, 1873-11-29

dispatches Of yesterday confirm this by tho m
nouucement that Eastern aud Southern Con
grcssmen that hayo arrived In Washington eeeu
to havo general understanding TINT thoy VII
combine in an effort to Lave an incroaso of from
s100,000,0 900 to $3.50, GOO, 900 Of o,lsrcnoy" W.
presume, Of course, that WHOM people ask for m
increaso Of currency to my staled amount
they mean an increase in groonbacls to
that amount, because It would bo absurd
to demand au ncreaso OF National Bank notos to
any definite amount banks would only isauo as
1nucll currency as they could prontablY kcop III
circulation. This Is tho dilforonco between M
tional Bank circulation md greonbacks, that tho
former arc issuod only ID proportion to tho
necessities Of business, wldlo oyory issae OF
rtoenbacks Is an arbitrary iuoroaHo Of tho vol
nllle of paper money, regardless Of whether tho
business Of tho country demands it or not, The
arbitrary issue OF greonbacks 10 imitation. md
n,rat rosulti III depreciation Of tho valuo OF tho
currency, while an inorcaao Of National Bank
notes, without any increase Of greonbncks, would
have tendency to appreciate the value Of tue
whole volume Of currency.
THE IDEAS OF TIE COMPTROLLER OF THE OUR
NENoY ON T. FREE BASK1Sa."
inc New York Journal Of Commerce prints
lengthy telographic synopsis Of tho Forthcoming
aunual report Of tho Comptroller Of the Our
roncy, from which NO select tho following:
There Ia little doubt that the term "frec banking
mnny persons is understood to inean tho unrcsrict-
I'd isue Of bank notes to association organizing
rfi,nM nS nu aepos!!lng he required amount OF
Lave y aaon oo1 'f o tsis sas %nq
National Bauk Totes to he a.nount Of tho public debt
And acain:
III. nroat ur,n .,o 'a,~,,,..,.,,
orgAlli,zed IN tic West aud South during tho last
Try banks mud les than ohc-half ror cent ii tho
re,lempion sca. Under s',ch condition Of thingg,
~ Ta s, 80 ene m margin Of lroat to be derived from
nor n thra"i, ~, no.ss, , anGra Wonlu 10 Alslo
circulation bit viii raducon uf ill., vana - ta
bonds, and tho approximation Of tue yato of bnnh
notes to tho yaluo Of specie, tho profit would incrcaso
S ema WIN Tug increase Of profit tho demand
a seh 9k notah H. wGa 1 M III
value Of tic paper ollas a.ll prevent its unnraam
iou to the go'd ollnr 40 lint I'll Ideas Of spccio pay
nents might forever 10 abandoned. In order to III
sure the m PROMPT redemrton Of the National Bank
a ho,es n Inc 3 fausl ust 10 80 much increased
md a wnd nroou y3 z, y IL = per eHns aseomnt
sIon was mne y Ia ia ~ nresan uh. ~
s,0900u, ,oo0 Tho suns result would follow from te
reduction Of the volume OF lcgal-tender notes sim
3as1nsly , with the 'ncreaHe Of the ssuea Of the
foregoing paragrsphs from the forthcoming IN rue rs.
port arc remarkablo:
oea limitation Of tue National @ IL Bani laoh ie
to an aggregate OF $685., 100000 would lead to
u increase or bank notes equal to tho whole
Amount OF the public debt, tho CDmDtrolfor
proceeds to say, that the profits on National
Bank circulation are 80 small tlat there would
be no danger in throwing the doors wide open
to al banks that might desire circulation il it
were not for one contingency, viz that tic
value OF United states bonds might decline Mt
tho samc time that tho value Of the currency
appreciated.
Wo think it will puzzle anybody to CONCEIVE OF
circumstances under which the currency would
appreciate, whtlo aJ the Same time the bonds OF
In Ind G{1$a
that would mako them insufficient security for
the currency issuod against thon1. porheps fin
Comptroller means that with the decline OF gold
tho currency price Of tho bonds would alao do
cline. But would not this also show thut
their gold value was increasing, aud
Maa not tlB Just what was contem-
plated when they wore mado iho basis or
tic security for the National Bank circuiationI
But under any circumstances. there could
mover DO margin Of less thap 10 nor cent Min in
gold over and above tho amount OF circulation
10 bo secured and this would DO enouch. If
both the currency and the United States bonds
deposited to secure It should appreciate to par
security was not sufficient. What could bo
mote absurd than to say, In The worxls :of tho
above paragraph, that ''tho approximation Of
the value Of tho banl-notes to tho value OF
specie" "would have tendency to lesson tho
value OF the paper dollar?" But aean.
tho Comptroller, aftor Baying that tLore
would be danger that FREQ banking" would
lead to IN increase Of ban1s-notes commensurate
with tho amount Of The public debt saya that
tho only things that would secure the redemption
OF tho bank-notes would be oitlor q reduction Of
the volume Of greeubaoks or an incroaso OF
sloo, COG, ,oo0 Of National Bank circulation.
=, We glye, Y up! We have seen and read host
never 30 many Of thom compaotod aud piled into
one paragraph as in tho one lust quoted above
1rom a3 tho 70 foltheomog report Of the Comptrollos
U T. n LfSIt,u