New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-11-25
legislative, whea provided that inc C;,v pant ~

pOta
than the gold coinage Of the United states II 900
ws Therefore issued the eSuaon Oh Of ue vas
dcOOOo less than s40Celo0O III the circulation was re-
deemed three times year there would be 10000 OF loss
on one side and soooo OF gain the other side aud n
redeemed times 5000 600 Of loss and s6OoOOO OF gam
divided between The banks which issued the money and
the banks which redeemed the same whe the county
merchant and the manufacturer and the job0er Ia the
great cities experienced the loss.
But the circulation of the state Of New-York was
known 10 be much safer ana the discount so much
less than the circulation OF any other state OF the Union
that the discount was hardly noticed when the loss
upon notes OF most OF the other states OF the Union w"
from four 10 six times as great The result was, rs
might have been expected that the notes were MOI u
filling their function OF circulating medium, put oelhk
sent forward aud backward not Tor tue pp9se o op
tanning specie but to DO exchanged, one Tor the oe
at the Clearinghouse, In order TO provide l9hu ~
NewYork for the redemption Of other notes and also
20 provide exchange at profit OF from 10 II per Ce..
and brokers aud the amount Of exchange lost by the
people IN these transactions cannon Dc compuou out
there Is no doubt that II amounted annually 10 miohs
Tue average amount Of specie held by the New,York
81; ss6WY OF Nj; amount about oneeighth-say $500
O0Owas held by the country banks ~ their vaults Au
H. from this amount should be deducted the com De
longing TO banks and persons outside OF the staIe;
toe amount OF checks payable in CON- u wouu no State
that the amount OF circulating notes lssueu IN e 80,
Of EewYork was. on an average t3f ag 1r the pur.
five times the amount I'M OF spoeio oi ~
Te am0upt Of National bank noteS authorized TO
potes & &c o0 600 so that tho proportion OF egafender
money in which National bank notes are nov reSce'i
able is nearly Identical though slightly IN excess II
the National Banking law was anehoeo 80 ~ -, i
tender notes oDeQuurter OF per cent discount hs ia
the New-YOTk state law instead OF az par US proNuSu
10 the National Currency act, and the National Dahhs
OF tbe whole country would agree TO such
provision of he law the prompt redemption OF Iae nn
ton of this vast amount OF circulating notes, II re-
deemed but once year. woule result IN oss 10 eIe
people Of United States OF 100000 II the notes were
10 be redeemed four tunes annually s00O, ana II re-
deemed six times annually, s5,Ioo,00O. A system OF
redemption of this kind would also al once increase tue
rate of exchange from the rate OF ITO o. per centn0W
existing most periods Of the year between the amer
ent cities Of the UniOnto from one-hai per cent 10
one per cent restoring TO cOlsldolaDie degree
the condition of the Exchange at the time OF the lnau-
ration Oi the National BANKING system, s1u nst ~,
loss to the people annually OF millions Of dollars such
system would however. undoubtedly result III lne re-
turn OF he notes OF the NauOna BANKS Al
OF the year when they were not needed TO me vaults VI
the country banks, TO be pad Out wheh me ueih iy
currency increased huon u sJs.cin mo sias
what Is exceedingly desirable at the present uuee's
The profit upon the circulation of National banks or
ganized IN the West and South during the past year. as
will he shown inore fully hereafter, did not much ex
coed one per cent for the country banks aud less
than One-haf OF per cent IN the redemption cities
en- of profit 10 be derived from the issue Of circulating
notes. there would be little demand for circulation
and consequently but little danger III throwing
the doors wide open 10 any association properly
organized, that might demand strict circulation; but
with the reduction OF the value Of the bonds ana me
AUGMENTATION of the value bank 10 the value
OF specie the profit would increase, ana with inc IN
bank notes would also increase, that under such a
system the OF bank notes would have continual
tendency lessen the value OF the paper dollar ana
prevent its approximate % the gold dollar, so that au
ideas Of specie payment might forever be abandoned
sPECIR PAYMENTS NECESSARY FOR FREE BANKING
In order to insure the prompt redemption of the Ma
tioDal bank notes. the amount issued must be much
increased that tie notes will be, say at Of per cent
discount and this would probably not be accomplished
until an addition made to the present circulation OF
sloC,OcoOCO. The same result would follow, from The
simultaneously with the increase OF the
issues Of the bank notes; but Congress
has so frequently refused TO diminish the amount of
legslender notes that the Controller Is OF opinion
that genera system OF tree BANKING accompanied
OF specie payments. The Controller, in order TO
AVOID any mlsa pprehenslon OF ms views upon
an advocate OF any permanent system Of currency,
usually known irredemaDe currency He believes,
viii not submit high rates Of cxohange prevailing
previous 10 the and that amendments 10 The Ma
tonal Currency which shah result IN restoring the
high rates OF exchange viii also result ia the dO"na
Of system of banking which 1t Is believed VIII YET be-
hshsd
During the past year, his observation has
perceptDle discount for legal tender notes ana during
the late panic no distinction was mace oy tne peopis
between the legal tender notes OF t1e United states ana
the things nost desirable OF All others to mold ana II "a
probable that wDen specie payments sha ne resumed
that the faith OF the people Will De so wen esaDshed
in the safety Of the currency OF the banks, that
no such general system Of redemption VIII be
by the different previous 10 the war III the cir
uaton should become redundant is sometimes the
case with the silver coinage II Will only be necessary TO
present the surplus TO the agencies IN the City OF New
YORK. where than twO-thrds OF the circulation is
now redeemabe IN order 10 the equilibrium. for
IL is TO hoped that previous 10 the return 70 specie
payments, system viii re adopted which VIII give
abundant elasticity to the currency, without mourning
the expense and burden OF general redemption, ANA
without the loss resulting frOm the nigh raios OF cx-
change which nave always prevailed under such byS-
TEN.