The Portland daily press., 1884-12-27
National Banks.
PF0visisns OF the DinRiey Biil-Prsb.
ability That IL Will Becs.ae n Law.
portland Advertiser. }

portland Adyertiser.)
Mr.. Dingley's bill authorizing the Secretary
Of the Treasury TO invest the lawful money de-
posted in the Treasury, in trust. by national
banking associations for the retirement Of their
circulating notes, provides that the Secretary
OF the Treasury be authorized, out Of any
money deposited by national banks for the
purpose of retiring their circulation, to pur-
chase, at current market rates. under such
regulations as he may prescribe, such bonds Of
the United States as in his judgment will be
for the interest Of the government to hold, the
bonds so purchased, together with the interest
that may accrue on the same, to be held in
trust and used for the payment Of the circu-
lating notes of the banks concerned. The bill
was introduced last February by Representa-
tive Dingley, was amended and has been re-
ported by the committee on banking and cur
rency. just previous to the present recess the
House voted to set apart January 16 to con-
alder the bill, and it will undoubtedly become
a law.
In reference to the measure Mr.. Dingley
says, "Under the law as it exists to-day, whF ,n
national banks fail, when they 90 into liqui, ,da-
ton, or when they propose to retire any part
OF their circulation, and to withdraw the bonds
which have been deposited as securj ty thev
are to deposit in the treasury lawful money =,
the amount of their circulating notes ut
standing. 1t should be borne irl mind that
this lawful money constitutes under the Law I
fund for the purpose of reds5eming +.he ont
standing circulating notes OF the ba, ak which
deDosits the lawful money and wien bank
has deposited the lawful money its responsibil
ity for its circulating notes th6,rabv CEASES
The government holds this frand for the pur
pose of redeeming these cirer .lating notes and
whatever portion of the fund NAV remain ate,
the circulating notes shall tAave been presented
for redemption goes to the, government and moi
to the banks. For M any years this fund OF
lsWiui money " the treasury was inoonsider.
aole put Whsn ia th Q progress OF events it be.
came unprontaDie to a certain extent, for
banks to issue cir eulatiDg notes, they began tc
retire their circ ulstion and to deposit lawful
money Tor thai purpose. On the 1st of De.
cemoer the .eposit had increased to $42 1897, :
4oo. But n ext August this amount will begin
10 lhcreaseJ more rapidly, because under the
act OF lo' 81, extending the corporate existence
Of certs -in banks, those banks are required at
the End of three years from the time of such
exte eJnsion to deposit in the Treasury money to
tbs amount of their old circulating notes which
pAay be then outstanding. This will within two
years increase this fund to nearly il not quite
| $75,O0O.O0O. IL must be evident that the &C.
cumulation of such fund in the Treasury will
seriously contract the currency and deprive
| the country OF the interest on large sum of
idle money. The bill proposes to remedy these
dlfficnlties BY authorizing the Secretary of the
Treasury to invest this fund in United States
bonds, to be held for the same purpose as the
money deposited. This will release the large
amount of money so deposited and restore il
to the channels of circulation; and as the gov
ernment is to have whatever balance OF the
fund may remain after redeeming the notes,
practically it will save people the interest on
the fund.-