, 1872-12-03

conspicuous advertisements, and obtain recog
| milton in the counterfeit detectors among lists
| OF National Banks, thus transacting business
under false colors, which, Of itself, should be
sufficient to put all business men upon thei1
guard. Such abuses should, however, be- pro-
hibited, and the Comptroller recommends the
passage Of an act prohibiting the use Of the
word "National" as q title for banks other
than those organized under the National Cur
rency act.
He also recommends that alr officers of M
t1onal Banks and all Government depositaries.
be required to stamp the word "counterfeit u
Or s'illegal" upon all counterfeit and unauthor-
lied issues presented at their counters
BASKs OF CIRCULATION.
The National Currency act is, to a certain ex-
tent, deficient in q provision for the prompt
closing up Of National Banks pursuing an illegit-
mate business. These banks are OF two classes.
One class organize or attempt to organize and
pay up their capital stock with the notes Of
shareholders instead Of cash capital, as required
by law. A few such cases have been forced into
liquidation by Withholding the issue Of circul a.
ton, and in one instance the Solicitor has been
requested to bring o suit for the forfeiture of
charter for willful violation of law, as provided
IN Section So Of the act. In all similar cases
hereafter proceedings will be commenced for o
like purpose. In other cases, banks which have
lost large portion of their capital refuse to go
into liquidation, trausacting no business, but in
other respects conform to tho requirements of
the laW, Tor tho purposeof receiving the interest
upon their bonds. The stockholders of these
banks, in some instances, have the means to
restore the capital, but refuse; in others, por-
tlon Of the shareholders desire to pursue 1egti-
mate business, but another portion refuse to
respond to assessments. Tho Comptroller re-
spectfully recommends that in these cases au-
thorlty be given to withhold the interest upon
the bonds, and to commence proceedings for the
forfeiture Of charter, mud that q penalty bo i'm
posed. These cases are not numerous, but 9
remedy is needed to terminate the existence Of
such associati tions: and no penalty is too soyore
tion, and the corporation Of banls doing
legitimate business, an example may be mado of
lHeglti1nate institutions, which Will prevent the
organization of banks without the full amount
OF capital paid up IN cash, as required by law
EXAMINATIONS.
It is tho intention Of tho Comptroller that
every National Bank shall be thoroughly exam-
lned once year by competent bank examiner.
Every Director and Shareholder is personally in
terested IN these examinations. If properly con-
Quoted. No wol}-managed bank viii object to
confidential scrutiny Of its affairs, but will vel
como ut an times, as is generally tho case, .
competent and courteous agent of the Depart
mont. Many valuable suggestions may bo OBJ
tanned from the experience Of an Intelligent ex-
aminer, and, in not @ few instances banks have
the correction Of abuses. In sono instances in
formation is received at this Office Of violations
OF Law which call for special examinations, but
which cannot bo made because there is no means
an1inations II the bank is found IN fault, it
will respond to an assessment; if
not, it should not be subjected to an
expense not authorized by law.
The Comptroller. therefore, respectfully asks
for an appropriation of e3 600, in ordor that he
as he shall consider expedient for the protection
Of the creditors Of such associations, Prompt
action in cases Of this kind is very desirable, |
and the expense incurred is triaiug when COM
pared with the public interests involved.
IuTuATED CURRENCY.
Section q OF the act provides that the worm !
out and mntilated circulating notes of the Ma |
Honal Banks e shall be burned to ashes in the |
presence Of four persons, ono to be appointed by
The Secretary Of the Treasury, one BY the Comp
The United States, and one by abe association,
nndor such regulations as the Secretary of the |
Treasury may prescribe" From tho orgauiza- |
lion Of the system in 1868 to Nov. i, 1875, 1885,
$780, more than one-fourth OF the whole |
amount issued, has been returned to this Office |
Tor destruction, as follows:
Previous to Nor. !, 1865. 1754o0 |
During the year ended Oct. 81 1866 1,05o383
During the year ended Oct. 81, 54ol 23
During the year ended Oct. 81, 1868. 4,ooasa5
During the year ended Oct. 31 1860 ..... 8,C03T49
During the scar ended Oct. 81, 1874. 13os6ss
During the year ended Oct. 81 1871 or
During the year ended Oct. d. 1879 3o,o11
It is probable that the amount of mutilated
currency to be returned hereafter for re-issue /
6in exceed $50, 100000 annually, and that tie |
Whole amount OF National Bank circulation will
20 re-lssued as often as once in fen years. An
additional force will be required for the careful
performance of this duty.
No effort will be spared by the Comptroller to
saVc the provision Of the law in reference to the
'urning of mut1ated notes and tho prompt is
ne OF now notes in their place strictly execut-
ID; aud the National Banks OF tho country are
lrgcd to send forward such notes as frequently
!s possible, in order that the currency of tho |
ountry may be KEPT in the best possible condi-
! ion. The officers and depositaries Of the United
ne currency, By sorting out all mutilated notes
u tue Naslonal Banks and presenting tho same
0 their agents in New York City and elsewhere,
or redemption.
THE OFFICE.
The force of this office consists OF the Doputv
comptroller, tifty-aix male clerks, aud twenty
light female clerks. The work OF the Office ia con
lnually increasing More than twelve thousand !
eports Of National Banks are received annually
nd carefully scrntinizcd. More than one hun
avo been received, transferred, and deposited
nth the Treasurer during the past year, and
Henty- five millions Of dollars Of bonds have |
een Withdrawn and surrendered to the banks.
'hirty millions OF dollars Of nlutiated currency
ave been received. counted. aud destroyed, and |
52, ,000,0 900 Of new currency issued to the banks.
lany thousands OF communications are annu-
lily received and promptly answered. If any
uccesa shall attend the administration of the
esponsb!o duties of the cftice, the Comptroller
ill be in large measure indebted to
he industry and efficiency Of the Dop-
ty Comptroller, of tha competent
orps Of examiners, anu Of the chiefs Of tho
iferent divisions, and to the services Of expe-
fenced clerks, who have assisted him in the dis
harse Of these duties. A reorganization of the
ihee, With increased pay corresponding to the
o proper recognition Of services which have !
90 long been well performed without corre-
ponding compensation.
Statement exhibiting the number and amount of notes
'sued, redeemed, and outstanding, Nov. j, 1872:
g. 959555E59I