Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1875-12-17
The Comptroller OF the Currency on
the Greenback Question.


In his annual report the Comptroller says
II has been proposed to withdraw tho
National Bank notes from circulation and
TO authorize an additional issue of $40O,
900, 900 of "greenbscks," the latter to be
interchangeable in sums of fifty dollars
for Treasury notes, bearing interest at the
rate Of 365 per cent. per annum, or one
cent per day on each 500, aud TO repeal
all acts tending TO resumption of pay
ment In specie The greenbacks" re.
ceived by the Treasury in exchange for
the 1855 notes are to be used for the pur-
chase of 6 per cent. SEQ bonds, 10 save
interest to the Government
The non-interest bearing certificates of
deposit now held by the banks, and
amounting to $50,SS0, 900, will at once be
converted into greenbacks," and these,
together with the $3.50, 900 900 of cash re-
serve also held by the different banks and
bankers of the country, will lie speedily
exchanged for !. .65 notes. These latter notes
will be used by every clearing house in the
country for the payment Of balances, and a
large proportion of the circulation will
then consist of the new inconvertible in.
terest- bearing notes, 80 that the whole all.
thorized issue Of these bonds will soon be
in demand If the amount of the interest.
and a reserve of 25 per cent in legal.
tender notes be held in the Treasury, the
amount Of the latter, which may be in.
vested in United States per cent. bonds,
will be $500, 900, 600. This sum will pur.
chase $2500C0 600 of Der cent. bonds,
assuming that the average premium is not
greater than at present 20 per cent. The
amount of interest saved upon the $780,
00O,00 of $50 bonds retired will be $15,.
100000. while the interest paid by the
Government on the 800, ,000, 900 of 3.65
notes outstanding will be $14, 600, 900, the
net saving to the Government being $I01,.
OO0 But through this process the pres.
ent tax on bank circulation, amounting to
S3. $50, 900, will be lost, so that instead of
saving $400, 600 the Government will by
this experiment be actually the loser of
$2,S50,000. If, however, the issue of 3.65
notes shall I've increased TO an amount
equal to that of the legal-tender and Ma
tional Bank notes combined, the loss in
interest 10 the Government would be
somewhat less than before stated, but
equal to at least $3.50, 900. 1t therefore
seems evident that the substitution of the
proposed expedient in place of system
which has been in successful operation
for the last thirteen years will result in
IOSo W AiiC bONtIulltul lublcuO vi u gam.
The National Banks, as has been seen,
are disposed to retire their circulation,
and it is probable that during the next
year very large proportion of it will be
voluntarily surrendered, but if the propo-
sition now under consideration should
be adopted many of the banks would go
into liquidation, and the loans to very
great extent be called in for the purpose
OF distributing their present caDital and
surplus among their stockholders, who
would, without doubt, generally organize
under State systems and as private bankers.
BY this course large proportion of the
State taxes, now amounting to an average
OF about per cent. upon capital, would
be saved to the banks, as result of
conversion of their capital or deposits into
lnterest-bearing notes, which, like other
issues of the Government, would be sub
ject 10 taxation neither by national nor State
authorities