New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-02-06

Many OF readers Will De snOckeu W III" VIC
honestly and cruelty many of the insurance companies
that have been rendered bankrupt by the late chicago
fire. have managed dispose Of large proportion Oh
their available assets to divert them from he
unfortunate sufferers by that terrible conha9ratlon iho
modus operand has been for the officers OF the company
on finding their assets inadequate to the payment VI
their losses to hold meeting and organize new COM
pany, sometimes Of similar title to the OLD, ana tnen
turn over sufficient in cash to reinsure all the eood
outstanding risks, thus making preferred creditors
of the non.osers and starting themselves In bus
ness at the expense of the creditors OF the
old company. In one instance that mas come
10 our knowledge an individual who was the chler
stakeholder in the defunct company also owned
large part new that the operation in effect was
simply the taking of round out OF enc pocket and
placing another instead OF paying 1t over TO the IN
who had sustained great losses by re Ihere
may provision OF law that excuses such trans
action this; but, in moral point OF view, 1t seems TO
akin theft that not believe any company
organized the officers concerned in such company.
retain the public confidence sufficiently to carry
the business Of insurance successfully We have the
OF several companies whose assets have been d
verted in this way but not wishing to cast odium upon
few for that which II is believed many are responsible,
we defer mentioning them until we procure a COM
pete list confident that we shall find that large pro-
portion of all the failed companies and their officers are
implicated in this nefario1s business.
The Daily Bulletin publishes the full statement OF the
Controller OF the Currency, showing the condition of the
National Banks Of United States Dec To- 1871 the
date Of the last return, and remarks
will be that the number OF banks increased
from is to 1871 during the year. and the aggregate
capital from s435 800 900 to S60O00O0; rate OF increase
which shows that there has not been that eagerness TO
organize banks under the law authorizing addi-
ton to the bank circulation, which generally antci
pated and indicating that the extension OF banking
facilities Is regulated rather by the wants or the COM
munity than by legal authorizations.
During the year. the loans and discounts have in
creased from S722OOO0o TO s40O000O In the deposits,
there has been gain OF and In the note circu
laOn increase OF <22 0O0000 The surplus fund
reaches s0 100000 about ~ cent of the amount Of
the capital stock fact which very strikngly shows
the prosperity Of the banks and their accommodating
strength II is worthy OF note that the banks have
duced their Government bonds hand TO ST. 100000
OF So during the year; six years ago. the
banks held SAP 100000 OF these securities.
The percentage OF reserve Is generally lower than In
December 1870 the decline the States and Territories
being IL per cent in the redemption cities 19 per
and in City, 25 per cent. As the Treasury has
been calling in the per cent Certificates and el600
those obligations have been thus redeemed IL may be OF
interest TO trace the effect OF the withdrawal OF this form
States and Territories have lost OF Certificates
and gained f346,0OO in legaltenders those OF the
dempton cities have surrendered OF Certificates
and gained only in altenders; while those OF
NewYOrk City have lost $4,000 Of per cent Certih
Gates and 1896 900 Of Clearing House Certificates total
OF <O92 O0and have increased their legaenders only
ss7630OO The money Of the three classes OF
banks combined compare thus with those Of year
previous TO this statement:
Legal Cerifs aud g.
Specie Tenders II. CeTifs Total