, 1874-01-30

Whatever other assets there may be in the
why of amounts due from other banks, margin
on bonda deposited with tho United statas Treaa-
s s1s e1es s9 sss sS M ~ g. fs S fa Tho Tho
proximate tho $500, 900 Of capital and surplus
reported in its published staten,out for Dec. ~,
TIE BANKING AND CURRENCY Committees BILL.
1.-The: The B;anking and Currency COMMITTEES of tho
ed0use BhoW their ignorance Of the prlucinleB
ot currency by adopting the notion TINT two
Kinds Of paper money Of different values can bo
made to eIcn'ate together, and In agreeing to
Bank notes redoemablo In coin at the end Of two
years after their issue, and to permit ttese
70 30 issued at tie ratio OF s2,000,000 per month
az long as there ia any demand for them. This
eney e,Heap pS M an Intermediate grade Of cur
and an th9 " Gold Bank" notoa authorized In 1870.
Lho privilege Of issuing thu latter has never
nr1ona nuora1 ayhody to start banks On that basis
tho "a Caltfornia snd there y no probability
.leomable IN two years In corn would bo adopted
as a circulating medium In any part Of tho
country, II the Banking and CURRENCY Commit
oiplea Of currency They would deal only Will the
tho foolish e1pedient Of sailing" 1t with an
snther kind. It IL their special function
IL eea1aien Esd tue rls BANK bess srrsSasE tS1Ey
peal tho limit to the aggregate amount and
All0W banks IN any part OF tho country to Issue
N1l they can deposit United etates bonds to &C.
cure; TO repeal tho present requirements Of the
National Currency act IN regard to reserves to
tbe held by the banks against. circulation, and
require that legal~tender reserve Of s per cent
;Tfeasuriea Of my Of tho redemption cities. This
would give us flexible, aelf-adjusting volume
of currency. II there ia any such necessity for
moro currency a8 q large clasR OF the people be-
leve, thore would then be no obstacle TO their
a q II,
circulation, as the banks would be glad enough
to issue all that was demanded. At tho samo
time, tho banks would be cautious about
putting out moro than could be kept In circu-
1ation becasaae, at the seasons OF currency ple-
thora in the summer. when greenbacks are in
demand for bank-reservos, the notes Of the
bauka would bo forwarded to tho Sub-Treaauries
for redemption In legal~tenders. Az their per
cont legal-tender reserves in the sub-Tress ufiea
woro reduced by these redemptionH, the banks
would be notified from time to time to mako It
good.
One great obstacle to the redemption OF
Natlonal-DRnk notes has always been the diff
Guilty Of sorting tho bills Of 1900 different banka
80 as to present any considerable amount
tho notes counter S any one ne G Gsaa Of s9s, s
banling law, I tho aggregate ''ana amount d 'ei oi
bank currency should increase to ray s400, ,000.-
GOO, this would give, on tho basis Of 3 per cent
iegal-tendsr re reserve 2 constant redemption
fund Of $20 900 Of iogal-tentler notes in the
United States sub-Treasuries; d sum abundant.
iy sufficient to redeem all the bank notes out ot
the aggregate neutrality-suspicious. Of tho share oi
zach particular bank in the reserve fund, unit
currency began to grow scarce and tho scarcity
would stop tho presentation Of bank notes. The
Nationa! banks would probably oppose making
ono common redemption fluid for all their notes
but the principle Is only tho same al that OF
which the law now compols them all to accepi
each others notes at par. With such
eyatem Of bank currency as thiB, tho iucraaso o
bank notes would establish practical redemption
and inhugurate progress toward specie ros1nsp
zion, provided the greonbaoka wore not In
creased.
LOCAL sTocK AND noND MARKET.
Messts. PreBton, Keau j. Co. quote Az follow
4his n n. = -