The Eaton Democrat. (Eaton, Ohio) 1875-1903, 1875-12-16
noting final resumption by preparing the country

ity be fven for funding legal tender notes in
than those now authorized Tor r~:funding
able to National banks for deposit to secure their
circulation and other liabilities to the Government,
cause too rapid ABSORPTION of the notes. 1t seems
probable that a Ro 6SGp iD Deafa1 r. interest az tne 1f fs.s Of
amount of legal tender notes to lessen materially the
sum Of gold which d IN ~ the 90 ABB absence nee OF such n P r." !
January, 1879, to carry ont the imperative require
R me = Of t5 the ACT snt q I S3Fpf ar tb H, i isc2; II i to bf fS SP5F an
unlimited amount of notes might lead to too sudden
contraction {, Of II The fnG cgrTTG n n Congress Si1srn sr GO9i ID limit limit
The process being in no sense compulsory as to hold.
on the bonds being made low, it is not probable that
currency which could hnd profitable employment
Only the excess of notes above The needs of business
would seek such conversion. Authority to the Sec
million of legal-tender notes per month by this pro-
cess would greatly facilitate redemption at the, time
now fixed by law, and besides would have the advan-
tage of publicity as to the exact amount to be with
drawn in any, given. month. Bonds issued for tins
purpose should be of the denomination of fifty and
one hundred dollars, and any multiple thereof, in
order to meet the convenience of all classes Of hold
ment now stands pledged to resumption on and after
January J., ls79, aud to the final redemption, and re-
tender notes as fast as they shall be presented for
redemption, according to the provisions of the act
airy, 1879, without further legislation would require
the accumulation Of large amount of gold in the
Of the plan such an amount of gold can be procured
with difficulty, and not without more or less embar-
RAISING effects upon the trade and commerce of our
own and other countries. The present. abundance
and cheanness of both currency and capital presents
a favorable opportunity for the withdrawal and re-
demption of n considerable part of the outstanding
legal-tender notes, thereby making easy and eitectu;
al the redemption now pledged. Such withdrawal
of legal-tender notes, thus dispensing with the ne
S oesfi.y 81 10 " fSe amonnte g% Gid aR rRe 'F somid t tn Gr to
appreciate those remaining outstanding and makei
easier to protect and keep in circulation the silver
coin now authorized to he issued,
The act last referred to is an express recognition of
the duty and oblig alton of the Government to resume
specie payment at the date therein named and how
ever widely different may be the views OF intelligent
gratifying to know that the end sought to be reached
has met the concurrence of the country, and that a
majority Of the people, wherever, the matter has
been publicly and fully discussed, have signifed
their approval of the determination of Congress to
be faithful to its pledges. and to relieve them of the
ills of an i~rredecmable paper currency.
BANKS.
The number of banks organized from the author
ization of the system to November l, 1876. is 2 ,30T, of
last. From their reports of the date last named, it
appears that the aggregate capital of these banks
outstanding, 3is.3O,379 indivual deposits, s66l,-
57g,6lg; loans, $50, 222, 9l specie, including. coin GER
United States certificates of d. posit. Sl25, 26S, 73i:
and on deposit with the United States Treasurer,
The act of June %, 1874, provides for the retirement
of the circulation Of National banks and the snrren-
der of bonds held as security therefor, by the de-
pOsit of legal tender notes in the Treasury for the
amount Of circulation thus retired; and the act Of
circulating notes to National banks subject to the
provisions of law. and the reduction of the legal
tender notes at the rate Of eighty per cent. upon the
amount thus issued to National banks, until the
i Efgdet md on i @S,ss s af these Be t Tsdu sefs si SsG p s GG:eC o.
National bank notes have been issued; S4,T3i,5 500
SIS from January IA to November j, 1865, upon " ich
latter amount S., 1884, J6 Of legal-tender notes have
Banking having been made free by tie act of the
last Congress, without restriction as to the amount
of circulating notes that may be issued to any part
of the country, it is believed that such currency will
distribute itself according to the demands and ne
to national banks being open TO individuals in all
parts of The country, capital will not be slow to es-
tablish additional banks, or to increase the circula-
tion of those already in existence, whenever and
wherever the exigencies of business shall render it
apparent that an increase of circulation is desirable.
