The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1883-11-01


TuS Washington correspondent Of We
Neg Y0tk Hulleiin says In regard 70 the
question Of reducing ihe amount Of bonds
"a bo held by national banks rs security iOf
their circulation, Mr.. Knox, comptroller on
the currency, says that be IL not At present
urepated 10 90 any further IN that direction
than was indicated IN suggestion CON
tanned In his last annual report. Inc sug,s
gestion there made was that section ~ OF
amended as TO authorize the banks TO re-
ceiye circulation at the rate OF 90 per cent;
upon the average current market valuo OF
the bonds Tor the six months previous, ana
that If the bonds should decline IN
the market additional bonds shoulu
| be required to be deposited, OF
| interest might be retained by the treasurer
upon notice from the comptroller Io ih th;s
M, the deficiency. Mr.. Knox regards tnis
| Man with much favor, and he thinks that II
approved by congress II would do great
deal IN relieving the banks from embarrass'
mept 10 which they will be subjected In the
immediate future by the rapid calling In OF
| the 8 per cent. bonds. He says that tne l-
sue OF circulation upon 4 and az per
cents at 90 per cent. upon their current
market value. with q provision for the de-
post of additional bonds or money upon
| their depreciation, or the suspension OF pay
| meut of interest upon the bonds neiu' 50
long as the depreciation should continue
would be as safe as the issue OF 80 per cent.
upon the per cents now outstanding al
par: s,so ooo mn nj
and 4 1.2 per cent bonds as security ior
circulation. II the plan referred to should
be adopted, the aggregate amounts ri tnese
bonds could be reduced by about SZI oco,Vo'
according to rough estimate made oy W.
Knox, or additional circulation amouhIinR
to 90 per cent of S27 ,OOO,0 600 could oe sak TAKE
out without increasing the deposit oi Sfoo''
600 600 OF As and Us.
MIR Knox is not inclined to favor the 49,
sue of circulation without full security
AS suggested in his last report. ne lears
that anything less than dollar'for-doDai
secnrity would breed lot OF badly mahag
ed banks. A.
mir. Knox's favorite plan of removing the
growing embarrassment OF the oaDRs Il
that outlined i'll his last report and referred
to recently at Louisville-tnat OF convert
ing the long bonds into three per cents, on
ly Offering inducements to the holders
these bonds to exchange them Tor thfee pei
cents to mature in 1907. He said TO-DAY
that there could be no doubt whatever tna
this nIan Would be a benefit both to TIT
; government and the holders of the bonds
! Bnt there is reason to believe that the comp
troller has no strong expectation thaC lne
rounding plan will be approved by th'
next congress
Most of the go 600 people OF San Fran
cisco have more trouble on account OF tn
want of money than in the care OF VIVA
, they have. Yet there are few cries II
) the United States where the supply o
; money is 50 large per capita as IN Ss'
, Francisco. Nearly every one mas sonl
money in hil possession, while the BANK
and other reservoirs are well stocked. Bu
there is one institution in the city tina
: is peculiarly favored in this respect. I'M
, is the United States suo.trensuly' wnic,
has now nrobably larger amount OF none.
on hand than al any previous time IN II
, history. The.to'al Is upwards OF 81 wy
coo Including s35 ,O0O, 900 in gold coin, SIG
on 0 600 in standard dollars and 81 ,OOo Uoo i
!; fractional silver, while the remainder Is Il
IL is estimated that 100000 postal notes
representing Si00O0,OOO, will be used dui
) ing the year.