, 1874-05-19
MoNpAy EvENtNa, May 10.

Btato OF WiHooneN una tne Iallroaus eaubea
decline Of per cont In Northwestern and Mil
waukeo 4 st. pau other stooka foil an average
of rcr cent oithor III sympathy or on account
OF tho removed uncertainty OF tho financial logla-
,ntion OF Congress.
THE SENATE CURRENCY D1LL.
We printed yesterday tho toxt in full Of tho
Bonato Finance bill now ponding in the House.
Tho following Ia q summary OF itH oontontB:
Section provides that tic oct Of Jullo9, 1864,
shall DO hereafter known aH the National Bank
net. .....
Sec. q abolialos tho reserve in circulation. and
proyilos that National Banking Associations
aDa1l koop as pnrt OF their rosorvo ono-fourth Of
tho con received by the1n az interest on thelr
socurity bonts.
SEQ. provides TINT National Banks shall keop
;eir rcservo tn tloir own vaults, aud TINT the
Jedomption Of their circulating roses shall oo
mado u their own counters.
SEQ. 4repea1s tho not rolattng to tho rcdissrl-
button Of tho 925 600 00o md abolisos all ressic-
ton on the amount Of notes In ciroulation,-pro-
wiling u substance Tor iren re;,a Dankimg s,ag.
ill times on deposit iu the TroaBury Of the
United States, in legal tondora.. Q sum equal to
per cent Of it's circulation, to bo hold Tor the
redemption Of such circulation
Ecc 6 provides that, upon deposit Of lawful
money Of the United Statos with the TroaBuror
in sums not less than $4,000 security, bonds
is1o,ooO may bo taken up by the Association
eus Tho n oant nt fo Il "n g4na aSP0a' dof 'f'nA
Soc. proyides TINT the oharter number OF
The Association shall DO printed on tie bapk
notes Of each Association.
Sec. B limits the muximuns outstanding NUM-
bor OF United States notoa at my time ut $685.
100000. and provides that Tor evory 81 10U0,00
issued in National Dauk notes $3.50. 600 in Ereon-
backs slnll be retirod; and that the reduction
shnl continue until tho amount Of outstanding
Uuitel States noteB shall bo 1900, 100000.
Sec, provides that OH un1 nfter tho LIST day
Of July, 1875 United States notes to tho amount
Of $1,000, or any multiple Of $1,000, may be ox-
chnuged on demand for IN aaual amount Of
United States coupons or Registered bouds, ro-
1oomablo in coin utter IL yoara. bearing intoroBt
ut AZ per cent, payable In coin.
Sec 10 provides TINT nothing In tie not shall
be construed to authorize nny incrense III tho
Etntcs.
Suoh arc tho provisions Of tho bill in outline.
iIost Of tho friouds Of tho original bill voted
against II; most Of tho lnilationists in tho Sell-
Ate voted for 1t. This would aeem to Indicate
Shat tho senate looked upon 1t
AS IN 1NFLAf1oN MEASURE.
We do not 30 consider it. It provides for free
banking it is truo; but as We hayo insisted all
The while, aud as Mr. Buell., practical banker,
demonstrated before the House Committee OH
Banking, Free Banking docs not mcnn initiation,
Ind will not produce imitation; for tho very sim
Pic reason That it does not pay to open National
eanks at the present time. Nh. DnoM said
Tired as much Us under tho law it could at that
limo rotiro. Even now there is more circulation
boing retired Than thoro arc new bauks to take
It mp: And those who do apply for the retired
circulation aro for the most part speculntors aud
dead beats, who cannot furnish lilo necossary
capital. AA tho lnw Inns ahown hitherto. banks
anxious to rotire their circulation could retire
only two~thirds Of it. The new Finance bill
affords facilities for tho retiring Of circulation
till the atnount Of bank-notes OF any association
outstanding shall 10 reduced to $50, QUO, This
rortuinly
LooFs LIKE CONTRACTION.
The provision which requires all banka to
keep tlleir reserves at home Is also practically
rontractlng measure. When tho roscryes Of
country banks were allowed to DO kept at New
York Or other largo cities. and the banks re-
ceived interest on them, they wore Of course
used, aud thua the volume of tho currency was
Kept expanded beyond tho needs OF business.
AS a check Oh specu1ation niso this provision is
TO be commended.
THE provision nbolishing the reserve on circu-
1ation will in measure co,1ntoract the contract
Ing effect OF that requiring all reserves to bo
kent Ut home. Tho min objection to it,
oas'ro. It us IS precisely 'G asainst t 'iS"1s Sanhs
circulation that . resnrvo is needed.
Wo need say little on this here, however, as the
mischief Of this provision will not bo very ap-
parent until We shall have returned to spocio
Payments. The oct retalus a provision fixing
stereotyped resorvo against deposits. This Ia q
mistake. Eacl bank should be allowed to Judge
for itsolf what tho amount Of its rosorvo against
deposits should bo. To require stereotYel
reserve, and ono fixed arbitrarily, which
continues tho same under all circumstances.
is to totally ignore tho naturo aud
functions Of bank rosorvo. The provision in
Sec; 6 providing for 9 deposit with the United
States Treasurer by each banlsing association OF
q sum Of legal tender equal to & per cent OF its
ejaculation is IN the nature Of additional security
for redemption.
The effoet Of Sec. . ia decidedly contracting
It provides in substance for
FUNDING TIE OhEENDAOKg
in gold bondH bearing interest ut tha rnte of AZ
per cent On tho first day Of July, 1878, indeed
sooner, 50 tho geroenbscks vii! iii consequence
as naneb' as gold. + p Per st cont
bonds are Ut par nov, surely 416 per cent bonds
aro worth 95 cents IN gold AZ the worry lenst,
therefore. tho groonback will DO worth 95 cents
Whom our curroncy las boon enlanced in yaluo
to this extent, 1t Ii very probable that tile country
will demand fnl restoration of apocia pay
monts. There will be in tho banks by that time
@ by by Tue ano wording OF tho socopd section
The authority granted to tho Secretary of tho
Treasury by the ninth section, to issuo tho
United States notes 30 reueiycd to moot
Hhorn Of all power for avl by the tenth section,
Which anactB that nothing In the bill shall DO
construed to authorize au iucreaao OF tho pril-
cipal of the public debt.
Altogether tho bill ia better than wo hoped TO
see passed. It
LOOKS TOWARDS RESUMPTION
Or the bringing Of tho groenbaehs UP in value to
tue gold standard. Il is anything but measure
Of intation. Requiring tho banks to keep part Of
their reserve u gold IL mora onorous OH them than
Il they were allowed to keep it all in 1egal-ten-
der, by the difference botwoen tho value Of the
gold aud groenbacka to the amount Of ouo-fourth
of their interest. It ia not likely, however, TINT
This M fact will initiate With tho bankers ugainat
We have made this examination Of tho bill,
section by section. to show why We differ from
nenator ai sherman and tho original supporters OF
Tue hll. and also from tho ontlro Now York press,
aB TO the real character and effect OF tho meas.
nfo g. ~ M pW vs. staas; The bill docs certunly sot
and that Is moro tl,an can ba sad Of auy othoi
measure that has been pnssel Hlnco 1866. Va
alo convinced that this h!ll would not have
passed it tho inaationsts Ind co,nprehondoJ ite
real character. '''
LATEST. T.,
NEW YonK, May 18.-cuasoms receipts sol1,.
900, ~01''
Treasury disbutsoa s15000O, -
Runr}a oflrnpnd for BhDnlont to.morr,,,