, 1876-12-06

reduction nf the lcgat-tcndcrs to the amount In
excess Of $500 100 co., Besides this lie II re-
qntrr'f 10 make adequate preparation mud pro-
es SsG otes a. a ia prescbca ri pelo
81 resumption. II is apparent that the
SILVER COIN MAY ne SUBSTITUTED FOR THE
FRACTIONAL CURRENCY
and the Eoll eoit1 Increased, whle there Is little
lcgal.tcmlers IN excr.a OF The $500, ,000, 600. IL
wilt ba observed that 1t is incumbent on the
Secretary 70 prepare to prortlc for the redenl'-
tton Of al lcEAf.tctidcr notes which may he Pre-.
sciitctl on aud after That date. and TINT the
means at Ills command, 10 this cnd, nro tho
surplus revenues existing at that time not
otherwise appropriated, ati1 tho proceeds Of the
Issue, sale, aud dspasal OF certain descriptions
tent necessary to carry this act Into etleet. This
involves tic necessity of tho accumulation OF
cotn ~ the A1nonnt 1t the actual demand for
redemption Of these notes on that day and any
tine not icss than 100 200 outstanding anil AMI
probably no inconsEderablc amount In excess Of
that sum.
Here, II will be- seen, ia an imperative re-
qutrcnent cf the. Secretary 70 rcdecm In coin,
lng u *0, ,000, ,Q00 anil authority IN prepare nnd
provide for II. lie may sell United Stntcs bonds
to obtain the ncc1ful coin to the extent ncres-
sary to carry this act fully into effect.
THE ACT coNrgMrLArga
the accumulation Of tho nccl[ul amount OF coin
against thet day Of resumption, but, aa tue f'ec-
essary amount on given day Is tlctrslnnato
only ct the option Of the holcrs Of the notes to
be redeemed, the amount 70 10 provided for Is
necessarily UNCERTAIN, anu, as 1t will depend
upon events or condition Of tttugs over which
llo bus little or no CONTROL impossible for him
TO determine. lle is authorized II IN his judg-
ment deemed necessary to carry tho act INTO
tenders outstanding on that day; but tlls, II It
were not morally i,npossIbfc would be 50 incx-
pedtcnt, as financial ncasurc, that tt Is not To
be presumed to have been contemplated By Con-
Still !ac Is expected aud required 10 meet the dc-
mand OF redemption by tho accumulation OF
coin adcQuAtc III amount, At his discretion, with
no ccrtulil Inta for hta Guidance III tho exercise
81 II: What is essential Tor him to know in Of.
der TO the performance Of tho duty Is, wtlat
amount Of notes will certainly bc presented for
redemption on the lst OF January, 1870. As
this Is
CLEARLY NOT ATTA1NAnLE,
ho Ia left to deal with what is probable, deter
lnfnablo upon the condition IL .surll general
ctMecs as will be likely to attend tllat event. It
would not he difficult, In the present stato Of
monetary affairs, TO make probable estimate
Of the amount required II tho redemption wore
blo that accumulation Of an amount Ut con
equal to 1noiety Of tho sum total Of these
notes would be nj ample preparation; hut,
while 1t Is to be hoped tlmt tlc credit Of our
known that In other respects tho situation will
favor such result. 1t Il, l,uwever deemed
probable. In any supposah1e condition of mune-
tary affairs, that, II no imconsilcrablc reduction
anticipation Of thr redemption Of 1871, the
preparation required by accumulation Of coin
for tho demands Of January, 1915 add inn,c-
tllatcly thereafter, n'ust he ut lcaat an cq',ai
proportion Of tho sum total uf the notca out
stanling. As 10 Tho surplus revenues as n
measure Of redemption, such is tho present and
probable future OF these revenues and the de-
'nands upon them Tint II Is not deemed nt all
probable that any considerable sum nut ot,er-
wise aapproprlated could bo devoted to this end.
