New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-09-30
INTERMITTENT REDEMPTTON.

A brief dispatch from Washington yesterday
mentioned the fact that within week calls
had been made on the National banks by the
Treasurer for over S4,000,0O0 in greenbacks,
with which to reimburse the S1T,OOO,OOO re-
demptiOn fund. "The date of resumption
"of redemption" it was said, VIII
"depend somewhat upon the prOmpti-
"tude with which the banks respond to the
"calls.n Somewhat, we should say. The
appearances are that the Redemption Bureau
will not be able to resume payments in green
backs much before the middle of next month.
After it starts up again there will be danger
of a second suspension unless the public are
careful not to send in too many notes for
redemption, and unless the banks "respond
with promptitude to the calls" But if bank
notes are sent in recklessly, and the banks fit
to impede the machinery by unreasonable
delays in renting, the most we can hope for
will be intermittent redemption. When the
till of the Treasurer is once more full OF
greenbacks payments may be made OF legal
tenders for bank notes for perhaps three
months, but it is evident that either of the
causes we have mentioned may again cause a
suspension. Too much redemption may be
called for, or the banks may fail to respond
promptly to the calls. An enlargement of the
fund would be an effectual remedy for both
these evils.
1t seems to be taken for granted by those
who no longer attach much importance to the
bureau as a regulator Of the currency, that it
will be effective as renOvatOr OF the notes
of the banks. That can hardly be accepted yet
/ az an accomplished fact, A good deal depends
I on the length of time which a note can be
used and still be fit for circulation, or more
definitely, fit to handle. The ten cent piece
of the last issue of fractional currency has
only been in circulation a few months, yet
if five dollar bill be changed at any bakery
or newsstand it will be found that the coun-
tenance of the late Mr.. Meredith in many
cases shows marks Of violence, and his torn
coat and dirty shirt-front give indubitable
signs of an unsuccessful struggle with the I'M
washed. The five dollar note of National
bank, besides being considerably larger than
the patch of paper occupied and presided over
by the departed statesman of Pennsylvania,
does not circulate 80 much among newsboys
and shoebacks, but still it will wear out in
time. Well made cowbide boots will last
a laboring man from three to six months. Let
us take, as the extreme limit of time during
which a bank note will present a respectable
appearance at two years. This is to give it
the life of five or six pair of boots, and a
capacity of endurance equal to that of the
coarsest and strongest articles of clothing. If
we measure the capacity of the redemption
bureau to keep the bank note currency clean
by this test we must pronounce the scheme a
failure. At 100000 a day it will take three
and a half years to replace S350,000,000 old
bank notes with new ones. But after one humid
red millions of new notes have been put out
it is certain that every package of notes sent
to the bureau will contain q considerable per-
centage of money which is still fit for circula-
ton. Hence it follows that if two years is the
average length of time during which a bank
note continues fit for circulation, to keep tho
whole circulation in presentable condition will
require rate of redemption equal to the
exchange VI TIA wLala issua aaGa q year,