Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-08-17
acoNIRAcTIoN.n
SURRENDER OF MANY MILLIONS OF NATIONAL
BANK NOTES.

BANK NOTES.
WASHINGTON, August 16.-The following
dispatch WAS sent TO the Philadelphia Ledger
Monday night by Mr.. John w. Carson, clerk
Of the Committee of Ways and Means: Dur
| ing the past two or three months there has
beena decided and steady increase in the
i fund held by the United States treasurer for
the redemption of the notes Of those national
| banks that have failed, those that have
passed into liquidation, and those that are
| reducing circulation, This fact has created
some alarm in financial CIRCLES, and numer
GUS inquiries have been directed here 10 as
| certain the extent TO which scoutraetion"
has taken place, the cause that is producing
contraction" etc. In order that the public
may be guarded against misapprehension OF
| facts and protected against imposition your
correspondent has appended the following
| facts and figures from the records of the
treasurer OF the United States:
On January !, 1881, the redemption fund
/ a;irded to amounted to $40 S52, 900, and on
FEBRUARY lat OF that year the amount was
$40 697 900 II was during February, 1881,
that Congress passed the three per cent. re.
| funding bill. some sections of which were
obnoxious TO the banks, and, in consequences,
| mauv of them surrendered their circulating
notes for the purpose oil Withdrawing tne
five and six per cent. bonds deposited With
the United States treasurer as security ior
those notes. ne amOuuL VI CuAtCU OtdtSo
notes thus surrendered from the middle oil
February to April 1st was over ST., ,O0O,O 900,
the aggregate OF the redemption fund at the
date last named being nearly $Ss, ,OOO 900.
The veto of the obnoxious bill by President
Hayes and the adjournment of Congress on
March 4th arrested the panic among the
banks, some of them at once proceeding to
take back the circulating notes surrendered.
The books of the treasurer show steady
decrease in the monthly aggregate OF this
redemption fund down to april l, 1882, when
the amount held was $29 l0S, ,9a3, a decrease
of Sc, 500 900, as compared with April /,
1881, at which date the fund reached the high
est point Since the 1st day OF April last,
h aTeVer, there has been : steady increase
asoh month. For April the tnefe%se was
20 900 tsaa: May, $2,500O00; June, $2,I0e,- |
600. JuIy. 81 100000, making an aggregate
increase for the four months Of SS,5O0iOoO:
The belief that so large an amount %
United States notes was Withdrawn from CIR /
culation in SO short period would naturally I
cause alarm in financial circles. No reason
can be assigned at the treasury department
for this increase in the redemption 1und so
far as the financial aud commereiai onsiness
of the country is concerned, and the iact that
Inquiries are made from financial eenters as
to the cause of the supposed contraction OF
the currency is evidence that, whatever the |
cause, it is not produced by any known
changes in the ordinary channels OF business.
An examination of the figures shows that the
redemption fund on August !, 1882, vas only
100000 short of the highest point on April
1, 1881, when it was S37, ,70T, 1897, and inquiry
into the cause for the increase shows that
is attributed to legislation by Congress nov,
as it was the cause for the increase htleen
months ago. Prior to the passage ei
the act TO enable national banks 10
extend their corporate existence those bank
ing associations whose charters were about
expiring were unable to await the slow and
uncertain action of Congress, and, IN order
to secure themselves against any contingency,
surrendered their circulating notes. On the
other hand, the delay of Congress in passing
the enabling act prevented the organIz ation
of new banking associations, thus furnishing
two sources for increasing the redemption
fund Provision having been made ior the
extension of the old banking associations
and the organization of new ones, II is be-
lieved that this fund will begin at once to
decline in amount, but while ii is true that,
compared with August ], 1881, there are now
in circulation S., ,000, 900 less of United States
notes, it must not be assumed that the paper
currency has been contracted 10 that amount,
because this decrease in United States notes
has been more than donbly supplied by the
issue OF silver certificates. On August 1,
1881, the amount OF silver certificates out
sanding was $40, ,S02,S92, and on August !,
1882, the the amount was $54 ,75I, 40, an lu-
crease OF $I3,95t, ,S2S daring the twelve
months.