Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1872-12-19
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The final distribution of the fifty-four mil
lions will still leave deficiency of forty mil
hons 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
hfty-four millions Of new circulation were ar1-
thorlzed. there was, at the time of the passage
OF the act. 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
culatlon shall have been distributed TWENTY
i've millions additional shall be withdrawn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
al banks having more than one million Of dol
lals, TO that amount; and, secondly, bv with
drawing from other banks having circulation
exceeding $500, 200 their circulation pro rata
In excess of that amount. Under this act it
VIII be the duty of the COMPTROLLER as soon
as the amount of circulation authorized shall
nave 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Withdrawn from the following cities and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 four banks in the CITY of New
York. IS DIS, 900; from thrty-six banks IN the
city of Boston, $11 403 600; from fifty-three
country banks in Massachusetts,. So. S94 600:
from fifteen banks in Connecticut 81, 997 600:
from sixteen banks in the city of Providence,
-, 66o, OGO. 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 is required al
the end of one year 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 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 obiecuon-
able 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 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 fiftv-four millions of circula-
ton recently authorized, Will probably fur
nlsh 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 NAV 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 mutlated 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
Secretary of the Treasury may prescribe =
From the organization of the system in 1868
to Nov. 1, 1872, $50, 695, 305, more than one
fourth of the whole amount issued. has been
retired to this Office for destruction. as
follows: