New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-09-28
WASHINGTON.
=, NATIONAL BANK CIRCULATION.

Il
x,T1oNAI, RANK CIRCULATION
- nrc1soN by THE ATToRNEY-GENERAL
&-.-T, pyFFRENCR TO THE CURRENCY ACT OF
,..r On 1s74-THE CONTROLLER OF THE CUR
10y CANNOT USE NOTES REDEEMED BY THE
.srprR TO FILL APPLIC ATOMS FOR NEW
n.yxs RIrr MUST RELY ON THE REoUIsITIoNs
,~nov RANKS IN STATES HAVING AN EXCESS OF
-oc,,1 ,TtON-THR ORDER OF PROCEEDING
ry.pty INDICATED BY THE LAw-lssUEs TO
PREcEDE REDEMPTION
Try rgLRoRAPH TO THE rRIBUNE.l
u-,surNaToN Sept 27.-Attorney-GeDeral Will
,oros has lust rendered an important opinion with
.tarence TO the Currency act of June 90 1874, on
'noston admitted by the Controller OF the Cur
ncv The latter officer gives the present condition
- tbe National bank circulation and states the
,rbahility that a sufficient amount Of the notes Of
hanks which have legaltender notes on deposit with
che Treasurer will be redeemed to supply his Office
Cor year 10 come with circulation for distribution to
h.nLs 20 be organized in the States which are def
lent The substance of his question is whether he
NAV use this currency which he has, or shortly will
have in hand while il lasts and until it shall DO
bansted refrain from making the acquisitions di-
racted by the seventh section of the act for
sbe purpose of filling applications for National
hank notes coming from the States and
Territories having less than their due proportion of
this circulation. The Attorney General, in reply,
refers TO previous letter to the Secretary in which
.be opuon is expressed that for the redistribution
20 the extent of 900 of National bank notes,
as provided for by the act the Controller of the Cur
rency must under this law rely on acquisitions for
the withdrawal and redemption of these notes by
hanks in those States where there is an ex-
cess of such circulation, and and that this Is
his only resource. He reafiirms this opinion and
SAYS that it is apparent, on reading the
fourth section and the last clause of the eighth
ton of the act that Congress had in view an amount
greater OF less Of circulating notes which under
those sections would be redeemed by Banks desiring
10 withdraw their circulation whole or in part,
md by banks going into liquidation voluntarily or
by compulson. 1t may be that it was not contem-
plated that this fund would be considerable as it
already. 1t Is certain there is no reference to it
when Congress comes to make provision for the de-
mands of banking for the deficient States
and Territories But it Is plainly and peremptorily
ordered that acquisitions shall be made for this pur-
pose upon each Of the National banks described in
said section section g. act of July r. $780, and in
the manner therein provided In the 18th section
The of supply is thus clearly pointed out, the
Controller being required to proceed forthwith from
time to time, applications are duly made, to draw
upon it for the needed circulation. No mention of
any other source of supply Is made in the act. In
the 9th section the Controller is required at once, as
applications therefor are made to issue cir
culating notes not to exceed the of 100000,
and it is provided that such circulation
ehall be withdrawn and redeemed as it shall be
necessary TO supply the circulation previously issued
&C. The Attorney General SAYS that in this provso
the order to withdraw and redeem is repealed, but
acquisitions for such withdrawal and redemption
are to be made only at such times and for such
quantities of the currency are necessary to equal
and replace the issues already made and here the act
clearly indicates the order of proceeding AS apph-
cations are duly made for circulating notes, the
banks having filed their bonds and otherwise
complied with the requirements of the law,
the Controller is to issue and deliver the
notes to them. and then is to proceed forthwith
10 make acquisitions upon the banks pointed out
by tue act to withdraw and redeem of their circua
ton so much as necessary to equal the issues pre-
yiously made The Attorney General, in continuing
expresses the belief that this course would result
in greater amount than S354OO0OOO OF
circulating notes. were it not for the sums With
drawn and redeemed under the fourth and eighth
eections of the act. These sums are so largo that
there is little danger of overstepping the limit fixed
by law. 1t may be presumed that this condition OF
the National bank circulation was IN the
mind of Congress when it provided by
this act that issues should procede redemp-
ton. Judge Williams, therefore. reaffirms
the opinion heretofore alluded to. He quotes these
words from the remarks of Senator Sherman, Chair
man of the Senate Finance Committee, who re-
ported the bill: "As banks are organized under
The provisions of this act the Controller having the
list of banks affected by this provision before him.
makes requsition from time to time, and requires
them to surrender their circulating notes IN exact
proportion as he goes on to organize new banks"