New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-01-08
SPECIE PAYMENTS.
MIR. sHERMANs BILL TO RESUME.

THE NATIONAL BANKS NOT REQUIRED TO HOLD ANY
RESERVE FOR REDEMPIIoN-AN UNLIMITED Is
SUE OF NATIONAL BANK NOTES THE RESULT
TIE PRESENT MIXED CURRENCY OF LEGAL
TENDERS AND BANK NOTES TO Blk SUPERSEDED
by ONE OF INCONvERTIBLE NOTES
TO the Editor of The Tribune
SIR: In tho course Of the bref debate
in the Senate on Mr. Shermans e1tlaor-
binary bill to provide for tho re-
sumption of specie payments Mr. Sherman
significantly remarked that his bill was not one
either of expansion or contraction; that the busi-
ness of the country must determine the expansion
or contraction that would take place under it, 1T ia
worth while to probe the meaning of this statement
of Mr. Sherman by an examination of bis bill, the
main features of which may thus be summarized:
1. The National banks ere freed absolutely from
all Limitations as TO their issues of circulating notes.
and the existing banks may increase their lssues 10
any amount and now banks may be organized WIN
ont anv restrictions upon their OMISSIONS Oh cTCu-
lating notes
Q. Whenever and as often rs an increase In the
National bank circulation takes place In pursuance
of this act the Secretary of the Treasury Is directed
n retire an amount of egatender notes equal to 30
ner cent of such increase in the circulation OF The
National banks. For example. if there be an addi-
ton of 81 100000 bank notes, the decrease III eGa
tenders will be SS0O0OO.
g. But the Secretary is forbidden to reduce the ag-
gregate of the legal tenders below $3OOOOooOo Inc
excess beyond S3oOOOO00O is $&,OO'OOO.
A. After the lst Of January, A. d. 1872 tile Secre-
tary of the Treasury is required TO redeem III com
the legal-tender notes then outstanding upon their
presentation in sums Of 500 OF moro AZ Vue ONCE VI
the Assistant Treasurer in New-YoTk
5. In order to enable the Secretary TO redeem the
;rn1 he authorized
sell bonds of the United States for com to any
amount necessary to secure the specie needed, and
also use the surplus Of the United States
mot otherwise APPROPRIATED"
These are tho several provisions OF tho third sec
ton of Mr. Shcrman's bill, shorn OF Their tecnnlcai
phrascoogy, and subdividcd for the sake OF conyen-
ieDce and cearness of understanding. 1t appears
from them:
That tho amount of notes which may be emitted
by the National banks is absolutely without limit,
except in so far as restricted tho amount pro-
durable of bearing bonds which the existing
law requires to be deposited with tho United States
Treasurer for security of bank note circulation.
That provision Of Mr.. Sherman's bill which pro-
hibits the Secretary of the Treasury from reducing
the aggregate of legal tenders below S3pOOo0O has
no effect in limiting the circulation OF National
bank notes. It's true and only effect Is to restrain
the Secretary from contracting the egai JceIs 10 Il
greater extent than Ss2.000,OOO. For example sup
pose tho National banks, as permitted by Mr.. Shcr-
mans BILL should increase their circulation from
1854 100000 to S457,OOO,C00. When the aggregate
bank notes are at the latter figure the legaltender
circulation will DO $3OO.o0O000 The condition OF
the currency will then be as follows:
Legaltender notes 100000
National bank notes. 4j7,O00OCO
I,-..i:..o1 o,,.ro,o, Az CO0OCO