The Portland daily press., 1867-12-03

NATIONAL BANK FAILUREs.-The following
is an abstract from the report of the Comp
troller OF the Currency relative to the failures
of National Banks: a,l,.a. s.i t.....-.t
Since the organization of the First National
Bank, which occurred June GOTH 1868 I'D to
October LIST, 1867, period of four years and
three months, ten National Banking assoeia-
tions have failed. Their aggregate capital is
$870OCO; their aggregate liabilities to the pub
lie are, circulating, $1,l87 900; deposits and
other liabilities to the public, $3,372 200 To-
tai, "a ,560, 100. The circulation will be paid in
FULL, SO that the public will suffer no loss from
that source, and the bonds deposited as secur-
ity for the same would to-day realize surplus
OF some $780, 0000 that would be applied to the
payment of general crediters
A careful estimate of the assets leads to the
conclusion that they will realize sum sufiici-
ent to pay seventy five per cent to creditors,
leaving the total ultimate loss sustained hy
the public through their failure about 81 OOO.-
600. O'
The National Banks are not exempt from
the disasters which are common to all bank
ing institutions. No ystem of banking, how
ever perfect can protect the stockholders or
the depositors from sudden loss. Neither can
the most stringent legislation, nor the greatest
degree of watchfulness and care on the part of
this Office, prevent violations of law and neg
lect of the fundamental principles, of good
banking.
The failures Of National Banks which have
thus far occurred may in every instance be di-
rectly traced to the dishonesty or incompetent
cy of the bank officials and the habtual viola
tion of the plainest provisions of the law nm
der which they were organized In some
cases all the State bank s, with cap,tal jmnair-
g by badldebts. have been reorganized as a ma
tional banks without sufficient scrutiny into
their affairs, and such failures must be attrib-
uted to the old rather than the new system.
The officers of these banks are preiudiced in
favor of the State system of banking and are
not yet accustomed to the more stringent pro-
visions of the national currency act. Snch
institutions will be liable to failures until their
capital is restored by assignments or they are
forced into voluntary liquidation Yet, not
wthstanding these things, if the failure of the
ten banks among the 1878 national banks of
the Union during the past four years had been
three times greater, they were still in the ag-
gregate not equal in magnitude to the recent
failure of the Royal Bank at Liverpool, or
the Commerce Bank of Canada institutions
which were supposed to be conducted upon
the approved system of English banking.
In note the Comptroller says that Govern
ment deposits are not included in the item of
deposits and liabilities to the public. The
only loss to the Government will result from
the failure of the Merchants National Bank.
of Washington, which has been investigated
by Congressional Committee The estimate
of the total ultimate loss sustained by the peo-
pie is set down as million, but this does not
include amounts which may be recovered from
stockholders on their personal liability.