New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-09-15
WASHINGTON.
THE REDEMPTION OF NATIONAL BANK
NOTES

A CIRCULAR ISSUED REQUESTING NATIONAL BANKS
TO MAKE AN ADDITIONAL DEPOSIT OF FIVE PEh
CENT-rIIs STEP NECESSARY IN ORDER TO Phh-
VENT AN INTERRUPTION IN THE WORK OF RE-
CHAMPIONSHIPS DIFFICULTIES ENCOUNTERED iN
CARRYING OUT THE SYSTEM AS ORGANIZED
WASHINGTON, Sept. 14.-The Treasurer Oh
the United States has issued a circular reques'ns
National banks to make an additional deposit Of five per
cent for the redemption OF their circulation, WIN "
strucons United States notes mav De sent "
the Treasurer the contract Of the Treasury De
partment with Adams Express Company, and under
the same regulations prescribed for the forward
ing of notes and currency of the United States for re-
demption The expenses Of the transportation VIII W
paid by the Department which VIII be remDurseu 'noe
for II any Bank shall prefer. it may forward tue re-
qured amount by its draft on New-York, BOSTON, or
Philadelphia drawn to the order OF the Treasurer OF the
United States, and payable In United STATES
notes Acknowledgment Will be made to each
bank for its deposit when completed, by remittance
1t Of certificate in proper form. United states
notes unfit for circulation will be accepted in payment
Of the additional five per cent deposit As rapidly as tue
notes OF banks making the additional deposit snail DC
assorted their amount will be charged against the de-
post and the banks informed. Compliance with TINS
request is optional with the national banks, but IL Is
hoped that prompt and general response Will be make
to IT, IL is with great reluctance that TINS course mas
been decided upOn aud strenuous exetions have oeeh
made prevent 1t from becoming necessary but IL no"
seems impossible to prevent an interruption In tne
redemption National bank notes unless further deposit
of United States notes shall be made tThe following arc
instructions for forwarding United States notes.
Remittances by express must be addressed to the
Treasurer OF the United States Washington d. O. Inc
stout paper CLOTH tied with strong twine secured by
carefully sealing. and plainly marked on the outside
and postoce address OF the consigner ana the acl
that they forwarded under the Government con-
~ To-. rofnna
$-Us nOte, Under cOntrsc. With Adams Express Company
Treasurer Of the United states. Washington D. C. From - b''i'
letter OF advice written on not less than half sheet
OF commercial note paper must be put inside the PACK
age and duplicate letter should be sent by mail 10 the
Treasurer the day the remittance Is forwarded The
letter should state the purpose OF the remittance ana
contain also statement Of the amoant Of circulation Of
the bank. The same statement should accompany the
remittance made by draft The Government contract
with Adams Express Company extends to and includes
ali points within the United States accessible through
established lines reached by continuous railway
connection, but does not extend westward beyond
Omaha and Nebraska City In Nebraska, and Atchison
and Leavenworh in Kansas, nor include the nnes OF
Wells Fargo Co. in Missouri and Iowa. The contract
covers the lines of the following express companies:
Adams, American Merchants Union. Central, Earle,
Eastern, Harnden, Hope, Howard, National, New-Jer-
sey Southern Union United States, and United States
and Canada.
Aside from the reason stated the Treasurers crcu
lar calling pom National banks for additional deposit
legal tenders to enable him to continue the redemp
ton Of their notes. the following reasons given in
expapation of the Tresurers actlon The OF June
%. 1874 establishing new Redemption Agency, went
utc effect Immediately upon Its passage and before any
arrangement could be made for their redemption the
bank notes began to accumulate In large quantities at
the Treasurers Office 1t therefore became necessary
to direct all the effort at first toward counting and
making payment for the notes, leaving the assortment
to be provided for aferward Some weeks elapsed be-
fore the assortingroom could be placed in working
order and by that time the Redemption fund had been
so seriously impaired that 1t was impossible
to regain lost ground. Ten or Twelve
millions Of the original deposit OF f75OOOo0
were paid out before real progress was made with
the assortment. There difficulties inherent In any
system OF redemption OF National bank notes. when
render the assortment work of greater difficulty than
the asserting under the old State banking system
had to contend with In the first place, the number OF
banks il three four times greater than those with
which the old asserting houses had to DEAL and the d
Guilty of assortment increases in much greater ratio
Than the number Of banks. The great similarity be-
tween ali the bank OF the denomination, and
especially between those of banks Of the same name in
different States renders great caution necessary at
every stage OF the counting and assortment. Added
to this is the necessity OF keeping exact account
with each bank and OF making frequent
calls upon them to reimburse the Treasurer
for their redeemed notes, all Of which requires large
amount Of clerical labor The asserting branch Of the
Redemption Agency is now in good working order and
improving daily, and it hoped that with the help OF
the deposits made in response TO the Treasurers crcu
lar the work may be brought up that hereafter the
Agency will be able to turn the original deposit OF
per cent The Agency has been conducted with great
energy and Its failure to keep up with the work has
been due to the large amount Of work thrown upon 1t
before 1t had had time to make proper arrangements
for its transaction.