, 1870-12-08

Il, =, -, vne.e tncsa eonplaiuta No made.
lis eyfi cfmpIa'ned o. y ssnseo a*s,s sntsoq1tT.
~ q .a.auo9 AZ "p3hs pshs colt d of pfodoeaon,
Taxes e., estsf s, '1o 1n ss Il a.s .s
II money a ol any osnst Tss ,s:usd sad tao
Mns1 ~ n ~ cpnntfy v As transacted 81 lnsttn.
tinn. tncorpo, ated py State I2lsatufes. vslusne
immunlI,ea II aas y T's s,S :. iat se bAaes Fas
-. .h," n, fSrush mnneJ 70 borrowers y reAsoo.
shle retes. snd ID most or sue ss1ea sae ean ~
s,e tezes. was u1ed wfn ,nyss.sd IL bsos4
otarf;csi1e * np1ed from raxauanr rtu e:eHn
ioF picn in11uni'J the banis we're & e1psGted sno
Of nte1s g. wi1sie very frequently lndivlaua. wsIe
s.,..West 81 III to lend naney oy special enaHasL
at nneh higher saies Ts,,,e Tas xaes re,aTp,sa to
.;ilt cor titae, and ae sought 70 oe enf.rcea.
hnt the immuhfies which enabled teem 70 , oo.
serve shese rates haze osm nores il no nora
rsiunlfs A. 4 ffrLtblse under Federal authority.
inat1 it slwh4s hpn been under atate aosaou!y.
r.3a.d aH n,1p fsr eatsaats Of ne aTertse per-
ctnfspE pf pr+f5t On CIRCULATION NN noe much e3.
coed cent and his 1ass Aoas t9e .ast
he proats deIived IRON the busnt 81 Of BANKING
d, tenti natnlJ upon the atnounI o. ,, nsps.sas, M
w6'cn after a eonaGsu.e sas ~ renrea n.
tausc-s Il ctt AZURE OF the government ao4 is
10 BE- reMeo On ID source Of prnos onIf 10 nc
ssssiss ia.r of ot
he ~oild faI1 fhhes ABUNDANT erltcace as to the
a9 ne " 1enosi eo f esiToue stock bankH Of sGreat
B,itains of theit operations during part oi ne
Ytay 1861 ILLUSTRATE TIE fncs stated. LEAVING OUT
tn+ Bank OF Eug and. which furnishes NE R.est
. hulk Of The circulation used u toe uaisea . hau9
d.m, the bauks reported employ m a9gLe0an
cspiai excetulnR E42, ,oce. .00o and the net pl1uts
fot str months II TIE year 1862 were y M ~
ext tst or C37QO 900, 1t the rate OF aoout PET
ceLt Fer anpuua. Reports ol atxty'tNo oaaks Iol
lhs six moulhs succeeding the peri d eaofaeed N
the ion q, ng sRgw Sap,tH y, n. ovSt
MD net prudts net d1vta. egnat 70 pef cens: @
4. thcr, makng the ptoBts Of the stxtJ-sxo oanks.
whose iepont are punlisaed, At the rate ot lsA
vi IN he rn,,ta s1aias tie accumulation Of cash
capttal Is comparatively snalt "A IN alI new
an os tse
yelopn ept OF the RESOURCES II the country. The
amuunt Of depoAit, the4 eEoee. Of moue! ~ resi-,
u sn ali ID onpassseu viii the aetual material
t inn ease, std pY lis aid the Sas!onal Banks
are eL abled 10 orlng their carmnG1 up 70 su Az
tnear slotkhpjdi rs In Tlex Of all shess facts,
however, 1t ems dessahi. tn It the old relation
betveen Ins rate Of interest hnd tne rats OF ta1e.
s,ates In which banEs OF issue were authorized.
should mt be eltneiy agnoiea With fegaf,a %
Naona Bsas ana asnas q ,ne 70 sef
impottant par1cutaif, Ia exercised only with the
cptsk nt Ct the General Government. It would be
Wise PIT CAuEQu tuI ADuBlts6 W u sH1A Rt4Ata-
| ticns as would prevent unw1ser nQfFleodl7, or
otnt Swlse 1amaRlng let ia'at.Dn.
Ailustuu has been nAIie IN former reports To the
cQstt Of plying LETT 81 On deposits ~ Sa4oual
BanKa. The practice exis,esl long hetuse aey
| Nattonsl Banks had an existence, and !hey only
continue 70 do whht their pm d. cessoEs Old before
I thtm, ard what bankers everywhere considet
themselves co1ptllea 10 do -.
