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Show GENERAL. WASHINGTON. Government fiiiuncinl A Hairs . Washington, 27. John P. Bigelow, chief of tiie loan division of the treasury trea-sury department, who has been in London some mouths past in c 'Unec- j tion with funding operations of the treasury, will arrive here to-morrow, and have a conference with Secretary Bristow. He will shortly return to London, but it is said will resigu here temporarily, as duties abroad will engage bis atteniion lor tho next two years. Mr. Baker, at present chief of the warrant division, and formerly assistant in the loan division, will be appointed chief of the latter until the return of Bigelow, and K. T. Leopold will be appointed chief of the warrant division. Tho annual report of the comptroller comptrol-ler of currency shows that during the lust year seventy-one national banks have organized with an authorized , capital of six and three-quarter mil-liona. mil-liona. Three banks huvo tailed, and twenty have gone into voluntary liquidation. The i ctual increase of national bank circulation during the year is $, 570,2'J7. Total circulation outstanding on November 1st, including includ-ing $3,000,000 due banks for mutilated mutil-ated currency, $o51,927,216, leaving over $2,000000 yet to be issued. Since the passage of the act of June 20th, .1874, forty-six national banks have been organized with a capital of $4,000,000. Applications have been made for sixty-four others, with a capital of over $0, 000,000 and a cir-curculation cir-curculation of $4,500,000 has been assigned to them. Under section fourth of the act $7,714,550 of legal tender notes have been deposited for the purpose of withdrawing from circulation the same amount of national na-tional bank notes. The amount issued to the national banks of Colorado Colo-rado since June 20th. 1875. is $27.- 000,000. Total issued lo all Btates $3,3o0,lS0; amount authorized lo be issued to banks organized, $3,707,-000, $3,707,-000, and to be issued to proposed organizations $4,500,000. The comptroller says if congress should provide for the withdrawal of legal tender notes and issue national bank notes as needed m the place thereof, when tiie amount of legal tender notes should be reduced to say $300,000,000, legal tenders would then be in demand, and in proportion propor-tion as they should be reduced in amount the demand for them would increase, until finally, when tho amount of bank notes issued should be largely in excess of the amount of legal tender notes outstanding, national na-tional bank notes would themselves be withdrawn at certain seasons of the year without difficulty or expense in obtaining lawful money with which to redeem them. The gold coin ol the country would then make its appearance in answer to the demand de-mand for an additional amount ot lawful money, and specie payment would follow. Redemption in its proper sense implies the exchange of a promise to pay the thing promised, namely, coin or its representative, which is convertible into coin 0' demand. de-mand. The eflect of such redemption is to confine banks of issue to their legitimate business which is discounting commercial papers. If banks of issue are obliged to pay their canceliating notes once in 60 or 90 days, they must discount such promissory notes only as will certainly certain-ly be paid within that time. If payment pay-ment ol bank notes be frequently de-inandedbanks de-inandedbanks of issue cannot safely bondf,in accommodation notes which require renewal or in loans on doubtful doubt-ful security.but must have their capital capi-tal at all times invested iu loans which will be promptly paid at maturity. matur-ity. Such a condition indicates a healthful bjsiness and promotes sound banking, and a reduction ol the amount of legal tender notes ac-commanied ac-commanied with such an increase ol national bank notes as may be required re-quired will secure a proper system of redemption, render free banking practicable,- and gradually restore specie payments without necessarily decreasing the amount of circulating medium. Tiie following amendments to previous pre-vious acts are recommended: First, An amendment to section 1 of the act of March 3d, 1873, providing that if any shareholder of a bank whose capital stock is impaired, shall refuse, after three months' notice, to pay his assessment as provided in said section, a sufficient amount of the capital stock of suoh delinquent de-linquent shareholder or shareholders may be sold to make good the deficiency. de-ficiency. Second, an amendment to section 39 of the national bank act, extending the limit of liabilities of any associations of persons, company or firm, for money borrowed from i ten per cent, of the capital and in to - fifteen per cent, ol the capital, and surplus in banks located in redemption redemp-tion cities and one tenth of the capital capi-tal and surplus for other banks. , Third, a prohibiting deposit of more than ten per cent, of the capital of a national bank with any private banker bank-er or any person or asssociation other than a national bankiug association. Fourth, that no national bank shall be liable to make good any deficiency which may hereafter arise in any special deposit with such bank, unless un-less a receipt shall be produced by the owner of such deposit in which the liability of the bank shall be distinctly dis-tinctly stated. Fifth, a repeal of the two cent, stamp t tax, an act providing provid-ing that all bila of exchange, checks, or receipts in place of checks, drawn upon any bank or banker, shall be subject to stamp tax with the penalty of $20 for each violation thereof. |