, 1881-01-27
FUNDING.
CONTROLLER KNOX.


WAslttSnrnN, ID. e., JAIL 1A-Conlr01fcr
Knox, in opppstnR tho . per cent Funding
bill before tho Senate Finance Committee to-
tiuy, shnwctt tho effect III fts operation, par.
1eularly in tho ilftl. section, upol1 tho Natiull-
nj bnnks and saltl tho TOT June 70, 18TH, first
retlilcclt t1le reserve Ut tho National banks ly
Repeating tho section requiring n reserve 10 ba
kept I'll circulation; second, It required Mt
tEoAnl-l,alik notes to be redeemed NJ the Treas
ury III Washington ut tho sxpenso nj tho
banks; third. IT provided for the withdrawal
of bon.s atNl tho reduction OF Nattonnl.bntk
circulation Mt tho pleasure Of tho banks by
ticImsft1ng lawful money; f0,,rth, 1t tlxcs tho
maximum amount nj legal.tenler notes at
s:ss 600 900: fifth, 1t provides form rcatstribu-
tlon Of tho Natlonal-hnnk notes authorized
by tho net OF .Iu1y to, 1870. by the withdrawal
Of sh5, OK, 400 of Natlonnl.balk notes from
tile States having nj, cxccss of their propor-
I ton, mid their distribution ain0i,S those
States having less than their proportion,
,tutler MI npportinnment made Oil the
basis Of population and wealth, as shown by
tho returns Vt tha CENSUS OF 1870. Sec. I Of
| the art which It is now prnposctt TO repeal
provides tint any lmnt n,ny reduce Its clrcu-
| latlun by ttcposisng lcgal!ender notes.
Dt'!siSH THE FfltST YEAH ASn i HALF.
to NV. 1, 1s1T', ST., ,oo0 af additional cir
| c,llation WIS issued nlMl S:0, 0,000 QUO retired
md destroyed without reissue, and from
thai date to tito present tine Ercatcr
amount OF circulation has been retlrctl
uncr the operation of tho net
tnn las been issued. so TINT the amount
originally authorized ,000. OK, not 1nc1nd-
ing Tho issucs pf tile National gold-banks-
! llas licver been cailctl for, anil tho amount
HOW outstanding Is moro thai st000 900 less
ttlnn $:EI I,0oO,000. Previous to the passage
of this act, II NntlunAl-bank DESIRING to re-
duce its capital wout.t bc obliged to pay Il
premium for lis own 1l1tcs, and send thom In
for destruction, before 1t could accomplish
Its purpose; and IT tllis provision should now
become law,
| No RANK IN TIEE COUNTRY
which has impaired Its capital could colt
tlnltc Its business unless 1t made MI nssess-
| ment llpu,i It's shareholders for the purpose
of restoring tho sanlc. Now. such u lan!t
nsHy rctuce Its capital under the restrictions
Of tho act, md retire It's circulation
and continue rs 4 lcgaIly-organizcd t'alik.
National bnmks with smatl capital mt iuffc-
uuclttly impair tleir cnpftat to II small
amount OIL account of bn.l loans. 'rhc
atnonnt Of this impairment can frequently
be restored by
REDUCING r1IE,t CIRCULATION
atnl tttsmsi,Ig of their bon,ls, thus utilizing
tho Murgin on tho bonds, The net worked ~
well Tint nbnut six mouths thereafter the
Resumption aet7was passed, which nutll0r-
lied trec banking. Thoso two nets perfected
The legislation i'll reference to tho Issue and
retirement If bank notes. 1ncAn BY thnt,
that tho banks could not only reduce tlloIr
enpltal Mt pleasure, but ctMlh also reduce and
increase their circulation. whenever they
snw. fit to tlo 80. Eyrryhoty wns
satIslied, This banks In tim East, md the
West, tho North. and Spl1t,,: gould huyc nh
the .irculutlon t,,ev eslre Inv nsktnr. f,1r, IT
auu conforming to- Tie laws. n,ul tile lanks
huyfn. moro linn was pro,ltah,o could as
NANNY RETIRE IT..
Tie hanks ,rotnpi1v dcuoslted tl,a s15,0oo ofm
Of lawful money roautrctl by the net rs a re-
,lemmson rnutl. and tbnt nmn,,nt Inns hro,,
rontIunnllv In ti,e nnsspssfon nr thn
,rrmanrv ,rl,nv nt fret ol,lcotntl :, +ho ov.
,n,,.,, v,,irl, ,r,s ,,,,,,ro,,u Int mn" t,,o,
i,n,. 1,oo,,,,,n ~, tho rne, rt.t,o,,
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~ NV snus ~ a.. ~ 49,, u.a"eGa si
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