National Republican. (Washington City (D.C.)) 1872-1888, 1874-05-01
THE oURREygY.

IL THE CURRENCY.
The following % the reply Of Hon. John Js
Knox, the Comptroller Of the Currency, to Hon
Jss- B. Beck, which WAS read IN the House o.
Saturday, In answer 70 charges made BY hin
against the Comptroller on Friday last. It vii
be seen nom the reply that the oomptrolls
proves from the records OF his once that he Ia
not only not attempted % prevent the distribu
tion Of the circulation from thu East to the Wes
and South but that in his annual reports for ls7.
| and 1873 he called the attention Of Congress
specially to the imprseticability Of withdrawing
the 81. 200 900 fron the East under existing law
ana that on the ID Of February last he transmitted
70 Congress bill prepared By himself, providing
tor the prompt redistribution OF this circulation.
Aon. w. w. Phelps, In o speech In the House
on saturday etsr the reading Of the letter OF the
comptroller confirmed its statements, aud added
that tn his opinion the bill was we'll calcul ated q
accomplish the object for which n was drafted.
The letter Of the Cemptrollsr Is, in our opinion,
complete yfndication Of himself against the
charges OF Messrs. Beck, Randall ct a. 10 refer.
eneS 70 esiay n making requisition upon thu
The letter addressed 10 Repressntatiye Beck bv
Oomptroller Knox, of Saturday, and read by M
Ssc. n me HOUSE, commences By saying that his
morning paper, said TO have been made BY Mr.
Beck in the House on Friday, as follows:
cause he was opposed TO the creation OF 30 many
bureaus on which no reliance could be placed
He said they had made Comptroller OF the Cur
rency who had deceived the President and led
him to send false message, misIeading the
House and the country. He had represented TO
the President that 600 900 Of the national bank
dred and thirty-eighr applicants for Il. He had
deceived the President and held the circulation to
save the 81, 900 300 to his friends In the East.
you called upon the Deputy Comptroller on Thurs
day, and regret you did not md IL convenient at
the same time 70 call upon me in the adjoining
satisfied you that my course in reference to the
distribution Of the currency has been In exact
complisncs with law. From the slight acquainr-
ance have with you believe you are incapable
Of doing an intentional injury to any one, and
therefore request. as an act OF justice to myself
you Will cause TO be read in the House the follow
ing extract from my last annual report. showing
the difficulties in the way Of the execution OF the
The Substance Of the extract Is that under the
act OF July II, 1870, the Comptroller Is required
after the 80 600 900 Is taken up, 70 make requIsi
tlon upon the banks Of New York city, Massa-
chusetts, Rhode Island and Connecticut for SIS.
900 goo, and If these acquisitions not complied
with within one year thereafter he Is authorized
to sell the bonds and deposit the legal tenders In
for the return Of the naiionai bank currency to
the Treasury for redemption, and the act Is there
fore imperative, and under It's provisions no con-
siderable amount Of national bank currency would
be returned for dltriburion for eighteen months
after the requistion Is made.
also request you will read the following copy
Of letter addressed to Hon. w. w. Phelps, Of
the Committee on Banking and Currency, trans
mttted TO him on the 81 day OF February last, In
which was inclosed q bill prepared by me for the
national bank circulation from the Eastern States
and distributing the same to the West and South:
TREASURY DEPARTMEST,)
WAsHiSs4os, 5. e., FeSrGsry iS
SIR: In accordance with your verbal request,
inciose herewith copy Of g bill to amend an act
for an Increase Of national bank notes, which was
PREPARED cd At the request q the Hon JShn shsr:
the provisions Of this bIi It viii be necessary to
In excess, IS follows: Maine, $500; YeTmopt
about t755,00o Massachusetts, about e1b T83 900;
Rhode Island, about q sos 900; Connecticut about
ranIa, about o. 400 900. Total t25 90. table
showing the States In excess and tho amount Of
the excess viii be found on page seven Of my last
The amount Of circulation now outstanding OF
national banks which have failed, or have gone
into liquidation under section forty-tvo Of the
the proposed bill you will md that It provides for
the return Of these notes 70 the Treasury for re-
demption. So that the effect Of this Legislation
$50 900 900 for redistributionto the States which
are deficient in their proportion.
Perhaps better title for the bill will be "a BILL
NV VI S<otO0o,oOO " Ia
tional bank currency"
Very respectfully, JOIN ]. KNOX,
Comptroller.
To Hon. ,YiIlians Walter Phelps. Of the Committee
on Banking and Currency, House Of Representa-
tfres, Washington, ID. c.
will thank you, also, to have the bill read for
the Information OF the House, and you will further
oblige me by introducing the BILL in order that It
may be printed and considered.
Very respectfully,
JOHN JAY KNOX, Comptroller.
Hon. James B. Beck, House Of Representatives,
Washington, D. G.
The bill Of the Comptroller requires the na-
uonal banks In the States named IN the letter to
Mr.. Phelps to deposit legal-tender notes in ex-
cess OF 900 OF their circulation with the Treas
urer, and requires the Treasurer, Assistant
Treasurer and repositories Of the United States
to assert the circulation OF these banks and re-
turn 1t TO the Comptroller for destruction, and
authorizes the latter thereupon to surrender TO
the banks the bonds held as security for such cir
culatlon. The circulation Of the notes OF banks
which tailed and ore in liquidation are also 10 be
assorted and returned to the Comptroller ride
struction, and immediately thereupon the
amounts destroyed are to be reissued TO the banks
In the West and South.
Under the act OF July IL, 1870, not one million
Of dollars would be placed at the disposal of the
comptroller for eighteen months after the remain
ing q. 900 900 Is Issued. The comptroller Is conf
dent that within sixty days alter the passage OF
this bill he cad withdraw q sufficient amount OF
from the New England States 10 sup
ply all calls for circulation from the South and
West.