New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-09-08
CURRENCY DISCUSSION.
"FAcrs FOR NFLATIoSlsTs-
AH,yE Hssrayg ~ Excsss OF Thar INQUIRED

ABtyK RtsrRyg ~ Excess OF THAT INQUIRED ~
LAVA cRucfsa-rHE REPfY.
/ To fhs Edtt0r Of ne TrfbHre.
Sra: In your issue Of the 9TH instant youT
Washington correspondent undertakes o. -n.W unde'
tie caption Ftcrs for fufstonist- thai the A4oua
Bants are holding arfui mouey rorTTe VERY r1el
in csoes. ~ taf required Bog law md fn'n -'h 'hor
ing he Wishes 20 b,ierc the existence ~ ifr-
surplus % paper money FOR which the einfrI mt
rouse. r. orierto mate hs ease. p T. W"reso-fr 70
very ingenious system ~ duplication. Thus d. TO-
giies ihe 2O73 National Banks doing bushes 30 fae
iffh of April li-t INTO three ciassr.frf I'D c1nr-
Try banks: second. 1-j "cy babks. aud fsiil. A.
"NewYors bauss. Having made thlsdlVi-ion. Do pro-
ccad. o. show tha the l.-io county" banks hef -'
serves actually their vanlH o. Che amount ~ So
0l9ooo. and bad deposit with is5 city" haas.fhe
further sum ~ $500 600 making fotti ~ sio1 aff
900; sua t4af the - city banks bal sctunf in fef
vaults rrsrrtes amounting f0 ~f-.JE- .oor. and fh1
furfner of 72901t.OOO drIasif with a. " Sss
York" haua--nlaAIag total 90 ~Tl-lfl .0-'o. T. "a
necessary t0 the Augment 81 ysur correspondent thst
We assume me s55goiOOo deuaslef by re
country" hanks with che Getty" banlr AID
tine S2a.0ft000 deposited by ID. "cif" banks
with the View YORK" banks % bc lr.lg m
Their vaults lc and unused but j. tls rnri D. b. nos
perfectly wol known. by tho .sstrDus etpercnce ~
tic country that these daposi put - and lntnef
by the banks holding tlem. just fno-e bsnss
loan uir deposits OF prifhif me flnuaIst AM a. -
loaned. what becomes of ID j. w." fa..- lof iu-
aatioa-t- and his surplus o. about s-6 p0oooo. whel
he wl.lc- 90. 20 ana tnc BANKS aye hod.ugi
Tts quite true that. under Che National Banking Art
the country bank, nav count per ceutln oi ti.ir
deposits 700 cartin city banks as lawful money
Reserve ilsf those ctr banks may so cc nf r1r
ton o. tn.ir deposits wltl " Sew 1ors han.. hn be- IT,
utterly untrue fhai they an any orr -e-e
tlan purely technical one Noe the srfuai effective
reserve lod hy flc National BinAs u4r a. of Apr
lasf. and iumeiiatsly aFaiaoo for ,he nasai,aa co.
their Iilulties. Wa a. follows;
Hed by so country bank. ........-. 20 pi1 .l2
Hslf by o. Nra-Yofk" nani. ......... stHfl'-l
He'd hY -tn Francisco b.nls---..-.-----.- 81"
T,tal. sIieeoe-eg
Tl, Nl.ioual Ek- ought a. hlvc heii. 0u ihr t-a ~
April -, by comply ms merely VIII ilr stir lrtir4 ~
the Bank Arfs. Law jas money reserve O. Oh" -ft "i
gI4t-H1ooo; the Sum they lrt ly dt lod st. ~ 3d..
.o6ooo-au excess o. one and har m.l. .oa, B. .ae
Whole difference between ter actual reserve ani '.r
alleged serre. 1921 .OouoD0 being mad. up hY af-
ccption allow lhie suppose however. wien prr'lcri
u the interest % honest money e.. bank re aud tle
puac DONOR
Il IS respectfully submitted thar O.. w." frir-s
are indeed Fact ior loaa,loa.-,s." 4rd far no at..
, Pc. . ,,..s,. ,f.,,..,9 sf f.. ..-...
which .. proved further. nt inr rnarc rfl in Ift
TFfrfs of tl. -h instant. fhft Nrr-l 'Ia haf.H..
Bsnk- Atrir employed -Ints E1claar lr1.'-- to .'-
ulu- l, - tte u rner t.tlir. uh1"r rf W tstlr...
: ,r tai 7r- ra,a. f.ur', r,f,it.i.ti n nt Il. d.
lc Committee OF avs and Mems ON la, 20 oi letn.
ary Ias t't tAe Oa-as acre e'.lli"- $500 ''".A
Ureing1n D. o.. Aug II. I-77.
lOur correspondent j. bl-takeu 81 hen he says 'lar
"tlr National BUks ought 90 hsye heidi 1903 tle i'l
uf April last bv compl ing merely with th, sn',t
lr-i,ruf o., Bank Ac,- lawful money Reserve O.. ils
amount of rltt.100O00. while rAe sum tley lc-
ua1'y GW hu.a a., = G.2OG.OOO. $50 eNot-- OF pue