The New York herald., 1872-12-02

usury laws are abolished while In the remainder
tne rate mas remained for half a century at q uni
lorm standard, which Is less than the present rate
OF the Bank OF England. In Minnesota and Va
gina gil the rate Is limited to twelve per ssnt; in
in Alabama and Ohio, to eight per cent while in
Pennsylvanla, Maryland and Kentucky, the rate is
an excess beyond the limit Of seven per cent for
feits the whole debt and subjects the creditor to
give any good reason why the rate Of Inserest st
should be limited to ten per cent in the
ths sy q ces Of s Per in
Wilmington and Raleigh, and to twelve per cent
across the Potomac in Alexandria and in the capi-
caily repealed their usury laws, while other
neghboring States retain upon their statute books
have become obsolete. Savings banks chartered
by Congress- savings banks, trust companies and
safe deposit companies authorized by the Legis,
sprivate bankers, offer for interest on deposits
rates nearly equal and sometimes exceeding the
ruling rates allowed by law and under such cir.
cumstances 1t Is diicuit to control by legislation
the rates OF the national banks.
the other commercial European States; and the.
commonwealth OF Massachusetts one OF the most
prosperous and enlightened States OF tine Union..
has recently abolished such laws; and 1t will be-
found BY reference to the table, that the earnings
Of the banks in that State for the four years since
many Of the Eastern, Middle and Southern States.
where the rate Is fixed at six per cent
Mr. McCulOch late Secretary OF the Treasury,
in his first report as Comptroller Of the Cur
rency recommended uniform rate ofinterest and
expressed the opinion that Congress possessed the
provision OF regulating commerce among the
several States. Congress alone has the power to.
u 1t alone has authority to issue and authenticate
the paper currency OF the country, there would
provide for Its free circuiatioH, which is now i'm
peded by the ever-changing statutes Of forty dif.
The penalty for usury should at least be Defined,
and until this Is done the Comptroller will not feel
himself called upon to institute proceedings for
forfeiture OF the charter OF bank for usuriOuH.
transactions when 1T is evident that the business
of the association is conducted legitimately and
The ofilcial reports OF the savings banks in New
England show the deposits at the close OF the year
1871 to have been S3i2 470 or more than three
times the amount OF the aggregate deposits in the
national banks. The deposits in the savings banks
Of the State OF New York at the same date were
$267, $685. sum also considerably in excess Of
the deposits of the national banks in that State.
large portion OF these are not properly savings
England, New York and Pennsylvania, as wei as,
other States, have recently become formidable
competitors Of the ne national banks BY Offering
usual in wellmanaged banks.
On the 5th Of April last the Comptroller was ad-
vised that bank In the city OF New York, with o
capital of ST. 900, and whose average exchanges
at the clearing house did not exceed 100000, was
$4,770O00 AS it was evident that this large credit
was not the result OF legitimate business the ex.
aminer was directed to make an examination OF
tion with member OF the clearing house commit
tee. From the examination which was thoroughly
and carefully conducted, it appeared that deposits
had been made in that bank by one individual,
upon the morning Of April s, to the amount
upon the same day. upon the checks Of the depos-
tor, in legal tender notes. The President OF the
bank denied that the Dank had any interest In
these transactions, and there was no evidence Of.
any loan or OF advances in any shape upon these,
subsequently, Of an investigation by the Bank
Committee OF the House of Representatives, and,
although 1t was clear that the spirit OF the law had
been violated, evidence could be obtained to-
warrant the commencement OF suit for the re-
covery OF the penalty prescribed in the act referred
to. The investigation undoubtedly had the effect.
to prevent the repetition of similar transactions,
no offences OF this kind on the part OF any national
bank having since been brought to the attention.
OF the Comptroller.