The Tipton advertiser. [volume] (Tipton, Cedar Co., Iowa) 1856-1962, 1874-07-02
The New Currency Law.

law. AS this Is the result OF four
months controversy, debate, agitation
and confiict,it is well to see what has
been accomplished.
Perhaps II was something Of feat
for Congress to pass any currency
bill which the President would sane
ton, and it was doubtless desirable
to bring the Republican Congress and
the Executive into accord, ,even If the
progress made, in any direction, was
not apparent to the naked eye, In
this view there may be cause for
graduation over what has been done.
The new law fixes the maximum
amount Of legal tenders at 4382, ,OOO,-
600, or $iS, ,OOO, 900 less than the bill
which was vetoed. Its language Is,
that the amount outstanding t'sh III
not exceed" that sum. Some think
this may empower the Secretary to
reduce the amount, Just as he could
do if no new law had been passed, blu,
the direction that 'ssaid sum shall ap
pear in each monthly statement Of
the public debt, and no part thereof
shall be held or used as reserve .
will probably prevent any such exer-
else Of discretion. Thus the zee, 900,
600 Of legal tender added to the cur
rency last fall becomes permanent
pr. Of the circulating medium.
Reserves for security - bank circl
lation are abolished, except Eve per
crn', to be deposited in the govern
ment treasury. This will make . diff
ference OF ten per cent with count v
banks in redemption cites, Of the
amount Of ava liable means which they
may legally use. In other words, il
viii hbrrate IN the aggregate about
42O,OOO,OU0. Tnis would add nice
plum to the profits of the banks if
there was n call for their money, and
they were disposed to loan it. But
the fact is the banks have rarely ex
hausted the power hitherto possessed,
probably from prudential motives as
to their own well-being. Thus, in
February last the reserves were from
seven to ten per cent more than law
required. Three years ago in March
it was about the same; and q year
ago in February. the actual reserves
were *lO7, SOC, ,2O4, when the law re-
quired only $77,61l, $40. Practically,
then, the abolition OF the reserves is
not likely to have much effect upon
the currency, unless as the result of
redistribution. s
Congress has again conceded the
right of the West and South 10 more
banking facilities, and IN important
feature of the new Jaw is the direction
to the Comptroller Of the Currency
to call in the excess of circulation in
the States having such excess, and to
issue Immediately TO States not hay
ing their legal proportion as rapidly
as the same shall be properly deman-
ded. The amount involved 10 355,-
900, 900. Seine of our contemporaries
argue that this sum is to be called
from the States holding the excess,
whether required elsewhere or not,
but the bill reads as application shall
be only made therefor" so we do no
see where the "contraction" comes in,
which they insist will be the effect Of
this provision. Whether new banks
will help the sections which get them
10 cheaper money, or a greater abun-
dance Of it, is perhaps question.
The Law does not provide for any
expansion of the currency beyond the
present volume, except rs the re-
serves liberated may have that effect.
To this extent it may be SO desig.
mated. 1t does not stipulate that re-
sumption shall take place at any spec
ified period, ss the President in his
famous &memorsndum' was disposed
to insist, nor for free banking, rs his
antagonists on this question desired.
So then we have two concessions by
General Grant to one on the other
side, and though not much has been
taken or given, yet the general effect
of the agreement w,ll be, We are glad
to believe, bene6cisl to the party and
to the country. Gazette.
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