New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-11-23

The Treavnrer suggests "a return to the
system under which all o. the charges for Tanspora
ton incurred IN the redemption or National Dank noses
betrayed out of the cent fund ana
upOq the banks as the 9n WY in T sao ss ooe
bak circulation has been surrenderrd IN tue ,nannoa
bren reesd A. ma Amos the entire expense OF
the redemption OF whole S7l 900 mas been borne
by tho other National banks. beng means OF
cnarging rho reducing banks with the expenses or re-
deemng their notes until thcir deposits OF legal tenuer
notes are exhausted This provision adODted IN the
expectation That IL would act as regulation
Of che volume of the bank circulation.
bank witch deposits SIS 900 to reduce Us circulation,
and takes $4,000 OF Us bonds WhIcn ~ 5etls 10. ~
per cent premium. has $4,000 more To lena man nI
before Wnie therefore, the retirement OF the Dana
REGULATION dimnishes the aggregate volume OF cfena
atou. il Increases tae l0dndDle Iuhus OF l"' P's"
bank whose circulation Is rtducsd. cha, many
COntuungon this subject. the Treasurer says nat
milioHs OF dollars OF addona eren siOn ~ tne Cur
issued through the Office Of the Controller OF tlS
to banks which were SIN rr'lu lng urn T s
ton through the Office OF The treasurer Ao Sage
aurnee has been that NOES thns lssu'u naEe
t. large extent, speedily been presenter ~ ,H ncs
ury for redemption out oil Tic legd-'ehue' t she
Banks when have applied IN VAN u tne
Treasurer for the surrender o. theE I ssSe
tender deposits have accomplished the ssl'o
object by obtaining new circulation from tDe Oolu ,
Ter OF he Currency Toe cost 81 pruning tno he
thus Issued ., paid for by the United Hta'es, 80 et
Government. Though not deriving the rehOtest peneu
from tne on has bren OOged 10 bear the wnoe
expense OF their issue ana part OF the eAen, y,
redemption simply 10 enable bank O. DO ny inalltC
In several nsa CO. banks have repeated the operation
oil reducing ana increasing their circulation seVethl
times gitnin a brief period.
BANKS PREVENTING THE LAW.
From January 49, 1879, TO the date OF This report
SIS g75 oil tn noies of bank been redeemed
o which only $40 700 redeemed at the oxpenss OF
the BANK, al,nougn during more than one-third
o. that period 1t had outstanding aud was
deriving the benefit from the fun amount
OF c.rcu alton which its capital authorized. The only
assossu ents when have been made on tie bank FOR me
expense Oi redcemug ts nDtes were "a "a III Ioiyy
ana IL 80 1873. AT one time there were ia az ual
circulation $9j15JO OF tts notes, although Tue nighest
amount ever borne books $4,000 Ihc IfeGs-
urer instances similar transactions ~ Otlrr UthAs
.uen Instruction utterly pervers the Original III IN
ton OF the ac,. Within the las year large reduction
II Jank circulation taken place IN the iace OF ~
actIve nd for money, simply BECAUSE Eoou TOhI
could b. mad. uy Withdrawing and selling the a per
GEMS deuositld IA security for circulation NciIy
SOB 900 900 IA per bonds wer+ thus wlthutd"h
duriug e Iast hsca year Biuks can aKOrd 10 IorcgO
the profit on their circulation Tor - lew mOnta
ia ordrr 20 reduze from the premium Oh their
bo.ds Such operations should not, in the treasurer
vpinIon he permitted 4 bank should not be PERM u Il
To increase is circulation un 10 mad disappeared rom
the category reducing banks Oh tie DOCKS u IHe lie
partuleut.