The Cairo bulletin. [volume] (Cairo, Ill.) 1872-1878, 1875-01-06


national banks have hccu organized with !
= capital of St0l0.00o, to which circill-
ton has been issued amounting to- 81
sl2,GM. The amount of circulation still
due TO these banks and 10 other banks
previously organized, /, S2,5oIooo, Ap-
plications have been made for the organ
ilation Of >lNty-foW other national
banks. with capital of S1llO.-
600. and circulation amounting
to Si,jOO,000 Iva, been assigned
to these proposed organizations.
The amount authorized to he issued to
banks already organized under Tho new
law is S3.7OT 900 and to he issued to the
proposed organizations. Sl.500.OoD. OF
which Rhode Island. Connecticut. New
York and Pennsylvania received none.
but Ohio received Sl.395.0OO: Indiana,
1861 900; Illinois. $4,000; Iowa. S3l5.-
600. The other amounts distributed are
smaller. The amounts OF note, out
standing of banks in voluntary liquida-
ton Is y. =, Sl.iji,Gl7. and of iusolycut
banks. y. s., 2.O37, 63S. The amount of
circulation now at the disposal of the Con-
troller. or hereafter to be placed at his
disposal for distribution from different
sources, is rs follows:
The portion of the United state 600. s5ji OUo 600
| Authorized. remaining uni--ucl .. 2o,2,1ij
Notes of banks which have dCuU--
| tied lawful money for the With
dmwaI Of circulation. ................. 81 80
| Note- in circulation Of banks In
bl'-s-0l
Total United sialc.........~ so, g7a, a,9
II Is probable that a sufficient amount
of this circulation will be- redeemed to
supply all applications that may Dc re-
ceiycd for some time 70 come. Tho ag-
grcgatc amount OF circulation at the di,-
posal of the controller for redistribution
among the States in deficit Is ~i7 $50. Ii3.
! The amount Of legal tender notes author
| lied. is $3.50 100000: the amount of nation-
| nj bank notes j. S3ji 100000. The legal
tender notes cannot be reduced, but must
remain in continuou, circulation but
the national bank notes may bc reduced
at the pleasure of the banks. The net Of
June %, 1871. which provide, for the re-
dcmption of national bank notes with lc-
gal tender notes at the treasury, also re-
| duccs the amount of lcoal-tcndcr note.
required for the reserves of the tanks
more than S20,0O0. 600. or about onc-,iNth
of the entire amount 80 required. II also
fixes the amount Of lrgal-,cndcr
notes ut S}S2.O 900, an increase OF S2G.
000.OO0. The demand for legal tender
note, by the bank, being, therefore, I'M
der the operation of that act, largely re-
ducod, while nj the same tmr the supply
j. increased, the exchange Of national
bank notes for new notes at the treasury
is. therefore. chiefly desirable on account
OF their mutilatcd condition, The mn
tional banks have held IN their VAULT.
during the last five years. about one
third of the entire amount OF legal tender
notes issued. while the whole issue Of VA
tional bank notes has been continually ii
circulation. While, therefore. larg,
portion of the legal tender notes had beer
unused or not in active circulation TN,
entire amount of national bank notes la,
been performing The function of currency
These notes have heretofore become Wurr
? out and mutilatcd. 80 that the sub,tiul
ton ofncw notes. therefore, has hccom
necessary.
e There are now in circulation more tia
I 1000 different kinds of notes issued b.
, 22OO national banks, amounting to y. :
S35l ,92I. PIG. and the notes OF each dt
nomination Of all the banks are so ucarl
alike that the process OF asserting an
redemption i, too hurlcnsomc and cN
pensiyc to be- voluntarily undertaken b.
the banks at the commercial center Tn
T. act of June 20, therefore. wisely provide
/. for the renovation of the circulation, tn
. expenses OF transportation aud as-ortin
= to DE mt the expense of the bank. til
chict object of the law was the purifc;
, ton of the circulation rather than it, +,
dcmption in the propcrscn,e of the wore
= Redemption in lis proper sense implic
i the exchange ofa promise to pay for I'll
: thing promised, namely: coin. or II
Il representative, which /, convertible int
coin on demand The effect of such T.,
l. demption is to coniuc banks Of issue to
: legitimate business, which is the discom
Is ting of commercial paper.
f. The bill which recently passed ii
Senate, and j. now before the IlOus
e renders it possible to reduce the yolun
n of the greenback~ from S3S2 100000 I
" 100000, 900, and increase that of the M
tiOnal bank notes from $751; ,OOOOOD
about Sl5i,0OO,0OO, II also provides 4,
tree banking, but fails to prescribe TIA
the Secretary Of the Treasury shall ne