New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-12-06

TofaI .............. VIZ, I59,oJJ 10
The following statement shows the amounts and KINDS
OF United States bonds held by the Treasurer OF the
United states TO secure the redemption Of the circulating
notes Of national banks the 3oh day of September 1867
Registered bonds act Of Jane, A. is5S...-. $4,000
Registered bonds. act Of June 81 1850 .-... 53Voo
Registered bonds act OF February D. lool.--.. 0fylp
Coupon bonds, act Of March ?, 1871 -, lo'OV
Registered bonds acts OF july Il ana Aug D. Il S8@09o
Registered bonds act Of February 20 lo62 09z25s3O
Coupon bonds. act Of February 25 ls62....... 800
Reistered bonds act of March g. 1864 per cent 95790
Conpon bonds act OF March ls6i per cent. 10000
Registered bonds act Of March s6 per cent 259O
Registered bonds, act Of June 30 1864 .... JoZloW
Registered bonds, acts OF July l. 1862, and July 100000,
pcs,tr bonds act Of March s. 1865 inst series 200
hs ssrIes Ooua'' "'' u .a.,C oo22oO
hs ssrjss DO''a'' 2G7Si5o
Rssi.lsfcd bonds, act Of Match 8. 1865, fourth
@-'Vn
Total SJl2 i7jlOO
In my report for 1861 called the attention Of Congress
10 the fact IN several notes prepared IN the
usual for issue to national banks had been par
Joined from this office Two amounts larger than tho
rest were mentioned Wit $500 IN fy and one humid
dred dollar notes Of the National city Bank Of Lynn
Mass, and S2OO In nifty and one hundred dollar notes
Of the First National Bank Of Jersey CITY, in addition 70
which several thefts of single sheet had occurred
making all $1,000 Suspicion at that time was directed
to a colored man who had been employed in the office
capacity, and who was then under arrest The
evidence against him, though very strong was
not considered be conclusive. and It was
thought best not TO bring the TO trial at once,
but wait and see what additional testimony might be
developed by the lapse OF thc During the past yehr
efforts made by the guilty party 10 avail himself OF the
he was tried in criminal Of the district In August
last and convicted but motion IN arrest OF Judgment
was granted by the Court for defect IN Tie ndct
nont and the criminal discharged; he was ~ once
rearrcsed several other charges and Is now awaiting
III tflt. lFl lln nf
stolen notes have been recovered and 10 IS ques
ton whether provision should not be made for the pay
of these stolen notes when found In the hands OF
innocent holders Their similarity 10 the genuine issues
OF the and other national banks, aud the difficulty.
the forged signatures, make IL impossible for the great
majority Of those who may handle money TO distinguish
specially submitted 10 the consideration OF Congress
Under the act OF Congress Of March D. 1869, three re.
ports have been called for The first call made Tues
day April 90 for report showing tine condition OF the
April H. The second call was made June 49, for report
showing the condition Of the banks on Saturday the 18th
OF June The third call made October Is. for
port showing the condition Of the banks on the pm OF
banks than usual deficient In their reserve OF lawful
money but generally In small amounts The second ana
third reports successfully, exhibited ansmptOyement In
this respect and they regarded setting forth
the actual working condition OF the banks, without
manipulation orsntepua9n lc results arc IA nloao
complained Of under the former system Of reports-to
the opportunity afforded 10 Spectators Ia manipulate
the money mafkethave bee almost entirely done away
with The banks habtualy keep themselves in better
condition as a rule are less extended and have
complete control OF affairs II they carry out TINS policy
the borrowers will be better able protect the lcgi
mate interests OF their customers and better entitled 10
the fostering care Of the Government
LIQUIDATION.
As tho law now stands IA bank may by vote OF the
shareholders owning twohirds OF its stock. 20 into
liquidation and close up Its affairs. After the expiration
OF year from the publication OF notice to ITS bill
holders and creditors, required by the statute may
Treasurer
tender notes for It's outstanding circulation and take up
The bonds held as security therefor This section
undoubtedly intended 10 provide for the winding up OF
banks under the ordinary conditions incident 10 specie
payments The natural aow OF notes to the place OF
their issue, when banks paying specie would cause
large portion OF them 10 be redeemed during the year.
and II the bank solvent and In good faith endeavoring
close up It's affairs, the most o It's creditors would
probably be paid by the expiration OF that period 50 ta
surprising the liquidation have progressed far that
the bank is ready distribute It's capital among its
stockholders. the law provides the manner In which the
hgudation shall be completed and the shareholders dis
charged from all further liability account Of It's circu
lating notes, within reasonable time In this view OF
the ca the provisions OF the statute reasonable and
proper. But under existing circumstances, when bank
remain In circulation until they are worn out, ana
uablo the holder than any gain he may realize from
redemption that he VIII not send them nome for
that purpose the year provided in the law and the pur
pose OF that provision, are or no moment whatever.
Banks into liquidation, and call upon note-holders 10
present their notes Tor redemption, by published
notice, Us required by law; but, during the whole
year that follows are not obliged TO redeem anything
exccpt now aud then worn out or defaced note THIS f
cty OF circulation and the absence of all cost of re-
demptons, have probably induced some associations to
take the legal steps for going into qudatiOn with the
expectation OF continuing reap the benefit OF their out
standing circulation while they continue TO do bank
ing business under State laws or as private bankers
This Ii abuse that could only be- pracced under sus.
pension OF specie payments and during the absence or
all demand for redcmpuOns but for the time IL Is none
the less abuse that requires correction lt respect
fully recommended that Congress should pass act In
Section unconnected with any other subject requlr
ing all banks that 20 In liquidation deposit legal tender
their outstanding circulation and take their
bonds deposited with tho Treasurer OF the United states
security for such circulation, within sixty days from
the date Of the vote OF the shareholders TO into
liquidation.
METHOD or COLLECTING UNITED STATES TAXES
Section ii OF the National Banking Law provides for
taxing the circulation deposits ana capital not Invested
In United States bonds OF national banks The banks
required 70 report aud pay these taxes somannnay 70
the Treasurer Of the United States This they have done
regularly since Their organization paying into the Trea
sury several millions every year without trouble and
without expense 10 the Government Under the internal
revenue law they are required 10 pay special tax aud
dividend tax To the collectors OF the several districts IN
which they are located IL Is recommended that all
imposed ON national banks by the United States DO
made rciurnable and payable 10 the Treasurer Of the
United states In the same m0nnegtha the larger portion
OF them now are. This change would avoid confusion,
save expense and trouble, collect the taxes moro
promptly aud probably moro thoroughly, ana place tho
whole business under the SUPERVISION VI one Oneer UY