The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1872-12-04
THE NATIONAL FINANCES.
EXTRACTS FROM THE REPORT OF THE
CONTROLLER OF THE CURRENCY.
CONDITION OF TIE NATIONAL BANKS.

CONDITION OF TIE NATIONAL BANKS.
Since the organization Of the national
banking system 2.051 national banks have
been organized. Twenty-one Of these have
failed and ninety-siX gone into voluntary
liquidation, leaving 1,944 banks in existence
on November !, 1872. The Controller gives
table showing the number Of banks organ
lied (2,057), the number closed and closing
I11), the number in operation q,94t;), and
the capital paid in (S4S2, 4S2.53S.5D. In Fir-
ginia twenty banks have been organized,
four closed and closing, tWenty-tour in ope-
ration, and the capital paid in $780, 900.
The bonds on deposit in all the banks
amount to 1892 Sos, 900, the circulation issued
to s434.060,T and the amount in actual
circulation to s340, 933, 470.30. There are two
gold banks-one in California and one in
Massachusetts,.
TAXATION, EARNINGS, AND DIVIDENDS.
The national banks pay the following
taxes to the Treasurer of the United States:
One per cent. annually on circulation out
standing; one-haf Of per cent. annually
upon deposits, and one-half Of / per cent,
annually on capital not invested in Unitei
States bonds These taxes are payable semi
annually. The amount Of taxes collected by
the Treasurer from january l, 1864, to Janu-
airy J., 1872, was as follows:
On deposits ............'..'...'.... ls6llo!S II
On capital. 2,4o3,e25 II
Total. 242,7O5 81
The national banks, prior to May 1, 1871,
also paid to the Commissioner of Internal
Revenue license or special tax Of So on
each 81 900 Of capital, and an income tax on
net earnings to December l, 1871. The spe-
cia or license tax from May l, 1864, to May
/. 1871, amounted to 1892 ,6S8.43; the in
come tax from March /, 1869, to September
|, 1871, amounted to $3.50, 280.17. Assum-
ing the amount of State taxes paid by the
national banks to be the same as that paid to
the United States Government (Which is a
moderate estimate), we shall have the total
tlxes paid by the national banks during these
four years
1868. Sle,ola,Ssa.oc .Sle,l60,tes.so
lsO7....... 1885, ISa.9S lS7l.""" H,52s,ssnsa
The average earnings Of the national
hanks. after making a proper allowance for
had debts. are not more than fair remunera-
ton upon capital. The dividends declared
do not probably exceed in the aggregate the
dividends under the old State systems, and
are far less than the average annual dividends
of the English banks. 1t is generally sup
posed that the circulation issued TO the
national banks IS q source of great proht,
but if the premium upon bonds is con-
sidered as an ultimate loss the profit upon
circulation does not exceed three per cent.
per aunum. The chief source OF prohe IN
banking under this as under all other sys-
tens IS from deposits, and upon this
branch of business an annual tax Is
already fixed by law. If the system
has the advantage of circulation, 1t IS
also subject to many restrictions which are
considered burdensome, but which give
steadiness and strength to the money trans
actions of the country. While the banks
should contribute their proportion TO the
revenue of the country, they should not,
under an imputation Of extrayagant profits,
or an untounded prejudice, be taxed to o
greater degree than other corporations when
are even less important to its prosperity. The
consolidation of the bank capital OF the
country In a sound and conservative system,
with proper safeguards aud restrictions, Is
of much greater Importance than penny
wise and pound-foolish imposition of excess
siye taxation. which will have tendency to
drive those banks that are not oVer-conscien-
tious out of the system, with the purpose OF
eyuding all taxation whatever.
: TUE BANK RESERVE.
A good deal of discussion has arisen du-
r;no the recent stringcney in the money
market in the city Of New York in reference
to the provisions of the national currency
act recurring reserve upon the liabilities OF
natiouaI banks. The act requires That tue
conntry banks shall hold an amount Of re-
serve equal to fifteen per cent. OF the entire
amount of their deposits ana csrcuiatloil'
three-ffths Of which reserve may pc On as.
post with national banks when are LneL
agents Ia redemption cities. me .nat lsa "
hanks in the redenption cities must hold q