National opinion. [volume] (Bradford, Vt.) 1865-1874, 1872-12-06
Report OF the Comptroller or Currency,

views NJ length tnc working ol tHt
national banking system since its inangu
ration in | G3. or the whole amount oI
circulation appropriated by Congress
S3i2 600, O,0o0 have been issued and tht
balance ot $l2, 900, 900 promised 10 as'o
ciations that bavc filed their applications
and taken the preliminary steps towart
organizing as national banks. The
Comptroller considers that part of the
recent not which calls for the redistribu
ton of S25, 100000 Of currency bv with
drawing it from the Middle and Easterl
States and giving il to the Sonth ant
West as impracticable, and recommend,
its rep al and also that an amendment
be made in lien thereof. providing fol
the issue of S5,000,Q0 of bank circula
ton annually for the next five years tc
meet the wants of such States whicl
have not had their full proportion. HI
is opposed to any change in the law il
reference to the reserve which the banks
are required to hold, and shows by sta
tistical tables that law which has be
come q rule with all the cautionsy-man
aged banks should not be hastily re-
pealed, suggesting, however, that i
/ would be to the interest OF the banks to
keep larger proportion of their reserve
in their own hands, instead of placing il
on deposit with the city banks, and
points ont the way by which this end
may be accomplished to the general
benefit.
Congress is informed of various com
plants which have been made of Gsuri-
ons transactions, and the Comptroller
incidentally suggests the propriety OF
a r.. peal OF all usury laws, so far MS they
apply to national banks. Full informa.
ton is given in relation to the banks
which have failed, showing the average
dividends upon the aggregate claims
proved, which amounts to about eighty
six per cent, leaving fourteen per cent.
which the law provides shnll he assessed
upon the shareholders. The loclIing-up
OF greenbacks in New York city is re-
ferred to and attention called TO the
resolution passed by the Clearing House,
and the belief expressed that its enforce
ment will do more to prevent such ille-
gitimate transactions 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, Treas
ury notes, checks payable in specie an |
coin held by the banks in New York
city, stated separately. Amendments
to the act are anggested as follows The
organization of banks without circula-
ton, upon a deposit of $1,000 i'll U. s.
bonds, instead of third Of the capl-
tai the imposing of a penalty on and
the Withholding Of interest from banks
whose capital is impaired and who refuse
to 90 into liquidation, under section AZ
of the act to prevent the circulation OF
shinplasters by railroads and other cor
porations in the South defining more
fully the duties of the comptroller and
the receiver in the final closing OF insol-
vent banks, and an amendment permit
ting banks to loan ten per cent. both on
capital and surplus.
The amount of taxes collected by the
United States for the four years previ-
ous to January l, 1872, is more than
forty millions of dollars, and the whole
amount of taxes, State and national,
nearly twice that amount. The date
upon which taxes are assessed can always
be readily obtained, and the proportion
of taxation is therefore believed to be
much greater than upon other property.
Full statistical tables are given, exhibit
ing the amount of dividends and earn
ings of the national banks for the last
four years. The ratio of the net earn
ings of the national banks of the conn-
try to capital and surplus, without max
ing allowance for bad debts, is about ten
per cent. annually, and the ratio OF
di idends to capital and surplus less than
four and one-half per cent. The
appendix will contain much new Stats
tcal 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 circulation, together with
the population and wealth in 1870 the
circulation per capita /; the ratio OF cir
culation to wealth, to capital and deposits
under the present system, and under the
State banking system in the year 1867.
The Importance OF frequent examinations
by competent and courteous examiners
is stated, and a small appropriation IS
asked to deiray the expenses of special
examinations in order that such inves-
tigations may be promptly made, rs may
be considered expedient for the protec
ton of creditors. Increased compensa-
ton for gentlemen holding responsible
positions in the office is al 50 urged.