New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-11-30


The final distribution OF the Si0j0OJO Will stu leave
deficiency of SOOJJ0JO IN different states OF tho Union
MTm me- stScs will 1e emitted mon t si
OF wealth aud populluon THIS deficiency arises from
the fact that SjI0OOCC0 OF new circulation
authorized there was ~ the te OF the passage Vi the
act a deficiency existing OF $9l0J0cO0
Section VI OF the act Of jay j., 1870, provides that
after the whole S54OOOJ OF circulation shall have been
distributed s25OJOOj0 additional shall be Withdrawn
from banking associations organized IN States having
excess, aud distributed among states having less than
their prOpOrtOu1rst, BY reducing In such STATES the
circulation of all banks having more than Itc00y 10
that amount and, secondly. hv Withdrawing from other
banks, having circu9uOu exceeding 100000 their cir
cglation pro rata IN eS'ess OF mat amount. Co.,.
soon as the amount OF circulation authorized shall have
beeu issued TO make acquisitions upon the banks ind
Gated as prescribed Tao s-5OOooOO OF circulation would
pc banEs IN the CITY Of York s5OiSOOO from
sG banks in the Guy oI stOn Sl05OJJ; from Is couu
try banks of Massachusets Suy'oDi ifOH 10 Dan6s IN
Conncc cut s299OJOi from 10 OaAs IN Ae CITY OF Prov
rms Woud reduce tic circulation OF al the banks OF
Massachusetts OF Rhode Island, ana Of Connecticut 70
100000, Wlhout Ic4c.c-'D1 " ny oN'.-.N' va Ni
teir notes are scattered throughout the whole country
It will be imprdeucaoe IOf tuou l1 u So o Coh ole
Is required at the end 81 one year. 10 sen sunticht
mout OF bonds ana redeem Their notes as thcy come
nO Treasury unil the WAOie amount reg llcd snail
%sS notes WIN moi come to tho Treasury for rodcmp
t{on unless first assorted ny the brokers and rc,Od by
them 10 new nallOhai Ddhhs about To 10 Orgahlzcu
This VIII encourage the Objectionable practice OF a
thOrzng national banks win circulation, upon The
condition that currency sA DC puIcaotu VI brokers lh
the market az from 10 per cent rremluud practice
which should not be encouraged or authorized by law
The Controller therefore recommends tine repeal Of
fins section the authorization OF tic issue OF $500 900
OF add ona circulation annually for the next five years,
be distributed among the safes which are deficient
This with the SsOJO0J0 OF circulation recently author
lzed viii probably furnish all the additional currency re-
qured during the next five years Tor thc
Of new national banks IN the States which are deficient
and virtually lnauguTa'e new banking system.
Tie Controller also recommends that the law be 80
amended that national hanks may be organizes iu aC
cordance with its provisions without circulation upon
tie deposit OF $1,000 Of UMted states bonds win the
Treasurer instead the deposit OF Onerd OF the cap
ital paid up ana now required
Three national gold banks have been organized in Call
lOrna, under the act OF july T. 1870 with aggregate
capital Of sj3JOO00 and circulation t400OO based upon
United states bonds the rate or 50 cents the dollar
TINS currency Is edecmJbe ~ coin, IS more c0uVenout
than the coin Itself in the transaction OF business, ana
circuates freely at par upon the Pacific coast.
Otner applications have been received Tor Inc orSn-
zatlOn Of similar institutions, and it IS probable tat
during the coming year.