, 1874-11-28

anl tho amount to bo Withdrawn, Us before
stated, is lc.27Y. .5a9 Total s47.35o.74a.
EFFECT Or TIE WITHDRAWAL or LEGAL. TENDERS.
Tho Comptroller aays II Congress should
provide for tho Withdrawal Of legal tsuder uutcs,
and the lssuo Of Nntional HA,k-notes as ueaed
in placo thereof Wien tho amount OF legal to,l-
dor notes should bo reduced to. Hwy vau, ,o10, QUO.
lilo legal tender nuica wonld then bu n demand,
and, IN proportion as they should bo REDUCED in
amount, Tho. demand for them would
increase. until finally when tho amount Of
Dank-uo.ea Issued ahonla be lussoly in
excoas Of the. amount Of legal tcndar notes,
outstanding. tho National Dau! uo!cs would
thc,nhelyeB bo withdrawn at cetain ecnso,,s OF
tho year. on account Of tho difficulty OF oxpcuee
Of obtai. ing lawful money With "h!ch to redeem
them. Tho gold coin Of tIe country would taeu
an additional amount Of lawful tnones, and
spocio payment would follow. Redemption III
its proper eonse implies tho exchange Of PROM
iso to pay for the thing proulsed, nanloly: coin,
or ltH Representative. which IN convertible into
coin on demand Tho feet of such redemption
is to conlne banks al issue to legitimate
business. which is thu dlacounling Of com1no1c 1cial
paper. II bankB OF 1ssua are obI1Ecd to pay
their circulating notes once in sixtY or ninety
DAYS, thoY nliht discount sucll pro,,ssofy nosoH
only as will certainly DO pald within that time.
II tia Payment Of banh-notes be frequently de-
mandod, banks OF issue cannot Bafoly invest thelr
cnptal III rcst-eHtato lpanB III doubtful ntochh or
bonds. III accomulodaton-noteH which require
renewal, or in loans on doubtful security, but
must have their capital ut al tilnoa in
yested IN loans ThicL will bo promptly
paid at maturity. Such a condition indi-
cates Lealthfui business, aud promotes
sound banking; aad the reduction Of tho
amount Of lcgal-to''dcr notes, accompanied With
such increase OF Nationnl Bank, ,noteH aa may be
required Will secure proper systetn Of redomp-
ton, render free banking practicable, aud grnd-
uny restore specie payments without teIossn1j
ly decreasing tho amount Of the circulating NC
du1n.
AMENDMENTS RECOMMENDED.
The following amendments to preYlonY acts
Aro recommended
Firs!-Au amendment to Soc. Of the act OF
March 8, 1878, providing tlat 1t any shareholder
| or shareholders Of banks wboso capital htock III
impaired shall refuse. after three mouths no.
section, sufficient amount Of the capital stock
| OF such delinquent shareholder or shareholders
| may bo H0ld to nuke good the deficiency.
| Stcond--An amendment Of Sec. 80, Of tho Nh
sional Dnnk act, extending tho limit Of tho la-
billtles Of auy association, person. company or
| firm, for money borrowed, from 10 per cont ot
oapiia paid IN to Ii per cent Of capital aud sur
p!us for banks located in redemption clties, anl
ono-tsnth of capital and surplus for other banks
INi,a-A1bo prohibiting tho deposit Of mora
! than 10 per cont OF tho capital OF National
| Dauk with any private bapker OF any person or
association, olhor than q National banking A.
Hociation.
blo to make good .1lydetloonuy which may here
after a1lRe In any special deposs with such bank.
unlo "a receipt shall be produced by tho owner
Of such depoait in which tho liability Of tho
| bnnk shall be distinctly statod.
Fyul-Tho repoal OF tue 2~cent stamp-tax, g.
checks, or receipts, in place, Of ehccks drsw.l
upon any bank or banker shall b subject to =
stamr-tax, with penalty OF $2o for each viola.
tion thereof.
The Comptroller renens tho recommendations
contained in his last two reports for tho paasage
Of an net to prevent thu iaAuo and circulation ot
unauthorized currency, and requiring tho rordu
"countetfet," "a!ttred," "lalegal" to ba
stamped On all counterfeit Of unauthorized IT,