The Jeffersonian. [volume] (Stroudsburg, Pa.) 1853-1911, 1874-07-02
The New Currency Bill.


The new currency bill which passed both
houses of Congress on the eve of its adjourn
ment. and at once received the signature OF
the President, though not exactly what either
the latter or the great mass of the people de-
sired, sastepin the right direction, and willtend
to prepare the country for a resumption OF spe-
Gle payments at no very distant day. by Its
provisions the ultra inflationists are curbed IN
their reioicings and the evils which their full
desire would infict upon our monetary affairs,
and at the same time the radicals IN the oppo-
site direction are prevented from rushing the
change in our financial policy to too sudden
crisis. 1t is a mean between the two extremes
and hence, safer ground to stand upon than
either-a compromise which after due refec-
tion appears to give very general satisfaction.
By its provisions the amount of paper mon
ev TO be kept in circulation is limited TO $751;
OG0,000 1t cannot exceed this sum, though as
business settles 10 permanent and more leglt-
innate basis than it has heretofore occupied
there is nothing in the law to prevent its set
tling below that figure, and it is but reasona-
bic to suppose, from its already published pol
lev. that the administration will avail itself OF
the earliest opportunity to secure that rednc-
ton. Such a course would best meet the views
of the country, and as we have before said it Is
bnt reasonable to suppose that Gen. Grant will
pursue it.
The law, also, is designed to operate relief
to the banks, as one of It's provisions eases
upon the reserves which they were required to
keep on hand against circulation and deposit.
The bill provides that no reserve whatever
need be kept against circulation, and 1t also
provides that the five per cent which it requires
to be kept at the Treasury shall be counted as
part Of the reserve against deposits. Under
the late law it was required that country banks
should keep a reserve of fifteen per cent on
each its circulation and deposit, and city banks
a reserve of twenty-five per cent. Thus, II a
country bank had 100000 of circulation and
100000 on deposit it was required to main
tain at the Treasury and in its own vaults the
large sum of $4,000 lying idle, and the City
banks $4,000 in the same predicament I'm
der the new law there will be the reserve
against deposits only, which shall be, as betore'
fifteen per cent to wit. $4,000 in the Treasury
and $4,000 on hand for the country banks,
and $4,000 in the Treasury and $4,000 on
hand for the city banks. The relief to the
banks from this change must be apparent at
once, and that it is afforded at no new risk to
note holders and depositors is settled by the
fact that none Of the other safe guards in these
respects heretofore found ample have been SET
aside. Beside this three ffths of the said re-
serve may consist of balances due to an assocla-
tion available for the redemption of its circu-
Isiing notes from associations approved by the
Comptroller of the currency, organized under
the law. in what are now known as redemption
cities.
The bill further provides for a greater equal,
ization of the currency throughout the coun
try bv taking from the Eastern banks theil
overplus Of circulation, and giving it to th'
Western and Northwestern banks which are
short of their fair proportion of the currenc,
allowed 1t does not attempt to force thu
equalization before the Western people ar
prepared to receive it, but only as fast as bank
are organized and prepared to claim circula
ton. That the Eastern banks may not b
drained too rapidly the law permits of tn
withdrawal of but $50, 600, 900 during the com
ing year. But as there is no time set at whicl
this sum may be called for, it is settled that
requisition upon an Eastern bank for its shar
of this $50, 600 must be met within thirt
davs. Thus all the banks in the States havin
more than their fair proportion of circulation
are compelled to keep on band, or loaned o
short time, each its share of the S300O0,O0(
and keep it waiting year for requisitio
which may fall upon it at any moment Afte
the first year each bank must be prepared
meet its proportion of the $50 ,000, 900 of ove
plus at any time after thirty days notice.
Taking it in all its provisions the bill is re
markably fair and moderate, much more s
than there was any reason to expect from Cor
gress at the outset of the session. We do nC
think that the President acted unwisely
signing it. Something was required to
done for the relief of the country, and as tn
was the best that could be obtained, we thin
the President acted wisely in accepting i
The effect ofits working viii doubtless prov
beneficial.