Eaton weekly Democrat. [volume] (Eaton, Ohio) 1866-1875, 1872-12-05
THE NATIONAL BANKS.
Report of the Comptroller of the Cure,

Report of the Comptroller of the Currency.
The report of the Comptroller of the Cur
| rency reviews at length the working of the
I national banking system since its inaugura-
l ton.
| OF the whole amount of circulation appro-
priated by Congress, $342, 100000 have been
| issued, and a balance of $12, 900, 900 promised
| to associations that have filed their applica-
tions and taken preliminary steps toward Or
ganiZing as national banks.
The Comptroller considers that part of the
recent act which calls for the redistribution
| of 1926, 600, 900 in currency by Withdrawing that
amount from the Middle and Eastern States,
| and giving it to the South and West, as i'm
practicable, and recommends its repeal; and
also that an amendment be made in lieu there
of providing for the issue of S5, ,000, 900 bank
circulation annua ally for the n sxt five years, to
meet the wants of such SGates as nave not had
their full proportion.
He is opposed to any change in the law in
reference to the reserve which banks are re-
quired to hold, and shows by statistical tables
that law which has become a rule with all
cautiously-managed banks should not be
hastily repealed. He suggests, however, that
it would be to the interest of banks to keep
larger proportion of their reserve in their
own hands instead of placing it 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-
tions. 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 diYi-
dend upon the aggregate of claims proved,
which amounts to about sc per cent.-leaving
IA per cent, which the law provides shall be
assessed upon shareholders.
The locking up of greenbacks in New York
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 illegitimate transac-
tions among banks than any legislation by
Congress.
Amendments to the act are suggested as
follows: The organization of banks without
circulation, upon the deposit of SIC, 900 in
United States bonds, instead of one-third of
the capital; the imposing of a 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 an amendment per-
mitting banks to loan 10 per cent. on capital
and surplus. The proportion of taxation is
believed to be much greater than upon other
property.
Fun statistical tables are given, exhibiting
the amount of dividends and earnings of ma
tional 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 dividends
to capital and surplus is less than ~ per
cent.
The appendix will contain much new statis-
tical 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 to wealth,
to capital and to deposits under the present
system and under the State banking system in
the year 1862.
The Importance of frequent examinations
by competent and courteous examiners is
stated, and a small appropriation is asked to
defray the expenses of special examinations,
in order that such Investigations may be
promptly made as may be considered expedi-
ent for the protection of creditors. Increased
compensation for gentlemen holding respon-
sible positions in Office is also urged.