Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-11-25
FINANCIAL.
The Forthcoming Report OF the
Comptroller of Currency.
His Views upon the Currency
Question.
An Advocate of the National
Banking System.
The Forthcoming Report of the Comp
trOlIer Of Currency.

WASHINGTON, Nov. 25.-The COmptrol-
Ter of Currency, in his forthcoming report
gives the history of the working of the free
banking system in the country previous 10
the establishment of National banks, and
goes on to say that the amount of National
bank notes now authorized to be issued Is
$354, 100000, and the amount of legal ten
der notes $356, 1000, 900, so that the proper
tion of legal tender money in which Ma
tional bank notes are now redeemable is
nearly identical, though slightly in excess.
If the National banking law was amended
so as to require the redemption of National
bank notes in legal tender notes at
/ of one per cent discount, as in the New
York State law, instead of at par, as pro-
vided in the national currency act, and the
National Banks Of the whole country would
agree to such provision Of law, prompt re-
demption of national bank notes would be
insured, but the redemption 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 sys-
tenn of redemption of this kind would also
at once increase the rate of exchange from
1-10 of one per cent now existing at most
periods of the year between different cities
of the Union, to from I per cent to one per
cent, thus restoring to considerable de
gree the condition of exchange at the time
of the Inauguration of the national bank
ing system, and insuring loss to the peO-
pie annually of millions of dollars.
Such system would, however, undoubtedly
result in the return of the notes of
National Banks at certain seasons OF the
wear when they are not needed, to the
vaults of the country branks to be paid out
when the demand for currency is increas-
ed. Such a system would also give what
is exceedingly desirable at the present
time, elasticity to the currency. In order
to insure prompt redemption Of National
Bank notes the amount issued must be so
increased that notes will be, say, at ! of
per cent. discount. This would pobably
not be accomplished until addition was
made to the present circulation of $780,
100000. The same result would follow
from reduction of the volume of legal
tender notes simultaneous with the increase
of issues of bank notes. But Congress has
so frequently refused to diminish the
amount of legal tender notes, so that the
Comptroller is of opinion that any
general system of free banking ac-
companied with redemption, must be
postponed until the resumption of specie
payment The Comptroller, in order to
avoid any misaprehensisn of his views on
this subject, desires to state that he is not
an advocate of any permanent system of
currency usually known as irredeemable
currency. He believes, however, that the
people of this country ought not and will
not submit to the high rates Of exchange
prevailing previous to the war, and that an
amendment to the national currency act
which shall result in restoring high rates OF
exchange, will also result III the downfall
of system of banking which, it is be-
lieved. will vet become the most Satistac-
tory of any system ever established.
During the past year, as far as his obser-
vatiOn has extended, National bank notes
have been rarely at any perceptible dis
count for legal tender notes, andduring the
late panic no distinction was made by the
people between legal tender notes OF the
United States and National bank notes.
Both were hoarded alike, as thing most
desirable of all others tohold, and it is pro-
bable that when specie payment shall be
resumed, that the faith Of the people will
be so well established in the safety Of the
currency of the banks, that nc
such general system Of re-
| demption will be required as was
required of unsafe currency issued by diff
ferent States previous to the war. If the
circulation should become redundant, as is
sometimes the case with silver coinage, il
| will only be necessary to present the sur
plus to agencies in the city Of New York
where more than twO-thirds of the circula-
tion is now redeemable, in order to restore
equilibrium, for it is to be hoped that pre-
viOus TO a return to specie payment, some
system will be adopted which will give
| abundant elasticity to the currency without
incurring the expense and burden of gene
raj redemption, and without loss resulting
from high rates of exchange, which have al
ways prevailed under such a system.
New YORK, Nov. 4.-Outstanding lega
tenders, 1864, ,S6S, ,631.
LONDON, Nov. Pat is the general i'm
preston that the Bank of England viii
lower the discount rate on or before Thurs
| day next.
New YORK, Nov. 24.-The banking
house of Edmund d. Randolph Il Co. re
sumed to-day.
Troy, n. Y, Nov. 24.-Mills in this Vi
cinity, employing over 5000 persons, re
sumed work to-day.