New-York tribune., 1870-12-06
APPLICATIONS.
There are on file applications for banks

The number OF these applications go and the amount
Of capital required to supply them all would be S-oOo
Experience has shown however, that large number OF
opplicatons are placed ON file eareas to occupy the
pround and TO deter other parties from moving Very
many are speculative and intended TO he bona Fde
fo hecause when brought 20 the test. the capital is
wanting. Probably, II all these apphcatOs shouu ne
granted, not than half of them would De carried
through to a complete organization. The amount of
capital in the Western and Southern states, not pofma
nenty invested or actively employed IN business OF
various kinds but Immediately available FOR the purpose
Of organizing national banks cannot be very large, ana
the impression that many millions OF cash capital were
awaiting the opportunity Of investment in nau0Ial
banking institutions has not been fully sustained The
provision made by the late act Is undoubtedly ample yr
the supply OF those States which have less than thtn
proportion aud would probably suffice 10 Supply g, an
reasonable demands even if not restricted In ~
ton. Tho prOpriey OF providing Tor the removal 81
restrictions after the expiration ot one year IRON o
date OF the passage Of the act IS respectfully suggeseu
Under the provisions OF sections . . ana q, 9 of
approved July T. ls0, authorizing me
National Banks Tor the Issue OI clt'u.'ns Ii"hsd
able I'm specie but bank has yet been eStpShrh'
the kidder National Cold BANK OF lOstgl
with capital 0t $4,000 lnlorl"t%,oi % ns i o, i
that several other institutions OF ths character are m
process OF organization or IN ,
three OF which are In California IL was ii9I an 'ou
that specie-paying banks would be esaDnsneo 10 my
considerable extent at present h los h o. % Se
country where paper currency! ptSeu uPoh 'no
tender issues Of the Government, ALREADY pIeEausi
although u was and is still, supposed That one or more
gold banks might established and successfully con-
Quoted In eacn Of those Ces on the AIhntic ecapo9iu
where considerable foreign trade Is carried on. and IN
which certain amount OF business necessarily trans,
acted uDOn specie basis. II all the DnsluesSOi this klnd
IL carrcd I'm the cities OF Boston, NeW-1Oik,
Philadelphia and Baltimore could 10 concentrated III one
two banking institutions In each OF those otes ts
extent would undoubtedly warrant tho employment OF
very respectable amount for it, exclusive aceShnods
ton . ,,- ,
July H. 1870 10 require national banks going into lqu
duton 10 retire their circulating notes." 20 banks which
had been nOminay In liquidation for various periods OF
time have deposited In the Treasury Of the United States
egultender notes Tor the redemption Of their Outsand
cuity therefor Tue amount ~ such deposits since the
date OF my last report is So 9lO and tho amount o1
All banks in liquidation except those in process Of con
sodation witt other banks have now retired their cir
woRS-oUT CURRENCY,
Since tho organization OF this Bureau 10 The Isl day of
October utimo circulating notes more or es worn and
mutilaed have been returned by the banks, TO be do
sroyed by burning, To the amount Of SO515iS or this
sum- s17 49, or than half the total amount,
were returned during the last year. The rapdY with
which the national bank notes becoming unt for cIr
cuaton and being returned for destruction In order
that they may be repaeedb by notes. il constantly
creasing, requiring constantly increasing force of
clerks to attend properly and promptly 10 the asserting
counting registration and final burning OF the notes.
In the effort TO protect the public from tho imposons
OF eounterfeters, which ~ being made by the proper
authorities, would be well to throw every possible diff
cuy In the way Of the circulation Of counterfeit notes.
bank be required through its officers 10 stamp the word
national hank note that may be recognized as Such ~"
presentation at the counter Of the bank.
When the capital ot bank becomes seriously impaired
by losses otherwise Il would b desirable The CON
trOer OF the Currency TO bo clothed with suihci'I
10 require the bank bo wound up, 10 have its
capital made good, within reasonable time. Asthe sS
stands, he can only prohibit the bank from declaring any
dividends sO long the capital OF the bank remains I'M
paired but the resources OF bank may be- crppod ana
It's usefulness destroyed beyond hope OF repair and yet
it may continue Ia live sickly Tor years. In
such the bank should be required 10 make mp the
losses by an assessment on It's stockholders 70 iuto
liquidation and be closed.
SUCCESS TIE sYsrKx.
The operations of the National Banks through the
prudence and exemption from disaster 70 an unusual
extent The profits have large M in former
years owing 20 various causes, among which may be
noted the decline IN the premium gold, reduction in
the amount Of transactions in Government honds and
consequent falling of In commissions the fact that
owing 10 the general shrinhugp yolues which has
taken place, the banks generally have realized their
losses, aud have charged on tho bulk of their had debts
The result however. nay be regarded IA upon the
ton has been made BY skilled accountants, commissioned
examiner into the mode of doing business character
Of the cement and the value and condition ~ the
OF the tanks during iho year, and it has been
asceraned that tho bills and notes discounted nre 60
remarkable extent bnsed upon bona lido transepi piOs
whe the accommodation loans are uniformly saru and
well secured. The required by W 10 bc held
10 the pay ment o crcuaton and deposits are
a rule, kept hand ana tla general average OF such
reserves Is ordinarily considerably ahovO the amount
required.
most wholesome restriction, is m largo majority ol the
hanks, carefully observed ana the loans an,iSt un
iorny we'll distributed In very lHw instances arc the
directors allowed to mOnupohze to any cunsUcb.e
tent the facilities offered.
QUESTIONS CONCERNING INTEREST
Complaint Is made irom time to time. ana from various
localities that borrowers compelled to pay more than
If