, 1876-01-27

roin. was Gns the sair1nisher Of
Institution o se W.. @ VA H. rnat aa
Of which tic untiun wAs proud. The peope did not
want to see ta honor q tue nation. AMI school Of Tho
~Cre in thla bill.
Without action on the lii tho Committee roso aud
tie House adjourned.
6uRCHARD'S BILL.
i1AE1so THE pANEH HOARD srECtR-rnE NEr1rA-
D1E CONSEQUENCE THEnEpr.
6pteial Correspondsne* of The Chcuqo Tr,bsx,
WAsn1So7os. b. c., Jau. o3.-rho Hon. II. G.
Bnrchard, Of Illinois, l,as adlod to tho multi
tudinous legislation proposed for specie pay-
ments bill to compel tic Sationsl Banks to
hoard thu gold interest on thcir bunls until they
have 20 per cent Of thoir circulation ou hand in
gold. Tho title OF Mr.. Burchasd's measure is
"a bill to roQuiro National uankiog Associa-
tions to prepare for Bpecio payment" and it,
text ia ~ folloaa:
lie s1aetei b. TIE Stnof an. Hp.fs* ~ cnres.ntl-
t1rss q TIE Unsti S1&.s n lreysta .on4re41 a3a-
tiun shall b. required 10 rrs.n In rnn, r cotn-tera-
Gates ~ legal seseero ior TIM redemption ol Its cir.
10 such hankingas~ne!stion npon ts bnads Icp1ii4l
with tbs Treasurer of The uni Htat se.ufity for
It's circulation, until such NEUTRALITY-SUSPICIOUS. .h.l
Lave accn1ulstcd coin-tcasrSe fur tho redemption Of
IT. circulation eqna! to ~ per csutuln theteuf.
The broyity Of this bill ia Its cllict merit. Its
very title shows that its author miscooceyes tho
nature OF tho problem before him. and tho
proper part tho Government ilas 10 play in TIA
solution. Hs proposes that tho National Gov
ornmont require tho National Banks To prepare
for specie payin,nts. Tic Sntioua[ hanks arc
voluntary associations of capitalists for tho
business OF banking Taey cannot bo I'd
Quired BY tho Nationa! Government to do
that which It ia not thuir interest
to do. The momoot aay such IT.
tempt weto made, thcy woull withdraw from tho
Nationht~ I3an1ing RyBtem. Deierring for tho
moment tho consideration OF tie logical dcrccts
OF Mr. Buycharls plan, it ik esileat that us
prncsicablitY dc2o.,is cntrcly upon tts parallol-
lsn with the iut6r8 3sR Of the National, BanAs
The toretnEnat could not arhiore even tic fruit
io:sauccesa Of ITO man WHO took hin horse to tho
wnter bat couldn't ,uake him drink. Tho bsuks
ca'lnot bo ulado to 10 d step beyond tho limo
Which, it, thoir optuion, marks tllb boundary be-
t~ccu profit aud loss. Tue bill ostore I'D would
add another tax to tue burdens winch arc
tiouai Eanks. Tho Na.,unal Banks paid
in 1875 al aggregate Ut 37,au5. 134 Of
taxes to tho National uovernsnont, ihe protocols
OF per cent thoir circulation, ulje-ha!f Of
per cont OH their desrosits, and olu-hAlt OF
per cent Oh thsir captai stock mot Invested in
Uuitsd States houta. In consequence Of tho
publicity required bJ the National Banking law,
they arc mors eoarcainelv taxed than otter cor
porationB by tho varlous States, tin expc,ags Of
tho Redemption Agency fall oa them. anil they
are Subjected TO expensive peuattes If stray
depnstoE forEets to put 2-ccnt stai1p on h,a
check. or 1t tho Government. tnucltagu is 90 thiu
that tue stamrs fatl off. One bank in this city
paid sl.230 in eueh pcnalAea last year. Tho
profits Of tho henks arc not what thoy aro ropn-
larly supposed to be. Tho iast report Of tho
Comptroller Of tho Cartsncy slIowa that tin
rntiu Of dlvidands to capital and surplus last
yoar was 7Bl pcr cout t-ssa than ! ror ccnt, aud
iasa than ii regarded IT, fatr profit u ordinary
butincae. The fots to tho Natsonst uanIs BY
ooing compelled % hoard their gold woul.l b.
first, tho l0s. OF It's premium; eacoIL. tho in-
tcrcss on tAis sum; and third. tho interest on
tho anount lloarIeI,- for by ttle terms OF tue
bill, this suu il legal reseryo for tho rsloup-
rion OF tho circulation, It would bo nisil-
tloual 70 tho reseryes required by tho preA-
ont law. aud would ditniulsh 6y just 10
,uuch tie asaiiabtu RESOURCES Ut the banks.
