The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1874-02-13
FOR THE WEST AND SOUTH.
TweEty-hve Millions = additional National
Bank Circulation TO be Authorized for
These Sections.

TweEty-fve Millions a additional National
Bank Ctrcuiat'On TO be authorized fox
The law of 1872, which authorized
fifty-four million dollars OF additional
currency, provided in the sixth section
that when the fifty four millions shall
have been taken up, the controller of
the currency shall withdraw from the
banks IN the eastern states having a pro
rata excess of circulation, their proper
tionate amount, to be distributed IN the
western and southern states. All this
circulation has been allotted to banks
applying therefor, but the full amount
has not yet been issued. The controller
has held that he had 40 power to exc
cute the provisions of the law relative
to withdrawal of twenty-five million
dollars from the east until every dollar
of the ffty-foUr millions was issued.
The law makes no provision by which
he could compel the banks to which
this was assigned to deposit their bonds
as security for circulation, and to com
ply with the other conditions precedent
which should entitle them to receive
their circulation. There remain about
81, 600, ,000of the $54, 600 600 unassigned,
and it is presumed that the issue there
of VIII be soon completed. The con-
troller will then be compelled to make
his requisitien upon the eastern banks
tor the twenty-five millions excess, who
viii have one year in which to comply.
In case of the failure to comply, the
secretary of the treasury is directed to
sell enough of their bonds pledged as
security for their circulation to enable
him to realize from the proceeds thereof
tho amount equivalent to the amount of
national bank notes to be withdrawn
from each eastern bank respectively.
The proceeds of the sales of these bonds
must then be applied to redeem the
proper amount of national bank notes,
a process which may take years for the
treasury department to accomplish.
The subcommittee on banking and cur
rency has been directed to examine this
law, in order to ascertain whether it is
adapted to the immediate necessities of
the west; and it is understood that they
viii report that they find the existing
law, even If Immediately executed, to
be entirely inadequate for present ne
cessiti7s. It is improbable that any
currency will be given under its pro-
visions for two years 10 the south and
west. The subcommittee will, there
fore, report bill providing twenty-five
millions of additional banking circula-
ton to be allotted to the west and
south, and also repeating the section in
the act OF 1872, providing for the with
drawing of the twenty-five millions. It
is highly probable that the banking and
currency committees will ADOPT this
report. It is conceded by some of the
hard-mOney men who have canvassed
the house and senate upon these ques-
tiOns, that this bill viii pass, and also
the bill legalizipg the issue of the forty
four million reserve. In other words,
these hard-mOney men concede that
there viii be an addition to the cur
rency, as it stood six months since, of
at least sixty-nine millions, and per-
haps more,