Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-06-30
BANK RESERVES AND MUrIL4TED
6,ITRRE,NfV

DAMN AESE1kLN ~ AND MlHLLAILD
CURRENCY.
The diverse constructions put on the
new Currency bill by Comptroller
Knox, ought TO be sent to the obscure
ty of private life. with Sawyer and
Banfeld. Sunday we published his
view that all bank reserves were abol-
ished except the five per cent. of circu-
latiOn to be deposited in the Federal
Treasury. Since then his views have
taken another turn, in consequence, it
is said, of an interview with Secretary
Bristow. According to the Washing
ton correspondent of the Cincinnati
Commercial the department now views
tie law in exactly The same light that
we presented it to our readers a
week ago. The old per cent. of
reserves on deposits is still required "to
be kept on hand'' by the banks. The
reserves on circulation are abolished,
but an amount of the deposit reserves
equal to five per cent. of circulation
must be kept at the Treasury. Gen.
Spinner becomes the only redeeming
agent for bank notes, away from the
bank that issued them. The difference
of per cent. in the reserve of redemp.
ton city banks, and all others, point
to which we called the attention of the
NelC York Tribune. is also recognized.
We placed IN quotation marks above
the expression ''to be kept on hand"
because its meaning decides whether
the banks are required to keep their de-
post reserves in their own vaults. That
provision requiring the banks to re-
deem their notes over their own coun-
tiers, is plain and simple. But we find
no provision compelling the banks to
call their reserves home from New
York, ETC., unless it be this loose ex-
preston that the reserves are required
''tO be kept on hand" Under the old
law, which allowed three-ffths of the
reserves to go to New York, they were
all said to be kept on hand" The
phraseology Of the old and new law is
identical in this respect. The infer.
-ence is legitimate that the new law
does not require more than two-fifths
of the reserve to be kept in the vaults,
if, indeed, it requires any. The
Senate seems to have taken the
latter view, while the supplemented
House thought the expression "kept
on hand" was equivalent to kept in
their own vaults" which is not the
case according to banking usage or the
construction of the old law. The re-
suit is that, while country banks must
redeem their own notes, they may or
may not call home the reserves. Sound
banking will of course dictate how
much, if not all the reserves should be
called home. For whatever is done in
this respect. We must thank sound
banking and not Congress.
tits expected that the provision re-
quiring Assistant Treasures and Uni
ted States Depositories to forward worn
and mutilated notes for redemption
will have the effect of rapidly retiring
this class Of rags.
Gen. Spinner takes the ground that
private parties are entitled TO the ad-
vantage of this provision. AS the law
requires the banks to pay the expense,
the party sending needn pay express
charges. The notes can be redeemed
by the Treasurer only in sums of one
or more thousand dollars, aEd the fol-
lowing are the rules adopted:
The package must be put up in
boxes or IN wrappers of stout paper or
cloth, tied with strong Irvine, secured by
careful seaiing, and plainly marked on
the outside with the amount aLd nature
of the contents, the full name andpost-
Office address of the consignor, and the
fact that they are forwarded under the
Government contract with the Adams
Express Company, thus:
g. dollars United states notes
under contract with Adams Express |
Company. Treasu. er of the United !
States, Washington, d. G.. From -
Give full name and address,
a letter of advice, written o.a zot !
less than half a sheet Of commercial
note paper, must be put inside the
package, aad : duplicate letter should
be sent by mail to the Treasurer on the
day that the remittance is forwarded,
and the letter should state the pur-
poses Of the remittance.
1t Will make no difference whether
the notes are all Of one bank or as
many different ones as there are bills
in the nacEaues