The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1872-11-25
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Conn farustes 6f tsse CURRENCY.

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cnSi afsalss se Size Currency
HAsniSasots Nosenber ~. The report
lot the Conn rolfer Ill the Currency reviews
iit seltgsi the workings of the national bank,
jug system sinss 3ts Inauguration it1 1853
0f the whole amount of circulation antho.
rfzed by Congress, SSs42, 900 900 hdVe been
issued, and the balance of St2, e00, 600 prom.
fised TO associations that have filed their ap.
| plieations and taken Tho preliminary steps TO.
ward organizing ,as national batlss.
The Comptr6lfsf considers that part OF
the recent act which calls f6f the redistribu-
ton of twenty-five millions of currency; by
withdrawing that amount from the middle
and eastern States and giving 1t to the South
and West, as impracticable, and recommends
It's repeal! and also that an amendment he
made in lieu thereof providing for the issue
of five millions Of bank circulation annually
for the next five years TO meet the wants of
such States as have not had their full pro-
portion.
He is opposed to nns change in the law in
reference to the reserve which the banks are
required to hold, and shows by statistical
tables that law which hos become rule
with all the cautiously-managed banks should
not be hastily repealed; suggesting, how.
ever, that 1t would be to the interest of the
banks to keep a larger proportion Of their re-
serve III their owti hands; instead of placing
it on deposit with tie city banks; and points
out the way by which this end may be ac-
complished 10 the general benefit.
C5tigrsss is Informed of various complaints
which have been fiIadc Of usurious transac-
tons, and the Comptroller Incidentally sug-
gests the proprietv of n repeal of all ustiry
laws, so far rs they apply to national banks.
Full information y given in relation to the
banks which have faiItd; showing the average
dividends upon the aggrGgats of claims
proved, which amounts to about eigtty1siX
per cent, leaving thirteen and half per
cent, which the law provides shall be as
sesSed upon the shareholders. The locking
up of grcenbacks in New York city is re-
ferrcd TO, and attention called to the resoltI-
ton passed by the clearinghouse, and the
belief expressed that its enforcement will do
Dlcre to prevent such Legitimate transac-
tions among the banks than any legislation
by Congress. A table is given showing the
total amount of coin held by all the national
banks together, with the amount of gold
treasury notes, and checks payable in specie
and coin, held by the banks in New York
city. stated separately.
Amendments to the act are suggested as
follows:
The organization of banks without circu-
lation upon IA deposit of $4,000 in United
States bonds, instead Of oDe.third of the
capital.
The imposing Of penalty and the with
holding Of interest from banks whose CAPT
tai is impaired, and who refuse to go into
liquidation, under section forty-two of the
act.
TO prevent the circulation of shinplasters
by railroads and other corporations in the
South.
Define more fully the duties of the Comp
troler and the receiver in the final closing Of
insulvent banks. and an amendment permit
ting banks to loan ten per cent. both on capt.
tai and surplus.
The amount of taxes collected by the
United States for the four years previous to
January /, 1872, is more than $4,000, 900,
and the whole amount of taxes, State and
national, nearly twice that amount. The
data upon which taxes are assessed can al
ways be readily obtained, and the proper
ton of taxation is therefore believed to be
much greater than upon other property.
Full statistical tables are given exhibiting
the amount of dividends and earnings Of ma
ratio Of the net earnings Of the national
banks of the country to capital and sur
plus, without making allowance for bad
debts. is about ten per cent. annually, and
the ratio of dividends to capital and surplus
less than four and Il half per cent.
The appendix will contain much new sta
tistcal information in reference to the kinds
Of funds held as reserve by the banks and
their net profits: also comparative tables
showing the amount Of authorized clrcula-
ton. together with the population and wealth
in 1870. the circulation per capita, the ratio
of circulation to wealth and 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 asked to
dciray the expenses of special examinations.
in order that such investigations may he
promptly made us are cXpedIcnt for the pro.
lection of creditors. Increased compensation
for gentlemen holding responsible positions
| in the Office IL also urged.