The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1872-12-20

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$685.. OG'.OM 1856! vi. ~,
The final distribution OF the fifty-four mil.
lions will still leave a deficiency Of forty mil.
lions in different States OF the Union, which
will require to be filed before the proportion
among the several States will be equalizej
upon the basis OF wealth and population.
This deficiency arises from the fact that while
fifty.four millions CT new circulation were au-
thorized, there was, at the time OF the passage
OF the act. q deficiency existing Of ninety-four
millions of dollars.
Section 6 Of the act of July, 1870, provides
that, after the whole ffty-four millions of cir
culalion shall have been distributed. twenty
five millions additional shall be withdrawn
from banking associations organized in States
having an excess, and distributed among
States having less than their proportion, first,
by reducing, in such States. the circulation of
all banks having more than one million of dol
Lars. to that amount and, secondly. by with
drawing from other banks having a circulation
exceeding $500 900 their circulation pro rata
in excess OF that amount. Unde this act il
will be the duty Of the Comptroller, as soon
as the amount OF circulation authorized shall
have been issued to make requisition upon
the banks indicated as prescribed. The
twenty-five millions Of circulation would be
withdrawn from the following cities and
States From our banks in the city of New
York, IS .0lS, 900 from thirty-six banks in the
city or Boston, S1l, 403, 900 from fifty-three
country banks in Massachusetts. ~. 894. 00O ;
from fifteen banks in Connecticut, 81, 997. 600:
from sixteen banks in the city of Providence,
2 ,6SS, 900. This would reduce the circulation
of all the banks of massachusetts,. of Rhode
Island. and Of Connecticut to $500, 900, with
out reference to the business Of each. II the
anks do not respond TO these requisitions-
and, as their notes are scattered throughout
the whole country, it will be impracticable for
them to do So the Comptroller Is required at
fhe end Of OnQ wear IN aa1l a aif,c,ank aDaount
of bonds and redeem their notes ~ they come
into the Treasury, until the whole amount re-
Quired shall have been returned. The notes
will not come to the Treasury for redemption
unless first asserted by the brokers and resold
by them to new national. banks about to be
organized. This will encourage the objection.
b practice of authorizing new national
banks with circulation upon the condition that
currency shall be purchased Of brokers in the
market at from -four to six per cent. premium
"A practice which should not be encouraged or
authorized by law. The Comptroller therefore
recommends the repeal Of this section. and
the authorization Of tho issue OF five millions
for tho next five years, to be distributed
among the States which are deficient.
This, with the fifty.four millions Of ~circula-
ton recently authorized. will probably fur
nish all the additional currency required dur
ing the bext five years for the establishment
Oh new natiOnal banks In the states winch are
deficient, and virtually inaugurate a free bank
ing system.
The Comptroller also recommends that the
law be SO amended that national banks may be
organized in accordance with it's provisions.
without circulation, upon the deposit of ten
thousand dollars Of United States bonds with
the Treasurer, instead Of the deposit Of ONE
third Of the capital paid up, as now required.
Section "a Of the act provides that the worm
out aud murilated circulating notes Of the ma
tional banks shall be burned to ashes in the
presence Of four persons. one to be appointed
by the Secretary of the Treasury, one by the
Comptroller Of the Currency, one by the Treas
urer Of the United States, and one from the
association, under such regulations as the
Secretary Of the Treasury may prescribe"
From the organization of the system in 1868
fourth Of the whole amour issued. has been
retired to this Office for destruction, as