The sun., 1893-07-02

standing, as to whether tho Will OF the people
will be obeyed. 1t is to be hoped. therefore.
that favorable action by Congress Will not be
taken for granted.
Tho question has been asked number OF
times during tho recent crisis why the banks
Of this city have not increased their circula-
tion In order to take advantage OF tho high
rates for money and also to relieve the situa-
ton. In addition to the obvious reason that
time Is required to take out circulation ia the
fact that until recently tho prices OF Gov
ernment bonds have limited the profits
on new circulation to so small q per
centage thnt only interior banks that can do
pend upon continuously high rates for their
money have been tempted to issue notes. The
present price Of the 4 q cent. bonds. together
with the fact that the revenues Of the Govern
ment will not permit OF any further redemp-
tlon OF those bonds for n long time to come.
have increased the chances OF an increase
in the volume Of national bank notes. III
Congress should amend the National Banking
act SO that circulation could be taken out to
tho par value OF the bonds deposited to secure
tho same. there would unquestionably be an
Immediate expansion OF about S1IOOO.OOO In
tho volume OF national bank notes. that
amount being 10 per cent. upon the circula-
tion now outstanding.
Such an amendment would also In all proba
BILE amount OF new circulation. 1t is difficult
to ina gine valid arguments against the amend
ment. Indeed. by limiting the amount OF
notes that can be issued to 80 q cent OF the
par value OF the bonds securing them.
the Government really discredits its own
obligations. 1t is bound to redeem the
bonds at par when they mature. and
thero can therefore be no impairment OF
the security. so far as the holders Of national
bank notes are concerned. IL notes were issued
up to the face value OF the bonds. The pres
ent restriction as we'll as tho tax upon circu-
latlon were war measures. and as conditions
have changed radically since they were
adopted. 1t seems worth while to consider the
desirability Of changing them.
In the judgment OF those best qualified to
judge OF the effects Of the changes suggested.
they would result in emissions OF well-se-
cured currency all over the country particu-
larly at interior points. whore an increase In
tho circulating medium appears to be most
urgently required. 1t is understood that sew
eral OF the city banks have already taken steps
to increase their circulation. which in the ag-
gregate 10 only Sc. .60O.OOO or about 10 q cent.
OF their total capital.
The most important news to-day was OF the
decision rendered yesterday by Justice Jack
son OF the United States Supreme Court in the
Georgia Central Railroad receivership litga-
tion. reversing number OF rulings made by
Judge Speer OF the United States District
Court. Owing to the interest taken in
the call for an extra session Of Con-
gress this decision did not. perhaps. re-
ceve the attention from the Street that 1t
deserves. The decision restores to the major
ity stock OF the Georgia Central Company its
voting power. which Justice jackson decides
was wronRfully taken from it by the lower
plv hop ba in ~
the Richmond Terminal collateral s q cent.
bonds, which are secured in part by the dis
franchlsed Georgia Central stock. but moro
important than this. it restores to the Rich
mond Terminal Company property which it ac
Quired at great cost and 1t will. without doubt,
eventually bring the 1000 miles OF railroad
composing the Georgia Central system under
the plan for reorganizing the Richmond Ter
minal system. Finally. the decision is a de-
cisve and we'll m erited rebuke to the aGrarian
or anti corporation party. which has threat
ened investments in Georgia AID also i'm
paired the credit Of the State itself.
Tho weekly statement OF averages OF the
Associated Banks issued to-day Is a curiously
misleading array OF figures. The Clearing
House issued two statements. The first was
SO obviously incorrect that 4 revised statement
was subsequently sent out. The errors arose
from the manner in which Clearing House
loan certificates were treated 1t was the in
tention Of the Clearing House. as indi-
Gated by the blanks sent to its men,
bers for data for to-day's statement.
that the banks which had taken out loan
certificates should treat them as a liability.
and at the same time carry into loan account
the average excess, II any Of certificates re-
ceved by them in settlement OF Clearing
House differences 1t is understood that a
large number OF the banks treated the
certificates issued to them as an
absolute amount, instead Of averaging them
against their loans, according to the number
of days the certificates had been out On the
other hand. they reported their average hold
ines Of certificates received from other banks
correctly and they appear in the loan item.
which shows an increase OF nearly S., 1854. 900.
Even after such corrections as were posi-
b,e had been made the statement showed a
discrenancv Of nearly $4,000. .oOO. 1t is sus
-, a.. ,o,,o honL. may b.yo ronor,o5