, 1874-05-08

Tho Senate Committee on Finance have re-
ported, In the form Of substitute for tho
House FREQ Banking Bill. an entirely new bill to
determine and regulate tho amount OF currency,
bank aud national. The bill tixes the maximum
Of the greenback isaua at the amount now OUT
standing. $3.50, 900, 900. It then nboshes all tho
restrictions upoa the amount Of tho National
Bank note circulation, which Is now ss54, ,000,-
900. It abolishos the requirement that banks
shall keep reRorve equal to rs por cent Of their
circulation. The only reaeryo to be kept is that
basad on deposits. Included In this reserve is
banks as interest on tho bonds deposited by
them as security for their circulation. EBtimat-
ing this interest on tho whole authorized issue
at s25, 900, 900 annually, the bank rcgcryes would
be converted into gold At tho rate OF 38,25o, ,000
per annum. The bill provides that each bank
shall keep On deposit In tho Treasury Of tho
Uuited States, in legal-tender, an amount equal
to per cent Of its circulation and, whom the
notes Of said bank are presented at the Treasury
for redemption, they shall be redeemed from
the banks. All other reserves Of the banka
shall bo kept in their own vaults. and all laws
authorizing them to depoHit such reserve else-
where are repealed.
The most important Of tho new features Of tho
bill is the requirement that, for each additional
million Of dollars OF notes Issued to tho National
Banks, there shall bo retired s6o0,o00 Of Treas
ury-notos; aud that this pro-rata reduction shall
continue until the wholo amount Of TroaBury-
notoa outstanding shnu be reduced to $500, ,00o,-
900. To effect this retirement Of the TREASURY
notos. tito Secretary ia authorized to sell Gov
ernment bonds, the notea received therefor to
be retired ana cancelled. After Jan. !, 1871
groenbacks may be presented for redemption, In
suns Of 81, 600 aud multiplcs thereof, and tho
Secretary Of tho Treasury is authorized to rc~
Doom In gold coin or to issue gold bonds In OK
| change. Tho bonds thus to be oxohnuged arc to
| bo rodeemable at tho pleasure OF tho United
States, ten years after date, In coin, aud are to
bear interest at the rate OF per cent With tue
notes 10 received, the Secretary may purchase
other bonds, or redeem the public dobt or pay
them out for Government expenses. This plan
will keep tho greonbaoks ut the permanent ISSUE
Of $500 000. 900. Nothing in the act, however
is to be construed AZ authorizing An increase q
the public debit
This bill IL an improvement upon all the bill
which have hitherto been considered. It fur
niahes the country with what is considered
| necegsary to meet pub]io exlgoncfes In fre
system Of banking, by which the present mo
nopoly is destroyed. and auy md every body VIII
has tho capital can have banks and bank-note
to any amount. Tho law coutempates an In
crease In the bank circulation OF s164 900 ,o00
which ia just double the amount Of greenback
to be retired, making With tue preaont issue Al
aggregate OF sb1s,ooo,ooo When this olroula
ton las been attained. tho Ireaaury.noses nj
be e80o.0o0.ooo, making together paper our
ronoy Of eole,ooo, ,ooo. Thla will be an inoreasl
Il the hank circulation hs taken, Of eB2, ,ooo, 20