Tho bonds .on deposit with tho tini.cti states
Tsoas'lry by tho National l}aoks. s,''. |, ls7j,
amounted 10 s3Ci, 7i9,ll!. IAk1ug slu average
tnsoreuk On these bonia at ro4' cout, tile
ntuuuut Nr. lnrcnasdts bill would ressu,re then
To hoard would DO about $ts.:in, ,00u a year In
gold. rho premium OIL this would, a. tho p1cs-
ont ratio OF 1l3, amount to sS!!37aa. 500 yoAr;
aud how nucl, tho premium wonld 10 Eun u, by
tho Wall Street Bpecutators wtibn this 4l5, III,
ooo ycaE was takeu out Of tho supply can 10
told only By experience. The iosa of intvrcet on
tue sso, III 5o9 currency vsIuo Of the god-bona
intoroat would ts!'reaent moro tlinn half
! tho annual earnings u tho pauks. cou.-
| paIling them 70 paas hall thcir dividends fur
seVe!hl Years. lhe c!tSll4tlon " klo nat!nfl
would 10 sc9, Iii, ,osO Tho loss % this On tho
gold premium. a. -. would be sH9,5ooo 1
ftar 51t. Durehsrl would hayo = hard time In
compelling ths National nAnka to submit to such
Il loaa: lave Iefntn nu = copy OF i petition
| Bignod by the leading bankors OF Sew York and
predented to Congress. 1t prays for tbs Abo-
tAe e1pousos Of the i:et'slurton Agency Ls mt
out OF the receipts from the ta1 Gu circulation.
THIS petitlon il put up because thu ba,.ks ttnl
| themselves hard p1ea4ca by ta1asou, lud sherc
tempted to require slem to submit to what
| would be equivalent to nogs than doab'o ta1a.
ton. thoy wouil n!th'iraw lhas notas sna Bue-
render thoir elsrters.
would bo that Tie b.nKs would su,doaly ro,lre
tt1elr circulation; largo quantities Of United
States bonus would DO thrown OIL sAo market;
| !heto would be somethlns sosy l1fe panis 10
bank stocks Tho EoAtENut1on Ut I2Ek circulation
would dorrye business ot tho curssaey Il neoi-
ed for Ii operations; anl tl,e cIaor OF 4:.nure
greuubacks" would DO irresistible. Eegarllosa Ut
dtptec4asiou: itosanps'ou WOULD w. be BETRAYED ~
! uuch ulcRsuleu II, that tlpy attempt to luducu
tbs hauks to do By eotrcio" that which Is
aga!nss their Interest, aud which would ILL.,
llsct Of, tAou, hvAyy !oss il Soupllod With.
would bo followed by Widespread soyoit among
tho hatfmilAou 1T stockholders aud millious Of
I Lupopltors. Hai&ucos would be druWn down. do
pos:ts checked cut, pauis set it, Aul Whirlpool
| would bo put III Motlon Whoaa suction would at
fsct att intesests. Even under t4o pscse,it sy.-
tcn tho banks feel that they cannot be couseria-
ttya without leas, The Goyotn.ncut taxed them
Oh thcir idle deposits, 10 tia. tile constant
tenpsation Is upon theM to loan On bad security
| sud raoEledsiy; tho States tRx then On tho whole
csrital aud aoass Stasea on lllol1 deposits, which
they ascuuaulass for the protection OF tho bust.
| usss community. They haye to put up excessive
kHEuf1tV for THAR rirenlA Ana ill
these .no ea.ot.asut OF Durchard's bili. spI
the withdrawal FROM tic Natiunal UsukipK syusena
| which &usny OF tham s1a now tlscu4a.D8