The Superior times. [volume] (Superior, Wis.) 1870-1912, 1873-12-06
Report of the Comptroller of the Cur
rency.

Report of the Comptroller of the Cur
rency.
The Comptroller of the Currency, In
his forthcoming report, gives history
of the working of tie banking
system IN the country previous to the
establishment of the National banks,
and goes ON to say chat the amount
National banks are authorized to issue
is 1904, 900, 900, and the amount of legal
tenders 1856, 900, 600; SO that the pro-
portion of legal tenders on which
National bank notes are redeemable is
nearly identical, though slightly In
excess. If the National banking law
was amended SO as to require the re-
demption of bank notes or legal tender
notes at / per cent. discount, as In the
| New York state law, instead OF
at par, as provided in the National
| Currency Act and the national banks
| OF the whole country would agree to
such provisions of the law, the prompt
redemption of national bank notes
would be insured. But the redemp-
ton of this vast amount of circulating
notes, If redeemed but once year,
would result in great loss to the people
of the United States. A system of re-
demptlon of this kind would at once
increase the rate Of exchange from the
rate of 10 of / per cent, now existing
at most periods of the year between
different cities OF the United States, to
from half cent to one per cent, thus
restoring to considerable degree the
condition of exchange at the
time OF the Inauguration of
the national banking system,
and insuring n loss TO the people
annually of millions of dollars. Such
a system, however, would undoubted-
| ly result IN the return of notes CT
national banks, at certain seasons of
the year when they We're not needed,
to vaults of country banks, to be paid
out when the demand increased Such
a system would also give what is ex-
ceedingly desirable at present, eias-
ITCHY to the currency In order to in
sure prompt redemption of national
bank notes, the amount issued must
| be increased so that the rate will be
at one-eighth of one per cent. dis
count, and fills would probably not be
accomplished until an addition Is
made 10 the present circulation of
800, 900, 900. The same result would
follow from a reduction of the volume
of legal-tender notes Simultaneous
~ with the increase Of
the issues Of bank notes,
but Congress has frequently refused to
diminish the amount of legal tender
notes, so the Controller is of the
opinion that any system of free bank
ing with redemption must be post
poned until the resumption Of specie
payments. He, in order to avoid any
Misrepresentation OF his views on the
subject, desires to state that he is not
an advocate of any permanent system
of currency known usually as ire
deemable currency. He believes, how
ever, that the people of this country
ought not, and will not, submit to the
high rates OF exchange prevailing pre-
viOus to the war, and that AN amend
ment to the National Currency Act
which would also result in the down
fall Of the system Of banking, which,
1t is believed, VIII yet become the
most satisfactory of any yet
established. During the past year
as far as his observation has
extended, national bank notes have
rarely been at any discount, and during
the late pauc no distinction was made
, By the people between legal tender
, notes of the United States and national
bank notes. Both were boarded alike
as the most desirable TO hold and it is
probable shat when specie payment
shall he resumed the faith of the peo-
pie will be 50 we'll established in the
safety of the currency of the banks
that 10 such general system of redemp-
ton VIII be required of unsafe currency
issued by different States, IT'S previous
to the war. ii the circulation become
redundant, as is the case with every
coinage, it will only be necessary to
present the surplus to agencies OF the
city of New York, Where more than
two-thlrds OF the circulation is now re-
deemable, IN order to restore the
equilibrium for it is TO be hoped that
previous to the return to specie pay
ment some system will be adopted
which viii give elasticity to the cur
rency without mourning the expense
and burden Of general redemption.
and without the loss from high rates OF
exchange which always prevailed under
such a system.