Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1869-12-10
RspOrt sf the Comptroller OF the Cur
.Irirr .rencIs. 40 -.

nI.IU
and bSe 1c6nterstop from a,State bank,
makinr tke total numbef organized up TO
Octoner,1e0 sixteen hundred and ninety
four Tho number IN active operation is
sixtetn hundred and twenty.
The total amount Of notes Of all demon
inatioiiS outstanding on the 90th Of Sep
temhar. 1904 was &oo0, ,7se, ,6e5.46 The
amounta of United States bonds held Dy
the Tr6asiffer ~ the United states 70 Sc.
cure, tbe redemption OF the circuiaung
notes az National Banks on the 3gth dey
~ ss,tet,her. 1864. was e34e, ,475, 100. OF
Sl7SB0 Of notes repued in the usual man
ner fer. iss,e for National Banks which
were Otfflofnei previousto the annual re-
mort ~ 1857, only 81, 400 Of the same have
heensrgoovpfed. or these 81 800 were In
fiftv and une hundred dollar notes Of the
National City Bank of lynn, Massachu.
settsl and 81 3 600 in fifty and one hundred
dollar hbtss of the First National Bank OF
Jersey Cay, IN addition 20 which several
thefts Of a single sheet had occurred. Inc
Comptroller says TO- Is serious question
whethets provision should not pe nlaue loI
the bavfhent Of these stolen notes when
foupd si.Is ar hands ofiinnocent holders.
Their slnulsFity 20 the genuine issues OF
the SAND and other National Banks,and the
difflculiy, 70 any but the most expert and
skillfiE 5itfA recognising the forged sigma
turck, make il impossible for the great
maiothv.oF those who may handle money
to distin Euish che spurious from the genu-
inc hsness.o The subject Is respectfully
suhmittedvto The, consideration aof Con
gresaeAtR -ff - uiuA ttFe fi Hr ~ i
Tife' Comptroller cites attention TO the
fact that, Az the law now stands, q bank
NAV, by q vote of the shareholders owning
two thtfdFef its stock, gointo liquidation
2. Ia ~ A IA nw MIR
ton of one wear from the publication Of
notice to It's bilt,holdersa and creditors, as
Required BY the Statute, II may deposit
withthes TEeasurer OF the United States
legaltsndeF notes for its outstanding Gil
culatIou, mud take up the bonds held as
security therefor, This section was un-
doubtedlyu intended ITO provide for the
winding tfpiof banks under the ordinary
conditions incident to specie payments.
But under existing circumstances, banks
go into liquidation, and call upon note.
holders, 70, present their notes Tor redemp'
tion, by Publishing notice, as required by
law, btt, during the whole year that fol
lows, are not obligedt 70 redeem anything
except, now and theu, n worn-out or de-
faced note This facility Of circulation,
and the absence of all cost of redemptions,
have probably induced some associations
to take the legal steps for going into liqui-
dation, with the expectation of continuing
to reap the benefit Of their outstanding
circulation, while they continue TO do a
banking baiA Aifless under State laws, or as
priyate bankers. This Is an abuse that
could only be practsed under u suspen
sion Of specie payments, and during the
absence OF all demand for redemptions /;
but for the time tits none the less an abuse
that requires correction. The Comptroller
recommends that Congress should pass an
act in one section, unconnccted with any
other subject requiring all banks that 80
into liquidation TO deposit legal tender
notes for misunderstanding circulAtion,a and
take up their bonds, deposited with the
Treasurer of the United States rs security
for such circulation, within sixty days
from the date OF the vote OF the share
holders 90 go into liquidation.
1t Is recommended that all taxes imposed
on National Banks by the United States
be made returnable and payable TO the
Treasurer of the United States, in the same
manner that the larger portion of them
now are.
The employment by the government of
agents TO e@nine into the affairs of Ma
tional Banks, without previous notice, has
done more than any other one thing to
promote, the safety and sound management
about, directly and indirectly, by such ex-
aminations, have fully vindicated the wis
dom &C the provision. Congress is urged
to make provision for an increase in the
compensation of these examiners, as mat.
ter of necessity as well asa matter Of JUS
nct
The salaries Of the clerks employed in
the Comptroller's Office are inadequate to
the abilities and integrity required, and
the Comptroller recommends that they be
increased. He recommends that the Dep
uty Comptroller be paid salary of $3,
500 the head of each division, So, 400; two
correspondents, E29OQ each; and two
boekkeepers, $4,000 each.
The Recommendation contained in his
last preceding annual report looking
to the establishment Of an agency in
the city oG New York in the interest of
the National Banks, owned and controlled
by them, for the redemption OF all their
issues and for the transaction OF all their
business, is again submitted to the consid
Grafton of Congress - N.H
Conserving the interest on deposits and
call lbahs, the Comptroller says that the
law for the organization of National
Banks defines their power with precision
They are empowered to exercise under
the act, "all such incidental powers MS
shall be necessary TO carry ON the husi.
ness of banking, by discounting and ne
gotiating promissory notes, drafts, hills OF
exchange, and other evidences of debt hy
receiving deposits; by buying and selling
exchange, coin, and bullion; by loaning
money en- personal security; by obtaining
issuing and Circulating notes" Sc. from
which it will be seen that National Banks
areautllorized, among other things, TO re
oeiUe deposits ~ that is when money is
brought to them they are authorized to
receive it. They are not, however, au-
thorized to hire deposits and the law does
not contemplate that they should solicit
loans, under the guise of deposits, by the
offer TO pay interest on them. This prac,
tice, however, prevails extensively; and
although by ytmpication, the law forbid:
it the prohibition is not sufficiently eN
plicit or positive to prevent it. Ii bank,
pay interest on these deposits, they must
of course, use them and, MS they are pay
able on demand, they must be loaned on
CALI. Call loans, as. a rule, are made e
brokers and operators in stocks and gold
Men engaged IN. trade cannot ordinarily
afford to borrow money which they may
be called upon 70 refund at an hours no
tice. The facility with which large loan,
can be effected, payable on call, at low
rates Of interest, while commercial paper
is only done at high rates, or |,
declined altogether, fosters speculation
The delegation by the government 4
banking associations of the power to issu
notes TO circulate as money, has q teudenc,
TO lower the rate of iatercst, and 50 1
furnish cheap money TO the business com
munity. The Incorporated bank, doin
business and issuing circulation under IN
authority OF the government, Is uniforml
regarded as the uiost reliable and reasons
BILE source Of accommodation by the bus
ness community. The private banker
depending upon the active use Of his cap
tai Tor his profit must charge a muc
higher rate of interest to realize the sam
relative profit, supposing, Of course, ths
the 'deposits of the two institutions ar
equal, The government, therefore, cor
fers q greater, boon upon the bushes
public, by enabling 1t 10 borrow money