The New York herald., 1874-06-19
WASHINGTON.
The Second Conference Report
on the Finances.
REDISTRIBUTION OF The CURRENCY.
Prohibition Of a Treasury Re-
serve of Greenbacks.
THE RECIPROCITY TREATY

-
WASHINGTON, June 18, 1874.
Result OF tho Second Financial Confer
ence-The First Compromise Currency
Bill Modified.
the conference committee on the Finance bll
came to an agreement this afternoon, making the
report Of the iormer committee the basis Of tneir
action. They struck out sections g. 7, 8 and 0 OF
that report, which proposed to repeal so much Of
the National Bank act as restricted the amount Of
the circulating notes and provided for retiring and
reducing the United States notes until the maxi.
mum should be $500. 900. 600 and LOT exchanging
such notes,ior bonds, &c. and added several Geo
tions with regard to oaredisributon OF the banking
currency, as heretofore recommended substan TALLY
by Com ptroler Knox. The report OF the committee
Is as iOllows:-
SECTION 1.-The act entitled On act to provide q
national currency, secured by D pledge oil United
States oonds, and TO provide Tor the clrcua ton
ana redemption thereOi, approved June 8, 1864,
SHAH oe hereafter known as the National Bank act
SEC. 2-Inat section 81 OF the National Bank
act oe SO amended that the several associations
therein pr0vided LOT shall not hereafter be re-
CURED to keep on nand any amount Of money
Whatever by reason OF the amount Of their re-
spectlve circulatons; but the moneys required Dy
said section to be Kept at all times hand shall
be determined by the amount OF deposits IN all
spectS as provided Tor IN the said section.
SEQ. S-Ihat every association organized, or to
be organized under the PROVISIONS o. The SAID act
and o. the several acts amendatory thereo shall
at all times Keep ana have on deposit IN the
Treasury OF the United states In lawful money OF
the United States,. sum equal to iye per centum
o It's circulation to be nelu and used Tor the re-
demptlon OF such circulation. which sum shall be
counted as part OF its lawful reserve, provided
In section VI this act; and whel tue circulating
notes oi any sucn associations ass0t TED or unas-
sorted, shall De presented iOr redemption in sums
Of 900 or any multiple THEREOF to the treasury Of
United States notes. Ali notes so redeemed shall
be charged BY the Treasurer oi the United States
the respective associations issuing the same. and
he snail notify them severaliy on the first day or
each MONTH or o.tener at his discretion, OF the
amount o. such redempI0ns and whenever such
redemp ions lOr any association shall amount to
the sum OF $500 such association SO nOtlned shall
forthwith deposit with tne Treasurer OIL the United
amount Ol it, circulating notes 80 redeemed an all
notes OF national banks worn. delaced, mutiiated or
otherwise unit lor circulation shall, when received
by any assistant treasurer Or at any designated de-
pOttOry of the United states. shall forwarded to
the treasurer OF the Unted States Tor REDEEM pti0n,
as provided herein; aud when such redemptOnS
have been 20 reimbursed the circulating notes so
redeemed shall Oe forwarded TO tue respective aa-
soc,at,ons by which they were issued; but, Il any
dered otherwise unfit Tor use they snail be for
warded to the Comptroller OF the Currency and
provided. that each OF said associations snail re-
lmburse to the Treasury the charges Tor transpOr-
tation ana the costs ior asserting such
shall also severay REIN ourSe to the Treasury the
cost Oh engraving such Plates as shall be ordered
by each association respectively, and the amount
assessed upon each association shall be IN pro-
portion to the circulation redeemed and be
charged to the fund on deposit with the Treasurer:
and, prOvtued further, tnat so much OF section 50
OF sad National Bank act requiring or permit
ting TIE redemption OF Its circulating notes else
vided for in TINS section, Is hereby repealed.
