Democratic Sentinel, Volume 2, Number 5, Rensselaer, Jasper County, 15 March 1878 — NATIONAL BANES. [ARTICLE]

NATIONAL BANES.

The House Bill for the Retirement of 1 heir Circulating Notes. The House Committee on Banking and CurrenflyTßßyß toe Chicago Tribune, hate at last matured the bill for the retirement of all toe circulating notes of the national banks, and the permanent isspe therefor of treasury notes. In its present shaport is possible the bill may pass both houses of Congress and become a law; if not at the present, then at tho next Session cf Congress. Tho bill provides, substantially, as follows : That the Secretary of toe Treasury shall have prepared an issue of treasury notes equal to the whole amount of outstanding national-bank notes (about $323,000,000) ; these treasury notes are to conform generally to the greenbacks, and shall be receivable for all taxes, etc., due to the United States, and be payable for all claims against the United States as national-bank notes are now receivable and payable ; and, in addition, be receivable for customs duties to the amount of one-third of each payment of duties. The treasury notes s'i all be exchangeable at par with legal tender notes at the treasury. They shall also be receivable in exchange at par for 4 per cent, bonds of the United States. The notes as soon as prepared shall be sent to the several eub-treasuries, with instructions to cease to pay out upon any account whatever any national-bank notes, biit to pay out in place of such batik notes these treasury notes, and this to continue until the whole of such notes of toe national banks shall be retired. The bank notes so retired to be sent to the treasury every thirty days; and, whenever.toe notes of any bank to the atoount of $5,000 shall be received at the treasury, the bank is to be notified and be entitled to receive, on payment of mi equal sum in legal-tender notes, bonds of such bank on deposit with the Treasurer. Any bank may withdraw all its bonds upon payment to the treasury of legal-tender notes equal to its circiiTOtion. - The Secretary of the Treasury is to use the legal-tender notes received in exchange for bank notes, and toe treasury notes received in exchange for toe 4 per cent, bonds, to ptirchate outstanding 6 per cent, bonds, or in. the purchase of gold or silver coin with which to redeem and pay such bonds. Any national bank may exchange its 6 per 1 cent, bonds at the treasury, receiving therefor the full market value of such bond# in treasury notes, together with the accrued interest on such bonds. National banksissuing notes redeemable ih gold shall make a monthly deposit of gold equal to 5 per cent of their whole circulation until the same is wholly redeemed. No circulating notes are to be hereafter issued to any bank. There can be no mistaking the purpose of this bill. It provides absolutely for a national paper currency, to the exclusion of any other. The paper money of the country is to be: 1. Greenbacks or legal tenders to an amount pot exceeding $400,000. 2. Treasury notes, not legal-tenders, except to the same extent that nationalbank notes now are, and redeemable as the bank notes are in legal-tenders at the treasury. Both forms of paper, however, are receivable in payment of duties to the extent of 33 J per cent, of all payments, and the treasury notes are also receivable at par in exchange for 4 per cent bonds.