New-York tribune., 1874-04-14

IA
- yyr,r OF THE SENATE BILL EXPLAINED bf
I'm" n.rr.oI,rR KNox-CoNTRAcTIoN INSTEAD OF
n,y.,oS OF THE CURRENCY PROVIDED BY
THE PRESIDENT SATISFIED WITH lib
MEASURE
lBY TELEGRAPH TO THE TRlBUNEI
WASHINGTON. April lS-There has been consider
able excitement among both the leading ilehus au'
chief opponents of the Senate Currency bill to-day
o,o calculations made by Controller Knox in regard
to its operation and communicated by mm In re-
snonse 70 private inquiries TO its real effect upon
tha cnrrencv These calculations show that WIN
the Scott amendment requiring three-quarters Oh
the hank reserves to be kept at home. the Dlu VIII
really cause an immediate contraction upon i's p"'
saae TO an amount nearly equal TO the ipereaSe Vi
hank currency authorized by IT. AZ also appears
that while contraction must take place at once,
tlrough the locking up OF an addlUioha
amount of the reserves. the issue OF new cu'-
tency will be very gradual These caicuia''ons
have surprised both the friends and opponehts oi
imitation. The expanslonists were totally misieo aS
10 the effect of the Scott amendment; anu lts iohus
arc almost eonally surprised as they seem not to
have aimed at producing any such contracuon As
tbe Controller states the the Senate bili' no"
nendino in the House authorizes an increase of the
National bank currency Of $46O0O00O, but requires
one ouarter of the amount of the reserves OF tho
hanks of tLe redemption cities TO be held IN New
York CITY instead of one-half of the amount, as
updor the existing law; and in case OF country
hanks one-quarter instead of three-hfths as uhder
the existing law The bin will largely increase the
amount OF cash reserve 10 be held by banks, as Will
be seen by the following letter to Gen. GARFIELD:
. OFFICE OF THE CONTROLLER OF THE CURRENCf'{
WASHINGTON, April H. 1874.
SIR In accordance with your verbal request lneose
tlo nfnfl lp ALI
reserves held by National banks on Feb 2S' April 20
limo 3 Sept l2 and &C. 1873. Also the amounts 10
be held under Senate hill, now pending IN the HOUSE,
providing for increasing the National bank circulation
TO SoooO0OOO from which 1t Will be seen that under 'he
pending m If it had been in force at those dates an
additional amount OF egaitender reserve would nave
been required 70 be hcld by the banks, as follows
Feb 2s 1878, $3,93o9os april 25, tiS,S77,OOS;
June 1s S4i6965l5; Sept 70, sI4734,7O6; Dec a.
A0s6i S67. Tue amount Of legaEtender reserve
actually held at Natioual banks at each Of these dates
was in excess OF the amount required by law The
amount required be held under the pending Dill IN
excess Of the amount actually held at those dates would
have been as follows: Feb. 2s, t25,05639; April 70,
s05SS03s; June 49, ss2S7s99; Sept 12 f2s9354oS The
amount OF legal tender reserve held BY National BANKS
Dee &C. 1879 was s45l97s7 in excess OF the amount re-
auHed by the existing law and 21s40 In excess OF the
amount which would have been required by the pending
bill had thon in force This large increase IN lhe
cash means Of the banks may be easily eAplIheu Nv
comparing the statements at that date with the state
ents on Sept u previous showing reduction in the
loans Of banks Of $sl, Asa. Very respectfully,
JOHN j. KNOX. Controller.
The Hon j. A. Garfield House of Representatives.
OF the bank statements furnished by the Con-
troller and which accompany the above letter. that
of Sept 12 a few days before the panic, Is as fol
lows:
Legaltender reserve on the basis Of the re-
ports, Of Sept l2, required under existing , ,0
laws-COuutrv banks. SyOS2
NeW-Y5rk city ............-..... 6O.26s7iI
Total .$ll5, sG57
"0Hu % EaH9tpy Hn9 py'n Eaps s5os1l 2l1
Redevptou b0,46S3sl
ewVsTt cty ACKNOWLEDGEMENTS. 6O,26S,74l
Total .... .slGO54s 1853
The difference. being au ddtonal lega-teader
der he senate b lad il been in force s7Sa zoe
Country banks 46slo7o7
EeW.Yiirk civ .................... l6.s64 34l
.SiSi, 1890
The additional aInount OF lawful money re-
serve which would have been required by
fhe Seuate bill II in force sept. II, over Tue
amount actually S2s93s 4OS
Under the Senate bill country banks will be re-
Quired TO keep 10 their vaults average Of about
So 900 Of legal tenders in of the amount
under the existing laws. and the redemption cities
will be required to keep from S17OOOO to S1S0O0
600 more than at present. These calculations have
been submitted to the President and he is convinced
that the bill cannot be regarded measure of in
Hation and has expressed himself quite satisfied
with it.