, 1872-12-03

fTur ~ . 80 o'@so nJ1Ne,s, auu e. A t~os
lish banks 1a| ~ aer,t 1,or ern1,r, W
~ ;e n,,,o,ai1 1za ~ eIns Pet eua!i
issned ~ sHsL sns u: .I.
nroft - ~ Danhs - = a1u1cs y: 6iea'
eideraa oa ni.ou oeuus 10 COZ e
cn1af;on 5oas ~ l9es, .ne p1olt upoa cn
Tho 49, uoso ] uoe eaeesu per ceat PEI Annu3l.
ths ~ ,,ndo- III o1,o ~ uauAans - luet
its ana 1-1o,, +L;s t -. - 4o
tn, ia o1asJ Eaa - 49, " pts,nese ~ auua0a
The a5TanIa1a ~ ,;E,,.1a.: - - nysse1 na
to manv reEtFctons ;c Ia ~ 10 as9 sap5ecs H
danso19o ~ 4rb1si mlcn a.e 9 cons!uereo ont
straneth n tha ,oona4 gtse steaunEss " aI Auo
Wh;1a +Sa bari- ''ahsaIt3ous 1sil ol tne c1un-
nronor;on To Iie W ~ the
Should not unier an ~ ,no ~ onT{
profts ~ an nnfonn5ad u h ea1t ~
3 cTeafer dea7ee that ott tpre]naee pe ts1ea TO
90 aro, 1ass ;~e,.ar4a otneI corporations "nleo
Tha consoJ;da4;o,, A.f1 ~ ~ ~ ~ p1ospsri.y =.
conntrv ;n sonod T.. a,,a eae nana caPit1 u ~ tno
viii nronen eafan,,a ~ e9nselsGtne -
mich t prpter and restrictions is Of
ponndfoosh ;r1nos;t;n,s t1a t su
which vii hara " eaIessare 80 ie1i
ihat ara mi ove ~ e. ..
TEN With The m1rnnsa ~ nron nt ~ u, tavot;on
8 whatavar '-Po70 - e'@1o1ns en 1AA"'toA
-
RESERVE.
"a gnu ueM OF discussion has ARISEN dnf1ns
~ 1Geeuk et1inegney II the money market, Ill
Ine ct9 o1 new 1ofk, IN reference to the pro-
Flslons OF the Aatlona! Currency oct, requiring
reserve upon the liabilities OF Natlonal Danks;
ihe act requires that the country banks shall
- nolu an anuoun1 OF reserve equal to 10 per cent
o1,tne entifo amount OF their deposits and cir
eu1atlon, three,htths Of which reserve may be on
oePos1t WEI Natlonal Banks which are the1r
agents IN redemption cities. The National
oanRs n tne redemption cities must hold q re-
serse o. 20 PEI cent, 9ne-haH m Of which may pc Oh
The reserves of tie nineteen hundred Ma
1lona1 B2nks located elsewhere than IN the City
oi Sew aork are held to great extent IN that
Guy. for most OF the tune during the past
year, an amount equal to more than one-ffth Of
me capital OF AZ these National Bauks has been
1olo o,oi on depoalt bS the Matlona! Banks OF the
CITY OF New 1ork TO the credit OF their cor
respondents. In many cases these credits
anpuns a1, .,,;e 20 '"3ee the capita! OF the nank
cases Tue amount ot deposits Is three,
Dur and even hTe times tue capital,
1h1eh saount mas peen attracted thltner largely
Etne payment o. 1nleTest On deposits. Inc
time o. monetary str1ngency would embarrass,
: not ru1n. many 6anks IN the redemption
cues, and, N turn, the country correspondents
g tnese panSs "ould su1ter from the impru-
eence % o. tae 2 New York bani, which would be re-
sI'ons1ple I pc ior widespread disaster. Il IS clear
nlat ,a PAM haMng such excessive liabilities has
70 Iaght. even Il there we're no law, to increase
rs loans to sueh an unreasonable extent as to
I:so 70 embarrassment Il unexpectedly called
14,on toe the reserves o. lts correspondents.
FoF1s'ou OF la" Pronnlt1ng panKs from extend
LES 51eu loans oesona three t1nes tnelr capital
"oulo seem TO pc not unreasonable, put such
PROVISION "oulo pc mucn more fes11ctiye than
the present requirements OF the lew IN reference
70 reserve:
Inc state la"s OF Massachusett8 anu Louisl-
aca, Wh'ch We're N most respects models OF
aund system Of nahk iesls latlon, required an
ample reserve 20 be Kept on hand;
Inc laws or the stare OF New 1ork bad
p such reEtr7ctlon. The country banks OF that
ssste we're, however required to redeem Their
notes III the Clty o. New fork, IN Specie ana an
examination OF their returns will show that,
E1rall proportion (about ~ per cent? Of eircula-
ton and deposits IN their vaults, they we're
ireed to keep On deposlt With their city corre-
s;ondents nearly IS large proportion OF re-
6.rye es under the National system. an e1am1-
1atlon OF the weekly returns made % to the Clear
rs Honse IN Se" toik Cltg WILL SNOW tnat the
6ate banks OF established reputation IN times of
Eonetary str7ngency hold sufficient reserve
without such provision OF Law While the larger
proportion OF banks, not included IN the Nation
q! system, are cont1nuany pe1o" Juolclons
LIMIT. ihe 1fn1h Is that tne strong ana well
managed banks DO not need any law IN reference
strcserTe, ano 90 not, tnere1ore H. ask Tor change
.: le97slatlon N tnls respect. ihe "eak panks.
free from al festfactions. It is
tic constant tenoencE OF euca banRs
T. increase their heblhues. In times OF
e.cessiFe sez2ngencJ 1oans are noI maae oy sucn
~NeeAo@Aeo w. |I-4 N~ NF1
PIPER, bus 70 dealers II specnlatiFe securat1es
ulon Ehort time at at h1gh rates & o. interest; and
a.!ncrease an Of eau loans oeyona! the proper
unit Is more nkeiy 20 anola 1aeutlcs 1or IN
Tsrantable STOCK speeulanons than rehef to
1eatlmate business tansact!ons. Inc Law - N,
3eded as Wholesome RESTRICTION upon National
t's4ks, organized N almost every CITY and wi
az In re Qa1oni ~ Sexs 70 t5e 3s apsolate ~ seeu
sE?roV1oed 1or the crunplea nlts OF paper IN
En- pockets OF every clt1zen: no provision OF the
aclhas done 50 much TO gre character and
stadlng TO the Nat1ona pank1ns system as the
asarance TO me tnousanos OF 1 deposltofe
tnnughont ne coan11y t"no alte1 anl are the
en1t @ source o. pron&s o. & 70 eVery pank} sea1 re-
sere, equlvalent to such proportion OF the Ia
bl!tes q every bank - as tne experience OF years
anone nuctuae19ns VI oqsl1ess 1t nave sao"n 10
oe Necessary, VII al"ass % kepI On nano 20 an.
e"enhe extraordinary ano unexpected Calls OF
credora. ,.-,.,...-
1l vaEaon5 M @ IN - me e. aa n Gittes f neg requiring re-
ser7tm rne 6ank5 OF the CitE or new York are
EeF Teat. me oanks ou5sioe OF New forK,
depos o aWas
tue reiTal OF business. Inc banks IN the City