The Leavenworth weekly times., 1870-07-21
The New Baaking nan.


The final passage OF the banking bill by
both Houses of Congress Is the first Of 4
series Of financial measures Of the greatest
importance to the business interests Of the
country. The influence of this bill will be
Immediately felt throughout all financial cir-
cles in the Union. That the reader may
clearly understand II, we shall state it, main
provisions.
In the first place, it authorizes an addition
to the circulation Of the National Banks Of
S54, ,0O0. .0OO. The new bank, are to he
based on the same kind and proportionate
amount Of bonds As the existing banks.
That l., 30 per cent. Of circulation will he
issued on ) NJ or 10 ~ bonds; Tut not more
than half million of note. will he allowed
10 anv one bank.
>. A. fast as new hanks are organized, the
Secretary of the Treasury is required to call
in and retire the 3 per cent. certificates which
are now held by the banks as part of their
reserve funds for the redemption Of their
notes There are about S45 900 900 of thee
certificates outstanding, cn which the govern
ment is paving 81, ,3J0, 900 of annual interest
TO the hanks. They will hereafter lose 50
much Of their profits, and bc obliged to re-
place thee certificates with an equal amount
Of greenbacks.
3. The S5i,OOO,00O Of new circulation
will he issued to hanks in State; that have
les; than their due guots Of bank circulation
under the National Banking act. 1t is to ir
divided among such States in proportion to
their population by the census Of 1870.
When all of the S5l, 600, 900 is thus dis
tribted 10 the States that are short Of their
equitable proportion, then it is made the
duty of the Comptroller of the Currency to
withdraw So, ,OO0, 600 of circulation from
the banks in these States that are still in eN-
cess Of their equitable share of the currrnev,
and distribute like an,o,,nt tn the banks in
those States that are still wanting in theii
proper quota.
Tie distribution of the :S5i, ,0OO, 600 and
the Redistribution Of the so, ,OOO, 90 afoFe-
said will give the West and South !S79, ON,
900 more hank circulation than they. now
posses, which will just about double tho
| amount those States have at this time.
L. The hill also provides that the stock
holders If anv National Bank located in a
| State that has more than it, due proportion
| vi b,nk circulation, may relocate it in any
State that has; less. This provision will tend
still further 10 cqualize the distribution Of
| the currency among the States.
). Another provision Of the bill author
,zes free bankipy on y gold basis. Capitalists
NAV establish hanks in any part Of the
United States, secured l,y pledge Of Per
| cen, national bonds, in the proportion Of
Sl00 Of bonds TO $50 o( circulation. the lat
ter to le redeemed in coin on demand That
gold banks" will I've immediately organized
in California and the gold-mininG States and
Territories, under the sanction Of this bill.
we have no doubt. We should not he SUI
rrised to see the great Bank cf Calitornis
converted into u National Gold Bank. There
will, undoubtedly, hc some goLl banks "l
large capital organized in New York and
New Orleans, through which to transact cot
ton and other foreign business, which Is done
ON coin basis.
When grcenback, ,rc redeemed in com, o,
become wortl, rs much, all present National
Banks will. in effect, he gold banks, and
stand on an equal footing with the regular
gold note banks The new bill will con-
tribute more toward bringing creenhaCks to
par with gold than most people msy i'm
agine We regard the bill At u powerful
lever lifting the currency towards sPTcis
y ,l,le