But it does not seem probable that such demand will
arise to any considerable extent while the volume of
legal-tender notes Continues SO great as to cause
large sums to lie idle in commercial centers for want
Of safe and profitable Investment no,os donosi.o,
to retire national bank circulation since June 20,
1874, is s31 SO, lg Gncluding S,Sl3,67j deposited by
banks in liquidation previous to the passage of that
act), of which sl7 ,337 ,537 has been paid out for the re-
demption of nationa. bank notes, leaving so, rs, 6l2
thereof on deposit in the treasury on the first day Of
The operation of the acts of June 2, 1874, and Janu-
airy "A, ISIS, may be briefly stated i'll tabular form as
National bank notes outstanding June
National bank notes issued
from June 20, 1871, to jan
National bank notes retired
from June 20, 1874, to Janu-
airy II, 75.-."-."-.."..-.. 2,76I ,232- 1857 ,26S 90
Amount outstanding January II, lsTJ-s3jl, sol, $50 10
National bank notes retired
from January II, ISIS, to
November !, lS75..---.--."- IL, 6l,23
National bank notes issuei
from January Ii, 1915, to
November i, lSI5-.--...-.-- lO,9ob,bI5- 6,2I4,1iS W
Amt outstanding November !, lS75...s3i5,5 s6, 1902 O
Legal-tender notes retired, being 50 per
cent. of circulation issued from jan
uary IA, to october Is, loI5-------."-- S,16J.156 "
Legal-tender notes deposited in the
together with s~3,Sl3,6T5 deposited by
banks in liquidation previous to the
Amount paid out for redemp ions-..... F,S57,557 O
Amount remaining on deposit for re-
demption Of National bank notes,
The C"mptrolIer recommends that no present
change he male in these two acts, SO far as they re-
late to the National banks.
The amount of cash reserve held by the National
banks. including their redemption iund on deposit
with the Treasurer on October ], 1875, the date o
their last report was Slis ;46O,452, which is S25:365,5I;
upon circulation and deposits prior to the passage o
the act OF Jnne 20, lsIi, rePtaiing the provision re-
serve held by New York City banks at the last namet
the amount that would have been required upoI
circulation aud deposits previous to the passage o
that act; from which it is seen that, on nc cunt o
ness and the consequent low rate of interest durint
the past year, the effect OF the act repeating IN
reserve upon circulation can not yet be defnitel.
ascertained.
The report of the Director of the Mint presents il
detail the operations of the mints and assay Offices
The amount of bullion received and operated upol
during the last fiscal year was:
"a, '
Total Sol, 456 $50
Deducting rcdrpusiIs, bars made and issued by on
II sitution and deposited at another, the deposit
were
Gold $500 25 9
Total s5,626, go 4
No. of pieces. Value.
S9id D. ! sss g6 S JS aa1 y y
Minor 1861 iO' Ss'sS
Total 80, I9I, rs ss3,s5i,0
No. of pieces. ya'ue.
Trade-dollars. .--.-..-.-.------. 5,6g7 800 $500, 20
Subsidiary silver coin--......- l7,I25, 7I6 1872 sc
From the close of the fiscal year to October 81. Isl:
the subsidiary silver coinage has amounted to s., S95,
OlO, which. added to the coinage of the year, make
a total subsidiary silver eoinag" of S~S,26T,s7S.
The bars manufactured were
Gold Sl6,Ol9-sIg :
i,uZ',i IN !
81, Oig, $40 :
So much of the act Of January ii, 1876, as relates t
the purchase and coinage of silver for redemption c
/ fractional currency, has been put into partial opera
. ton, and is now being. executed as rapidly as tn
of the act, S,2i3,6I2 ounces Of silver bullion haT
been purchased, at an average price Of III 4-lO cent
per standard ounce. The minis have been put int
: active operation, and the aggregate amount of silye
coin now in the Treasury is Sl0,D 900.
q The Secretary has been urged to beg n the work {
t resumption bN issuing silver, coin in redemption {
E outstanding currency, and il has been insisted thai
under the first section of the act, he has no discre
7 ton, but must issue the silver coin as fast as it ca
2 be turned out from the mints. While the act re
qnireS the coinage to proceed as rapidly as practi
cable, it does not, in terms, require the Secretary I
issue it at once; nor does it fix the period of tim
when the issue must begin. For obvious reasons,
has been, and yet is, impracticable to put or kee
silver coin in circulation. The present depreciatio
of currency below gold precludes the prObabilit
that silver would remain in circulation, and, there
fore, it has been deemed impractcable to issue