The representative. [volume] (St. Paul, Minn.) 1893-1901, 1896-06-10

did not allude to the banks, it demonetized
the silver dollars, destroyed bimetallism,
and made specie payments, for which Nc
Culloch and his national bank, following
had been clamor:ng and postponed for five
years what was even then being accom-
plished.
Having forced a contraction in eight
years, of $1,000, O00,00O of government
treasury notes of all descriptions, the
banks only filling in one-sixth of the vacu-
UNI, the banking law was remodeled and
adopted to the new situation. The lawful
money reserve of 25 percentum was abol-
shed on circulation, which, of course let
loose a very large sum of money-about
100000, 900, as the banks thereafter were
only required to keep on deposit with the
treasury five percentum of circulation.
The effect of the above was to make the
treasury great clearing house for the
national banks, without cost to themselves.
They also, to save hunting up their circu
lation, and returning the same to the
comptroller, so as to release their bonds,
secured N this act that Upon deposit of
lawful money with the treasurer for Sc
curity of such circulating notes, N whole
or in part, associations may, upon deposit
of lawful money of the United States, In
lars, take up the bonds which said asso-
citation has on deposit with the treasurer
for security for such circulating notes."
The maximum amount of greenbacks
was then limited to 1882 100000. This
money circulation had reached in 1868,
$461, 100000 The above is only sample
of how greenback legislation was smugg.ed
into laws wholly relating to national
banks.
We come now to the resumption act, So
called approved six months afterwards,
which reduced the greenback from $780,,
000,0 900 down to $500 900 900 and repealed
the limitation of national bank note c:rcu-
lat!on to 1854 ,0O0, 900. We have discussed
this act elsewhere, but in order to show
how lacking in authority to issue bonds IS
the secretary of the treasury now, under
this act. After giving the authority, and
naming the act by its title, 1t goes on,
with like qualities, privileges and exemp-
TONS which is as completely as restric
tive as though it absolutely forbid the sec
rotary to increase the national bonded
debt, or to exceed in all the 81, SOC, 600, 900.
AS soon as the people discovered the eff
fects Of this, ever and anon, t.nkering with
the currency, stop. was put to it. The
revenues had been amp,e, and the debt was
rapidly dimn :shing. After contraction was
stopped the control of currency by the
banks become weaker, and the twenty
years Limitation for banks was nearing
the time for expiring, which was 1888. On
July II, 1882, an act was approved 10 re-
new the national banks which applied
within two years from previous to the ex-
piration Of their charters. 1t passed with
out much protest, as the national debt was
being so rapidly reduced. In few more
yeas, had the tariff of 1883 still contin-
ued, the last bond would have been paid,
as from 1882 to 1892 the Understanding
debt was reduced from 1,463, $40, 400
down to $685., 1929, 800 When the last
bond was gone the banks would lose their
circulation, and hence control of expan-
sion and contraction. The Bland silver
bill expanded the currency steadily, from
IS. O0O,O to $32 ,403, S20, and silver GER
t:ficates from nothing up to $54 900,
net increase from silver alone in three
years of $S0.000,000.
This was the year that note and bank
note circulation reached its highest figure.
In 1882, it is reported by the treasury to
have been 1852, 464.7S8. In 1891 this cir
culation had decreased to $162 ,221 ,046, or
over $l60,000,00O. In the same time ST.
yer dollars in circulation increased $780,
900 900, and silver certificates $253 10000
and treasury notes Of 1890, $40,34S, 704.
AS the gold certificates Increase $11500O,-
900 and subsidiary silver increase $14O00,-
600, and gold coin increase $4,000 900. it
got off of the decrease of bank notes and
raised the total net increase from 1882 to
1891 inclusive, to over 1920 900. These
facts need further analysis, which we hope
to make as we proceed with the story of
these banks.
OCoptinrod noyt