 pes cect OF circulating gold notes to the
eo1esc1 par Of Their bonds depos!tea 70 secure
II: whereas the present hanes have - per cent OF
uote that 1T redeemAse tu greeunsek1 Seeoad.
That the specie nAnN shu1ld Keep the n per cent
reseve-reGu.fe! By the National Currency act
10 be he!d against ou1:audtag c.rcu'Ason-
N spede, tnsieAd Ct In leFatsendess.
Il Is upon the pssctcssitsI Of this later part Of
the pl2n tkas the m1ss d!4c1sst1u IL
lite,y TO aHse, becsose. Il It becomes
operative to AoJ e1lenr its resultz wo7d entirely
oyefpalanee rns e6ecrs Of the nrss part ot the
p.au. II bans1 upon ttts bans, iszu.ng thett
nct<s II par with Sosd, and keeping aeroaats
with depoEiton In both corfeletes II the FAME
tine, were Organized Ia the Co;too S:1te., u
there Ia Sons reason for thinking might be
dote. the present circulation OF National
Bank Eotes snd greenoscks nov IN tae
Soasn would be Gro Hded o1s Of tho1e States and
Into the Northern Sa:es, Just n p.oooES1on A4
god nota acquired c1rcula.iaa thesa, Tae ratio
Of The aggregate grseaosck and National Bank
trcnlstloo TO she whole population Of the eoua:sy
Il COW Aoort ffS pr earstd- Al tats sato the nIut
principal Cotton S.ttcs, having q Population Of
',sss, ~, must have now mixed Ereenoack and
National Bank circulation Of ylss. OK, ,ooo- NOW,
u By uansAct,tg tho cotton uade In gold, which
Il Ee.J populu ldea n the s5asa. aay
ope-touEth OF this circulation Is replaced
by the notes OF banks On spec,e bAs.s, It ~oald
force I'll 90 Of the present currency btck Into
the Northern statea Th1t there u not only the
d!spoAttcn but the ability to DO this in the South,
4 shoHn In the s,a1,srcs o! tho banking capital OF
few Of the Principal costun ma1te.s, ~ follow:
New ogsexos has ten sose hAnks, With An aez.e-
gate osptta Of a. aoc aa; eighteen prtrass seata