In this connection. however, It is proper to OBJ
serve that now, for the frat time IN many ycars
owing to
TIE LARGE REDUCTION OF CURRENCY PAY
The sales of gold, 10 oItain tic equivalent cur
rency therefor, arc no longer necessary, anl1
thus q considerable accumulation OF gold inay
be anticipated from tho surplus from the Gus
toms fevelltle.
by tho at Jan. II, 1875, the Limitation upon
tho isauo of Nattonal.Bank notes wns repealed,
aud tho volume OF currency left to be dctermtn-
ctl by The business demands OF the country.
The Secretary Ut tho Treasury was required 10
sum ot NatIonal.Dank notes t!en Issued IN *.
cc6s OF $}00, ,0Q0, 900. This amount of additional
currency issued since tho passage of this act Ia
*1s,050,a55. and legal-tcnder notes to tho
uLlDa1tL u 3l4.4ut1hoa IluSC UGH TGGlrEGs
BY the act Of June -, 1874, National Banks
might withdraw tlloir circulation in Whole or In
part by dcpUsitlng lawful money with the Treas
urcr, and withdraw proportional amount Of
tho hopds; and II .was n,a'lo tho duty of the
Sccrctary to retire lcsaltender mites to tic cx-
tent Of 70 per cent Of tho bank notes thereafter
Issued. Under this act ST., s55a $50 Of legal
tcnsleF notes hare bccn deposited III tic Trcas.
ury, md 6J', y, ,0o Of bunk notes, accordingly,
have been redeemed AMI destroyed.
Tim 1n1nk alf lprnt- rnftpr nttf fat nftnts
NOV. I, 1915, was sa17 ,st5, 71a. The u,no,,nt Il
said notes On dcposlt tor te purpose Of retiring
circulation vas E.0,9l0,040. The amount Of
Natlonal-la lank notes in circulation on that day
,2a4 less, than on Jan. Il, fb13-a total DE-
crease IN circulation, under tic operation OF the
act, Of $43, ,sW7, ~.
From these facts, as wcll as from the large
nccltnuattons OF money at the money centres
md tho luck Ut demand for 1t, It ts apparent
TINT The volume Of currency Ia largely Ia excess
ol tue rcal demands Of Legitimate business, mud
that portion Of tho lcga1.scnlers might bo
gradually Withdrawn without embarrassment to
the business IT tho country.
IN THE INTEREST OF rERMANENT REDEMPTION !,
and rs 1lra1,s Of nhintatnlns the same, II Ii
deemed important also, 4 not quite tnIlspensa-
the National Banks to gradually provilu coln Iii
s,lc ratio as tl,e Secretary 0f tao Treasury may
direct. md to hold thu sainu Us a part of thctr
legal money reserve, 10 that said reserve, tho
1st day of january, 1870, shall be equal In
amount to tho ent|re reserve required by Inv.
To the saae ent, us tac tractional currency Is
Withdrawn, It Is drenletl expedcnt that not ouly
tho VACUUM, vuuscti thereby In tho matter 0f
slanEa should b. nude guod, but that, MS addl-
tiotal change, t1lu volume VI silver 0huuld be
Increased to tho amount of ut least $50 U00, ,00,
and silver nade iegal.tenlcr to the amount Of
$40 III aIl cases, except tic obligations OF tho
Government Of the United statGs anl tho cus-
toms dues.
= SILVER.
PAYMENT or GOVERNMENT OBLIGATIONS IN
cofN.
The report OF the Director Of tho Mint shows
that, notwithstanding tic silver dollar occupied
III law, prior to April l. 1873, the position Of an
/ uh'snItc! legal.tender, gold hus, for many
years past, bctH the money Of payment In tha
country.
! 1t appears that a comparatively ANAL sum In
sllvcr-dol'ar pieces as ever coined, and tlsat II,
At no time, constituted al appreclab!o part oi
tho circulation. Tits was due to tho fact that
silver was more valuable As bullion tlau its
slammed or terat-tEnucr vnlus In TIM fo.,, ~