The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1873-12-11
Report Of the Comptroller Of tie Cur.
rencys

The Comptroller Of the Currency, in his re.
port, gives . history Of the working Of the free
banking system In the country previous to the
to say tina. the amount Of national bank notes
row authorized to be Issued, is $354, OOo, OOO,
and the amount Of legal notes 356 OOO OOO. 80
tional bank notes are new. redeemable, Is nearly
identical, though slightly in excess. II the ma
tional banking law was amended 60 rs to re-
legal tender notes. It oDefo"rt1 Of one per Cent?
discount, - In the New York State law, instead
Of at par, provided in the national currency act
would agree to such provision Of Law, the
prompt redemption of national bank notes would
be insured but the redemption of THE vast amount
Of circulating notes, II redeemed but once year
would result In great l0es to the people Of the
United States. A system Of redemption Of this
kind would also ct once increase the rate of ex-
change from the rate Of one Of one per cent
different cities Of the Union, to from one-half 10
one per cent, thus restoring to cons de-
gree the condition Of exchange at the time
system, and ineuring . loss 10 the people
annually Of millions Of dollars. Such . sys-
tenn would, however, undoubtedly result in the
return Of the notes Of the national hanks at
certain seasons Of the year, when they were not
needed, to the vaults OF the country banks, to be
paid out when the demand for currency increased.
desirable It to the currency. In
order to insure the prompt redemption Of the ma
tional bank notes the amount issued must be 20
much increased that the notes will be, say, one
eighth Of one per cent. diecount, and this would
probably not be accomplished until an addition
was made to the present circulation Of $10O, 000,
90. The same result would follow from reduc-
ton Of the volume Of legal tender notes simulta-
neously with the increase Of the Issues Of bank
notes, but Congress has 60 frequently refused to
diminish the amount Of LEGAL tender notes, 20
general system Of free banking accompanied with
resumption must be postponed until the resump-
der to avoid any misrepresentation Of his views ON
this subject desires to state that he s not an advo-
" known o. irredeemable currency. He believes,
however, that the people Of this country ought
not and win not, submit to the high rates Of ex-
change prevailing previous to the war, and that
shall result in restoring the high. rates
;ss S ScSai; ,,.., 'y:ssn =. q , s..l;
shed. During he past year, = far a. observation
has extended, national bank notes have been rare.
" st any perceptible discount for leRal.teDdel
notes ana during ne isss panic no distinction va
the United states and national bank notes; boti
were boarded alike = I: thing most desirable Of oil
otaen to hold: And It b probable that when
people will be 90 wen esablshed in the safety q
the currency Of the banks that mo such general sys
tern OF redemption will be required O. Of the un
safe currency issued BY the different States pre-
yions 70 the war. II circulation should become re
dundant q r sometimes the case with silver coin
age, 1t win only be necessary to present the sur
plus to the ageneies in tho city Of New York whers
more than tw0-thirds Of the circulation r. now re
to be hoped that previous 70 tie return % epec!.
! live abundant elasticity to the currency Withou
tncuuin4 ~ expsuse sud buEdso q general -