New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-12-05
TIE CURRENCY.

TIE CURRENCY.
WASHINGTON, Dee. 4-The report of the
Comptroller Of Currency completed and printed in
pamphlet form for submission to Congress, Tuesday.
1t contains important recommendations and suggestions
regarding the national banking system and national
finances not heretofore included in the very brief
abstracts which have been published The following Is
substantially the entire report:
On the subject OF banks in voluntary liquidation, Mr.
Hulburd saws that section AZ of the Currency act pro-
vides that any ASSOCIATION may 90 INTO liquidation and
be closed by vote Of shareholders owning twotrds OF
stock that due notice Of such action shall be pub
Ished. and any time after the expiration Of
year from the publication Of such notice the said assoca
ton may pay over TO the Treasurer Of the United states
the amount of outstanding notes in lawful money OF
the United States and take up the bonds which it has on
deposit with the treasurer as security IoI sucn
circulating notes, leaving II optional with the bank
this provision bank may 20 INTO qudatlon pay on It's
depOsiOrS and other creditors do no business nave no
existence bank of discount and deposit and yet reap
all the benefits OF Circulation guaranteed Oy the Ioy
ernmen In cases the ownership has been concen-
tinUe DO business private bankers, avoid taxation,
eyadc the requirements OF the Currency act and SIN re-
abuse this kind. suggested that National
Banking Associations which go INTO voluntary Quda-
ton 10 required TO provide FOR their outstanding
circulation in lawful money, and take up their bonds
within three or six mouths IN default OF which, tine Con
trOcr shall have power 10 sell their bonds by auction in
Newior City, and after paying TO me treasurer inc
amount Of the outstanding crcuationof the bank IN law
gu money to pay over any excess that may be realized
representatives Banks ttt are "Inuns up ioI VIC Pul
pose OF consolidating with other banks or with view OF
Should he excepted from the foregoing requirements
In regard to central redeemng agency the controller
port from this office that u was Important that system
of redemptlons Tor National bank notes Sh2guISS
they should be made convertible into tie lawful money
OF line country whether It be paper or gold at the prln
cipal center Of trade Without repeating the argument
then made, the conviction again expressed that only
by rigid unfailiug redemp,ons at central point can
par value prevalent objection 30 this doctrine that
would render the country banks tributary to New
York While there is strong reason 70 believe that this
objection would prove TO be unfouded yet may be en-
tIey removed By authorizing the National Banks Oh
the country TO take the whole matter into their own
hands II Congress should PROVIDE by aw ior lhG Qfga
circulation. IN which every National Bank should he
Teged TO oe 6S H cSp1 OF fo ten to- een
OF twenty millions could be established which would
The clearinghouse Of all National Bank notes in crcula
ton. would be owned controlled ana managed Dy the
Banks themselves, for their benefit and IN thelr
interest. 1t should have one department devoted
o crre3cv and another department devoted to
general banking business The latter department could
be made 10 pay all the expense OF the redeptons and
eycbsWSes and Weld a revenue TO the stockholders j
addition, which would be 50 much interest on thcr sur
prove OF ncalculabe benefit 10 the banking, CONNER
cia and industrial interests Of the country IL would
lie sOundest footing. and demonstrate practically the
fact that the banks stand ready 10 maze tne ues n,
the great markets OF the Union Moreover, such
Ton Of the reserves kept in Ncw-York. would
remedy the evils adycrtcd 70 IN my ia5t
ances Of the country banks their consequent by
the New York City banks The reserves instead OF beng
done at present would be held exactly where they would
Do needed and would be applied to Just the purpose Tor
Uhich thew were intended. They would be actual re-
serves and az all times available SUCH thus adding to
safety and the credit OF The currency OF he country
carrying into practical operation the spirit aud intent
Commended 10 the Consideration Of Con4rcss as tending
20 reconcile interests Of all sections thelqueston Of
Inc Controller speaks follows IN regard 20 the perl
Odica sringeucy in New-NOrk City: careful study OF
the bank statements OF KewYOIk taken separately and
the Application OF the facts 80 obtained 20 the ag9esatS
statement abstract Of the whole affords valuable ana
Instructive information The abstract SHOWS g eo. 81
loans TO be SGSGHOOo An examination OF Lle SAT-
ments in detail shows tho character OF the loans
70 bGs,ness papeT o5; demand loans,
~ 10000; accommodation loans s5o0o0i suspended
Rather more than half the loan IS legitimate business
the ON n pS f or OF @
not tated but Trustworthy Information leads To the DC
lief hat il is very small The customs and pecesses OF
trde are Of such character to preclude loans Of TINS
knd In addition to this direct loan OF SOOOOO. tey
furnished facilities by means OIL ceruheu enecAS 70 g
same class OF operators TO an amount ranging
from nlVyDCOo Tho or6r1f was SIi2 800 900 and
these checks are swell the amount OF individual
az Circulated and treated as money by the banks and by
their customers. Yet, when ascertahhg the amOunt Oh
Which they must pay taxes. the banks invariably deduct
al such checks ON hand For instance on ihe hs' 9g
daV of October they reported Individual deposits VII
lv0UO but deductiDg checks on hand sll2a6Vg1 tAeg
l.i actual deposits OF IaAS e CO.
faet developed that the NewYOrk National Banks iur
b go Of capital and Of credit fJ specu-
iation The certified checks Is direct imitation 10
that extent which stimulates the stock market, ana
keeps the price Of large class Of miscellaneous sec
much above their actual value 80 that the mdlHtL
- fVerl,h and Uctuating; and slight 5tIlrgenfy re-
,,ces the prices Taking advantage Of an active demand
for money 10 move the crops, west and South ,hfewd
oueritors form their combinations 10 degrees the Mafkt
iv locking up" money Withdrawing all tiey can control
or borrow from common fund; money becomes scarce
te rate OF interest advances, and stocks decline rue
legitimate demand for money continues and ieat!ui 81
freurhing their the banks are suHghtelti
Tor Ioeaus They call u their demand loans Tor
that would compel their customers 70 sen 3ccutuco ~
FALLING market which would make matters worse ia
mutually lending Their 20 the utmost ht OF pFu-
deDce and their credit much beyond mat l 70 W"9t
aud SPECTATOR, they are powele-s 70 ahOId ieei
Their customer by the force Of ccuus ahcof DetoWe
their masters The banks cannot hOh back OF "iuiaH
from the iemma which Their mode OF d)hS nuHn.9
has placed them They must carry TIE lOad 10 save te
margins panic, which should greatly reduce mo ~,
Of securities would occasion serious II hOb itldi
results TO the banks most extensively ehgagod III
eue Operations ard would produce feeling ~ lseci'
rty which would be dangerous TO the epuie DabK
Ing Interest VI the country Tho fact that banking ~
Lerest capital and surplus OF tOJDOO can be- ana
has been repeatedly placed al the mercy OF few seWd
tAOugh bold and unscruDulOus men, b evidence VI some