New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-10-04

the opinion is expressed that for the rsdis.
ribution to tho extent of $55, 900 900 of ma
tional bank notes, as provided for BY the
act, the Controller of the Currency must,
under this law, rely on requisition fer the
l withdrawal and redemption Of these notes
by banks in those States where there is an
| excess OF such circulation. and that this is
his only resource. He atirms this opinion.
and says that it is apparent, on reading the
! fourth section and the last clause of the
eighth section of the act, that Congress had
! in view an amount greater or less OF cir.
| culating notes which. under those sections,
| might be redeemed by banks desiring to
withdraw their circulation. in whole or in
part. and by banks going into liquidation,
voluntarily or cOmpulsOrily. 1t may be that
| 1t was not contemplated that this fund
would be so considerable as it already is.
Certainly there is no reference to it when
congress comes to make provision for the
demand of banking associations for the de-
hcient States and Territories. but it is
PLAINLY and peremptorily ordered that
acquisitions shall be made for that purpose
upon each OF the national banks described
III tne SAID section six, act Of July IL. 1870.
and IN the manner therein provided. In
the seventh section the source of sunnlv ia
thus clearly pointed out: 1.-THE Controller
being required to proceed forthwith from
time to time. as applications are duly made
to draw upon it for the needed circulation
No HcA1ioA "a any otner source Ot supply
Is made Ia the act. In the ninth section
the Controller is required at once, az appli.
cations therefor are made, to issue circuat. q
ing notes not to exceed the sum of $50 900.
900, ETC.. and it is provided that such circu.
lation'shall be withdrawn and redeemed az
it shall be necessary to supply the circuia.
ton previously issued, etc.
The Attorney General says that in this
proviso the order TO withdraw and redeem
Ia repeated, but acquisitions for such with.
drawal and redemption are to be made only
at such times and for such quantities of the
currency as are necessary to equal and
replace the issues already made. And here
the act clearly indicates the order of pro.
ceeding. AS applications are daily 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 to make
acquisitions on the banks pointed out by
the act. to withdraw and redeem of their
circulation so much as is necessary to equal
the issues previously made. The Attorney
General. in concluding, expresses the belief
that this course would result temporarily
IN greater amount than $354,O0O, 900 Of
withdrawn and redeemed under the fourth
and eighth sections of the act. These sums
are SO largo that there is no 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 precede redemption.
Judge Williams, therefore. reatfirms the
opinion heretofore alluded to. He quotes
from the remarks OF Senator Sherman. Of
the Senate Finance Committee, who re.
ported the bill: las new banks are organ.
lied under the provisions of this act. the
controller. having the list Of banks affected
by this provision before him. makes
requisition from time to time, requiring
them to surrender the circulating notes il,
exact proportion as he goes on to organize
new banks"- Washington correspondent:
Chicago Inter Ocean.