New-York tribune., 1877-06-13

sTATEMNT.
BY TELEGRAPH TO THE TRIBUsE.l
WASHINGTON, June 12.-Owing to the rapid dsap-
pearance of legatender notes of the denominations
| of$1 and 81 from circulation, the amount of Ma
| tional bank notes of similar denominations out
standing and the ability of the banks to increase
this amount become matters of interest. There are
now about S6.0G0,GO in 81 and ~ bank notes in
circulation. The greatest amount of notes of these
denominations ever afOat at one time about
$9.00O000. This was in 1874 The banking law
fixes the limit of bank notes of denominations lower
than So at onesixth the total bank circulation. This
would amount at the present time to $53, 100000
which would be much more than ample to meet the
demands of trade for small notes if the banks found
it to their advantage to obtain such notes from the
| Treasury and put them in circulation.
Controller Knox says that the reasons why the
banks circulate so few small notes are, first, that
the officers do not like tire trouble of signing great
number of small bills secondly, the small banks with
total circulation of only $50 900 will not 90 to the
expense of having plates engraved at n cost Of $200
each for printing and twos, because the whole
number thathey could print of both these denomina-
tions would only be abont rs 900 Such banks usually
take only a plate for fves; thirdly, many banks
with capital of 800, 900 deposit only the min
iuum amount of bonds required, which is $34 ,00O
and take circulation on that amount. Such banks
in the same attitude as those of $4,000 capital
Their total circulation is small that they will not
pay for engraving plates for different denominations
Of bills 1t seems probable that if a decided demand
for small notes springs UP the banks will come for
ward aud meet it, as the old State banks did before
tho National curSency system was adopted.
Gentlemen from the West who have recently con-
versed with the President upon the financial sltua-
ton have argued that if the legal tenders retired
Il, brad mill limit tbOnt
any change in the existing laws as to resumption,
the National banks will take steps to surrender their
circulation to avoid the expense of buying gold. 1t
is alleged that there is not sufficient profit in circu-
laton TO warrant the risk of being obliged to re-
deem in gold. In one city. according 10 the
reports of these gentlemen, banks representing mil
lion and half OF circulation have decided to surren
der their circulation as soon it becomes apparent
that resumption is certain within the time fixed by
law. The cashier of one OF the lar est banks IN New
York reported having said that all the banks IN
that city will retire their notes rather than redeem
them in gold. These statements, coming from the
opponents of resumption, must be taken with good
deal of allowance. They are made for the purpose
of setting aoat the alarming idea that ii the Treas
| ury keeps straight TO resumption the country
| VIII be deprived of all circulating medium except
gold and silver. The notion il shown 10 be absurd
by the experience of all specie-paying countries,
in every one OF which the issuing OF bank notes Is
profitable business.
Ss,rst,.y Sherman furnished last night to the
respondents of the two leading advocates of silver
currency among the Western newspapers an author
lied statement Of his views upon the question. given
in his own language. II that he desired 1t to
| appear fiist in the West The statement contains,
| however, nothing that has not already been pub
lsbed in Tar TRIBUNE in recent dispatches defining
his views: and Il IT, Therefore, only interesting from
! tie fact that il is cCucned III his own words The
Secretary as has been before stated, holds that there
| s safe and wise middle ground between the eX-
| tremc silver men who want TO initiate the currency
| bv leaving the rccnbacks aioat and giving all
holders OF silver bullion the right TO have II coined
nv the Government into legal tender dollars, on the
one hand and on the other the ultra gold standard
men, who wish to continue the present demonctza-
tion of the inferior metal. His plan rs to put the
silver dollar on par with the greenback dollar as
money of commerce, and LET people take Which they
prefer, giving them silver whenever they olier
greenbacks in exchange for II. ms he iGlh"S'
,roud aid resumption. while the project of leaving
all the greenbacks aiioat and issuing unlimited
quantities of silver would make gold payments im-
possible.
Hinder the provision Of the Resump.cn act requir-
ING the retirement of so per cent in legal tenders of
I
all uew bank currency issued, there ha' been up to
this date about 500 900 900 legal tenders retired
Tbe7e notes have heretofore been taken from the
currency balance in the Treasury. 1t Is now pro-
poscd that In any reduction OF the outstanding
legal-tender circulation which may become nece5-
sar the Secretary OF the Treasury shall sell bonds
for gold and the gold IN turn for greenbacks. IL IS
rot imurobable that the Secretary WILL by the sale
of bonds and Of the gold received therefor replace
the S92 600 COO thus taken from the Treasury bal
anca The Secrctary's authority to do TINS Is uI-
doubted and had his predecessors IN the treasury
pursued this the volume OF legal tenders OUT
standing would be just much nearer the iimst oil
$500 SOC, 900 fixed by the Specie Resumption act
in relation to the alleged scarcity OF one-doiar
and fvo-dolIar preenbacks. an official statement
shows that the amount actually IN circulation rs
S51 4Ol511. The amount in the Treasurer's Office
and available for use is $lO1s3,3s7. The amount
in the Bureau Of Engraving and Printing, prepared
ar peavly So Is 80 7Of972. Ii is currently reported
that no work has been done at printing ones OF t"os
since April.
Bv reference to the published reports of the Con
troler of the Currency. II will he found that the
circulation of the National banks IN Ne"-fofk Ciy
was in October, 1872. T2o,oOOooo; III Oc'opei'
1873 S27, 600 OOO; i'll October 1874, r21,uOVoOo; :;
in October 1878. t1eO00,OOO; III October le'o'
SIIs32. 900. Ine circulation on Jan !, io''' was
x24 500 900. and on April If. SiG,23s, ,oOO so that
the circulation Of the New-iork CITY banks will
need 10 be increased by $s,Oo0oOo or one-haif OF
the present amount, in order to equal the amount
outstanding at the date Of the passage OF the act oil
Jan. ii, 1879.
RANKS SAID Not TO DE AIDING AcTlvFLY-MR.
HAYEs's POSITION.
GENERAL PRESS DIsPAIcH.I
WAsHlrGToN. June l2.-Ihcre Is no foundation