New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-01-21
WASHINGTON.
FINANCIAL TOPIC

FINANCIAL TOPICS
IL 80, sprCIE REsUmfli"N-
i'"' nnvu OF TIE LAW hh'o -,uc,,, 4,
the NJ or s25 10000 OF BANh oiH0o ,l,,,
- REDISTRIBUTION N"''>'
TON ANo - y rxPECTED-A PRofosllloN
srAfhS 'oNr .' .-,,, REISSUE OF THE S4foVo'o'0
prsrRvr BEING DISCUSSED
w. ,y,rGyAPH TO THE TRlBuNt.'
~ Ian. 90-What is called IN iu'''i''''i
-, hore the Boston plan OF losu''f''''
,..noo,ed before the Banking ana O"lio"'' rl'..
90 today by John NJ Forbes oil tha' O',S'
nIon j. 70 stamp three millions "i "b - -,
notos every month, with the PROMISE ~ - -
,hcn m gold coin at the expiration VI WV c..
synpose the frst notes to be so stallpcu ~" vs. soo
81 ncxt month, the words printed acio'S '''I
would he This note will be redeemed IL Hoi,' '''-
on the LIST day Of February 1876 on
.be Treasury Of the United SJa'cS' .IIo
,1odo am argument in favor OF this plan' wi"cn nc
3I =, 10 Siropla effective and not calculated 10
,,-olrce arrangement m business OF suuo'"
change in values pno.;1ort of
u, National Boagd Of Trade presented 10 the Oon'-
,too the resolutions adopted at the recent CohVoh
non O., the poaru IN nmtimoro - ~! tbor,
.a.,r,,,or and smoke briefly in advocacy u 'nVA'
No, .-,rrl a.
cor cco no, If hank circulation from certain states,
and it, distribution to othels' rs conI''1y -
g., no ono Of the few financial results OF
49, lesion The law in question IS the
-. of JIy r. 1870 which provides
G,at after The S55.OOJGOO OF additional BANK d'-
culaoon Authorized are taken ur the Secretary Oh
tlo Treasury shall Withdraw S.50N03O OF CIR
crlq+,oo from banks in States having more th"h
,b,i- opo;o uaGer the act OF March 3, 1865, and
di.tlhuto IT, TO banks in States having less
ttan their quota. The law is very explicit
"a TO the manner of doing tins Inc
his having over 100000 OF circulation
are first 10 be deprived Of their excess over thar
suu. and then other banks, having a circulation OF
oveI ssO6n are to be proceeded with pro rata
taking those first which have the largest excess
The Controller Of the Currency to make requsl-
non upon the banks for the currency to be thus
withdrawn. and if they fail to give II mp within a
wear he ia 70 sell q sufficient amount of their bonds
20 r,dccm With the proceeds the forfeited circula-
tion. No steps have been taken to carry out this
law. although the last OF the S5j0JO,0OO was sub
scribod for about year ago.
It's understood that the Controller OF the Cur
Icncy thinks 1t inprachcabie to Withdraw the err
culation as required and hopes Congress VIII repeal
the law this session. His reason for delaying action
under the law is that about $3OOOOW of
the $j5O00C0O have not yet been issued,
although long since subscribed for, the
hanks taking il not having sent IN their
bonds He coaetruas the words " taken mp"
10 mean issued and not subscribed for. The time
for the enforcement of the law under this constUc-
ton cannot be much longer delayed. A compromise
Is talked of between the Eastern and Western
representatives TO effect She passage of bill repeal
me the law and allowing the East to keep the cir
oulation il has got and issuing S25,0OO000 of adj
toual currency TO new and old banks in States hav
ny lees than their quota.
The WAYS and Means Committee are discussing
a bin to legalize the reissue of the Si40O00O0 of
LEGAL tender reserve and will probably report IT to
the House very soon. Two considerations arc urged
IN favor Oh the mCasurc-hrst, that Secretary Rich
ar,ison has aheady put ont the greater part
os the reserve, aud means to 30 on issuing the
rest Of il as fast ~ he has occasion to use 1T.
and that il is better to make the law warrant
his action than TO have the chief financial
officer Of the Government appear IN the hght OF a
systematic law breaker and, second, that the sim
plest and least Objectionable way of meeting the
demands upon the Treasury is to go on using what
left of the reserve the country being by this time
accustomed to this kind Of gradual iutiaton. There
Is no question about the passage Of such bill
through tho House. The opposition TO 1t could not
command more than about 20 votes and these would
come from :he pronounced rcsumptionisis.