Eaton weekly Democrat. [volume] (Eaton, Ohio) 1866-1875, 1872-12-19
&s53. .eI7.47l


The final distribution of the ffty-four mil
lions will still leave 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 equalized
upon the basis of wealth and population.
This deficiency arises from the fact that while
ffty-four millions of new circulation were au-
thorized, there was, at the time of the passage
of the act, deficiency existing of ninetY-fouI
millions of dollars.
Section of the act of July, 1870, provides
that, after the whole ffty-four millions of cir
culation 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five millions additional shall be withdrawn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 circulation
exceeding $500, 900 their circulation pro rata
in excess of that amount. Under this act it
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 prescribed. The
twenty-five millions of circulation would be
withdrawn from the following cities and
States From four banks in the city of New
York, $5,018, ,000 from thirty-six banks in the
city of Boston, S11, ,4O3 900 from ffty-three
country banks in Massachusetts,, 90, ,S94, 900
from fifteen banks in Connecticut, 90, 997. 600;
from sixteen banks in the city of Providence,
81, ,688, 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. If the
banks 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 ls required at
the end of one year to sell q sufficient amount
OF bonds Snd redeem tnelr On a notes as tney 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
IL l.. ~ l. l.
organized. This will encourage the the OBJ
jectionable practice of authorizing new ma
tional banks with circulation upon the condi-
ton that currency shall be purchased OF
brokers in the market at from four to six per
cent. premiums practice which should not
be encouraged or authorized by law. The
Comptroller therefore recommends the repeal
of this section, and the authorization of the
issue of five millions of dollars of additional
circulation annually for the next five years, tc
be distributed among the States which are
deficient.
ton recently authorized, will probably fur
nish all the additional currency required DUR
ing the next five years for the establishment
of new national banks in the States which are
deficient, and virtually inaugurate free
banking system.
The Comptroller also recommends that the
law be so amended that national banks may be
organized in accordance with its 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 worn
| out and mutilated circulating notes of the ma
tional banks .'shal1 be burned to ashes in the
presence of four persons, one tc 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 1866
to Nov. 1, 1872, $86, ,695, ,305, more than one
fourth of the whole amount issued, has been
returned to this Office for destruction, al
| follows: