National Republican., 1874-07-06
REDLSTRLBUT OF THE CUR
RENCY.

hhNCI
Under the act of June 90. 1874, providing
for the equalization of circulation OF ma
tional bank currency among the several
States, and the redemption thereof only at
their own counters and at the Treasury OF
the United States, the New England States
had an excess, at the date of the last annual
report of SO, 500, ,O46. Of this excess
Maine had So, O9S, 234; New Hampshire,
81, GIG, ,5S7; Vermont, $4,O34, O54; Massa-
chusetts, $40, ,2S4, 1852; Rhode Island, SlO,-
6S5, 793, and Connecticut $40, $780, 1885, The
Middle States had an aggregate excess OF
SO, 416, 5O3, distributed as follows: New
York, 81, 5S9, 1893; New Jersey, 81, S27, ,4OS;
PENNSYLVANIA, s., 1862, 564; Delaware, 1885,
342, and Maryland 81, ,8So, 390.
All the Southern, Western and South
western States were deficient to the same
amount in the aggregate-SSO, 62l' 4S3-as
follows: Virginia, 81, 1928, 900; West Vir-
ginia, S7S8, S4S; North Carolina, "a, 6SS, 622;
South Carolina, $2.14O,S45 Georgia,
81 CAS-, ,282; Florida, 81, 1,O37. 346; Alabama,
81, 221, ,413; Mississippi, S., 0SS, 65S; LouiSi-
ana. 81, $50, 1893; Texas, So, 764, ,7SO; Arkan-
sas, S2,951, s41; Kentucky, $1,sS3.sS7
Tennessee, S., ,S7S, $50; Missouri, $685.
216; Ohio, S1,5O9, 456; Indiana, SAT-, s66;
Illinois, So, 8S1, 221; Michigan, 81, 1sO. 614;
Wisconsin, S.. 729, ,ss7; Iowa, "a, ,OS6, ,99B;
Minnesota, $33, ,2S1; Kansas, $962. 85S;
Nebraska, S162, 1872; Nevada, $3.50. 1888;
Oregon, $49S, ,277, and California So, 324, I
1873. Among the Territories the District Of
Columbia, Colorado and Montana only had
a slight excess; the rest are all deficient.
The act of June 90, 1874, provides that
this excess, to the amount of 500, 900, OOO,
may be withdrawn from those States nov.
holding it and awarded to the deficient
States and Territories as the latter may
organize banks and demand the circulating
notes, as provided In the national banking
act No call for the excess will be made,
however, until the currency is needed for
other sections. AS was stated in these col
umns on Saturday last, the organization of
new institutions proceeds slowly in the de-
ficient States. The banks already in exist
ence do not seem to find circulation so
valuable as to induce them to add rapidly
TO their present volume. Indeed, many of
them are able to borrow the currency from
New England as they need it for use at
better rates than they could obtain il from
the Government under the national bank
ing act. Meanwhile the currency which
is being released by the winding up Of in
stitutions now in process of liquidation,
and from those which are voluntarily sur
rendering their circulation and releasing
their bonds by the deposit of SO, 600 of
legal tenders for $4,000 of five-twenties
or ten-forties, furnishes quite as much as
there is any demand for at present.
1t is not, therefore, by any means certain
that the deficient States will be able and
willing to purchase the necessary bonds to
take up the currency provided by this act
for those States At the present rates of
bonds it requires $115, 900, in the first
place, to procure 800, 600 circulation. Then
$4, 500 in legal tenders must be deposited
with the United States Treasurer ss a re-
demption fund. Add to this five or six per
cent for taxes and expenses, and the bank
has but $65, 900 in national bank currency
to loan out of each 100000 invested. As
money lenders in the deficient States are
able to net from twelve to thirty six per
cent. per annum upon all their loose capi-
tai, without the Intervention of national
banks, they see but little inducement to
place their funds under the restraints of the
banking law and the supervision of the
of the Currency. Moreover,
they are well aware that the location of
banks in their vicinity would be of little
benefit to them, unless they could obtain
sums of deposits.
The cry Of bank monopoly is now found
to be simply a catch-word for the imitation
.sts What they desired was imitation
more paper money with which to enhance
prices; the issue of more promises to pay
without those wholesome restraints Of the
national currency act. Failing to obtain
this they will scarcely be found investing
what funds they have in bonds for the pur-
pose of obtaining portion of the currency
alrealy in circulation