New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-02-07
THE FINANCIAL QUESTION.

SECRETARY RICHARDsOE's vIRws-TIE LEGALITY
or Tng ISSUE OF THE $44,OOQ,0OO RESERVE
sENAToR sHERMAN's FINANCIAL MEASURES
IyRoH THE REGULAR CORRESPONDENT OF THE TRIBUNE |
WASHINGTON. Feb. 6-Tbe financial question and
Che probable OF possible action of Congress bearing
Oh IT continues to be one of prominent interest IN
both Houses Bankers, brokers, and moneyed-men
Of sections Of the country have agents here
60 inquire and report from time to time as TO the
chances of imitation or financial legislation Of any
kind and members of Congress are themselves
making a canvass of the various committees and
members for the purpose of forecasting the result
Secretary Richardson said to-day that he had no
doubt that there is eleag majority IN Congress in
favor Of making the S44 600 90 OF Boealled reserve
a part of the permanent circulating money OF the
country but further than that he thought there
would be a majority in either House against any
huanoial scheme that might be proposed As for
himself lac is opposed to imitation in any form. He
SAYS that the law of June go 1854 expressly declares
that the total amount of United States notes
issued or 20 be issued shall not exceed $400O000OO
and such additional sum- not exceeding $4,000, OOO,
az NAV he temporarily required for the redemption
Of the temporary loan"
The temporary loan having been redeemed, the
maximum amount Of United States notes which,
under existing laws, now or hereafter be issued
n $4O00O4O00. The Secretary, therefore, thinks
that TO exceed that amount would be 10
violate the good faith of the Government. Between
August 1865, and February 1868, he says there was
gradual contraction Of the amount of money in &C.
tual circulation. limited by the act of February,
lSt6, TO not more than $l0,0OOOQo within the then
noxt sax months, and, therefore, not more than
100000 IN any one month. IN February, 1868,
Congress suspended further reduction, and $356OO0-
GO remained, as he understands il, as
tie minimum limit of issue. The Secre-
tsry Is, however in favor of having
Congess decide with reference TO the legality Of the
issue Of the S440O00OO which was recalled 80 that
there may be no further conflict Of opinion. But
The Secretary as has already been said s strongly
opposed 10 imitation, and believes that if the cur
Iency of the country could be brought to a specie
bssis IT would increase the public confidence in the
Government He has faith in a reserve and would
favor the proposition Of Congress 10 declare the
S44VOOCC reserve "a be issued temporarily when
The ordinary demands upon the Treasury shall re-
qure IT, OF for the redemption of fractional currency
the amount 80 issued 20 be returned TO the
whenever IT is desirable.
senator sherman, like Secretary Richardson
believes that there will be a majority against any
financial proposition that will be introduced in
Congress HIS bill. reported on Tuesday. providing
for a redistribution Of National hank cir.
culatiOn will, If passed, require with
dfawal Of $4,000 600 Of bank circulation from STAT
having an excess of bank currency which sum viii
be distributed among those deficient upon the basi,
Of population and wealth, as ascertaned by tn
census of 1870. This viii be taken from the fol
lowing named States, and the amount to b.
furnished by each State az sscertained from tb
Controller Of the Currency is as follows: