, 1874-05-08

AA1 oAAA01ANo
over tho proaont amount or @i0s, 900, 600 over
what 1t was bcSoro tho Treasury issued any part
Of the Ho.caod "rosorvo," but tho currency
30 iHe,lod will lnve moro solid baala than Inns
boon provided heretofore, and will como out
only according to demand.
Tho bill ropoa1s souo Of tho n1nny restrictions
upon banks especially In tho matter Of keeping
rosorve on tho circulation. This was wholly
unnecessary restriction, booause tho whole
Banking law roetB upon the assumption that tho
circulation fs amply aeourod by tho deposit of
! bonds. The. requirement that tho banks shal
koop rosorvo oqual in tho larger cities. to 25
per cont, and in tho country towns to Is per
cont, Of thoir deposits. IL rotaincd.
Tho persons and localities which have been
clamorlug for mora currency hsvo now tho op-
portunity to obtain 1t. 4 hundrcda ant nixty-four
millions Of additional bank circulation aro
offered to whoovcr wants it and can
furnish tho security therefor. II tho conn
try really needs moro currency, hero Is
ample opportunity. ANY locality in tho
Unitoa States can aoouro all the currency 1t
noeds; and this privilege will determine tho
IL currency or capital.
| THO bill provides tint, ~ the bank circulation
expands, tho circulation Of Treaaury.noteH shall
contract to tho oxtent Of 30 per cent Of tho bank
| expansion. These notes aro to be exchanged
| or redeemed in & per cent bonda. Tho present
per cont bonds arc so1ling at about par in gold,
at this time. Tho redemption, therefore, will be
at par In gold, and tho elrcot will be- should any
| opportunity Tor redemption DO offered, to ad-
vance tho value Of tho greenbnoks towards par
In gold. In providing further for tho redemp-.
tion Of all greenbaoks, either in gold coin or
gold bonds, after Jan. i, 1877 tho bill furnishes
a simple nnd practical means for resuming
specie payments, Which, ii carried out, will make
| groenbacks absolutely at par with gold.
Tho bill is oommendabe because it proposes
aomothing certain aud dcdnto, and glvca sono
system to our present irresponsible and irregu-
lar practicos and performances In finances. It
will glvo stability to the public credit. We do
not think 1t will have much other effect We
do not anticipate that tho bank circulation author
izod by 1t will bo applied for to any worry groat
extent Except In localitios whore tho banking
business is good outside Of tho privilege Of
issuing circulating notes, 1t will make little
difference. It Is possible that tho capital 40
largely withdrawn during the last few years
from legitimate busness, to DO invested in un-
productive railroads and vast schemes Of spocu-
lation, may gradually be extricated and find
Investment In additional banks. Tho ro-
tirement or redemption OF the greenbaoks,
however, Is dependent On the expansion Of tho
bank-note circulation, and will therefore be
neither sudden nor rapid. But tho great value
Of the passage Of this aot will be tho assurance
1t will give the country that no increase OF tho
legal-tondora ean take place, and that whatoyer
expansion in banking circulation may occur will
be indirectly Offset by corresponding advance
BY the Government in the direction Of specie
payments. This bill has to be dobarod, and has
to pass through the ordoal OF two Houses of
Congress- that aro hostile toit, II We may Judge by
past experience, It 1nay bo disaatrous]y amend.
cd, or it may bo made more perfect; but as ro'
ported 1t Is the boBt measure that haf
yet been submitted to Congress-. II 1t be-
oomea necessary to tack on vitiatins
amendments IN order to secure It's passage
we hnve the assurance Of President Graut thai
he viii veto any measure that ]eopardizeB The
national credit, and so We may rely upon per
nauent check. II Congress- however, sncerel,
wisles to give stability to tho business Of til.
country, and, at the same time, furnish all tht
money which is 1egtimately demanded by tht
requirements Of trado, 1t will promptly pass th'
now Senate bill. Here is a legitimate mcans o.
imitation ii tho country needs more currency
and still constant chock il no moro money il
required. It is q measure Which enables the do
mand to regulate the supply, and provides th'
elasticity" for which wo have heard 10 mucl
c1Rmor OF late.