TIE use oi other peoples money N the anape Of
deposl's, without Interest, Of at low rate q u
| elcst, has cone to he cuL atdeteN cafu!ral ne
| ,esSt1y Of mote1n banking There will al@ays be
ttose iesdI 10 accept IT, custody. assQne al FsEs
and pay Interest t9r is u.s. fo5 matEi1 o1 pf1a
| stionftat Or Meatthtesr nanE or panker W1o y
willing to pay the hight rate for tha use OF ohtl
1 plss nonev 01ltna{s, judging 9i y 6Aass =
tfless the gn stest tndncement 10 deposit0fs- y
theory, the custom IL dangerous: Ia practice 1t !:
os ha's snansne1 III ~ ia pasiasa s. ope o.
| se1vAnce, that any sweeplng ensctmene prohibit:
ing The asmrnr OF lutesrht On deposits by Ma
osnfs % wouid lose their deposits Taese ~ scofci
Of banks aud apke's. Lot subject 70 the con1ro
u orgress. who would rel ,lce over such pro
niolt ~ over the dlsconnnsure Of an enemy
yet there Ia one point ihar should be guarded
| TIE reserves Of the whole countsy are held to
| large extent IN Boston, He~ York, Pailadetpata
ptott cttd. They should be placed under sucn re
slttct1oDs as Hond obv!ate all necessity for th-
use y the depository nant. i tae lnsstuuon
| 10 1eut!n unenplo{ ed, SO tnat they mag be !!
reaitty but tiey are ID name. relief should be At
iolded In some other way. 1t Of sital importauc
which the law Teqult es bat Ks 10 hold as reserVi
un c1,cu alton and deroelta should oe luaue'i out
subject 10 the vi.iss.'udca and Hactuatlous ot NJ
/ auu plnpelty. There may be Prosperous and cas-
| tue fur yesrs: but there may CONE day Wne
| upon the ability OF MDe!e bank In New York cit
nsy r. deposits os II. S1dn, ~ e. SanS e. s,r
1 the whole county. The 6anAsot New fosE cit
have paid ~ u te1cst OF d posits, during the yea
s2ss, ,6s9.1u; ,ne boston banks. t5sss5a.as: II
Pu,aitlpl Ia banks, sis, DOL wnIle the agsrt
gate sum rad by a 1ns banks that ALLOW lntese.
Indicate the Rtdt prevAes ce Of the practice unds
consideration, SUD lne difficulty that wnult be e,
pe,ieuced a any atte nps 70 effect IL enire aos'
Rtln IN the larKt cities, constituting the ressrv.
J Of the conniry banks. can be exempt irorS y
s Ct o. to ss maa
/ - interests d, wt2l be gained. -.
The ID, tnrr consideration Of this subject IL su1
) ntttted to The w.soom Of Congress.
i Inc Necessity tof n me arrangement By whie
| the notes Vi National Banks mar be assortel a.
returned to tue several banEs OF lssae for redeu
| tot IL becoming more and more appaign', As It
d1flicultT Of deal!ug WIN the worn aod mul,Iate
| notes now In circulation Ia experienced The u
eeasrai Istem,g = assney Il snc c'.5 's u Se
| Y0tE, viii not be Icptated or extended on It
/ prestnt occastun. The canyicllon Is e1ptesse
! tahllsh an INSTITUTION If their own Tor that p1
E pose. owned controlled, nud managed in thelr |,
ttittt. they woula ind 1t greatly 10 their prodt
+ | do 20.
: Such an Institution would also serve rs II
: Gus odiAp Of tne rekefFeA kep& in Sew Yos
i thereby exempsieg them from the tiata inc!de
q To fnl d. det"kttta IN the ordinary way and drA'
E lpR Interest, and would. perhaps, oovlate the q
cfs1tt, OF epecl1c les sis!atihn upon the subject
{ | the payment Of Interest on deposits: white Il
j. bepcEt TO the Y hole country, arising from tsc
agency truly national Ill tia character, reguld
Z | lR lie CUT, uCy, tre exchanges, Roe the banktl
I interests of the country. beyond the contr Il
i, / ans tpR Or cique-becsusc managed BY all +
!. | TIE benefit OF AlI-Wouh be 0! lhe most substa
J. / tial A1d eudurlpg Kind Respectfully snbnhte tee
= ntLAkD r. nELBcRp,
Il ! Ccmptt0tt+r Of the Cus1encv.
t Hon, Geo. s. Boutwell,, Secttlary of the Treasul
4 'Economtsf. Nav =, 1870.
l. tEcobomLst, UcL -, 1870.
II s1t6a baLAs pay interest On deposits aud have
= pOfseu the amount,
/. 80 batks pay no inter eat on depoelts.
banks pay interest bnt cannot report I
,. amount.
J. 1910 total number ID active operation when
| mort UhN F4ITsf1 fnr