New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-12-04
THE TREASURY.
Continued from Third Pare.


thb aud dow n currency caused by varying crops pro-
auctions and seasons 10 IS Indispensable that power
tnould somewhere 20 Issue and loan eresIn3ney
ti,n can he performed better by nora ms lh ny O5
Coycmmcnt Toe Government cln'ot io"l n'i, 1, -
~ bills 0i eXchauc,. o. MAKE advances on 'r,,5o,
The Secretary ventures 90 eA.r,a' VIC oi"n n
tat Tie boot c5ueney ior ,ae li,I,i,J s5nonnt
81 United states notes. promptly rt-.' , -, W.
presentation. IN coin ana supp py AMI t
organ zcd under general laws free aud open to All win
nfs deposited with the GoyeHmoui, and redccm.hie
o. demand DO lultcd states uOto> of CON- N't' ~'Nu
IL IN paits ~ tic country. receivable for an Ones, an6
easily Couvertihc into con- iuteres can 'bns %. sl1 t
main lined u permanent crtdlato ietN l1S 10 h'ohu
bsuAs ,hc proper husin SIS OF sneh e"IpO Aels, ny o
vilug currency Tor tle varying cndn~t7 tA3 e'D anu
now OF trade.
TEE IrGN-TGNDER QUALITY
Tie ecal-teudcr quality given United states notes
was intended e. maintain them ia forced Circulation al
time when their depreciation was meUtaDie. wren
they are redeomabe coin this quality may either e
Withdrawn or retained without affecting tncr uSe as
currency in ordinary times But a'l experience mas
shown that there periods when under aN system o'
parer money. however carefully guarded % IS hp4''i
cable 10 maintain sctual COIN rede pton Usually con-
tracts will be based upon current paper money ana u is
jus. that during suddea panic, or an unreason"be a.
maud 10 COIN the creditor should not DE allowed to de
rnud paymeut IN Otner than me cufchc upon Win ~
debt was contracted r. meet ms con i'y' ~ "''
Sccm 10 be night TO maintain the leSat nder quality or
the United states notes Il they are not ~ var ~ com
or rather 10 Is the result ef unforeseen strngeucy NOT
concentrated by TIE cJntraciuS parties In establishing
a sy,t~u of paper money designed 10 be permanent
II must he Remembered That heretofore uo cXredcN las
been devised. either M TINS or other countries th9 n
times at panic sdyersc trade has prevented the dram
and EXHAUST ON of coin res iVcs, however f-e OF Clc
suspension o specie navment. Laws may fornid or E
such contingency, but ~ WI conei ana "ii'er IL
couts il cannot bc resisted Dul should To- Acknowledge
- ,r trc eovcr,men the power to maze tins dccar-
al r. q 7
I'm n is far horror IN Il lie maximum ~ lteuder
notes at ~3 3OeOO.OCO supported by minimum reserve
Of 500 100000 OF com, only q be usc IOi inc reoP
ton OF notes b. Iesucd uutl tho reserve Is I,
stoIe1. d. ana Tor coiu 20 exhaust sucl reserve
may not Occur, but events force IT, us eAt,9ct WVuia
be known and could be declared and would JnsuIy a
temporary suspension OF specie Py1entS' SUM sUcn
eX ed'ent could no doubt De Iofl'tI pg C9NioS iI
III exceptional cmcrEency Ia ONE ZINES tnv gene ~
coincidence m these would MAINTAIN them al par IN
CON- ana justify their reserves OF BANKS ana Iof
tic redemption Of bank notes.
THE NAuONAL BANKS.
In this connection. the Secretary calls the attention o.
