New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-12-05
THE BANKS AND FOUR PER CENTS.
SIR. KNox's SUGGESTIONS AS TO TAKING -FOUR PE
CENTS TO SECURE CIRCULAriOE-A GREAT AID
VANTAGE TO BANKS AND GOVERNMENT.
LEY TELEGRAPH 10 TME TRIBUNE.

lBY TELEGRAPH 10 THE rRIBUSEl
WAsHINGTON. Dec. 4 John Jay Knox,
Controller the Currency gives, In his annual report
the following interesting and very important facts IN re-
card to the effect OF % law authorizing per cent
bonds to be deposited in the Treasury b. the National
Banks as security for circulation:
The amount ~ bonds pledged By the National Banks as
security Tor tleir crcualns notes j. s3f5Oi@,JUu IE'
cudiug s. 5OOJis,ued 10 Pacific Railroads; 500
0JO.5J0 of per cants S4j0sJ,5oO Of liz per ntl :
iiat portion q thess securities 9}ea5aj i 1r
Tie latest issues OF United states bonds bearing inter
- f~r inns sorr would be thereby reduced - 500.
1914 so The jaX uIOu circulation paid to the Govern
90 ce- 16i 5o loss than The loss OF income 10 the banks
In the bonds ned security Tor circulation we've al eN
Ct-'u i'' Ifori1c 10 be deposited rs security
FOR circulation free from tax, aud snch b0n's shouu oe
f ,',i ,.1iI t;ls be- reduced s9GJI9i 80
Tie Government would, however, be lars, y the
gamer FOR purchase by the bank ~ f321 ooltJO 0
4 ner cents would place the Treasury III funds with
cents which have now matured The Government would
mus save 10000 annuity Interest while 10 Won
os the present tax FOR circulation IT, 900 OOO leaving
/ "a net annual gain 40 the Government OF rJ,bfOW51'
The Government has now outstanding more than 5000
600 900 OF q per cent bonds, which to be retired
before the per cents be called in When the per
cents shall lave been retired, the banks may s ho.d
thc 81 per cents. OF which than &100OoOOuO are
outstanding II the perccu held by them should
Dee exchanged for D., the income TO the banks wound
then bc - olJ,OOO $4,000 more than the amount
/ Of taxes upon circulation during the present year
When Che bluGB shall fcc me OWurrs or roObooOOuO
% Ae per cents, DO may be- fairly presumed that the
borrowing power ui The Government VIII De liked al not
above Chat rate, that the funding or the remaining
or q per cent bonds of the Government vii Doc pro-
/ NOTED and hts,ened IL l. also TO be presumed
| tnal, unoef Tue stimulus OF renewed prosper
I ly lh uadc ana commerce, and the gradual re-
I cacH'h ~ the grcenh.cks. an additional amount
OF Oauk currency VIII be issued, which Will FUR
us renewed demands from the banks FOR the per cent
issues IL BE- not probable that during the next years
the government debt viii all Ice reduced 10 Of in
tcrc7t below per cent; aud &c In clearly the interest
ol NE Governments until this can be accomplished 10 re-
ceye e pei cents from the banks any upon
/ Circulation.
OF the denominations Of National Bank rates the
Controller has the following 10 Say: "Of the entire
amount of eRaitender and National Bank notes oustand-
iug than per cent o, tie denominations OF
and 2s nearly - per cent S.; - Del cent OF los
and per cent Of Dos OK these entIe issues less than
- per in amount Of the denomination OF $50
and upward"
The following statistics Of National Bank failures sire
interesting From the date OF establishment OF the
National Banking system to June l. 1877 fifty banks
have failed with aggregate capital of SIO SIS 100.
The amount OF creditors claims proved Is Sl7 $50 ssh,
and that " dividends paid SlOO29 O4j. The total
loss To creditors estimated at S5,J2JOOO. There has
been no loss whatever upon circulation
Tine sysfem Of making returns from State banks Is very
defective NJ Knox says: Complete returns OF State
hanks have been received from only
OF savings banks from but and OF trust and loan
coplnes only states. The Legislature Of Missouri
has recently passed requiring all Daas IN the STATE
Z, make reports IA the month ~ December There are
ten states and eight Territories IN which reports