The New York herald., 1878-02-20
RETIREMENT OF BANK NOTES.


BANNING AND CURRENCY COMMITTEES OF THE
HOUSE OF REPRESENTATIVES,.
WAsniyGToy Feb 10, 1873.
1he House Committee on Banking aud Currency
to-day authorized its chairman, Mr. Buckuer, 10
report his bill 10 retro the circulating notes
oil banks aud Tor other purposes. The COMMITTEES
previously heard JOAN Jay Knox, Comptroller OF the
Currency, IN argument against tho Dill. He contepdcd
that its enactment would be an infringement OF vested
rights, and that the government has constitutional
power to take this action in regard 10 the national
banks while their charters continue IN existence.
The following Is tho full text OF The bill, which was
agreed upon by vote OF against 81
BE !, enacted &c That as soon as may be prse,,cabe
in amount to the circulation OF the National Banking
ISIS Ssins the sum Of $50 $50 ~y nsed ~
ss the the ~y ).
which Treasury notes '" be Y the fsw"S form
The United states Of America Indebted 10 the
And shall be signed by the Treasurer OF the United States
and eoaner.ynei Sy ihe Register the treasury
tain oS sp'h h arvisss and the sscro.
Of snch notes and the general simiiude thereof shall
conform as nearly as may be to those Of the United States
be receiyabe in payment OF all taxes, customs excisos,
and OF All claims and against The United states
aoS Gr made e. pry.s in coin oy eSn
sy ~ pa" s 70" the m four per IN bonds 81 the United
Act to Au,orre the s'unding Of the National Debt,
the Treasury notes provided for In tho
preceding section shah be for circulation the Secretary
ton rmadeiphia Baltimore. Cincinnati Chicago, st.
receipts and Of their oes With
regulations ana Instructions to the following tenor, to
fyyThss the said assistant treasurors shall immodi
In disbursement OF The public funds, upon account
in their several Offices thereafter received into them
but shall pay out In the place and stead o. such
Treasury herein authorized until whole circula.-
Hs"ss M mo "xs issue a rasauy
notes in exchange for bank upon the apple
the Assistant rreasure every thirty days.
aS ss sss tSs or ser pss s
t.ry OF hs shall so rsgais rsnsnt the r,eas
Ins sss . them 70 the ssis Of
In liquidation OF the charges against tho
1reasurers account OF Treasury horcn pro
II shall BIO tho duty Of tho Treasurer rapidly as
o 70: S4. "ss sa n hts "es
assorted and the notes Of each association carefully
'a ny be
,Sss.o "s Ct oo .hs nh shall Si notified
demand demand and paymen, r OF like sum in legal
in drafts certificates deposit ofhe Assistant Treas
Irer or Of such national banks may 20 desixnssed By
on depo. with the ot security Of crsuaton to
uscort6tneu
shall be discharged It's circulation
.pd i any national bank shal! fail neglect period
payment in redemption Of It's bonds in there
during sho whole perod as sSs
xsiassw ssymsn; The iSsssss, ~
amount Of It's circulating notes outstanding at the date
The Secretary the Treasury Ia hereby required from
S ss TO s a. " . rs "Ss G s hank
bs rscsrsd IN csshsnra 70, So.r nor ~ ~,
Of this to
notes as may se most ezpsdien. IN the purchase Of POI
ss"s' s 1%ss
silver coin with which 10 redeem and such bonds.
sSs
application to The the United and
lations tho Secretary shall establish, OF legal tender
,on the 81 sS S "ned
receive Troanry notes 20 the full! market value OF its
OF Circulation at the time and In addition thereto th.
Al banking assoei..ions organized under existing Law.
coin shall make monthly deposit IN the Treasury OF the
equal i've per OF their circulation outstanding nj
the d.te OF the passage Of this act and whc
shall have been deposited with hs Treasurer gold
held by thu to secure the circulating note
OF said gold banks shall be ro.ssgned and delivered
banks shall be redeemed at the Treasury OF the United
No circulating shall issued any nation bank
ing after she passge Of this but nothing
herein contained shall be construed either to authorize
allow any contraction OF the currency OF Its
erauon and should any national bank after Its
retire Its circulation IN Of existing law The Sec
retay OF the Treasury hereby directed to issue In the
purchase OF siA per cent bonds OF tho United
states the Treasury notes authorized by this act
TO tho ull amount Of tho circulation retired
by such association, and ail the nation nj
bank notes redeemed under the several provisions OF hs
act shall be cancelled and destroyed under snch rules
regulations the the Treasury shall
and In the monthly statement OF the condition oil pub
c debt made by the secretary he shall include cxhbt
OF the amount OF the Treasury notes herein provided for
outstanding at the date OF such statement together with
the amount OF national bank notes which, to the
date have been redeemed and destroyed held for cancel
lation.
Tho third section OF tho act entitled IAN king
the amount OF United states notes providing Tor rodst
button OF rational bank and Tor
approved June 20 1874 requiring the national banks 10
keep deposit with the Treasurer OF the United States,
Washington lawful money equal to five cent Of tneir
circulation be held for the Of such
circulation, IL hereby repealed.
acts and OF inconsistent with the provisions
OF this act are hereby repealed.
The committee upon the question OF authorizing
Mr. Buckner report the foregoing bill for passage was
detail, rs follows:
YEAs-Messrs. Buckner Of Missouri, Ewing of Ohio
Ycates Of North Carolina HnrixeiI OF Illinois. Bell
Georgia, Fort OF Illinois and Phillips OF Kansas--7
NAYsMessrs iIardenborgh of New JerSey apd Esmes o
Rhode Issnd-2.
Mr. Hart OF New York absent and Mr. Chittcnden on
the hnaf question: declined to vote although he had pre-
vio ma feste opp O