The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-12-05

| or AZ private bankers.
This Is an abuse nat could ony 10 pracuces under
asuspenslon q slsese payments. and during the alb
sepee Qi 81 deisha lor rcdemptons bot for the ilms
= none me les an abuse VA, reqarss eerrseon;
banking associations wBlca shoaid De subjccs %
certain restrictions and which snoad be authorized
20 Issue notes for cifcusfion nafi0nA currency.
| The privilege OF issuing circulation was granted
upon certaia oondltions Tue privilege ana tae COO.
that the conditions should Ds casf aside or dlsre.
| garded Nhile tha puyncg9 ~ retained tnforta.
es o sns n ne !" s w ~ svs
! necessary % pr sent ts privileges IRON bclns
abused and TO proset those banks winch are 10 good
| nith endeayoflng ~ comply Win all tEe require
| II Is respectfully recommended thar conro-s
should pass m act IN one secton uncoDneciea vllh
| auy other suDjecL re4uiung MI palss that 80 IN
liquidation "a depont legal tender notes Tor their
outstanding cirous ion aaa take a. tber roads de-
security Tor SUCH circulation. within sixty DAYS ron
IN dare q tue vote " tue snal shSiaes W 60 inso
| nquicailon.
METHOD or cola scrlsG UNITED srArEs rAxKs
section IL OF The National banking Jaw provides fof
taAing l4e circulation, deposits and capita nst "a
vested In United states D0Aas 81 NATIONAL hanks.
| Ihe banks are required 20 report ami ray these
taxes seini-annaaly g. the Treasurer ~ the lniied
| states. lnis tnei have done regularly slncs theft
organization, paylNs INTO The Treasury several mil-
hons eyery rear without ironDle anu without ex-
nue. law tie, are required 70 pay special tax and
dividend tax % the collectors Of the several DIS
/ trcts m which trcy ara located
| IL Il recommended thai all taxes imposed ON
national banks b me United states BE- male
| reinrnabe and payable 20 she Treasurer oi tae
United states, IN the same manner that the larger
portion OF them now arc. fns cDange would
avoid CONFUSION. expense and trouble, collect
the taxes more promptly ana probably more tho
roughly aud place the wnnie business under the
peryision OF one oilecr, by which means, also, all
information on the subject would be concentrated
one ONCE, and 80 be more accessible
SPECIAL EXAMINATIONS.
Perhaps no one thing has done more TO promote
the safety ana sound management OF national banAs
tnan tner liability 10 examination without previous
aud probably no provision Of Inc law was more more
unpopular among the banks when the law nrst
wen. into effect; out tne good results Drought about
FULLY indicated the wisdom OF the provision. the
examiners WORK Is done silently and the puolic
not aware OF either the amount the importance OF
| tie work done In quite q large number OF cases
examinations have brought facts to light that have
enabled the Comptroller 10 nterpose IN time save
| banks from failure. Declarations have been ex-
posed, abuses irregularities and violations OF law
have been discovered and corrected.
The compensation allowed bY law Ia totally insun-
cent to pay the right KIND OF men 10 undertake this
duty. The iabors OF examiners are very severe.
volving work by day and travel by Night,
| while the rigid and careful scrutiny required
| to investigate fully the condition and ac-
| In New York Boston and Philadelphia the DanKs
have cheeriully acknowledged the value and ellcl
ency OF EXAMINATIONS BY making voluntary pro-
| vision somewhat Commensurate with tue arduous
nature OF the work and the Importance OF the re-
An increase in the amount Of their compensation
Is matter OF necessity Is well as matter OF justice;
and Congress Is urged TO MAKE provision foe that
purpose. All the expense involved IN these
| examinations Is now betrayed by the banks under
the law and no appropriation OF the public moneys
compensation should be- authorized BY law anu pro.
vision made for It's assessment upon the several
banks examined, in proportion to the time ana labor
spent IN the examination
SALARIES.
In the organization OF the National Currency
Bureau the Comptroller was authorized to .empoy
from time to time the necessary clerks to discharge
such duties as he shall direct which clerks shall DO
Treasury in the manner now provided by law,
Under this provision OF law the highest salaries
that could be paid were already fixed BY laws passed
nearly seventeen years ago. Perhaps In the beginning
such provision was adequate for all practical pur-
poses; but as the nature OF the duties to be per.
formed became more arduous, and the Responsible
ties greater, more dlicuty has been experienced
securing the Of competent men In the var.
GUS positions to be dlled
The leading places in this office, now filed by
clerks receiving salaries OF $500, require abilities
character-ablltes ana integrity that in other pur.
suits command much higher compensation. The
salaries paid by banks to Officers for the perform.
ance OF duties no more difficult and no moro respoa-
aqle than those devolvlng upon tho clerks in
tnis ollce are from one hundred to three
has been that, even alter the services OF right
kind OF men have been secured by course OF in
private interests outside OF the department con.
stantly draw them from the department., and
leave the same difficulties to bs again encountered.
IL to Inc evident II the salaries fixed seven.
teen years ago were not then too nigh when all the
necessarles Of life were much cheaper .tnan now,
that at the present time they are tally inadequate
in view OF the enormous advances in the expense
OF living. 1t Is not wise to place men
to furnish the necessaries Of ife-perhaps
even insufficient for tnat-in positions OF
required. 1t Is exposing them to temptations to
Which they ought not TO be subjected And l earn
estly recommend general Increase Of salaries, and
especially an increase in the salaries OF those
who have the most important positions In the
bureau.
The salary OF the Deputy Comptroller is not equal
TO the Importance ana responsibility OF his position.
IL Is less than That now paid TO men In the office or
are no more responsible and no more Important and
very much less than the salaries paid by banking
institutions Ia the large cities.
The position OF the cashier OF the division issues
Is also one OF labor and responsibility As ID that OF
the cashier OF the division OF redemptons. The d.
VISION OF reports requires for its chief OF pecu
liar qualifications. IL s his duty TO examine all
reports received from the national banks, and he
has charge also Of all the correspondence growing
OUT OF them The position Is one OF great labor re-.
curing no ordinary judgment and Skill The various
accounts Kept In the oflce are extensive and conf
plcated, requiring vast labor and skill. The cores
pondence OF the oice Is very extensive. and cannot
be carried on as mere matter OF routine. 1t re-
duct IL properly.
would recommend that the Deputy Comptroller
division 3 400 two correspondents 1900 each, and
two bookkeepers $4,000 each. | do not think the
government would lose anything by fair compen-
sation Tor honest labor. The duties would be more
ABLY and satisfactorily performed and the efficiency
OF the pubic service would be increased.
CENTRAL REDERMISG AGENCY.
The recommendation contained IN nv last an
nual report, looking to the establishment OF an
agency In the city Of New York IN the interest
OF the national banks owned and controlled by
them, for the redemption OF ali their Issues and
Tor the transaction OF all their business il again
submitted to the consideration OF Congress.
Careful observation and study during the year
have confirmed the opinion then expressed az to
the practcabty and usefulness OF sucn an instit,-
ton. In the first place, 1t would be the clearing
mouse Tor all the bank circulation In the country
the reservoir to which 1t would flow, and from
which II would be distributed again whenever ana
wherever needed
common msapprehension prevails as to the effect
or practical result OF general and uniform redemp-
tons In New York. the impression being that such an
arrangement would be onerous upon the country
banks. and would compel them to pay tribute that
city. NO apprehension could be more unfounced.
As long a. every bank redeems independently at It's
| own counter, or at the nearest rcdemptlon CITY