New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-09-04
TREE RINGLNG.

The Gree Banking Bill was expected by
its advocates to be OF incalcuablc benefit TO
the country. and particularly to the Western
and Southern states. Prior to IT'S passage
these States had been continually excited by
dcmagocues with the notion Chat they had
been wronged, and even robbed by Eastern
States in the distribution of bank circulation.
Il was represented that the six NcwEugiand
States, York, New-Jersey, Pennsylvania,
Maryland, Delaware, and the District OF
Columbia, had a bank circulation amounting
to $50 100000, while the vast population
and area outside Of those States extending
from the Poto LAC to the Gulf, and from the
Allegheny Mountains TO the Pacific Ocean,
had a bank circulation of less than $ll9,-
100000. This difference demagogues as
cribcd to the greater influence OF Eastern
States in shaping legislation, and TO the su-
pcrior readiness of Eastern capital to size the
advantages offered by the National Banking
Act.
1t is quite unnecessary now to refer to the
arguments by which this notion was COM
ba;ted. The memorable logic Of events may
be trusted to correct such errors, and perhaps
il NAV even force some Western inhationists
to admit fact or two. Experience is Il harsh
aud costly teacher, but people who will learn
nothing elsewhere generally learn something
IN that school, and it Is within the limits of
possibility that even Gen. Ewing or Mr.. Cary
of Ohio may have obtained some information
from the practical workings of the free bank
ing system. 1t has been in operation quite
long enough to test is quality. Any bank
has been permitted TO surrender It's circula-
non, by depositing legal-tcndcrs for lis
demptOn, and any existing bank, or any new
~ organized bank, has been free to enter into
the enjoyment of the "grinding monopoly"
which, it was said, the Eastern banks pos
sessed, by deposlting the usual proportion of
United States bonds as security. Indeed, as
the Eastern banks had to deposit 6 per cent
bonds at the organization of the system while
new Western banks have been recently en-
abled to organize by depositing AZ or / per
cent bonds, the apparent advantage has been
largely in favor of the new organizations.
Since tho latest annual report of the Con-
troller of the Currency, the Ncw-England banks
only have gained in circulation. The monthly
reports do not give by States the amount sur
rendered in bank notes, but the amount of
circulation retired by previous deposit of
legal-tenders during the ten months has been
only 81, 2,210, while the new circulation
issued to New-England banks has been ST.
OG9, 745. This gain of $1,S77, $50 would
doubtless be somewhat reduced if the bank
notes surrendered were included III the state
ments. The Middle States have lost in circu-
lation. but not largely; the legal-tenders de-
posted and afterwards exchanged for notes
- az
laton amounts to $685. 45. The net re-
suit in all the Eastern and Middle States
is a gain of $94G,000 in circulation exclusive
of notes surrendered But there still remain
on deposit, for retirement of notes when pre-
sented $500, 400 in legal-tenders from New
England banks, and $4,9S7S96 from banks
of the Middle States. Meanwhile the net loss
of banks of the Southern States has been
81, 1873, 800, and of banks of the Western aud
Pacific States missouri incuded), $3,G96,j35,
and the banks of those States have still on de-
post, for redemption Of their notes So FOG, 521.
Since November !, 1876, therefore, the West
ern and Southern States have voluntarily sur
rendered $j,43OO0O in circulation, while the
Eastern and Middle States have gained $780,
600, and the Western and Southern States still
have on deposit tor retirement of circulation
So, 100000 in legal-tenders, while the East
ern and Middle States have 1888, 900.
Since the passage of the act of June 30,
1874 the change has been still greater, but in
the same direction. At the last annual report
preceding that date, the Eastern States had
in circulation $40, l59,9G6. and now have
about SIP, ,279, a gain of $4,000, 900.
H.. cir lat i,t,
from S124,6Os, 139 to about $110,752, 9S1, a
loss of $l3, 500, 900. Meanwhile, the Southern
aud Western States combined have reduced cir
culation from S1ls, s70,139 in 1873. to $685.