, 1873-01-23

Congress.
THE NATIONAL BANKING LAW.
In oxprosalng genoral approval Of the prop
osition of Senator Sherman for All carly return
to Bpcoo rnymontu, It Is not to 10 asaumod tint
tho whole bill, reported, ia FREQ of objections.
It contains two provisions which, wlio wo flo not
consdor them oHaentinl to any mcas,1ro for tho
resumption OF spocio payments, nro ill-ndvluod,
and calculated 10 do miachief. Tic aovornmont
at tlla limo Inns In circulation s85o 900 600 Of its
Notwithstanding notos, for which tlore is no
redemption. They arc deproolatcd, aud must
continue to DO 30 until aome provision ia naao
for thoir Payment. They aro paat-duo paper,
not boaring interost Tho Government may, Of
course, rodoom these by retiring them from cir
culaton, aud that would, Of course, bring specie
payments; but It ID not proposed at this timo to
prepared with tho oxproBa purpose of not ro-
duciug 1t. In trying to avoid this trout
bio, tho bill goon to tho other OK
trome, and provides for tho increase OF tho
National dobt. It directs tho redemption Of tho
Treasury notes in coin, and the reissue Of auoh
uoLtb AL kAo CuuIdb IL NhblUAAt cApoAA4tAEott
but 1t also authorizes tho Secretary to tondor the
holder Of tho National notes, in lieu Of coin, n
+ por cont bond payable at tho pleasure of the
Government after ton yoars, and authorizes tho
reEauo OF tho shme notes received in exchange
for bonds. To offer per cent. gold bond In
exchange for currency worth 88 oonts Ia to In
vito general exchange Of currency into bonds,
md, If tho notos thus exchanged arc roiBBued ns
fast Us thoy rocoived then they will present
ed again allagain. Tho public debt will, Of nocos-
aity, 10 inoroasod by tho issue Of oyery how s
per cont bond, so long as tho currency tor which
1t Is given iB also put in circulation. If, how
over, tho bill would provide that all currency ro-
| deemed with now bonds should bo withheld
from further issue, or should on1ybo issued upon
surrender Of tho bond, then this serious OBJ
joction to m incroaao of the dobt at tho discro-
ton Of the Secretary, Or any ono officer, would
be avoided
| Another, and in many respects moro serious,
objection, is to that part OF tho bill which re-
peala tho provisions Of law requiring National
Daulta to hold rosorvo fund equal to 25 per
cent Of their outstanding circulation and OF
thoir deposits. Tho present regulation is q wiso
QUO, uud which no responsible banker wishoa to
havo changed, When in the course Of businoBa
tho bank lnds TINT Its reseryo Is below tho 81
por cont Of its circulation md deposits, it Ia
compelled to stop dacounting, and shall declare
no dividend until the rosoryo is restored. Mr;
6lorman's bill repeals this most sa1utary rog,1.
lation, and permits tho banks to go on londine
money without limitation, oyon to tho Inst dol
lar Of their circulation and Of their deposits. Il
is oasy to conceive wlero that mode Of doing
business would load to; reckless and irresponai-
bio bankers. froo OF all rostrictiona, would puel
their businoaa to tho EXTREMIST limit
and any check or 1uttor In tho 1narko
would not only involve thom, but involv.
nll other banks having dealings with them. 81
long aa this rosorvo ia required by law, person.
dealing with bank know that such procautio1
against sudden changes and atringenoica in til
financial market exists; but II that Requirement
DO removed, no ono can tell whether bank ha
, ono dollar on hand to meet tho domand Of it
dopositora or any emergency that nnay asiso i,
business. That reBorvo is tho great protection
Of dopoaitors, and Of all prudent, intelligen
bankers, against tho rocldeaaneas, improvidonco
Ignorance, and worso, Of bank managers mn
rosoryo ia to unhinge every procaution againa
, banking In It's widest ind most irrosponsibl
, form.