SEC 4.-rnat any association org lied under
amendment desiring to Withdraw its circulating
notes, in whoie or IN part, may upon the deposit
lawful money with the treasurer OF the United
states, III sums OF not less tnan $1,000, take uf
| the 0Onds which said association has on deposit
with the Treasurer for the security OF such clrcu
latln1 notes, winch bonds shall be assigned to the
bank In the manner specified in the nineteenth
section OF the National Bank act and the out
standing notes 0. SAID association TO an amount
equal to the legal tender notes deposited snail be
redeemed At the Treasury Of the United states
and destroyer, as now provided BY law, provided
tnat the amount O the bonds on deposit for c,rcu.
latl0n snail not be redeemed below $4,000.
SEQ. 5.-lhat the Comptroller oil the Currency
shall under such rules and regulations as the
Secretary Of the Treasury may prescribe, cause the
charter numoers OF the association to 0e printed
upon all national bank notes which may be here
SEC. s.-Tnat the amount Of United states notes
outstanding and to be issued as part OF the CIR
culatlng medium shall not exceed rne sum O
$3s2, 90 900, which sad sum shall appear in each
monthly statement oil the public debt, ana no part
rnereO SHAH be held or used as q reserve
SE0. 7.-lhat so much OF the act entitled IAN act
to provide ior the redemption OF the three pei
centum temporary loan certificates, and for an
increase OI national bans notes. as proviues, tina,
no circulation shall be Withdrawn. unuer the pro
| visions oil section OF said act, until after the
$54000,0OO granted In section 1 OF said act sha
have have oesu taken up Is hereby repealed and 4
rency, under the direction OF the secretary OF the
Treasury. TO proceed forthwith, and ne Il
eefeG ee Time as saa Ss dus @
made therefor and until the full amount o.
the $54,Ooo0o0 snail be Withdrawn, to make
! q requsifiOn on each OF the national banks oe
scrbed SAID section, and IN the manner therein
provided, organized IN states having an excess o.
circulation, TO Withdraw and return 80 mucn o
to be withdrawn from them, or In lieu thereon to
deposit IN the Treasury OF the United states lawful
money sufficient to redeem such circulation, and
upon the return OF tine circulation required, or tue
| deposit OF lawful money as herein provided, pro-
CrcuatiOn OF such assoc alton as shall make such
return or deposit shall be surrendered to 1t.
SEC. s-That upon the failure OF the national
banks, upon whlcn acquisitions for circulation
shall be made, or OF any OF them, to return the
amount required, or to deposit IN the Treasury
lawful money to redeem the circulation required
within thirty days, the Comptroller OF the Cur
rency snail at once SELL ~ provided IN section AZ
| OF the National currency act approved June 8
1884, bonds held to secure the redemption OF the
circulation OF the association or associations which
shall so iall to an amount sufficient to redeem the
circulation required ofsuch association or ass0cia
posted In the Treasury OF the United states, sc
much OF the circulation OF said assocla
tion or associations shall be redeemed q,
returned; and. II there oe any excess
OF proceeds over the amount required Tor sucn re
denptiOn 1t shall be returned to the association OF
associations whose bonds shall have been sold
and 1t shall be tue duty OF the Treasurer, Assist
ant lreasurers, designated deposltarles aud ma
tional bank depositares OF the United states, who
shall be kept informed by the Comptroller OF the
Currency Of such associations as shah fail to return
circulation as required, to assort and return to the
| treasurer for redemption the notes OF such assO
| Citations as shall come into their hands until the
amount required snail be redeemed, and in ike
4 fo oo0s n a 1rAoa III fov
! redemption the notes OF such national banlS, ~
have failed or gone into voluntary liquidation fol-
the purpose OF winding up the affairs Of such
a. shall hereafter 80 iail or 60 into liquidation
SEC. 9.--rhat from and alter the passage OF thia
act Il shall be lawful for tue Comptroller OF the
Currency and he b hereby ordered TO issue cir.
culating notes without delay as applications there.
for are made, not to exceed the sum OF $50 00O
| TO associations organized or to be organized In
those states and Territories having less than their
proportion OF circulation, under an apportiOnment
made on the basis OF population and OF wealth, a.
shown by the returns OF the census OF 1870, and
every association hereafter organized shall be sub
ject to and be governed BY the rules restrictions