The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-11-05
Radical Modihca tons in Finance.


We have called attention to propositions
for radical changes In the banking system OF
this country. They consist OF thrce--viz:
FIRST. The esta blishmcnt Of post-ottice
savings hanks.
second. The ISSUE OF readily convertible
Government securities bearing an interest OF
s G5--i. e., one cent day on the 500.
Third. The prohibition of the payment Of
interest On deposits by the banks.
The first and second propositions are un-
Gcr>tood to b. favored by the Adminisr. ..
ton. and il is stated that General BUTLER
ii, bring forward bill TO pnt them in
force. The last-pamcd proposition has been
c".r before urged upon public consider,l-
lion. The Hon. NJ. KELLEY, of Pennsylra-
n !. 10 his hate discourse upon france made
the prohibition of interest on deposits IN
IN. bipks an important point.
The United States bond at $50 is intended
10: conversion at par into currency, and
a:4in for redemption at par for currency ut
a,c will Of the holder. 1t is argued that
this bond will readily absorb the excess of
currency in every locality, and being
promptly convertible, will open the way to
>I?ply currency when it is needed.
lis agency In this way, it is contended,
VIII put check upon the habit OF the coun-
Try banks of sending their surplus to New
York during the dull season for deposit upon
interest, custom that has been productive
ii serious evil At such seasons the New
J ork hanks are crowded with money, and
t.. make interest are forced to lend it on call
10 brokers and bankers, and it thus enters
into the operations Of stock and gold gam
hing, which bus been so disastrous to
IL. country. This course Of money transic-
tons according to the Controller Of the Cur
r.ncy, Is shown IN the increased transactions
a the New York clearinghouse, which,
during the past year, amounted to upwards
al So, 000, 100000, or an average of more
tDan SloO,00O,0oo daily, not one-half Of
which was the result Of legitimate business;
the total amount Of transactions being great
e. than that OF the bankers clearinghouse
- the city OF London.
banks in New York was caused mainly by
the demand Of the country banks for large
;.,nount subject to drsft, which had been at-
.n.cted tbither by the payment of interest
Oh deposits, and which was invested in call
h-.ns which were not available when de-
randea.
Now II l. anticipated that this readily con-
,,r7ib!e bond will prevent this accumulation
Q. r.ntis ut duh seasons in New York to be
:hus mi,approrriated, and will keep funds
in The localities to which they belong for
their own protection when necessity arises.
il = believed bat this low.interest note
could be made available to laborers by issu.
ng certificates Of the denomination OF $50.
Ii is conceived that Investments in this cor
ycrt!hIe security would become popular after
the refusal of savings banks to pay deposit
o.. ....t 60. -.
On the part Of the Government it is argued
la, it could readily reimburse itself by in
,rsting about half the amount Of currency
deposited with 1t In $40 bonds.
The agency Of tho post.ofice banks in the
tr ,nsactions growing out Of this plan, it Is |
thought, Wal he very valuable.
The subject i fun of interest, and will be |
fully discussed, We suppose, III the next Con.
-r.ss. The present currency is the best the |
country c,..- hsd but there must be some |
Plan for ~ '2:7;tng famine of it through |
ifstrust ard ,s::.Ic.