New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-27
ROW OF rENraNTs

aside a reserve fund to protect these notes. But
the same principles applicable 10 other paper cur
rency Of the United States notes which are
lost destroyed in like manner.
National bank notes also redeemable- The
act OF Congress approved June 90 1874 repealed the
provision In the National Bank law requiring banks
TO keep reserve against their circulating notes
for redemption purposes In lieu they were re-
qured to maintain IN the Treasury Of the United
States per cent fund of the lawful money for the
redemption Of their notes and were allowed to
count this fund a part of their lawful reserve
against deposits. ANY gain from failure to present
national bank notes for redemption inures TO the
government The November l statement OF the
United States Treasurer shows that there is SH9-
6106S5 outstanding in national bank notes. the
greatest amount at any time in the history OF the
nation.
The total amount OF outstanding paper currency,
through the destruction of any fraction Of which
the government becomes q beneficiary is 81 $50 49,
$50 divided follows: United States notes sS4s.-
GSlO16 Treasury Of 1880 $18S74 go; national
bank notes $s61O6S3; gold certificates SAB 98 $50:
silver certificates $46s IL 900; total. 81 Gs6135.56s
Expert dnanciers estimate that about per cent
OF each issue Of government currency is destroyed
and never redeemed in each decade. The percent
age of national bank currency never redeemed is
theoretically little less. Two per cent OF the total
Of outstanding paper would be s33 To III &c.
the maximum gain OF the government through
shriukase OF paper currency. Basing this hypothe-
sis on the most conservative basis possble-one
half Of per cent In a quarter Of 4 centUry-the
minimum gain of the government would be IS 49,
C77 84-the smallest possible which should be
in the vaults of the Treasury at the present time
a paradoxicaI amount. which represents a clear
gain that may never be used unless the currency
laws are changed. but Is simply that much retired
from the nations available money, as II in a
niser's strong box.
Successive Controllers Of the Currency have tried
to approximate the size Of this fund. but have
failed. There seems 10 be way in which this
may be determined. There is method OF abso-
Iutey ascertaning how much money is destroyed.
because no one knows when Maggie ia going TO
hght the fire in the parlor stove Where Mrs small
head had hidden heT sVlisS, 4s lar Jar DaG as 1870
been continued irregular periods, based upon
figures OF forty national banks which have failed
hfteen of them prior 10 1870, eight prior to 1873
and seventeen prior TO 1876 The computations We're
thai wear and in 1878 1893 and 1900 for those
on the amount OF the total issue OF the bank which
remained unredeemed at the time each computation
The Revised Statutes require that all national
banks which 20 into voluntary liquidation and all
ir nj rirCuating notes outstanding Thus it win
he seen that no association close UP its affairs
without first providing for the payment OF al It's
main in the Treasury until the last outstanding
notes shall have been presented foT pay Inent BY
To- must at the end OF three years from the date
81 6r NE go So extended DEPOSIT lawful money with
th Treasurer sufficient to redeem the remainder OF
arise from the failure 20 present such circulating
notes for redemption shan lnure 10 the oeneht OF
ne United States, and that the new circulating
notes to be issued in the place Of the old shall bear
srcb devices S shall make them readily dlsttn-
9pishabls from the old ones
In The Controllers report for 1879 a table gives
data obtained from series or reports Of the super
intenSnfs OF the bank department OF tho State o.
49, work exhibiting the amount OF notes. which
f5 49,, Issued 10 state banks and the amount re-
nein5n at the expiration OF the six years notice
ra1,,i-e1' ia be given by the banks. before they
we're nv law relieved from the obligations 70 meet
them Returns we're In this way obtained from 2Ss