The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1872-12-20
s3j3.sl7.470
S3i4.nn.pOO


The final distribution of the ffty-four mil
lions will sti 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 equalZed
upon the basis OF wealth and population.
This deficiency arises from the fact that While
tfty-four millions OF new circulation were au-
thorZed, there was, at the time of the passage
of tie act. Il deficiency existing Of ninety-four
millions OF dollars.
Section of the act of July, 1870 provides
that after the whole fifty-four millions of cir
culation shall have been distributed, twenty
five millions additional shall be withdrawn
from banking associations organized III States
having ali excess, and distributed among
States having less than their proportion, hrst,
by reducing III such States, the circulation OF
all banks having more than one million Of do!
lars, to that amount and, secondly, by with
drawing from other banks having circulation
exceeding S30J, 900 their circulation pro rata
i'll excess OF that amount Under this act II
will be the duty of the Comptroller, as soon
as the amount of circulation authorized shall
have been issued TO make requsition upon
the banks indicated as 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withdrawn from the following cities and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, 50. obs coo: from thirty-six banks IN the
city of Boston, Sll ,403, 600; from tifty-three
country banks III Massachusetts, q, S9i geo
from sixteen banks in the city Of Providence,
~ 6SS, 600. 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 requisitons-
and, az their notes are scattered throughout
the whole country. it will be mpcactlcable for
them 10 DO So the Comptroller Is required at
the end OF one wear to sell sufficient amount
of bonds and redeem their notes as they come
into the Treasury, until the whole amount re-
CURED shall have been returned. The notes
will not come 10 the Treasury for redemption
unless first asserted by the brokers and resold
by them to new natiOna. banks about TO be
organized. ihIs will encourage the objection
able practice of authorizing new national
banks with circulation upon the condition that
currency shall be pun chased OF brokers III 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 the issue Of five millions.
Of dollars OF additional circulation annually
for the next five years, to be distributed
among the States which are deficient.
This, with the tifty-four millions Of crcula-
ton recently authorized will probably fun
nish all the additional currency required dur
ing the heXt five years for the establishment
of new national banks in the States which are
deficient, and virtually inaugurate free bank
ing system.
The Comptroller also recommends that the
law be so amended that national banks may he
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, az now required.
Section "a Of the act provides that the worn
ont and muulated circulating notes of the ma
tonal banks 4" shall be burned 70 ashes in the
presence OF -four persons. one TO pe appointed
by tue 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
to Nov. /, 1872, st, sos. 3O5, more than one
fourth Of the whole amount issued. has been
retured TO tAis Office for destruction, az
follows: