The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1872-12-13
THE NATIONAL BANKS.
Repor, Of the Comptroller of the Curren,


The report OF the Comptroller of the Cur
rency reviews at length the working OF the
national banking system since Its Inaugural
ton.
OF the whole amount of circulation appro-
priated by Congress, S3i2. 000, 900 have been
| issued, and a balance of Sl2 600, 900 promised
to associations that have filed their applica-
tions aud taken preliminary steps toward or
ganizing as nationsl banks
The comptroller considers that part OF the
recent act which calls for the redistribution of
s25, 1000, 900 III currency, by Withdrawing that
amount from the Middle and Eastern States,
and giving it TO the South and West, a. I'M
practicable, and recommends its repeal and
also that All amendment be- made in lieu
thereof. providing for the issue of $4,000 900
bank circulation annually for the next five
years, to meet the wants of such States as
have not Lad their full proportion.
lie Is opposed TO any change In the law in
reference TO the reserve which banks are re-
CURED to hold, and shows by statistical tables
that a law which has become a rule with all
cautiously managed banks should not be
hastily repealed. He suggests, however, that
IL would be to the interest of banks TO keep
a larger proportion of their reserve in their
own hands, instead of placing 1t on deposit
with city bonds, and points out the way by
which this end may be accomplished to the
general benefit.
Congress is informed OF various complaints
which have been made of usurious transac-
tons, and the Comptroller incidentally sug-
gests the propriety OF the repeal of all usury
laws, SO far as they apply to the national
banks.
Full information is given in relation to
banks which have failed, showing the average
dividend upon the aggregate of claims proved,
which amounts to about So per cent.-leaving
IA per cent, which the law provides shall be
assessed upon shareholders.
locking preenhapkE
City Is referred to- and attention called to the
resolution passed by the Clearing House !:
and the belief expressed that its enforcement
Will do more TO prevent such lllegitimate tran
sactions among banks than any legislation by
Congress.
Amendments to tho act are suggested as
follows: The organization of banks without
circulation, upon the deposit of SO, 900 in
United States bonds instead of one-third of
the capital; the imposing of penalty on,
and withholding of interest from, banks
whose capital is impaired, and who refuse to
go into liquidation, under Section AZ of the
act to prevent the circulation of shinplasters
by railroads and other corporations of the
South; defining more fully the duties of the
Comptroller and Receiver in the final closing
of insolvent banks; and all amendment per-
hitting banks to loan 10 per cent. on capital
and surplus. The proportion Of taxation is
believed TO be much greater than upon other
property.
Full statistical tables are given, exhibiting
the amount of dividends and earnings Of ma
tlona banks for the last four years The
ratio of net earnings of the national banks of
the country to capital and surplus without
making allowance for bad debts, is about 10
per cent. annually, and the ratio of divi-
dends to capital and surplus is less than A a
per cent.
The appendix Will contain much new stats
teal information IN reference to the kind of
funds held as reserve by banks, and their net
profits; also, comparative tables showing the
amount of authorized circulation, together
with population and wealth in 1870, circulation
per capita, the ratio of circulation 10 wealth,
TO capital, and to deposits under the present
system, aud under the State banking system
IN the year 1862.
The importance of frequent examinations
by competent and courteous examiners is
stated. and small appropriation is asked to
defray the expenses of special examinations,
in order that such Investigations may be
promptly made, az may be considered expedi-
ent for the protection of creditors. Increased
compensation for gentlemen holding respon-
sibe positions in Office is also urged.