New-York tribune., 1872-12-02
TILE CURHENCY.

We complete to-day our extracts from the
annual report of the Controller of the Cur
rency, of which we printed portion on
Saturday. The limit Of the National Bank
issues in each State and Territory is fixed on
the basis of population. resources. hnsin0es'
and bank capital, as ascertained by the census.
The last census required q new apportionment,
as it showed total increase in the population
of the Union of more than 100000 persons,
and in wealth of nearly $4,000 100000. An act
was accordingly passed providing for an adj
ditional issue of $54OOO,OOO. Of this the largest
sum, SS,40O,000 appOrtiOned to any State, went
to Illinois; Ohio and Kentucky each got over
S5, 0OO 900; Indiana, S40O0,000; Michigan and
Louisiana each over S3,00O,O0O; the distribu-
ton being made one-half on the population
and one-half on the wealth of the county 1t
will be noticed that the increase all goes to
the South and West, and more is yet needed
to give those sections their due appOrtion-
ment; to accomplish this, s25OOOOOO is to be
Withdrawn and redeemed from the circulation
of banks in New-York and New-England, and
corresponding amount authorized to banks
in States that have not now their quota.
1t is q commonly received but somewhat
erroneous opinion that the amount of currency
in the hands of each individual member of the
community has been on the average largely
increased by the National Bank system; but
this report only gives it now as, for the whole
United States, so 1S per capita, against 81 so
before National Banks existed but the circu
lation of U. S. Treasury notes should be
added before any conclusion is reached from
II bn OF nf Tc1a
has the largest per capita circulation:
SCI So; Mississippi the least:-One cent
except Florida and California, which have
none. New-York has but S14 08 The Ma
tional Banks have paid in the last eight years
some $40,OO0,000 taxes to the United States
their State and national taxes for four speci-
fed years together amount to S7l, 100000. The
bank dividends are not so large on the aver
age as is generally supposed: they do not ex
ceed in the aggregate those of the old State
banks; for the whole Union they but slightly
exceed FIVE per cent on invested capital.
The great question of the proper reserve to
be held by the National Banks is discussed in
this report, and the conclusion reached that
it is only the smaller and weaker banks that
want to go below the present limit. Their
necessities arise from putting out their funds
at interest on deposit with Eastern banks-a
condition which has moro than once given
rise to the most serious financial convulsions,
as in 1857 Il and q remedy proposed by
tho Controller is the issue of new
security by Government which will afford
these banks the needful investment at inter-
est. Not the least interesting feature of this
report is the announcement that the Chicago
banks, 80 far from being crippled as was an
ticipated after the fire by losses on discounted
paper and the withdrawal of their balances,
in point of fact steadily increased in business
and profit, after resuming without embarrass-
ment as soon as their safes were cool. There
is similar prospect in Boston, where the
aggregate losses since the fire on bills receiv-
able are estimated at less than three millions
of dollars, which the bank surpluses will
cover without touching capital or reserve.
The question of usury is discussed. I'll
appears that the penalty for its practice by
National Banks Is not clearly defined, and the
Controller therefore declines to institute pro-
ceedings concerning it. A general law for the
of Savings Banks in the District
of Columbia seems desirable. Locking up
greenbacks Ia reprehended, and the New-York
Stock Board and Clearing House are asked to
discourage it, A table of the specie kept on
hand by the banks shows it as less in October
last than in many years before IA $i0,0O0,000
against usual average of $25,000,0O0. In the
few cases of failure among tho National
Banks, the unfortunate institutions seem to
bo wound up with less rninous loss to deposit
Iors and stockholders than has ever been re-