New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-02-02

lBr TO THE TRiBUNBI
WAsHINGToH, Feb. l.-Among tho financial meas
ures prepared by the members Of the Ways aud
Means Committee and not yet presented to tho
House, the bill Of Mr. Burchard Of Illinois deserves
special notice. from the well known conservative
views Of It's author upon finance aud his experience
| and influence in the fio1so. slf. Burchard is one OF
the few Western members who have consistently
and reeOuLely combated the initiation fallacy. lie
has from the time he entered Congress answered all
appeals for more paper money by telling his consult
ucnts that what they wanted was not more car
reney but better currency and thai the cure Tor the
evils OF which they complained must DO sought IN
| return to specie payments. The object OF MIR.
Burchards bill is to give the greenbaek more vaine'
and thus open tho way to resumption, anu at the
same time 70 authorize free banking upon the basis
Of per cent bond. Ii also provides for an element
of elasticity in the currency within a fixed limit
The first section provides that the Secretary OF the
Treasury shall issue coupon or registered bonds to
an amount not exceeding - hundred millions OF
denominations of $50 or somc multiple of that
sum, Icdeemable in coin after 20 years, and
bearing interest at tho rate OF per cent, which
bonds shall be exempt from all taxation. The Secfe-
tary may drspOso of tho bonds for the purpose OF
being used as security for banking crculations, and
shall receive in exchange or payment therefor legal
| tender notes as provided in the second section.
The second section provides that whenever appli-
| cation shall be made to the Controller of the Cur
rency, under the provisions Of the banking laws 10
organize National banking associations, or to issue
additional circulation TO National banking associa-
| tons already organized. upon deposit unuer the
provisions Of said laws, rs security for such cncna-
ton of the bonds herein authorized to BIO ressued,
| permission shall be given for such organization,
and upon the deposit Of bonds the currency applied
for olol no f. In
cations from States which have less than Their quota
| Of bank circulation.
Section provides that the leGal-tender notes re-
ceycd in exchange for tho bonds authorized shall
be Cancelled and destroyed except that the Secre-
| tary may retain the sum of S5O,OOOOCO, which he
| may again pay ont in exchange for any United
States bonds at their face value.
70 ia not improbable that Mr. Burcia ard will con-
clude to add to bis bill some provision fixing date
| for resumption. and prescribing measures to be
taken to prepare for that event lie believes that IL
| q day were fixed by law when tho Government
would resume, such an enactment alone would so
rroai way towards bringing tho lcgal-tender notes
up to par and that If preparations made to re-
deem on the day set. by reserying the surplus gold
revenue to make specie fund in the Treasury, and
by requiring the banks to retain in their vaults the
gold they receive as interest their bonds resum-
| ton could easily be reached in five years at the
! farthost, aud much sooner "a desired
| THE REDIsTIJBUTION OF THE NATIONAL BiNK CIR
| OKLAHOMA BILL TO MAKE THE LAW EFFECTIVE
| TO BE PREPARED IMMEDIATELY
lJr TELEGRAPH TO THE TMBUNE.l
WASHINGTON Feb. 1.-The Committee on Banking
aud Currency have appointed Mesors. Phelps ana
Mitchell Sub Committee TO prepare bill to make
Immediately effective The law Of 1870, redissributng
Tie National bank currency. by taking 25.0Oo00O OF
| cir nl,tio fror IN ka Il
States in tho West aud South which have less than
their quota. The law provides that the redisribu-
ton shall take place when all Of the Sji,OO0OOO OF
additional currency authorized by the same
act shall have been taken up. The Con
troller construes this phrase to mean ac-
tualy issued instead If applied for. 1t VIII
be some weeks before the last of tho S5i,WO,OO
| win be issued, but even then the transfer
of currency cannot BE- at once made for the law APP
pears to have been devised to facilitate delay The
Controller must make requisltion upon the banks
| to be deprived Of circulation for the amount each
must give up. The banks are then allowed a year
TO comply with the requistiJn. Il they fail, subj
Gent quantity of their bonds must be sold to redeem
the requiste amount Of notes last az they come
into tho Treasury Ii might DO two Oh three years
more before the amount wanted wOJid come 10, and
| all that time the West and South would have to
wait for their fair share OF bank facilities and crcu-
| lation.
The bill which Messrs. Phelps and Mitchell are
| preparing viii require the Controller to make the
rcquisition at once and will give the banks only ~
DAYS to comply with it, In ease bank fails to do
30, the United States Repositories and Sub-Ireas-
nries will BIZ instructed to sort out all notes OF such
bank passing through their hands and forward them
| to Washington where they will be redeemed and
Cancelled, according to the provisions OF the OH law
by sale Of the bonds of the bank. New circulation
| will then be issued at once application from new
] or old banks in the States omitted to the same.
| 1t ia stated that the banks which must suffer
loss OF circulation under this bill prefer to do SO
rather than the currency inflated by further
issue of bank currency, rs proposed IN the Dill OF
| Representative Monroe Tho movement on the
| part of the Banking and Currency Committee to
make the redistribution law effective may be fairly
characterized as hedging 1t is obvious that the
| Committee have not much confidence in the success
of their free-bankng BILL for if that measure should
| pass the West and South could get all the bank
currency they bad the capital to obtain, and the
| Loot could keen al th"s 10 lao sut'
| SPEECH BY REPRESENTATIVE KELLOGG ~ FAVOR on
GIVING THE WEI MORE CURRENCY, AND ADvo-
GAZING sfECiE PAYMENTS.
lBY TELEGRAPH TO THE TRinUsgI
| WASHINGTON. Feb. Mr.. KellOgg's speech On the
currency was one feature of Saturdays proceedings
in the House. and intended to answer the statement,
30 often heard from the West and South that. New
York and New England have more than their share
of the national currency" and that the late panic
| arose from a lack Of currency. He asserted that
| New-York aud New England obtained tits national
currency because that section had thoroughly Or
gained banking system, which had grown mp under