CONGRESS To- the report Of the Controller Of tie Cur
rency. Tn, number Of NItlonal Banks in eXseace on
th, first day OF November last 1850 The amount
Of their circulating retired within the year prior TO
November l. 1877, IS S2O6sl,657. The amount OF en-
euatug notes issued to tonal Bank during the same
period is Sl63OGO3J The aggregate amount Of their
circulation outstanding is S5167751ll. Their loans
and ,counts amount 10 S. 'S2i3290 IL
The genera sovcncy Of tn National Banks as now Or
Ieti, aul tIef brn'ut 10 llt pt'i'5 is.N' JUN
demonstrated during period Of fourteen wears No one
bss lost dollar by receiving their notes. They have
been less subject TO REVISION and failure than any other
corporations or firms Their organization under gen
eral law containing every safeguard which experience
Las sug-,seI-the supervision over them by the Con-
trocr If the Currency the frequent and unforeseen OK
animation. O. which they are subject, the sworn
statements Quircd OF them Of every detail necessary
o. disclose their condition, the absolute security OF
their i-.ucs-nJkcS This 50 stem oil banking n sHle
tiUfffa ftf ANY
fon 20 perfect this ysten Is, tai their notes should
b. readily convertible into CON Nme United states
notes irc1cemahc aud depceclied was not pos
sec that bank notes should rise above paf OF the United
States notes. The true test OF inns system 81 haukmS
will come When The United states notes are malnt1hcd
al par vita coin; tncu ne paniS must tede,n t4 T
no;c ln coin or tneo states notes eqnu TO CON. Inc
auIre statistics given ny the Comroet, and ls com
psrsou Of the reserves aud condition Of the National
Banks Win tne reese yes 'li coh"iiioh OF "ln.t
Of naIku- in specie l i- times, give assurance ti"t
notes IN com at any date fixed upon by the Govern
They Ger ainly should not enjoy inc Franchise
OF circulating money their nonInierest-bearlns
bc Irrnt sysem Of REDEMPTION OF bank notes ~ the
,le'r, ~ ne United stoics ON b.. continued after
United states 10 es arc a. Day WITH coin as well as now
II experience should show that additional reserves are
Necessary they can be required. Ilen a now, their
notes viii be amply secured by deposit or bonds, ana
confidence tins sccuite VIII dlapcl the fear OF failure,
which. under former systems Las oeen the causa OF sud
deu or demands on banks for pay ment o. their
notes. II he policy oil the Government should be 10
maintain ia circulation at ptr VITA com maximum 81
three hundred millions OF Uhtci states notes and 10
support them with OF not less than hun
dIcd millions in coin, these notes will be the natural
pose than deposit ~ coin III thcit vaults. The real
danger that IN former ystcms threatened bank Was us
drawn, Greatly diminished, The uoiehollcr was lie
chlel sufferer. Iue first OF weakness about a
bank brought demand from depo,itars and Iote-Old
alike, but under The National banking system the
nOts-Iudtr secure and Inherent whether tie bank
creditor Of the pauk, not likely TO hasten lis fan lie
Usually paid by ii transfer Of credits. and in
cases is debtor as Wei as creditor OF the bank |
ecaic'N per con- "l oclpels are lhlu ~ currency.
The capital stock OF NarOuai Banks paid. in, ~ now |
Ri79,i6411l, and the surplus Juno anu Other undivided
JIohts is no" SlGG3iS 500 90 The banks are keep
tGnaIy their Their condition
states UOcs, and tAc secretary eoheuS IL the opinion Of
The Controller mat they ought 10 he be and viii he |
CON- or ID Jnltri States NOES eqha 70 com by the time
liked by law without interfering with their ability or /
disposition 10 render their and as now, by loans ana dis
co"us !h GO. uucl- we noSl c,s ana exchanges 81 the
country The market value ~ their circulating note
97as cent The difference equal to six months
hleIe>t on lhe D1h0s deposited Tor the se- !
cuuy Of tie notes. ana not per cent /
O. te,ir surplus on band II Is scarcely 10 be |
way the Of their business Complaint Is made
thor deposit ~ am attention l. cdeu 70 What Is said by
tie Controller OF the Currency the repeal OF this
tax. W.le the necessity exists Tor collecting the |
amount OF revenue now required ne secretary is not
prepared 10 commend such repeal buf whenever suf
ment ca d. derived nom the other articles !
now subject 10 taxation. a reduction OF bank |
the redemption 81 bank notes ~ Unieo states notes ~
the Treasury, under tie present system, docs not exceed
Ouo-siXtA Of per cent on M amount redeemed aud l.
Iiuharo 20 inc boNc4hulcht h l-o hal@s Inc Ieachi
ton great convenience 90 them and 90 The public aud
should b. continued. The act creating the National
Government agents deposarcs. They could great
ly assist ~ the process OF reluudng they
people Of the United states The Secretary Of tine
opinion that they IAN De- under existing law and ought
bonds, con iuon thar viii mkc il Tor Then interest
g. promote such Sacs aud VIII be safe and adyauaeco
o. the Government various piaue have % en submitted
20 secure their cooperation and the best viii be adopted