Bozeman avant courier. [volume] (Bozeman, Mont.) 1872-1882, 1874-06-05
BOHEMIAN MONTANA TERRITORY, FRIDAY. JUNE 5, 1874.

It was the wish and expectation {
the friends of the bill that the Seer,
/. tary should put into circulation til
remaining 91S,OOO,O 900 Of the $44 900
900, and it was proposed by some tina
the language of the section should b
so changed us to relaire that amoun
/ to be put into circulation and KEEP
, out Standing. But it was
DETERMINED OTHERWISE,
and that the bill should simply dc
clare the maximum amount Of circula
ton, and leave the power and discre
ton Of the Secretary what they hat
been claimed to be.
Had Congress taken from the SecTe
taIy the enormous power to put til
circulation Of United States notes III
to S4OO,O00,000. Or reduce it to 1856,
coo, 900, by fixing it at $4G0,OOO, 900,
the act would have met the approba
ton OF a large part Of the people, who
believe that a power so vast should
not be reposed in any public officer
But that was not done, and the whole
effect Of the section was to establish
the legality OF the power which had
been declared by many to be gross
usurpatiOn.
THE OTHER SECTION OF THE BILL
authorizes the increase of bank note
circulation to the amount of S46,OOO,-
600, to be distributed among the States
having less ;:san their proportion, up
on the basis Of the act Of 1865, the
banks to be established upon the
terms, liabilities and restrictions i'm
posed upon existing banks, being re-
quired to secure their bills by deposits
of bonds, redeem them in United
States notes on demand over their own
counters, or in one of the redemption
cities, and with additional restriction
that all banks, old and new, shall keep
one fourth of the coin interest they re-
ceiye upon their bonds deposited for
the security of their notes. This pro
vision looked forward to the resump-
ton of specie payments, and was the
first step that had been taken in that
direction Ly Congress.
THE S46, 100000 PROVIDED FOR
came full $4,000, 900 short of equa'iz-
ing the distribution among the States
upon the basis of the act of 1866
Under that act the New England
States were entitled to 100000
but received s11O,OOO,OOO, and the
other Eastern States had tin excess of
nearly S12,OOO,0OO.
The most OF the friends of the bill
desired free banking, that is, the re-
striction taken off as to the amount
and locality of the circulation of ma
tional banks, SO that the people should
be left free in every part of the United
States to establish national banks
wherever and whenever their local
wants and necessities demanded them.
TIE PROFIT UPON THE CURRENCY OF
NATIONAL BANKS
is less than two per cent, and they
will not be established and maintained
urless there be local demand which
will give them aliberalline of deposits.
But the purpose Of this letter is not to
enter into any defense of the second
section of the bill, but to remove a
that appears to pre-
vail in regard to the first.
Whether the volume of currency is |
sufficient for the business of tthe coun-
try, is a question of fact about which !
men may honestly differ. During the
four years preceding the panic, there
had been all actual contraction result
ing from the growth Of population and
business. A majority of Congress
were of the opinion that to produce a
of confidence, a speedy re-
vival of business and a return to the
prosperity which was so suddenly de-
stroyed by the panic, some addition
should be made to the volume of the
That the bill which has failed to be-
come a law would have produced some
is undoubtedly true; but
It would have been almost entirely in
the stock market in New York. 1t is
/ well understood fact that the reserves
If the Western and Southern banks
Kept in New York have been loaned
BY the New York banks almost ex-
upon call tOdealers in stocks,
and have thus contributed to stimulate
speculation, and have
been of very little benefit to the mer-
,antile or manufacturing community.
THE EVIL RESULTING
rom this fact was strikingly illustrated
Turing the panic last fall. The stock
holders who had borrowed the money
we're not able to repay the New York
banks, and they im turn were unable
10 pay the country banks from which
the money had been received, and thus
The disaster of the panic was greatly
aggravated. This bill in effect re-
luired the banks outside of the re
lemption cities to keep three -fOurths
If their reserve at home, and would
nave withdrawn some millions from
Ihe stock market in New York, which
would strengthen the banks to which
hey belong, and would have produced
in quarter where it is
pretty well understood that contraction
vcnld do no harm.
THE ACT OF 1860,
o strengthen the public credit, de-
,lares that "the United States solemn
v pledged it's faith to make provision
It the earliest practicable period for
he redemption of the United States
notes IN cOin.n In the debate upon this
Dill nobody has denied the character
zH u l. l