New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-01-08
TJJEDdNGERIN PAPER NONE I.
ME oUTIIwAITE'S BILL FOR FREQUENT RE'
DEMPTIrN or NOTES.
THE GOVERNMENT USED TO PAY IMPLIES
CHARGES on WORKOUT CURRENCY, WHICH
rAcrLrrATrD ITS RETURN.

Wosh,ncton jan 7-Re.rcscnt'uve Outh"atr
seems 10 have struck popular chord IN ire INTRO
ducon OF tho bill TO provide for the speedy ana 'r
ducnt redemption OF United States paper currency
ard National bank notes which nave bccome s"i'"
impure unclenn or otherwise unit FOR use The hl'y
condition OF the paper currency was not first olSoo'
r., hv Mr. Outhwate nor first called to the attention
y, tho peop,e Of the country by him. The p"ope
have long been OF H. and the treasurer o' '"o
United States In his last three messages mas urso"
that "A small appropriation be made to pay lot ,h'
TRANSPORTATION II Washington OF the WORKOUT hHhS
and muta,cd grccnhaoks. gold and silver oer'Fh'''
and legal tender notes Of the issue OF 1900. 80 th"t
,hev might lie redeemed. There was an appropria-
lion available 10. this purpose mp 10 1888, when TOT
omo unknown reason II was stopped ~ "aS P'oo'
ohly considered that the Government w"nia save ~
leas. $50 600 by the economy and compel the private
holders md banks To pay express o"'"e'S VI Wv
money sent In for redemption
uut these prlyato holders and Individual DahKS'
instead Of paying The express charges ms expected
b,y. sent the notes and bills that shouc have De'h
forwarded to Washington to thelr Correspondents III
urco cities In the course of time these OI'' NAV"
.rayliated toward tho sub Treasures. ana arriving
there ucy were. matter OF course sent 10 WASH
,c,on for REDEMPTION The transportation from any
ono o., tho nine subTreasurics TO Washington Is pa'd
-, ,,o Government So in the long run. the expense
q, characterization, which was borne without compihmt
hv te ,;oyornnlen. prior 10 lss3. Is In TACT sun
,o,po by the Government and nothing has been gained
By the legislation cutting OF the appropriation.
Mr. Outhwaltos bill rs II - "orued provinces LOT
tho redemption OF National bank notes, but such
o,s,,o, is No, necessary A different system has
slwavs prcyriled with regard 10 these notes. pro
vt.lon Of the original law enables any bank 10 seha
10 the Treasury for redemption mutilatd Nauoh"i
bank notes free OF oil expense OF transportation
For this purpose q contract has for years bceh an
nualy renewed with an express company, when
20 oar AL
and from the Treasury at the ratc Of 10 cents on
oach $1,000 Of course this contract includes all
Nancy old or new, coin or notes The lnitod STATES
Express Company at present holds the contract.
Tho expense incurred In transporting National
hank notes IS eventually paid by the different Ndt'hal
HANKS which have had their notes redeemed. For
instance n National bank In New-lork may send III
, mu,iIated note on n National bank IN Son Fran.
CISCO Tho NewYors bank docs not get In return
n note On tho bank, but gets In It's place leSa
lender noo. In the process OF redemption TIE hiu
,ated note Is charged up % the bank OF Issue ana
new note Is issued to that bank, which Tor the sane
q, Illustration Is chartered In San Francisco. AT tho
end OF the year new National bank notes, with inc
,ncnse attending tho redemption deducted, arc sent
IN coch one OF the ,aeO National banks TO replace
| tho mnta,cd notes withdrawn from circulation
Th. n,utllated money when 1t does finally get into
the Urea sury Is usually In filthy ana nhcle"h con-
dition But there are n good many banks which send
| I'm redemption comparatively INV phA' II -
optional with bank whether It Is to receive IN eN-
change now currency or "A draft on a subTreaslTN.
After draft II subTrcasury has been ob'nnrl II II
| sent 10 some correspondent In another clN Whrr'
balance Is kept deposit. ms saves III" "''m''
transfer Of notes or coin and tie cost Of exchange
Whenever clean and comparatively new National lank
notes are sent In for redemption, they are not AWAY
withdrawn from circulation. II they deemed TO be
good they are sent back 10 the bank OF ISSUE.
There Is no doubt that the recent complaints, when
have been growing In number, about the proonp'e
| endemic of cholera next summer influenced Mr..
| Cultivate 20 Introduce his il. ines" Complaints
are unqucsIonably we'll founded. In the past ohN
the most careful precautions have protected the clerks
I'm the redemption bureaus from being infected Win
contagou dlseasc3. Whenever an epidemic Is preNa-
| lent In any pnrt OF the country the money coming
from that section Is first Thoroughly dl'iniect"i ih'
was done during the yellow fever epidemic III inc
South several years ago, and, result there was
no outbreak among the Treasury CLERKS. But seine
times money comes In and there Is no indication
that It has been exposed to Infection In one parc-
ular instance clerk In mndllng impure moey be-;
came Infected with lonhsomc disease, which spread
from the right arm 10 the face ana almost r"sm"Ti
fatally. ,,..
should now renew the appropriation which WA,
stopped In 1898 not more than 100000 900 in notes
" M"" s95 300 would be needed pay Tor n,p,r
tatlon. This sum Is $4,000 n excess OF the am unit
redemption which Is NOW carried on In the Treasury
/ is pr,ctcnly the SAME that was perfected by the
Sugnlx Comfy Bank. OF Boston. II has been csti-
matcS that the average nfe OF National bank note
| g. obou. five years, but this estimate has been
Loscd on rather doubtful grounds. However,
/ ,hr National bank note currency Is In appearance
brighter cri.per and cleaner than United states Treas
ury notes There many of the old T@nbacEs
Gailv coming for redemption and also the gold ana
Silver certificates which have boon In circulation since
isao nut the legal tender notes Of 1900 form by
fur the greater proportion OF the United States notes
| cent in Tor redemption Judging by their condition
the averag, life Of Treasury note Is not NOR Tran
| a wear. Bnt the restriction ON tran portation fas
h,pt these notes In circulation longer than they would
| have bccn II the Government had borne The cost OF
lie Of Treasury note the basis Of years active
! oIrcuiaton Mr.. OGs,Tyne's bill Will prove one OF
Tho popular measures OF this session. and VIII prob
| ably become n law.
I'm tho Hudson through the beautiful Mohawk
| alley To Euralo and Niagara Falls, by Now York
Central's Empire state EXprcss-fastest regular train