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

which means Also all information on the subject would
be concentrated in office and so Dc more accesslue
SPECIAL EXAMINATIONS.
Perhapa no one thing has done more 10 promote tne
safety and sound management OF national banks than
their Inability TO examination Without previous hOoo W
an agent appointed for that purpose, and probably no
banks when the law first went INTO eneet pt 'bo Roo
examinations have fully indicated tie wisdom OF the
provision In quite a large hummer OF Eases id no
tOns KAYE brought facts light that have enaDed tne
Controller to interpose in time banks from fal
Defacations have been exposed ABUSES, S @
ties and violations OF law have been dlscOyeTea anu
reced The compensation allowed by law Is Iotany mn IN
sufficient to pay the right kind OF men TO M pus
duty In New-YOrk Boston and Philadelphia, the uanaS
have cheerfully acknowledged the value ana EN-
cheney of examinations by making voluntary dPnn U
vision somewhat commensurate with the aTduous
OF the work and the Importance OF the results
tanned. An increase In the amount OF Ine istce:
and Congress urged to make provision for that
All the expense involved in these examinations Is no"
betrayed by the banks under the law, ana no
ton OF the public moneys will be necessary An
i'm the rate of compensation should be authorized Dy a
and provision made for its assessment upon the several
banks examined. in proportion to the time anu i@oot
spent in the examination
In the organization OF the National Currency Bureau the
Controller was authorized 10 c IRON es e me- 70 shall
direct which clerks shall be appointed ana classnea Dy
the Secretary of the Treasury ara IN 6e he b
est salaries could be paid were ALREADY nXeu " laws
passed seventeen ed years as sS TecevHg salaries Of
quire abilities OF high order ana lntegy vi Ie uoas
undOuDted Character-aDnllleS
other pursuits command much higher compensation
The salaries paid by banks to officers Tor the performance
OF duties no difficult and no more respOnsiele tnan
those deyoyinR upon the clerks in this Office from 100
TO per cent greater. The consequence mas Dee a
even after the services OF the right klnd OF men hake
been secured by course Of Instruction ana training tne
higher prices offered by private interests outsue Vi o
department constantly draw them from the department!
and leave the same difficulties TO De again encOuneiou
I ms to evident, II the salaries nGeu IL years Az
were not then too high wnen an tne me nresent time
they totally Inadequate And earnestly rec
"A general Increase of salaries and especially an increase
in the salaries OF who have the most important
positions In the bureau - 49,. ..t 60 -, =
Importance and responsibility OF his position ~ Is less
than that now paid IN the office or the treasurer
OF the limited States whose positions are no more respOn
sble and no more important, and very much less IMAM
the salaries paid by banking institutions III the large
cities The position Of the cashier OF the division OF
issues also one OF labor and responsibility as IS that OF
the cashier OF the division OF redemplons. would
recommend that the Deputy Controller should be paid
salary OF 81 800 the head OF each division s24OO two cor
respondents 200 EACH and two bookkeepers each
do not think the Government would lose anything by
fair compensation honest labor The duties would be
more ably satisfactorily performed and the efficiency
OF the public service would he increased
CENTRAL REDEEMISG AGENCY
The recommendation contained in my last annual re-
mort looking the establishment OF an agency IN the Cty
NewYor IN the interest OF the NATIONAL Danks 0Weu
and controlled them for the redemption OF All theiF
issues and for the transaction OF all their business
AGAIN submitted to the consideration Of Congress
common misrepresentation prevails as 10 Ine enect or
practical result OF general and uniform redemption IN
NeW-YOrk the impression being that such an arrange
ment would DE OnerOus upon the country banks, ana
prehensiou could be unfOuuded As long as every
bank reedeems independently at its own counter or at
the redemption city-CeHeland, flttsDuIgh Ch-
cnnat or 81 Louis and NOT III Newl orhIllus ,na arg
par, that will pay debts IN the atter city VIII comihahu
premun; and the old time system OF asserting and re-
turning the OF country banks for the purose OF
procuring lNew-YOrk exchange, will be renewed The
brokers' finding they can make pr0ht In tuis way
will divide the territory between them, aud Will com
pei the banks 10 supply themselves regularly WIN goa
and exchange meet their demands On the other hand
IL all agreed to establish their agency IN Sewlork
take OF ana TO protect their own notes al cur
upo the banks for there will be nothing To gain by It.
