New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-12-01

by reference to tlis cable it viii be nt, u1lIs
the frs period the average rail- OF specie to circulation
held Lv thc STATE banks. 3i05, and 10 circulation
aad deposits Is o. and during tire second period 81
ana 16.oJ, respectively
Tne ratio of sece and cgatenders to circulation Of
ffe rou3l bank, Tor iha eight ycars named was 4jJI
aud 10 circulation and dcu0sits, 1870 per cont.
The retains OF the state banks IN the Sew-England
States aud I'D the state Of NewYOrb were more regular
ana rtla than those Of the banks m any
other portion OF the Union, and comparison
between the state banks for the periods named with ne
S,tna hanks or tie as eight Years is given in tables
The aggregate ratio OF specie to circulation IN The
from so t. 1855 1J9, ana Of specie 10 circulation Of
deposits and bank balances, from ls35 10 1912 i3, and
10 otai liabilities, 90. In the National banks the aggre
eite ratios oil aud 1908 In the New-forb state
Il ns The aggregate ratios during The hgst period were
prr cent rcscctrely. In the National ban1s OF Now
York Tor TIL last eight years the ratios were %
10 circraiou and 20 - circuatlOh deposits ana DaK
balances. m the Ncw-foik Guy banks Tor SIX years,
fr,n 500 Go 1863. the ratios ~ the STATE banks
2c47 and ~ ana n tho Natlona Oths- nom lSf< To
1877. TIE aggregate ratios were 2Jl1 ana 20 ,.
The National banks required by section ~ of tho
Revised statutes oi The United states 10 pay their circu
siug notes demand, and b. section Of the Act OF
Jams 20 Sfi 20 Keep aud have on deposit m the Treas
I of e United states, 10 lawful money OF the United
Sf,ttr, a sum quail TO per ccntun OF thor circulation
ION Nnen the iczal-,endcr noes shall be redeemed IN
coin the DlaAs wl also e required To redeem IN coin or
Gclls and Will be more convenient aud desirable for
general than con ING reason lhat the cost oil their
TRANSPORTATION VIII De less than Of specie
THE PAYMENT OF DEPOSITS.
lis shown by the yaIious tables gwen in the report
,, fine average 9Th the National banks the
lat eight years fully equal 20 that OF the State banks
during periods Of suspension and resumption in former
nes and II resumption il 10 take place upon any fixed
date the National banks will be certain, as matter OF
recauon to strengthen their reserves beyond the aver
ages here gwen 1t cannot be doubted, therefore, that
fine National banks Will be prepared to redeem their cir
atiuy notes at any date Of resumption which may be
dyed mon But while it il admitted that the banks
may easily pay coin their circulating notes. 1t IL said
bat vii be Impossible for them 10 provide in the came
av for their deposits. Those who take this view pro
ceed on the assumption that the banks will be called
.o to nay tle'r deposits in specie This was not true
enc any former period Of specie payment aud - less
ky 10 be time under the National banAing system than
| n wis under any previous system of banking
| IN. rsor'e throughout the country now know what,
prior - $50 tleY could moi know Tor il was not then
,r1e INA. every 5autnOtr l. safe beyond perldyeniure
and t II bcso notes not paid At the counters OF the
hanE4 which Issued tl"m tbey VIII De pdu ~ te IFtsd
~ Doplrm nj IN lawful money aGd tnn the securities
l.ln her for ara amply sub ,cni for that purpose. No
rc,s6u therefore, exists Whe tAc peopit-"ho nave lni
during he lat font years lost one dollar through the
ns1 ~ uoiccshOud Gcciuc 40 receive pay nrnt oi
thrir deposits SAGA note These notes ar not ony
guaranteed Dy The Government, out they are received J
i la u,t OF ada taxes and other dues except duties
ON ,p,ris and disbursed by IL IN payment of all
| demands except mtercst on the public deOt ana IN
! the cd.iuption OF National bank notes.
The National banks hold PS10ojoOOO OF loan, hide
ia H. eoula and each bank required, % section D. 40
81 he Revised Statutes TO take AID receive az par for
any debt or liability to H. an, anu ~ G''9 vi oiis %
by any lawfully oganled Ntiona phiiE az III ,
Thor, arc Therefore, @0SOOOO0OO OF haohltlcs OF ut
LeOpic due 10 the N9tiOndi hIHkH-a sum hEctf cA't
ing the whole amount u d"p0.its-"iich my Do pau III
tc NOT : Of any or AL Of he National banks m the cOu.
Try Tho National bank notes are Therefore very unttit
I'M character trom the heterogeneous banf notes otme
issued by authority OF the several states MoftO en- lu
dcoo ats of the banks are largely Owned ny tntlf o"
shareholders by tneir borrowers ana surely pue7
men Who look 20 the banks for accommodations "ni
sforEhodcrs whose profits pend upDn Their sicrf.u
management VIII be tho last to conspto To li9uIe 'ucH
Denosts consist chiefly Of bank-credits, aud are de-
ryci largely from the discount commercial paper ana
paid manly ny transfers npon re uoVts' nmu rU'
! with otbcf coin or curcnc' Throughout IN" coUnl4
an large payments made, not win money, nut WIN
checks IN the PRINCIPAL cities these payments are AZ
c1mpisIcd through the uperfilons "i cIutlhE-Hvu79
Dutus the last twenty Jar years a- VIII DE seen py
reference 40 table 10 another page ne eAcuahkSs
rr 10. Ne,-York Clearing Hons. were SOL, DOOOlOODD
900 OrO The average daily exchanges duunS TINS "hot
period were more shan StiOJO0OJ, Will thc aversee
daily balances paid n mon Wcf, bat F-jOp"oV or 'u'
| four and our-nlth cents upUn the dollar
I'm ~ .iaud, In 1921. after r'sunp"n there was uul
hide demJuG iIr goli MOI Ws there M france amer
sumption hy me Bank ul France lh $50 Hoi l' '4.
| country ia 1s3S or ls59. The Bank OF france is a'
present stgtr of -us elson but iia ngtc' gre
icrrrd hy the public 90 speo'e an the bank ms iouu
di0t.u 10 reduce the volume n 90, circulating note ~
! exchange for All Thought oi dcin1h"ih- A' ''iH
a,.tcuA la specie viii vanish sUOn resumption u
! dealers wA demand com ipf ever! ""Ln vi 'iI'. ,
te,- clu r.. sure themselves by an agreement W'il
i.rr lcalrrs that tncir dcpJsit shIi' nr pa @ Ns p"
/ thr present time, in current iun", "h'n WIN l'n
cons t oi cctcuder notes aud thc no'c' 81 np''rpAt
us nluEs. There Is no create nu- ''u '''in ' ns
4 repeated cTy tnat the treasury az" '' nc plnh
iult provide specie uf the pil meat 81 Two roua"h'
millions Of deposits before resumption cHu lA"o pihco'
FLUCTUATIONS.
rsc Coinage Act Of 1873 provides for The issue Of
gol dollar which shall be the unit Of va n'i bd' since lh
suspension OF specie paymeuis tho business trans icuoh
~ The country have been based upon false ara huotua'
ing measure OF value Tns will be seen from Tue iooN
ing table which gives the value of the egai'ender pape