New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-01-27

basis of population and wealth, shown by the re-
turns of the census of 1870.
Section of the act which it is now proposed to
repeal provides that any bank may reduce its circu
laton by depositiug leRal-tender notes During the
first year and half, TO November /, 1875,
$15,OOO000 additional circulation was ssued
500. 100000 was retired and destroyed without re-
issue. and from that date to the present time a
greater amount of circulation has been retired under
the operation of the act than has been issued; go
that the amount originally authorized $3.50 100000
not including the issues of the National gold banks
has never been called for and the amount now out
standing is more than 100000 900 less than
1854, 100000.
Previous to the passage of this act National
bank desiring to reduce it's capital would be obliged
to pay premium for its own notes, and send them
in for obstruction, before it could accomplish its
purpose; and if this provision should now become a
law no bank in the country which has impaired its
capital cQuld continue its business unless made an
assessment upon its shareholders for the purpose OF
restoring the same. Now, sucn o bank may reduce
its capital under the restrictions of the act and re-
tire its circulation ana continue az legally organ
lied bank. National banks with small capital not
nfrequently impair their capital to a small amount
on account of bad loans The amount of this im-
pairment can frequently be restored by reducing
their circulation auu ulspOSlnR Oh Iue DObus IhuS
using the margin on the bonds The act worked so
well that about six months thereafter the Resump-
ton act was passed. which authorized free banking
These two acts perfected the legislation in refer
10 TO the issue and retirement of bank rates. The
banks could all not only reduce their capital at
pleasure but could also reduce and increase their
circulation whenever they saw fit to do so. Every
body was satisfied. The banks in the East and the
West, the North and South, could have all the cir
culation they desired by asking for it and conform
ing to the laws; and the banks having more tnan
was profitable could as readily retire it.
The banks promptly deposited the 100000 of
lawful money required by the act. and nearly that
amount has been continually in the possession of
the Treasurer They at first objected to the expense.
which was onerous, but now all have become ac-
customed to the restriction. The banks now pay
the expenses of large division in the Treasury and
the expenses of transportation OF their notes. In
1872 this expense amounted to the large sum Of
1906, ,193 81 in 1877 to $685.. 7.O66 10; in 1873 to
1917 942 As, and in 1870 10 $240, $40 o. Finance
report for 1879 pp 353-4.l During the past year
the expenses have been less and the amount re-
deemed also much less, because the people prefer
National bank notes to gold coin.
The chief compensation received by the banks for
this large assessment s the right to retire clrcua-
tion whenever they mGy desire. Section o OF the
Funding Act of 1881" deranges the whole ma
chnery of free banking. 1t not only prevents the
tOn at pleasure but provides IN effect by the reeI-
actment of Sections 8, 100 aud 5,1G0, United States
Revised Statutes, for permanent deposit OF bonds
amounting to Onethlrd OF the capital OF each banx.
1t virtually provides that II bank has too much
circulation it shall keep it. If it has too little it
shall not increase it, unless it deposits bonds which
are almost certain to be worth less than par 1t sub
ecs the banks to an almost certain loss and requires
them to continue to submit TO the loss when they
might at times retrieve or diminish 1t by deposlting
lawful money in the Treasury and again coming in
possession of their own bonds II the market price
should be sufficient to induce sale.
The Controller said the act of June 20, 1874. and
the Resumption acts had worked well. and the eX-
pense of the retirement of the circulation, with very
slight exception, bad been borne by. the banks:
that the passage of the proposed anne ndment obig-
ing the banks to hold one-third of their capital IN
bonds would obge tfty-slx banks to buy
to the law at the present time and that Il
M Of bonds to mature ona m May n1t aPd S
Obliged to purchase to exceed S5O,OOO,OoO oil the
new bonds.
act be stricken from the bill. and an amendment
made authorizing all banks 10 issue notes for the
full amount of capital and 90 per cent upon bonds
deposited, aud that the tax npon capital aud de-
posts be repealed. He said that the profit on CIR
culatIon upon 4 per cent bonds at premium
of IL per cent was 1.16 where the rate OF
interest was per cent. aud 40 on gig per cent
bonds at par. lie furnished the committee many
tables, among them ono giving the names ana i0ca7
tiols Of the banks which had less than one-hild OF
their capital invested in bonds OH October l. lssO
There are eighteen National banks IN New. YORK
Cltv having capital amounting to S31 800. 900 land
having 50 900 IN bonds. Tio act would re;
quirc them to purchase 10, oi0,327 additional
bonds.
JUSTICE FOR THE WRONGED PONCAS.
CONCLUSIONS REACHED BY THE PRESIDENTS COM
MIssION-sOLEMN COVENANTS WITH PATIENT,
FAITHFUL PEOPLE BROKEN BY THE NAIIoN-
The DEMANDS or JUSTICE
WASHINGTON, Jan. 2G.-The commission appointed
by the President on December 49, to proceed 10 the
Indian Territory and confer with the Ponca tribe of
Indians for the purpose of asccrtaining the facts in
regard their recent removal and present condition
80 far as is necessary to determine what justice ana
humanity require should be done By the United
States Government i'll the premises, to-day sub
rnitted report 10 the President, in which the fol-
lowing conclusions and recommendations are en-
bodied:
F,rst-That the removal OF the Ponca Indians from
eir reservation In Dakota ana Nebraska, where they
were living by virtue treaties with the United States
II 1858 and 1857 not only most unfortunate for
Inc ioosns esuliing III great hsrdslps aud
OF lie and property. but waa ipjudcious aud without
Second-That the lands from which the Poncas wero
removed had been ceded aud relnqued" 10 them by
the treaties that the Government solemniy coveDanted
not only to warrant and d~feud their title 10 these lands
protect their persons AMI property thereon;
that tile Indians had violated condition OF the treaty
nd been forfeited and that this Tehtul claim still
exists in full force and effect notwithstanding all acts
done by the Government ni tnt Unlteu STATES.
Thrd-Ihat up TO within a few months OF tho present
time hey have manifested the strongest desire to
turn Their reservation I'm DakOta and portion OF the
tribe succeeded in getting back their land.
The remainder Of the Tribe were greatly discouraged
their efforts return, and they finally despaed
regainng tneir rights under ths be that the Gov
ernment would hot regard their title to the land III Da-
kota valid, and that they could obtain stronger title
the land IN the Indian Territory well as other
prominent considerations, they decided to accept tho
best terms they could obtain. Their chiefs aud head
men agreed N remain in that Territory. Having once
committed themselves IN writing 10 that course they,
cOmmendable Integrity, regarded their action
sacred far they concerned and the majority
Of their people acquesccd and ndOrsed the action VI