Omaha daily bee., 1889-11-06
BANK CIRCULATION PROBLEM
A Belief That Congress VIII Como
to the Rescue.
WINDOWS POSITION NOT KNOWN.
Malone Gave Up the Governorship
Fight Two Weeks Ago-iis Aim
Was to secure Control OF =.
the Legislature.
WASHINGTON BUREAU TUE OMAHA BrB, !
5l3 FOURTEENTH STREET,
w SUI NnrnN ID ~ NnX x

blH FOURTEENTH STREET,
WAsHINdroN, ID. O., Nov. .,
National banks having AZ per cont bonds
deposited with the United States treasurer.
TO secure circulation would do well TO wait
| at least u few months before changing them
| to per cents. This is the advice of tho
| treasury officials
The impression obtains IN the department
| that congress will take some action to re-
| lieve the stress upon the national banks duo
| 10 the near approach of maturity of the ~
| per cents. 1t is true that they become due
| in twenty months; that their premium for
that reason is fast diminishing, but there are
| reasons for believing that the premium OF
the As will depreciate quite as rapidly, so
that there can be only the risk in waiting
| that there may be in q "corner" on the Is
not already in the hands Of the banks. II Is
| not known yet what recommendations Secre-
| tary Window will make IN his annual report
| relative to national bank circulation. IL
! is not party, but n business PROPOSE
tion, aud not theory but a condition
| that confronts him. The bulk of the ~ per
| cent bonds are now deposited in the vaults
of the treasury TO secure bank circulation.
| They full due September, 1891, and some
| thing must be done TO give the banks another
| basis for circulation, otherwise the existence
| of the circulation of n great many banks will
| be wiped out in less than two years. A
| stringency will follow IN the money market
|
affect the best interests of the country. The
| secretary is very ANXIOUS not to disturb tho
present circulating medium, but in thus re-
| spect and TO this extent he is compelled to
| act.
1t will be recalled that Comptroller Tren-
| holm, at the convening of the last congress,
| suggested three or four remedies for the
troubles which are now very near the ma
| tional banks He first recommended the
issuance OF per cent bond to run say lOO
years, the national banks to have the pre-
ference in the purchase, the intention OF the
| issue beng to give anothec and better
basis for national bank circulation. III this
should not be accepted he thought a reduc-
tion of the minimum of the deposit to secure
circulation the proper thing. AT present o
bank must deposit % per cent OF Its capital
stock and take out circulation on that basis
For instance bank with 100000 capital
must buy SCI, 600 worth of bonds, bonds to
the par value of SIS, COO, and deposit them
with the treasurer to secure circulation.
But the bank does not get that amount OF
circulating notes. although it must pay pre-.
MUM of about % per cent to get the bonds.
1t gets bank notes aggregating S22, 500 TO rep
resent this investment of S32, 600 in bonds:
a decrease in the deal amounting TO almost
$4,000. Comptroller Trenholm thought In
the event the low priced bond proposition
| failed that this minimum of deposit might
be reduced from % per cent of the capital
| stock of bank to say or per cent. He
held that since the object in making the
deposits and taking out circulation was SIM
| ply to make connection between private in
| terests and the federal government, ii would
do just well to deposit 81 900 as S25, 900.
In any event he thought bank, especially in
| view of the fact that bonds are AT a high
premium and the government never depre-
cia;es its own obligations, should be given
circulating notes to the full par value of the
bonds deposited to secure circulation The
house committee on banking and currency
put blil of this character on the calender,
and it would have passed both houses Of
congress had day been given to il. 1t is
believed that Secretary Window will recom-
mend one or more of these suggestions ana
congress will take action. In any event IL is
given as the best advice attanable at the
treasury department that national banks
having AZ per cent bonds deposited would
do well to wait awhile before making any
| move.
MAHoNEs MANGUvRE
Virginia's unreconstructed confederates
are drunk on whisky and Joy tonight.
They have prevented General Mahone's
| election as governor and in the phraseOogy
| of the rebel yell. the commonwealth is safe.
1here Is a bare probability, however, that
the republicans have elected majority OF
| the Legislature. The bourb ms have not yet
arrived at the fact known bv General Ma
homes friends for some time, that more than
| two weeks ago he abandoned | ,s fight for the
| governorship and directed his efforts toward
| the legislature. Ten of the senators al
ready occupying seats ana all of those
elected to-day will vote for United
States senator two years from this winter to
l
March 3, 1893 This is the prize General Ma
| hone has really been working for under
cover CT his canvass for the governorship.
He knew the bourbons would defeat him for
| the governorship by the methods practced
To-Day, but he thought ne might, with fire
| diverted secure the legislature.
When the bourbons wake up to the situa.
ton tney will likely change the returns and
make the legislature Democratic, though
| majority of republicans are chosen.
Your correspondent returned from Rich
mond at IL o'clock tonight, after having
watched the voting all day. In Richmond
alone, at least 1000 negroes who wanted
to vote for Malone, did not have an
opportunity 10 cast their ballots. Two
thousand or more of these were Ia line when
| the polls closed. White men were allowed
| to vote as soon as they appeared, but the
colored men, thousands of them, who went
into line last night and stood there Till five
minutes after this evening did not reach
the ballot boxes The argument can't be adj
vanced now ''that the negro does not care
for his franchise" Here is proof that he
does, but can't get the opportunity
| AT III o'clock / went through Jackson's
ward, which Is the black belt of Richmond
| AT the First precinct 81 votes had been cast
at that place in the Second precinct 81, and
IN the Third precinct 40 votes had been cast
AT each voting precinct from 200 TO 400 col
ored men were in line.
In the Clay ward, the white mans DISTRICT
the democratic belt, the situation was as dif-
ferent as possible at that hour Ia the FIRST
cInct, 443 third precinct, 50s the total
| number OF votes cast at III O'Clock in the
three black precincts was l31. During the
same time in the white and democratic three
precincts ,532 votes were cast. The same
was true all over the city, and in every other
city in the state This explains why Malone
was not elected to-day. Fully twice as many
negro votes were suppressed by this process
as will be returned to represent McKinney's
majority.
MISCELLANEOUS.
The annual report of the quartermaster
general of the army shows that during the
past year S522, ,0JO was expended in the con-
struction of barracks quarters and other
necessary buildings and making repairs. He
speaks of the necessity of drill halls at
northern posts Tor drill and exercise dur.
ing the winter months.
The secretary Of the treasury has made
the following appointments IN the Internal
revenue service: j. j. DeGrummond and
John McGinnis, gaugers, Fifth Illinois, and
S. S. Patton and James A Wender, store
keepers, Fifth Illinois.
President Harrison has appointed Warren
G.. Sayre. of Indiana, "a member OF the Cher
okee commission, vice John n. Hartrantt.
: deceased.
PERRY $. HEATH.