The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1878-03-15
NATIONAL BANKS.
The House Hill for the Retirement Of
Their Circulating Notes.

The House Bm for the Retirement Of
Their Circulating Notes.
The House Committee ON Banking
and Currency, says the Chicago Tribune,
has at last matured the bill for the re-
tirement of all the circulating notes of
the national banks, and the permanent
issue therefor of treasury notes. In its
present shape it is possible the bill may
pass both houses of Congress and be-
come law If not at the present, then
at the next session of Congress. The
bill provides, substantially, as follows
That the Secretary of the Treas
ury shall have prepared an issue OF
treasury notes equal to the whole amount
of outstanding national notes (about
1928, 900, OO0); these treasury notes are
to conform generally to the greenbacks,
and shall be receivable for all taxes, etc.,
due to the United States, and be pay
able for all claims against the United
States as national-bank notes are now re-
ceivable and payable and, in addition,
be receivable for customs duties to the
amount of one-third of each payment of
duties. The treasury notes SD all be ex-
changeable at par with legal-tender notes
at the treasury. They shall also be re-
ceivable in exchange at par for 4 per
cent bonds of the United States. The
notes as soon as prepared shall be sent
to the several sub-treasuries, with in
structions to cease to pay out upon any
account whatever any national-bank
notes, but to pay out in place of such
bank notes these treasury notes, and this
to continue until the whole of such notes
of the national banks shall be retired.
The bank notes 80 retired to be sent to
the treasury every thirty days; and,
whenever the notes of any bank to the
amount of $1,000 shall be received at
the treasury, the bank is to be notified
and be entitled to receive, on pay
ment of an equal sum in legal-tender
notes, bonds of such bank on deposit
with the Treasurer. Any bank may
withdraw all its bonds upon payment to
the treasury of legal-tender notes equal
to its circulation. The Secretary of the
Treasury is to use the legal-tender notes
received in exchange for bank notes, and
the treasury notes received in exchange
for the per cent. bonds, to purchase
outstanding per cent. bonds, or in the
purchase of gold or silver coin with
which to redeem and pay such bonds.
Any national bank may exchange its 6
per cent. bonds at the treasury, receiv-
ing therefor the full market value OF
such bonds in treasury notes, together
with the accrued interest on such bonds.
National banks issuing notes redeemable
in gold shall make monthly deposit OF
gold equal to per cent. of their whole
circulation until the same is wholly re-
deemed. No circulating notes are to be
hereafter issued to any bank.
There can be no mistaking the pur.
pose of this bill. 1t provides absolute
ly for national paper currency, to the
exclusion of any other. The paper
money of the country is to be: /.
Greenbacks or legal tenders to an
amount not exceeding $400, 900. 2.
Treasury notes, not legal-tenders, ex'
cept to the same extent that national
bank notes now are, and redeemable as
the bank notes are in legal-tenders at the
treasury. Both forms of paper, how
ever, are receivable in payment of du
ties to the extent of 33t per cent. of al
payments, and the treasury notes art
also receivable at par in exchange for
per cent. bonds.