New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-05-02
CTRPENCY CONTRACTION.

Notwithstanding tho sale of Alabama bonds
and the consequent disposition of many National
banks to delay the meditatcd surrender of clrcu-
lation and withdrawal of bonds until the antici-
pated slight decline in the price of bonds had
passed the surrender of circulation during the
month of April has been quite large. Dcpos-
its OF legal tenders fer that purpose during the
month were $3,OO1 500. This has been cX-
ceeded in February and March OF this year,
when the amounts deposited were S3,9S9,O3o
and Sc, 1856, 440 respectively, and very slightly
in three months of last year, but is still much
above the average. TO the extent OF
this surrender the contraction Of cur
rency is permanent and though the lc-
gal tenders thus withdrawn from circula-
ton are manly rcissued at the redemption
Of the notes Of lquidating or surrenderlng
banks, the experience thus far has been that
the amount remaining OH deposit, awaiting
the arrival of notes to he redeemed, steadily
increases. 1t was S3,Sl3,G15 when the act OF
June 30, 1874, was passed. according to the
Controllers report, it was S20,23S,G42 No
yember I. 1873; and dispatches state that at
the close of April, 1876, the amount OF legal
tenders on hand for redemption of bank circu-
lation is SOS, $50 ,4O1. This is therefore, a
contraction of the currency amounting TO
SS,1A3,759 since November |. in addition to
the decrease in number of bank notes and
legal tenders outstanding.
During the month of April, the new circIla-
ton issued to banks has been $2S4.2l5, and
the corresponding retirement OF legal tenders
under the so per cent rule, S227,372, so that
the aggregate of legal tenders now outstanding
is only 1870, 527, SIG. The new circulation
issued to banks, also, is much less than the
circulation redeemed and retired, the amount
of bank-notes deposited with the Treasurer
during the month being S2,2G3, 800, 50 that
the net decrease of bank circulation during
the month has been $1,979, 5S5-frOm $685.
96G.15l April i to 1886, ,5GG, according
TO the kilograms of Saturday. Hence the
total contraction OF currency during April was
50 .944,7 57, as follows Retirement OF legal
tenders. $227,372; reduction of bank circula-
ton, 81, 979,5S5 increase of deposit OF legal
tenders for surrender OF bank circulation'
$737,800.
THIS movement since Nov. /, the date to
which full details of it are given in the annual
report of the Controller of the Currency, has
been so rapid that the decrease OF circulation
within six months has been nearly as great as
il was during the nine months preceding. On
the LIST of November the legal-tender crcula-
ton was 1913, ,224, and it is now $780,
527. $40, so that the contraction OF legal ten
ders has been $2,7OS,34s. On the LIST OF
November the bank circulation was $345,5S6,-
oO2, and it is now 336,9S6,566, so that the
contraction Of bank circulation has been
SIS. 900, 1886. Moreover, as above stated, the
amount of legal tenders on deposit for suiren-
der of circulation has increased $S,l43,1o9
since Nov. /, so that the aggregate con-
traction of currency has been $19,452,443
or very nearly $3,5O0,OOO per month
It will be interesting to observe that the act
of January ID, which was by many intended
to produce imitation, and by others expected
TO cause substitution Of bank notes for legal
tenders has in fact so operated as to cause
greater contraction in the amount OF iega
| tenders In actual use than in the amount oil
bank notes, and there is reason to believe thai
this viii lie its effect in future. The deposit
of legal tenders for redemption OF bank
notes Is constantly increasing tuna