Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1883-10-23
TsR NATIONAL. BANKS.
4 Number of Them Materially
Affected BY the Calls for Three
Per Cents tor Redemption.


WAsuINGrON,O October l9.-The amount
Of national bank notes outstanding at the
close of business yesterday, including
1855, 3i4 of gold notes, was $353, 6S1 ,99l,
showing A loss Of circulation during the
last eighteen days Of 1904, $50, and a
steady contraction since January /,
amounting in all to S9SlS,2l. That the
outstanding circulation will diminish
more rapidly during the next ninety days
than during the last three months seems
inevitable.
The statement mentioned as in course
of preparation in the Comptrollers office
was completed to-day. IL shows tnat the
first call Of S25,C00,000 of three per cents,
which will mature December /, strikes
bonds to the amount of S4,0S7, 400 now
held by the treasury as security in whole
or in part for the circulation Of Us
national banks, and that the second call
for $i5,C00O00 which will mature De-
cember IS affects the security deposits o.
tli4 national banks to the extent OF q, 100,
$50. Thus. within the next 90 days the
present basis Of nearly $ll,O01000 of
circulation. issued by 200 or more national
banks, will be removed, and they will
be required to substitute So l3I, $50
in other government securities, or reduce
their circulation. Probably some OF the
banks thus affected own other three per
cents which have not yet been called, and
3 few of them may have four per cents or
four and a half per cents that they can
deposit in lieu Of the three per cents
called, and such banks will probably be
ready TO make the substitution required
in order to keep their circulation. How
many Of them viii be able to do SO, no
one can tell at present The effect Of the
first two calls for three per cents is such
as TO offer the banks but slight encourage
ment to buy those bonds and deposit them
as a pledge for their circulating notes.
Already there is talk among Treasury
officials Of another call for three per
cents before the end Of the year, and the
receipts from customs and internal taxa
ton since the beginning Of October seem
to justify talk Of that sort. While the
customs receipts for last month showed a
falling off Of SS,656,794, and the internal
revenue receipts showed a decrease Of
! 50, 2SS, III, as compared with September,
| 1882, the custom receipts for tbs last
eighteen days show a decrea-e of only
SSa, 636 as compared with tho correspond
ing period Of last year, and the internal
revenue receipts are greater by f24,3Sl.
The receipts from miscellaneous sources
were 81 ,2S0,3Ij more than for the first
| eighteen days Of the last October, the in
crease in this item being mainly from
I profits on coinage In other words, the
revenue (sl0050,26i) Of the Government
for the first eighteen days in October,
1888, exceeded by Sl25, l60 the revenue
| (tSSl5, 094) for the first eighteen days Of
| October. 1882 If the Secretary Of the
Treasury felt authorized to dose ne might
/ buy four per cents instead of three per
cents for the sinking fund. If that policy
should be adopted, the reduction Of the
three per cent loan would be less rapid by
some s45,000000 year than at present,
and to that extent would add stability
TO those bonds as basis for national bank
note circulation. In his last report, Sec
rotary Folger said: ut is doubtless good
policy 10 extinguish the long bonds ofthe
Government rather than those payable at
It's pleasure, for the time is at hand when,
with the present rate of payment of the
public debt, all the bonds subject 10 op-
tional time Of payment will have been
called in. Then if there is surplusin the
Treasury there will be no outlet for it
save by purchase at large premium Of
long bonds or the disbursement Of ii
through appropriations for purposes be-
yond the ordinary and economical needs
Of the government II is therefore for
Congress TO consider the propriety Of en-
powering this department TO buy the long
bonds at a high premium. lift shall deem
il polite to make general purchases Of
bonds at such premium for extinguish-
ment, it should by law give to this depart
ment express authority so to do, and thus
/ adcpt that nnliev- %