New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-09-24
WASHINGTON.
nv RFDFNPTION AGENCY.

THE REDEMPTION AGENCY.
IT'S INABILITY TO CARRY OUT EVEN THE PLAIN
,Dov,s,oNe or A VAGUE IAw-How THE TREAS
uRY CAN MoNoPoIIzE THE SMALL. BANK-NoTE
RusINEss-REDEMPIIoN OF ONLY A PART OF THE
NOTES RFCEIyED-HEAyY EXPRESS CHARGES
MORE NOTES REDEEMED IN GREENBACKs THAN
THE AGENCY FUND EVER CONTAINED.
WASHINGTON. Sept. 23-The Redemption Agency
organized by the Treasurer under the Currency act
of the last session falls far short in ability to carry
out even the plain provisions Of that exceedingly
vague law The express brings daily about $4,000
in bank-notes for redemption ; Of this amount the
large notes only are selected and sifed through the
mazes of TILL table, and tape, which go to make up
the II processes and 80 scrutinies of the new re-
demption The notes Of smaller denominations arc
filed away in must and mildew, In some strong
vault where money is drug, and oven the air does
not circulate there to await increased redeeming
capacity in the new agency, or that earlier date
when the whole redemption fund will be tied up In
ragged bank notes By putting the whole force on
the large notes the figures showing the amount OF
work ACCOMPLISHED will be very creditable and the
proportion of the expense will be quite small, except
in the one item of express charges, which even at
Government rates will seem burdeusome to many
banks. There three express charges at % cents
on every $1,000, TO each redemption. First. the
are returned; third, the five per cent redemption
fund must be made good in greenbacks. all of which
expense must be reimbursed by the banks.
There is one feature of the TreasureTs system
which will have tendency, should it be carried
out to give the Government a monopoly OF the
small note business and cause the banks to Issue
their circulation in the larger denominations only
He proposes charging up to each bank the expense
of Transporting and asserting it's currency, not IN
proportion to the amount of its circulation re-
deemed but in proportion to the number Of its notes
which pass through the agency 1t is held that the
toll imposed upon the misses misters, and mysteries
of the system, in handling thousand one ollar
notes is the same as in handling equal number of
one thousand dollar notes. This, however will be
question to be settled when the redemption of small
notes is reached. Only a part, therefore, of the
notes which come from private individuals and
banks are redeemed. The capacity of the new
agency is so limited that the great amounts of
bank notes which have accumulated in the Govern
ment repositories are lying unit for circulation and
unavailable in their vaults counted by the million
in the currency balance of the debt state
ment, they lie month after month, irredeemable
in Sreenbacks and interchangeable for clean
bank-notes, by reason of the paralysis c. tie new
agency and its sheer inability to separate the issues
has not yet in any degree Injured TO the benefit OF
the Government all its energies have been wasted
in frutlesy endeavorng to take care of notes sent
by outside persons. But, beyond that there is one
fact that would seem to show that its operation has
absolutely been a detrment to the Treasury. Re
memberng that the receipts of bank-notes are
about 100000 month, to a close observer 1T is
evident that more bank-notes have been redeemed
in greenbacks than the redemption fund of the
agency ever contained, allowing even liberal mar
gin for receipts of greenbaeks to make good to the
fund amounts paid out in the redemption of bank
notes. The agency must. therefore, have received
preenbacks from some other source. Can 1t be that
the Treasury furnishes them for such purposef
To mitigate the evils arising from an accumula-
lion of banknotes assistant teasurers and deposito-
res are instructed to assert deposits of notes. and to
nav out such as are fit reservng the unfit for re-
demption whenever 1t becomes possible All OF the
S25OOOOOO of notes already received for redemption
have been in such wretched condition as will ne
cessitate their being sent, under the provisions
of the law. to the Controller of the Currency to be
DESTROYED and replaced with new notes having the
charter number Of the bank printed thereon.