certain OF currency will always be required 70
transact business OF the country and THIS VIII De
furnished propOrtOnatey by all the banks The excess
OF circulation only, over ana above this amount VIII nave
be redeemed aud this excess VIII also DO equay APP
portioned to all the banks 80 that by the adoption OF
one general agency as proposed every BANK ~ te con
rived from the circulation sharing also In the same pro
norton In the expense OF rcdeemng any excess that
there NAV be from time te time And that j. all there Is
I'm uniform system OF redemption III NeW-1OrA-equal
rights aud equal privileges, to all, special AardsApS or
While such would be ts sauary effect upon the banks.
the people would rejoice IN currency OF uniform
out OF local values would disappear and should have
truly national currency The proposed agency beng
controlled and managed by the JOINT banking interests Of
the country their own fiscal agent, would necessarily
be highly conservative institution, which would oper-
times and exercise heathiu influence upon the inter
ess trade. The banks would attend to their own bus
mess IN York. thus saving the expenses and profits
P NJ kUoViIt tlat Their reserve funds
upon which so much depends, not risked IN Walst
speculations. used IN manner detrimental TO the
'1''' INTEREST on DEPOSITS AND CALL LOANS.
IL is common saying among bankers wheh speaklng
OF SUPER rs.On, ~ f " 49,,
the business OF the banks As far as practicable Dusl-
ness should be left free aud untrammeed but III this
rountry the business OF issuing circulating
yoyed with the lending Of money, the ability 10 redeem
on mand is so dependent the amount of kept
on hand and the character OF the Oan that imposs-
bic TO apply safeguards 10 the currency without applying
prudence aud reasonable restrictions to the business OF
"A bank
bonds FOR the redemption OF It's cculauont must so
circulation as not To lose IT. 50 invest II as 10
have II coming back with profit must use judciously
and safely, that 10 Will protect ITSELF The Govern
ment IN delegatiug the power to issue notes. has the
right to prescribe the conditions which they shall
be issued III harsh or unnecessary conditions are I'M
posed they should be abrogaed II the conditions are
wise and wholesome they should be honestly observed.
In prescribing rules reference should be had 10 the object
to DO attained ny the organization or Incorporation OF
banking institutions. charter TO carry on the business
OF banking not give power To buy aud sell real
tate ship goods TO foreign port or 10 engage in or
promote any speculative operation. The business OF
banking properly conducted just as sure and Just as
proper and legitimate sphere.
In tho case OF an Incorporated banking association its
powers prescribed in Its charter The law Tor the or
ganizaton of national banks defines their powers with
precision They are empowered TO exercise, under the
act all such incidental powers shall be necessary TO
carry the business OF banking by dscouutng and ne
goatng promssory notes drafts bills OF exchange and
other evidences of DEBIT by receiving deposits py Duy-
ing and selling exchange coin and haOn; by lOanng
money personal security; by obtaining Issuing, and
circulating notes, &c-trOm winch IL VIII De seen that
national banks are authorized, among other things, 10
receive deposits " that when money is brought to them
they authorized 10 receive IT, Ihey are not however
authorized 20 hire deposits aud the law does not eonte
plate that they should solicit loans under the guise OF
deposits by the offer TO pay Interest on them THIS prac-
tce however, prevails extensively; and although by
Implication law fOrbds 1t, the prohibition is not suf
nceny explicit positive TO prevent IT, The evil OF the
practice this All the banks III the leading cities aud
nearly all the country banks keep balances in
which by law constitute portion OF their reserve. The
offer OF interest these balances is inducement TO
keep as large portion OF their reserve deposit In
Now. York as the law will allow. Banks in the leading
cities which are named section thlryone OF the act,
ARE permitted keep Oneha their reserve IN New YORK,
and all other banks are permitted 10 Keep threens OF
their reserve there.
H. then New-York banks pay interest on these de-
posts they must OF course, use them and AS they are