The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1869-12-08

check, is tr@nght with evil, and that it Dug
to be entirely prohibited.
Report Of Comptroller Of CurTelc!
The annual report of the Hon. II.
IIurlburd, CnmUtroller cf til q
which accoInj ....... .! .. ~ .. -..- +
the Treasury, shows That stBcc TIL last an
nual report nine national banks have been
organized, Of which eight arc new associa-
tons and one conversion from n State
bank, making the total number organized
up TO October, 1869, 1904, from which
should be deducted I4-yiZ., 4 which have
never completed their organization, (which
have been superseded by subsequent or
CARNATIONS with the same tcllers, 60 Ill
voluntary liquidation, and IA for which
receivers have been appointed-leaving the
number in active operation 1,G20.
The total amount of national bank notes
Of all denominations outstanding on the
30th day of September, 1869, was 1929, TS9, =
S95.45, and the United States bonds held by
The Treasurer Of the United States to the
same date to secure the redemption of these
circulating notes was over $342 40, 100.
Speaking Of the reports made by the
banks in response TO his three several calls
for their condition on April 18th, June 18th.
and October 9th respectively (Which calls
were made under authority OF the act OF
Congress Of March ,, 1862. the COnptrol-
Ter says that the two evils most complained
of under the former system OF rcports-to
Wit. previous preparation on the part OF the
banks and the opportunity afforded to spec
UtatOrs TO manipulate the money market
have been almost entirely done away with.
The banks habitually keep themselves Ill
IL.
and have more complete control Of their al
fairs. If they carry out this policy little
more thoroughly they will be less at the
mercy Of the borrowers, will be better able
10 protect the legitimate interests OF Their
customers, and better entitled TO the foster
iug care Of the Government.
Under the head of Liquidation" the
report recommends that Congress should
pass an act requiring all banks that so into
liquidation to deposit legal-tendcr notes foI
their outstanding circulation, and take W
their bonds deposited with the treasurer Of
the United States as security for such circu-
lation within sixty days from the date OF
the vote Of the shareholders to go into hqui.
dation. instead Of il one year, as under The
present law. This will prevent the banks
from continuing to reap the benefit of their
outstanding circulation, while they continue
to do banking business under State laws,
or as private bankers.
1t is recommended that all taxes imposed
on national banks by the United States be
made returnable and payable to the Treasu'
rcr Of the United States III the same man.
ner that the larger portion of them now are
He renewS the Recommendation III his last
annual report for the establishment OF an
agency in the city OF New York in the in;
terest. of the national banks, owned and
L1-f rnHpnntiOn ~
al their issues and for the transaction Of all
their business, saying that such "central
redeeming agency" would be the clearing
house for all the bank circulation in the
country, the reservoir to which it would
flow, and from which it would be diStribu-
ted again whenever and wherever needed.
In reference to governmental supervision
Of the banks, and interest on deposits, and
call loans, the Comptroller admits that as
far as practicable business should be left
free and untrammelled but in this country
SO involved with the lending Of money, the
ability to redeem on demand is so depend
ent on the amount of reserve kept on hand
and the character Of the loan, that it Is i'm
possible to apply safeguards to the cur
rency without applying prudence and rea-
sonable restrictions to the business OF
lending. If bank pledges its capital by
the depoSit Of bonds for the redemption
OF its circulation, it must so use that cir
culation az not to lose it. A charter to car
~ on the business of banking does not give
power to buy and sell real estate, to ship
goods to foreign port, or to engage IN, or
promote any, speculative operation; INC
business of banking, properly conducted,
is lust as sure and just as safe as any other
business but 1t must be confined to its pro-
per and legitimate sphere. National banks
are authorized, among other things, " 10
RECEIVE deposits that is, when money Is
brought to them they are authorized 10 re-
ceive it. They are not, however, authorized
to hire deposits, and the law does not con-
that they should solicit loans,
under the guise of deposits, by the offer to
pay interest OH them. This practice, how.
ever, prevails extensively.
The amount loaned by Che national banks
to the business interests OF the country
will average about 500, 600, 900. AS gene
raj thing, national banks lend money 10
their customers at about the legal rates,
though of course there are exceptional
cases. Some of the earlier banks, which
sold their gold interest at from 100 to 180
ner cent. premium, and which sold i've
twenty bonds for the agents OF the Govern
ment to the amount of millions, realized
very large profits. But that day has passed.
The average dividends made by the banks
during the last year viii probably not st fSr
l eI taxes and expenses. And as the
premium on gold shall diminish, and the
national banking system shall be made aom t1ee
TO all who are able and choose TO comply ,ii,
with it's conditions, the average profit WIZ
conform to the law which governs all nusl-
ness. It viii be fair living profit ana no
more. .,,,t
The Comptroller says that the present PRESENT
currency Of tho United States possesses
neither Of the requisites to soHnd eur our
Inc the past wear it has neither increased
nor diminished, but stands about as 1t did lid
his time last o no1 600 issued issued by
Inc Government and $500, 0GO, Ooo lssueu ny
he banks-neither redeemable nor convert
BE into anything more valuable, and there
ore not susceptible Of reduction l by a f,tI
ordinary process each issued to the tun
INIT allowed by law, with no power OF ex-
The whole amount must be EN-.
3loved, whether is Is wanted or not, ana the