Evening star., 1869-12-06
REPORT OF THE COMPTROLLER OF
THE CIRRENCY

The annual report Of the Hon. III. r. Hnrl-
burd, Comptroller of the Currency, which ac-
companies that OF the Secretary of the Treas
ury, shows that since the last annual report nine
national banks have been organized. of which
eight are new associations, and one conversion
from State bank, making the total number on
ganized up to October, 1869, sixteen hundred
and ninety-four, from which should be deducted
Scventy-fOur, (yiZ: four which have never COM
pleted their organization, two which have been
superseded by subsequent organizations with
the same tellers, sixty In voluntary liquidation
and fourteen for which receivers have been ap-
pointed, } leaving the number i'm active operation
sixteen hundred and twenty.
The total amount of national bank notes of all
denominations outstanding the ;oth day OF
September, 1862, was S2:s9, IS9, ,Si5.f5, and the
United States bonds held by the Treasurer OF
the United States to the same date to secure the
redemltion of these circulating notes wa, over
S342, AS, 100.
Speaking of the reports made by the banks in
response to his three several calls for their con-
ditiOn on April 18th, June 18th and October 9th
respectively. (Which calls were made under au-
thority of the act OF Congress OF March 3, 1862
the Comptroller says that the two evils most
complained of under the former system Of re-
ports, to wit : previous preparation Oh the part
OF the banks, and the opportunity afforded to
Spectators to manipulate the money market,
have been almost entirely done away with. The
banks habtually keep themselves i'm better con-
ditiOn, as rule are less extended, and have
more complete control of their affairs. II they
carry out this policy a little more thoroughly.
they will be less at the mercy of the borrowers
will he better able to protect the legitimate in
tercsts OF their customers, and better entitled to
the fostering care of the government.
Under the head of ..LiIuIdaton." the report
recommends that Congress should pass an act
requiring all banks that 80 in liquidation to de-
posit legal-tenler notes for their outstanding
circulation. and take up their bonds deposited
with the Treasurer of the United States as secu-
rity for such circulation, within sixty days from
the date of the vote OF the shareholders to 90
the present law This VIII prevent the banks
from continuing to reap the benefit OF their out
standing circulation, while they continue to do
a banking business under State laws, or as pri-
Vate bankers.
1t is recommended that all taxes IMPOSED on
national banks 10y 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.
Under the head of Salaries, - the Comptroller
says that the leading places i'll his eifice now
filled by II 800 clerks require abilities of a high
order and undOubted integrity that in other
pursuits command much higher compensation;
bank officers doing similar duty receiving sala-
ries from 100 to 800 per cent. greater; and adds
that ii the salaries fixed seventeen years ago
were not then too high, when a III the necessares
OF life were much cheaper than now, at present
they are totally Inadequate. in view uf the enor-
nous advances in the expense OF living. He
recOmmendsa general increase, and especially
in the salaries of those men who have the most
important positions in the bureau; that the
Deputy Comptroller should be paid a salary of
sS 800; the head of each division -, ,40O two cor
respondents $500; and two bOOk-keepers s2, 600
each.
He renews the recommendation i'm his last
annual repolt tOr the establishment of an agency
in the city of New York I'm the interests 81 the
national banks, owned and controlled by them,
for the redemption Of all their issues and for the
transaction Of all their business, saying that
such central rcdeeming agency" would be the
clearing house for all the bank circulation in
the country-thc reservoir to which il would
fow, and from which it would be distributed
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 prac
ticable business should be left free and untram-
melcd; but in this country the business OF issu-
ing circulating notes is involved with the lend
ing Of money; the ability to redeem on demand
Is 70 dependent on the amount of reserve kent
on hand, and the character Of the loan, that IL
Is impossible to apply safeguards to the curren-
cy, without applying prudence and reasonable
restrictions to the business Of lending. II a
bank pledges lis capital by the deposit OF bond,
lor the redemption OF its circulation, it must 40
use that circulation as not 10 lose it. 4 charter
10 carry On the business Of banking does not give