The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-12-06
There are on file appcationsf for banks in addition


brom Wlbconsin, nineteen AppucAuonk iSW,UW
The number OF these applications is $50 and the
amount OF capital required 10 supply them aIl would
be $27,0oOo0O. Experience has shown, however.
that u large number OF applications are placed on
file az caocdts. to occupy the ground and to deter
other parties from moving. Very many are speeu-
latve ana some, intended TO be bona fde fall, be-
cause when brought to the the capita Is want
Ing Probably, all these applications should be
granted not more than half Of them would be car
ried through To complete organization. Tie
amount OF capital In the Western and Southern
States not permanently Invested or actively EN- :
poyed In business or various kinds but Immediately
available for tue purpose OF organizing national
banks. cannot be very large, and the impression
thai many millions OF cash capital were awaiting the
opportunity OF inve tment IN national banking nstl-
buttons has not been fully sustained. The provision
made by the late act IS undoubtedly for the supply
OF those States which have less than their proper
ton, and would probably su7ice to supply all rea-
sonabs demands even II not restricted ITS distri-
button The propriety OF providing Tor the removal
OF ssch restrictions AFTER the expiration OF year
from The date OF the passage OF the act is respect
Iully suggested.
Under the provisions OF sections three four
ana five Of the act approved July II, 1870 author
izing the establishment OF national banks for the
Issue OF circulating notes redeemable In specie
but one bank has yet been established. the
Kdder National Geld Bank, or Boston,
non has been received that several otoer
institutions or this character are In process
which are in California. IL was not Anticipated that
specie paying banks would be established to any
considerable extent, at present, In those sections OF
the country where paper currency based upon the
legal tender Issues or the government already
prevails, although II was and Is stu supposed that
one or more gold banks might be estab-
Iished and successfully conducted In each OF those
cities the Alta ATTIC seaboard where considerable
foreign trade Is carried on, and IN which certain
amount OF business is necessarily transacted upon
specie basis. II all the business OF this kind that
Is carried on In The cities or Boston, New YORK,
Philadelphia and Baltimore could be concentrated
IN one or Two banking institutions In each or those
Cities It's extent would undoubtedly warrant the
employment of very respecta lie amount for It's
exclusive accommodation.
Under the operation Of the act OF Congress ap-
proved July IA. 1870. ITO require national banks go
ing into liquidation To retire their circulating notes.
twenty banks, which had been nominaily In lquI-
dation for various periods Of time, nave deposited
In the treasury or the United states legal-tender
notes for the redemption OF their outstanding clrcn-
lation, and taken up the bonds pledged security
therefor The amount of such deposits since the
date OF my last report Is S. 40l 9l0 and the amount
OF bonds, Ut their par value, thereby released Is
s2,75eoO0. All banks In liquidation except those In
process OF consolidation with other banks have now
retired the4r circulation
Carefully prepared tables Will be found in the APP
pendtx, az follows:--
Frst--Statcment OF amount ana different kinds
Of bonas held 10 secure circulation.
SecO,id-Banks In the hands OF receivers.
Thfrd-Ihe number and amount or eacn denom
nation or bank notes Issued redeemed and out
standing.
bonds and circulation ia each State and Territory.
Flfl,-Natienal banks l liquidation which have
deposited lawful money 10 redeem their circulation
and taken up their bonds.
Ssrnt-Natlonal banks In liquidation for the pur-
pose or consolidating with other banks.
SeCefHlt-bist oI expenditures lor Inc FISCAL year
ending June 80, 1870.
Ei1hui-List OF clerks employed.
Ntnlt-Reserve tables.
Since the organization Of this bureau TO the lst
day OF October, ultimo. circulating notes more or
less worn and mutilated have been returned by the
banks to be destroyed by burning to the amount or
$50, 5975lS. or this sum $l70 4s, 1l9 more than
enc ali the total amount were returned during the
last year. The rapidity with which tine national
bank notes are becoming unit fer circulation. and
are being retained for destruction in order thar they
may DC replaced oy new notes, Is constantly increas.
Ing, requiring constantly increasing force clerks
10 attend properly ana promptly to the asserting
counting, registration and finai burning OF the
notes.
In the effort to protect the public rsm the imposl-
tons Of counterfeers, which is being made by the
proper authorities, would be well 10 throw every
possible dinicnlty in the way OF the circulation OF
counterfeit notes. For this purpose IL Is recon-.
mcnded That every national bank be required
upon every Iase forged OF counterfeit national
bank note that may he recognized such on pre-
scntaton OF the counter OF the bank.
When the capital OF . bank becomes seriously i'm
Tor the Comptroller Of the Currency 10 be clotheo
with sufficient power To require the bank 10 be
wound up, or 70 have Its capital made good within
q reasonable time. AS tho law stands he can only
prohibit the bank from declaring any dividends so
long rs the capital Of the bank remains impaired,
but the resources OF bank may ne crippled and its
usefulness destroyed beyond hope OF repair yet
1t may continue 10 live sckly existence for years.
In such cases tue bank should be required TO make
mp the losses by an assessment us stockholders,
o. 10 70 into liquidation and DC closed
The operations Of tho national banks throughout
the country during The last year have been charac
terzed by prudence and exemption from disaster 10
an unusual extent. Tho profits have not been
among which may be noted the decline ~ The prc-