, 1874-02-04

There is now plethora of National Dank
notes In Now York, aud tho bnnEs Of tint city,
dcsirous OF hnying 1egal-tendcra III their placoe,
III order to kecp np tlloir reserves, have, it IL
with tho intontion Of presenting tlom for ro-
domption tn 1egal-tondors. 1t il intinlnted that
this now movement has been stimulated by tho
agitation for froo bnnking, and tho hopo that
rcdonptionB iii losal-tondors, and thus hold tho
increase Of bank notes IN wholesome check,
would pass II Inv for froo banking,
which would mako a continuance Of Tho
rodomptions necessary. In fact the expectation
session il evidently gaining ground. lilo move
ment iu New York to sort up bunk notes for ro
dempton under tho proacnt disabilities. affords
ground for tho presumption TINT II tho Banking
and Currency Committees lreo Bnn1ting bill, ro-
ported lust Thuraday should bccomo Inv, its
Increased facilities for the redemption Of Ma
tional Bank notes nt tho Sub Treasury in Now
York [or ut MI tho Sub-Trcasurcs us tho bill
ought to ready would make redemption opern-
tive Mt once, oven before thoro had boon al,y
considerable incrcaso OF the bank notes III cir
culatlo!1. There cnn bo ITO doubt that il this
should DO tho cnse it would ut
onco cause MI appreciation in tho value Of tho
an increased doman1 for groenbacls from tho
banks to redeem their notes, wllereas now tho
only demand for grconbackB is to lilo Inactive
mud unused i'll tho reserves Of tho banks. Tho
C0HutTy unlAH loN uplu OILY nuullt ItE CouL u
legal tont1er reserve against their circulation.
Theoretically, This is presumed to bo enough to
redeem nil tho National Du1R notcB thnt would
ho presented. Eut, Whenever tho money mar
ket was ptethoric, ns it is eating now, it would
bo found that ut least or per cont moro
Of .grconbacks wota kept in transit
to tho places Of redemption. This would
be equivalent to temporary contraction Of
s20o9o, QUO or $50, ooo goo Of greonpacks. and
On tho otller hand, whon trado was active
throughout tllo country, a1ld moro curroucy was
necessary, tho rcdeinptions OF bank notes would
cease, tho groembackB, Instead Of being absorbed
TO tho extent indicated Ill transit, would 70
into general circulation, mud tho effect would be
tho sumo MS I'LL incroaso Of tho currency. As
tho banli-noto currency increased under 4 FREQ
banking law, tho movement of baull notes for
redemption in logal-tondors would become
unio Of paper money would become
"floxiblo'' At tho samo time, tho demand for
Ereonlaclis recurring ut every period Of plethora
IN tho money narket, wonld mako o permanent
Increase in their value, md, if the total amount
OF groonbacks WIS not increased. would grad
1,ally appreciate them to point where tho banks
would SEQ the necessity Of preparing for rcdemp-
tions III apecio instead Of greenbaekR 1t is true
notes could neyor, Of itself, appreciate tho cur
rency to par with gold, without either Il largo
contraction Of tho yElllmo Of greonbAeks, con-
current with an incrcaHo OF bank-notes or tho
actual redemption Of the greenbacks III gold,
but free banking and tho redomptions ln groon-
bacAs which it would inaugurate, would proparo
the way for other tho funding Of the grconbacls
or their redemption in coin.
NEW PACIFIC STEAMSHIP LINES.
Tho Pacilc Null Steamship Company having
ceased their scmi-monthiy service from tho
port Of San Francisco to China and Japan, tho
now hue Of tho TranH-pacitic Company, owned
i4 England, is to 1alo its place. and tho first
ship. tho Vasco Do Gama, IL expected to leave
San Francisco within fow days. Another now
English line Of Clytle.built iro, proroIlcrs, tho
Alciresor, Tartar, hIogul, G,d Cyphrencs. llas
also been put Oh the route between San francisco
and Australia. Tho first vessel Of this ilno waa to
loave San FRANCISCO Oh the 18th nit. Tl.eao yes-
selh uro to alternate in leaving Sydney with tho
Pcninsular & Oriental Steamship company's
steamers, which lcayo that port and carry the
mil via suoz. Tho new Australian line iH SUBJ
sidized by tho New Zcaland aud Now South
Walos Governments, nnd, together with tho
Peninsular Il Oriental Steamship Company's
Line, will nuke d mail from Australia every
fourteen Days.
LOCAL STOCK AND noED arAnKEr.
Messra. Preston, kcau T. Co. quote ns follows