New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-09-20
NATIONAL BANK CIRCULATION.

| TO ENHANCE 1.-THE OHIO SENATOR ON THE
PURPOSES AND EFFECT OF THE MEASURE.
washington. Sept. 10 tspccian.-An important ana
| timely niece OF financial legislation Mr.. sherman
bill to reduce the amount Of United states bonds re-
ouircd to bs deposited by national banks III oroc' "
issue notes the par value Of the bonds they nave
deposited with the Secretary OF the Treasury 10 guar
| antce their circulation-was reached to-day on mo
Senate calendar and led 10 some Interesting comments
on IT'S probable effect on the money market ana Oh
| business. The BILL reported from the Finance
| Committee contains these two sections
Section Tibet the compulsory requirement. OF ac'
posits Of United States bonds with the Treasury OF ~
United Staten by National banks Ia hereby limitea III
amount To 81 bonds for each and every Nato"a'
tank provided that thr voluntary Withdrawal OF oonos
for the retirement National bank notes shall not eSu
ma sum Of $4,000 900 In one month and M "'cr
,d.d that this act shall not apply the deposit, OF
bonds which may be required by the Secretary OF the
rrssury to secure deposits Of public moneys In the Nao
| al banks. ,,.
made OF any United bonds barring interest III t"o
manner rnur.d by law any National banking assoeauo"
making the shall be cntlucd TO receive ''om Wv
Controller Of tho Currency circulating no,'S Of dmer III
tons In blank. registered and countefsshu 10
proyded BY law not exceeding In tho whole amount WV
,.r v,lue OF the bonds deposited provided that AZ 10
time shall the total amount OF such not'' S"ta 10 any
exceed the amount at snch uihc sctu"9 iva"
| IN Of It's capitll stOck.
| Mr Sherman explained that the last section would
add about $40 900 900 TO the tarknote riafion of
| the country, the banks at present is'n'hg ''"''e
amounting 10 only 80 per cent OF the far" Vai'ie !"
! IN. bonds deposited The effect OF the htet '"'''h
muht he to cause the return "a the Government 4" Il
/ good many outstanding bonds and would make Bona
purchases fIcer and easier II might also encourage
the withdrawal o! their circulation y b'nks N certain
| mart, Of the country, bit on the Whole. Mr. Sh"rhah
Thought the bill would tend 70 expand the currency
to some extent. vet safely and h"ncnrs'iIy.
| Mr. Plumb and Others objected TO tn" first Secnoh'
and finally Mr.. Power. OF Montana. moved TO hnhe
| II ont The bin went over Mt this stage wthoh'
| action. A.
When the House bill had been reached on tue
cnleidar Mr. sherman spoke 81 the Importance ~ tho
| bill and said that he had rrcc,'rd NUMEROUS c'rS
ppd kilograms frois m.inrS mn In oil parts q "c
tinted states urging IT. pa sage lie had been Gnu
| ciscd by tho newspaper, for noe pressing IL on '"c
.,tcntlon % tho senate but he had not been al" To
do 10 OH account OF the Tariff BILL ana OH account u.
| the order Of business agreed upon. lie ri'Veu 'i''
its nssasy would tend very much I" puct even 'h'
| prrsent attation In tho money mnrk"t The sec hn
vcrtion would allow increase ~ Nh''"h"' b"'h"'N
| 10 tie nrnount Of eli .OOO.OoO or sl:V~o". ny w
thorlsinS clrt uation 10 the full fac" value nhs'" W
~ per cent, of tho bond, deposited " N''"rc ''r'n'
tion lie could not tell. however, whN IN" cHc'' ~
the first section would b". whrl reduce th' ''"'
pu.orv Requirement Of bond d"p",hN en- """r 70 NV"
Tho r,yht % carr, IN buldncsN e. $1,000 br'a"'' l"
the bonds 10 Ia withdrawn wrir '"i. ihit Won" '7''
| n r~duc~ circulation. ini, ~ ~" BANKS "u w." '"o
| right tn rcilru circulation and N'n Their u nus II
seemed "a him that that pI"'c'' "d h'"'h g""' w
and TINT the passage u the bill ""ili 'nh l" 'h'"
II. and would induce tm Nn,l hal bank" " l. ~
| cir, ulaton q, the full amount Of Their bones
| drpo.ilrt. A, y matter al '"nis". TIE H"''""''
| bunhs would have 1" =" ""t W 70
| l,tenrs whom the per cent bh"' "''
paid unless .om" other m"'h"d >h""lu %" :" WV" ''
Undoubtedly the effect ~ The hlll would hr i"' ""'
10 proonr but 10 rnr"nrcr IN" Na,!"nal hank Nst"h'
| lie d,d not want h"WrNr: I" PRIV fn" bi'l u''""p
n WAS no, bill winch could be- coli'sd"r'i under the
i've minute rule
| MIR Plumb bore wuc,, NJ. >h'r'nans sole IA
ton T., have the ball c"I,.r'ri n an "'rN da'". II
had To certain extent. mrrli. iin lie fra-d th' u
| would finally result In n contra i'n 81 the currency
While hc aSrrei that the National banking ~ -t'n. ~
system OF discount and d~.>it Wa wise. and ought
70 he continued, II plain TIM II WIS moi f'f~ I"
| u u system having reIa'i"i. 4" il' 'h''''!' u"
hank. them selves wanted t, r,t of that cuisines.
