Lamoille newsdealer. [volume] (Hyde Park, Vt.) 1860-1877, 1874-12-02
The National Treasury.

unlary liquidation. The actual increa
Of national bank circulation, during Il
year, was SO, $40. 297, aud the total CT
culation outstanding, November l, inclu,
+, ing SO, l36,094 due to banks for mutilate
notes destroyed, was 1851, 927, 246, lea,
ing s2,O72,754 yet to be issued of tn
S35t, 200, 900 authorized, Since the pa
sage OF the act Of june 90 1874, 46 nj
tlonal banks have been organized with
capital of S4,0l9.000, to which circula
ton has been issued, Applications hav
been made for the organization of 81 9th
er national banks, with capital of Sll0,
600, and circulation amounting to "a,
5CO,0OO has been assigned to these pro
posed organizations. Legal-tenders to th
amount of s6,714 $50 have been deposit
ed Tor the purpose Of Withdrawing frou
circulation the same amount of uationa
bank notes. The ammount issued TO bank,
since June 20, 1874, is $780, $50, di
vldes as follows: To the District Of Column
bia, $4,000; Virginia. s5l, 800; Yves,
Virginia, $4,000; North Carolina, S5S,.
900; Florida S27 Alabama, S45,-
o0O; Texas, SCI, 500; Kentucky, ST.
l42, 200; Tennessee, $4,000; Ohio,
S223, 30; Indiana, $745, GO; Illinois,
s4O6, 600; Michigan, Sl36, 900; Wis.
colsiD, 1850; Iowa, 2l1, 500; Mime
sofa, Sill, 900; Colorado. sl7.O05, The
amount authorized to be issued by banks
already organized is s3,7O7, 900 and 10 be
issued to proposed organizations, 81, 5O9,.
600, of which Rhode Isaui, Connecticut,
New York and Pennsylvania receive none,
but Ohio receives sl,395, 900, Indiana
1854, 900, Illinois S494, 600, Iowa S3l5,.
900. The amount subject to withdrawal
In states having more than their proper.
tlon oil circulation is: From four banks
In New York city ST 1888, 52S; II banks
in Providence, S2SS, 100; Is banks in
Connecticut, $3,O34,O2O; 3S banks in
Boston, Sl2, S53, $50 20 other banks in
Massachusetts, S3.553,225 /; four banks
in Vermont, $685., 800; II banks in Bal.
tlmorc, S2,ll2, SIC; one bank in Dele.
ware, sos, $50; al banks in PenpsyIya.
MIA, S3,967, 1875; IL banks in New Jer.
sey S9e0,0O
The controller says; IfCongress should
provide for the withdrawal Of egal.tender
notes and issue of national bank notes as
needed in place thereof, when the amount
of lcgal.teuder notes should be reduced to-
say 0,OO0, 900, the legal.tcuder notes
would then be in demand and, in proper
ton as they should be reduced lie amount
the demand for them would increase, till,
finally, when the amount of bank notes is.
sued should be largely in excess of the
smount of legaltender notes outstanding,
the national bank notes would themselves
be Withdrawn at certain seasons of the
year onaccount of the difficulty or expense
of obtaining lawful money with which to
redeem them. The gold coin of the coun.
try would then make its appearance in
answer to the demand for an additional
amount Of lawful money, and specie pay.
nent would follow. Redemption 10 its
proper sense implies the exchange of
promise to pay for the thing promised
namely, coin, Or Its representative which
$ convertible into coin on demand. The
fleet Of such redemption is to coufne
banks OF issue to legitimate business,
which is the discounting of commercial pa
Der. II banks OF issue are obliged to pay
heir circulating notes once in 60 or 90
lays, they must discount such prommisso.
y notes only as will certainly be paid
within that time. lfthc payment of bank
notes be frequently demanded, banks of
ssue cannot safely invest their capital in
'eal estate loans. in doubtful stocks or
bonds, in accommodation notes which re-
luire renewal, or in loans on doubtful se-
'urity, but must have their capital at all
lines invested in loans which will be
promptly paid at maturity. Such con-
liticn indicates healthful business aud
promotes sound banking, aud the reduc-
ION OF the amount of logal-tender notes,
accompanied with such increase of nation.
i bank Lotcs as may be required, will SC.
ure proper system of redemption, rem
Ter free banking practicable, and gradu-
lily restore specie payments without nee.
ssarily decreasing the amount of the cir
ulating medium.
The following amendments to previous
cts are recommended: First an amend ,
neDt to section Of the act Of March 3, /
'roviding that if any shareholder or share .
olders OF banks whose capital stock is I'M t
'aired shall refuse, after three months Q