, 1873-10-18
From Our Oton r0rrest1onf7tut.

tAl h1kA 6llftl hlIthuJs Atii LuG 11U64ugut tulK6
that nc can put abovo s200 100000 Of silyer coin
In motion where it will do tho most good. This
advtco. to bo good for anything, ought to got to
the mincrs.
TIE PRESIDENTS RECOMMENDATIONS,
as far as ho 1las got along, aro National Postal
Bank, to monopolizo deposits, aud pay por cont
for them while tho regular National Banks shall
be debarred from paying any interest whatever
to dopoBtora and shall also 1oBo their advan-
tage, as Mt present, over State and privato banks
Of circulation, by tho repeal Of tho clause taxing
such circulation. We presume this to be his
meaning by III free banking law, with tho sume
protection to bill-holorB aa now" unloss lo also
means tho right to dispose Of tic circulation Of
collapsed private and State banks, just as broken
National Danka may sell their notos Just at
this point, the Chicf Magistrate seems to have
got too much greenB in hiHrofreBhment. 4 little
mint is q dangerous thing, as htr. Lindorman
will know when tho hardy polygamistB Of Utah
bcscge him with tloir silver pigs,
Tho President, besides. wants the National
Banka to keep their rcsorvo in gold, transmitting
it, little by little, from paper into spocio but,
rs precautionary step, 1t would DO we'll to
them to have greonback raserve. This Is tie
weakness Of our National Danhs. They oyado
tho resorvo clnuse,-RH, for example, tho First
Nationa! Of Washington City, Which tho Ex-
aniner yesterday found all right and we'll
guarded with reserve, but whlcl, breaks to-
day, aud, presto! the reserve is gone.
AMAsA wALEER,
In his admirable boois upon .'The sceuce Of
Wealth" stated this diBohetlionoe as follows:
"Tho Nntlonal Banks, un!ixe tho State banka,
are compelled by law to keep Oh hand certasn
proportion of lawful money to their circulation
and deposits. In tho largor cities, which aro
specified, this proportion ia tlxed ut IS per cent
in all other places, Mt IL. Under tho State sys-
fenH fhnrn tyua nn 1n4nf cJhiuoffo,, an
ese e7sr oaeet in N'ep s1y sees ~hata
Louisiana, and (reccntly), iii Massachusetts,
this provision i'll regard to tho National Banks is
practically, to n great extcut, only nominal
1nattor, because the law provides that Bank
balances {dno. from enc bank to allothor) shall
10 deemed 70 bo lawful monoy;' and, therefore,
as these balances may be croatcd tittltiouHy for
tho vory purpose, the clauso obliging tho banks
to keep cortaln proportion Of lawful money :
with which to redeem their notcs il uearly q
ntllity. However roal these bantk-ba1anccs may
shown, constitute tho most dangerous aud OK
plusve clement of q mixed currency. Tho Mer-
chants Bank OF baltimore has balance against
tho Chemical Bank, New York, for 920, 900. The
Bank. Doston, Tor s2o,oOo. The olobe has ;
balance aganst tho Merchnuts' Bank, Baltimore,
for $20.O00 Hero iB 100000 in this circle,
which il to DO. reckoned US equal to so much
specie or lawful money. >. So fur from giving
strength, every banker knows that these bal
auces arc a cause OF weakness and peril in time
Of patlc."
TIE REISSUE ALREADY DONE.
It ia hard to ace tile consistency Of the prcai-
dcnt'a viows when lie says that he will recon-
mend tho reissue of ths s44,000,Oo9 Of legal
reserves. aud yet believes that spocio-payments
llayo about come to pass. 70 water out the
currency full per centum s SIMPLY to rocede five
stops in the hundred from the specie-base. And
nu I'm ptoa No To-
by bis inclination, speclu-rosumpton would be
good thing. Ills logic md his Intention fall afoul
Of each other. SEQ how tho two great men in
the Administration larlnonize on tue sumo day.
President Grant said to the Associated Press
man, to quote his words:
''Ihe President said ho Ind thought much on
the hubject and, If he wero now engaged in
writing up his annual nekshgo to Congress, he
should recommend positive authority to reissue
the 944, ,uU0,U0 OF leBerye."
But Soc, ,etary Richardson rematked MS follows
to the Now York Herald man: II would aa
Btrcnuously oppose bill io1 permanently ln-
creaaing tue legal-tender circulation above the
iently fixing it at $3.50, ,00o, 0ao."
Nfr. nchurtaon also nado the important con-
fese,on, that he Lad not the leaht doubt but
$40, 0,000,000 OR Sl5, ,U00, ,000
of the Government issue Ind beGn destroyed Or
mHlaid since legaltenderB wero tlrst circulated.
Who could hayo destroyed hia own money to such
m oxtent for S15,uU0, 900 represents nbout
one-twonty-titth OF all tho logal-tenders. Rich
arison also shows that tho Presidents visun OF
must pay the interest On the public dobt III coin,
aud the customs-dutics amount to little moro
than this annual interest Richardson hoItlB
tAat the a44, ,000,U 200 of reserves belong to his
eas credit and having ayaod at tue rse1 u
uBe them himself. Tho Trcasuly OF the
United States has proceeded just like tho banks,
which by agreement, nude certified checks,
degree exceeded their legitimate circulation.
mr.. Aohardson has drawn about 81, ,000 out
OF 4 fund Of retired notey which .aoluo public
mon hold to hnyo no legal existence.
THE LEGAL-IENDEM RESERVE,
Tho exihtonce Of thus sd 900 0uu Of logal-tcn-
ders il In itself curious matter. Docs it oxlBt
aa money when Congrobs ordered it to 10 ro-
tired This involves tho question az to how
tho money gots It's oxiHence, The Constitu.
tion gives congroas alone the right to borrow
money, to coin 1t, provide agalnss counterfeit
ing tho securities which sustain 1t, mud sayB that
ao money shall bo dtawn from the Treasury but
n IN eonseguonce s15u Of appropriations made BY luw
tary to retire si4 400000o did 1t mean
merely to take tile money in out Of tie
wet, or to put an ond to it2 II tho money was
to DO ext!nguisl!ed, how Gun the Secretary mike
in the lazy permitted him to exercise discretion
over IT. But he says t1at Ao must haye Aayo IT,
and gives good many pressing reaBouH tAore-
Tor, which do not Hoom to DO found In any part
OF liB Instructions in tho net Of Congress aforo-
Hail. For, look you, whilo tho President tells
tue Associated proaa man that llo should rocon1-
mend to Congress-, II thoy were In session 1ust
now, that thoy givo him positive authority to re-
issue this largo roseryo, Alr. Richardson Is al-
ready ,using it without waiting for Congress-.
Here, thon, IL strain of authurlty which soma
people will inlorAo, soulo tlononuoe, anu tho
greater part DO indifferent about but b CongreHs
understanding itH supremacy, such as no have
hlr. Richardson on record tor disob0dience.
Take tho otro history Of this iHsuo and 1t will