aid the public al-o had rights ~ IN" matter
| Connes, tuuld not AFFORD t" let the Na'''iai oa"
| currency disappear without supplying u cnr~"V ia
It's plar- lie believed tina, the bu'ine'- ~ the '"n''
vas in greater peril than 1t hal beat for wear t'h'
the lack OF = >nnr tent clruia In; medium DISASTER
might be avo,drd. bat tic country Wa dansc'"n ''
| near II and pu!d e"rthn" ;" "h''i IL "S'
| larger volume Il currency.
| Mr. Flat a,hcd Mr. Plumb h!> irIS III .'r tn IAi.I
that the result VI the In would u" To- '"Hta t!.r
| currency.
| Mr. Plumb gave D. h. Oh tir authority wh.'h
tho bill wonld tye 10 Lah> 10 r-''nr their d"i"'i'
| U, bond, dn 6rdcr 10 ain t!"r 'lhr'"' if'" t''
| amount required trnnnih, from sl-,''oo up ~
$4,000 to $1,000
| Sir Plat -Wouldn't the h,nh, which haN" h"ndr
On deposit riI, uI,ti"n r'tic' r'ra>c toe
i-suc 10 tn" fun an,ount Of III" noMd, M,
| Mr. Plumb wOIld and SOM" would not. ih'
tie trouble !, that the ,uc,on "t il- ,oInc o the
currency Is pow decided III re- ',rrr,t oil The bank
and mol In the Interest OF ia" lubM
Mr.. Power moved :" STRIFE ont ti' 'ir't sr"t"n re
ducinr to $1,000 the d'p"'t OF bonds - F''a"
Mr. shei map .nld no had no objection To- ha,ins
the nrsi section struck ont and TO- l"'>snr th' mn
with the Second section alone" " hi'h would add 10
per cent Ia the bank circulation.
Mr. llstt gayc Il a. a., "in'nn nv tue s,"H' ~, IA
circulation which the second section III me bill w"i
Mr. r~L,clI stated h, ohjr'iio to IN" bill to b"
| tina, Il wOnlt encourage 'w National b.ah> To b."
lcvc that they would gt hirth'r r'tinl son l':'"
ai'rr TO ISSUE r'n!at!on II" roulh N" consent 10
III Coairc>, TINT the Power 7" 'N'dr lhirr money
would he continued in the National hant'. 49,,
After some fnriher inerclnl" Of views. the hill
went over I'll tomorrow. retaining IT. place "n ti'
calendar.
TIE BILL PROVIDING fuH LEI r. GENERAL.
Washington. sept. 10 l>p,'lll- ton'eiriiEG the IL
establishment II the grad. Of II nlrn,n; general in tho
Army there have b;cn n"rI'"r "i bills lci"rT ,!1
House Committee Military Nhar>. rhr bilI r.
port,d during the ocond ~ Ia" Lth t"nIItNN
va, cui,dard for time far p"i'rnblc - m, Of The
otl,ep-. THIS particular bill revived tho grade I"
lieutenant general and provided that the pay should b.
~. 900 u year IT also prov!acd tai the nl'nbrr OF
naj0r. generals should he rcdncs from tnrNe 10 two
In rcpurting the bill back 10 Ia" !!o'>' late IN LIN
Congress, General SpnOla SlHnIti'f long aud taf.
fully prepared report. and there thc mI,cr dird. In
ihuru M matt S.-I,, ~,