Year: 1868

Controller OF the Currency.


Special Despatch to The Evening Telegraph.


WASHINGTON, Nov. II. The annual report OF
the Hon. Fl. r. Hurlburd, Controller OF the
Currency, which is nearly finished, will show
the number of banks organized during the last
year to be but twelve, about half of which were
intended to take the place of banks that are
winding up, and are to have circulation as the
notes of such banks are returned, the remainder
being new associations without circulation,
until some further proviso shall be made
by Congress. 1t will also contain tables show
ing the condition OF the lawful money re-
served by States, exhibiting the amount of
circulation and deposits to be protected 10y the
reserve, the amount of lawful money on hand,
and the amount available IN New York and
other redeeming circles for that purpose
Those banks that are required to hold in reserve
10 per cent, and those that are required to hold
rs per cent of their circulation and deposits, are
grouped separately. These returns are given
for each quarter last year, and show very
considerable excess of re serve over the amount
required by law. The report will present in
tabular form the amount of taxes paid by the
banks to their respective States and to the
United States for the calendar year 1867, show
ing the aggregate taxation to be nearly per
cent. on the capital of the banks.


The Controller renews his recommendations
Of last year for the redemption OF all National
Bank notes in New York, believing that the
ultimate redemption of all such currency is
established beyond question. 1t only remains
to make them convertible. This can be done
only by making them redeemable at a common
centre, which should be the centre of trade.
When this is accomplished, the amount of notes
in circulation will be regulated strictly by the
demand. When the volume shall be greater
than is necessary to the business of the country,
the banks will be called upon to redeem the
surplus, and it will be retired. When trade is
active and more currency is required, the
banks will expand their issues, and redemp-
tions will not be demanded until the season
of activity is over. If all the banks are
required to conform 10 q uni
form standard of responsibility in
this particular the burden being equally
divided among all in proportion to their circu-
lation will be light because the aggregate re-
demption at any given time will not exceed the
surplus of notes in circul ttion, while if such
rule is not established the burden will be une-
qually divided, falling most heavily on those
banks which conform to the highest standard,
compelling them by the frequent return of their
notes to contract their issues, while at the same
time the remote banks will be tempted to undue
expansion, the temptation being the difficulty
and expense of returning their notes for re-
demption, In this as in all other cases. the
il ferior currency will be the more abuudan'.
Rigid, unfaling eonvertbility is the only safe
rule, and In the end the most economical.


In his last annual report the Controller re-
marked that there was moi at the time any
immediate demand for the redemption OF
National Bank notes, but it would be one of the
healthest evidences of returning soundness in
our financial affairs IL it should be begun. #
legal.tenders should command small premium,
it would begin. 1t would be the first step
towards specie payments. 1t would mark an
era in legal-tender notes, the date of their
appreciation in value. At the same time it wouli
be healthy reminder to the banks that their
circulation is liability payable on demand.
The Controller is opposed to the payment OF
interest on bank balances by New York city
banks, and tavors a return TO specie payments.
Despatch to The associated Press.


A Denial.


WASHINGTON, Nov. 17-General Henningsen
authorizes the statement that he has no connec.
tion with any flibustering expedition with
regard to Cuba.


An Opinion by the Attorney. General.
There is reason to believe that the Attorney
General has prepared an opinion for the govern
ment Of heads of departments, in response to the
question submitted to him, to the effect that,
under the law of Congress establishing the eight
hour system, employees on public works are
entitled TO the same amount of compen Satlon J
when they worked ten hours day.