The New York herald., 1878-10-12
MUTILATED CURRENCY.


WASHINGTON CORRESPONDENCE BETWEEN
THE NEW YORK CLEARING HOUSE AND SEC
RKTARy SHERMAN.
The iollo.ing correspondence has passed between
the New York Clearing House and Secretary Sherman
In regard to q recent order OF the department by
which the charges Tor transportation upon national
bank notes sent TO Washington Tor redemption are
required to be hereafter paia by tho parties sending
the same
NEW YonK CLEARING House AssocIauos,l
Hon. JoHS SHERMAN. Secretary OF the Treasury:
Of New York composing the clearing nous. Assoeiaton
beg leave respectful 10 call the attention o. the Secretary
for transportation all bank notes sent 70 Washington
paid by the treasurer of,bs Unitsa
Sy each ssnsns .:os.ss liz lin L p'1psro" 70 the
incurred by the party sending such notes tor redemption
banR notes for resumption and 10 the extent a those
sw i ss 70 as .sa %
national banks scattered over this widely extended
% anu ss ..
y d l.sSs S sn. asa
may Be n., ANA the
home for redemption. to2ether with tho iuct
a. s, au sgs ssasr @ 10 ssc
for Conaressto create the system OF redcmp
tea, operation lh. bureau having established in
has AWAY. "ssn ace ptsa As justice
from the cities where they naturally accunnu should
Il must be evident that withon. such these
circulating notes would become excessive anu redanaant
United States and by consequence the whole nation is
tans ina. .ns nssiona banks should be required
to eo-oper"te by The pronp. redsmption .; their
si,sssisn y removing Any sns asss. y when
eject preventing ths object which The govern
men. have long been careful, y preparing: =, .
enjoy tbs benefits Of circulating notes that they should
promptly redeem them. with tho necessary d
mission to washinson ny ,ha. means alone are the
ana the Treasury OF tho united states relieved from
in coin the notes oi any dsiault,ng banks
s b ss. 10 a to the
referred 70 ana In consideration OF its iarreacang in
the country will think proper IT, aud with
the of their high regard they
Il. + (. vA11: ALL fHHREEs e q EaFrsss \: Fry
Clearing House Committeo
MR.. sHERNAN's REPLY
To this the committee received the following
reply
Messrs Hssnr r yAlL and Others COMMITTEE Of the New
GNSrLKMxs-Y our communication Of October suggest
for transportation national bank
sent Washington tor redemption REQUIRED to
csived my careful consider stion.
the principal OBJECTS 70, 1874.
amending the National Bank act, seems to have been
relieve banking associations not organized within
visions Of, section SO Of that act, which REQUIRED
each such associations select association IN either
Of the cities named In the preceding section which il
compsh~d by the provisions section 1874
which required deposit oy each bank equal TO five
for such circulation by the
70 1 r. q a y
where than at its counter except provided In said
The anendmsnt OF 1874 conemp the redemption Of
United states Treasury they should be presented
in ordinary Of business transactions 1t did
" antng Of miu for the collection
mission national bank Of the OF Others
D. " lime sas a ss n M sst - 1%ms
banks very much worn and mutilatod and IL
deemed desirable the department ~ that time
mote It's transmission 20 the United states Treasury and
the II by fresh issues and that
Of the principal reasons why provision was made
Treasury.
Experience that proportion of tho crcu-
laton transmitted to the Treasury is percepby
worn or there in com.
peng banks winch have issued this circulation. and
which have interest whatever In having II thus speedily
forwarded Tor redemption, Tor lis transmission the
Treasury Ws
Il doubt Of advantage to the banks Of the
tbs receive daily TO Treasuy tor
receiving they do Immediate credit tor the
them in effect OF the OF the repeal OF the
vision the original act, which required
their circu. alton in the large cities
While with you that the prompt redemption oil
the notes Of the national banks II essential to
in circulation ~ par with United states
think the ior this Is sufficient In the which
provides redemption bank OF
counter and whom presented in the ordinary
entertaining this view unable any re
the revision OF the order 10 which you refer. Very
specially. JOHN SHERMAN, Secretary.