Year: 1873

There is probability that 81 900, 900
more currency will be put in circula-
ton about the time the fall crops are to
be moved. The amount of circulation
which has been assigned, but not taken
up by National Banks, is S7.OOO.OOO.
OF this sum 5 s2,5OO,OO0 have been as
signed to banks upon application,
which have not yet been organized.
The remaining "a 400, 900 are reserved
for banks most of which have been or
ganized, but which are not in active
operation. These banks are. without
exception, in the Western and
Southern States. The assignments


were made in the order of
priority of application, and as the law
provides no period within which the
banks shall make deposit of bonds to
secure their circulation, the Comp
troller has considered that the time
for reserving the circulation would be
discretionary with him. The numer-
Gus demands for circulation from
banks that are dersirOus of immedi-
ately depositing their bonds, and
the alleged necessity for more currency
in the country, have induced him to
make the order, which was recently
published, directing all National
Banks that have made application
for currency to deposit their bonds
secure the circulation within thirty
days, or forfeit their right. If any of
the present applicants do not desire to
deposit their bonds, there are o sufficient
number of banks who have already
applied to take up the reserve.


1t thus seems probable that the en-
tire seven millions will be put in cir
culation within sixty days. Should
this be accomplished, the conditions
of the act authorizing the issue of fif-
ty-four millions will be fulfilled. and
the time will have arrived when the
Comptroller, by the terms of the law,
is directed to withdraw from the East
ern States twenty-five Millions, and
distribute it in the West and South
The National Banks very generally
are refusing to comply with the terms
of the Secretary of the Treasury rela-
tive to the reissue Of National bank
notes. The banks seem unwilling 10 be
at the expense ofpayingfor the printing
OF the new notes as provided by the
recent law, and as that portion of the
law which authorizes them to take
their circulating notes in such denom-
ination as they desire remains in force,
many banks have expressed their in
tention to return the notes of all de-
nominations except the fves, which
are not to be re-engraved.


Although the law directs that the
banks shall reimburse the Treasurer
for the printing, there is no provision
for collecting the sum, and lawyers
claim that the law Is imperative. It
is stated that the Secretary of the
Treasury will compel the banks to
take notes of the larger denomina-
ti0ns, which are to be reprinted, thus
making the expenses of reprinting
proportionate among the banks, and
that he expects Congress to sustain
this action. The bill passed Congress
by trick, and it was publicly stated
in the Senate at the time to have a job
in it. After thorough debate it failed
passage in the House in its original
form, and only passed by being Sc
cretly tackled to an appropriation bill,
and crowded through unObseryed. Ii
was openly charged in the Senate that
the bill was of suspicious character,
and in the interests Of the manufae-
turers of distinctive paper, and of
the engravers. The Comptroller of
the Currency was so little consulted in
the matter that he did not even know
of the passage of the bill The banks
make the additional point that there
is no further danger of eounterfeiting
the notes which have been ordered
printed, since the counterfeit plates
have been captured and destroyed.