Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1872-11-24
NATIONAL BANKS.
Synopsis of the Report Of the Comp
trOller Of the Currency-The Work
ings Of the National Bank
System.


/ port Of the Comptroller of the Currency
| reviews at length the working of the
7 national banking system since its in
auguration. OF the whole amount of
| circulation appropriated by Congress,
| S342, 100000 have been issued, and a
balance of 1900, 900 promised to asso-
| Citations that have filed theirapplications
and taken the preliminary steps toward
organizing as national banks.
The Comptroller considers that part of
! the recent act which calls for a redistri-
button of S25, 900, 900 of currency by
Withdrawing that amount from the Mid
die and Eastern States, and giving it to
the South and West, as impracticable,
and recommends its repeal, so that an
amendment may be made in lieu thereof
providing for the issue of 5000, 600
bank circulation annually for the next
tive years, to meet the wants of such
States which have not had their proper
ton. He is opposed to any change
in law in reference to the reserve which
banks are required to hold, and shows
by statistical tables that a law, which
has become a rule with all cautiously
managed banks, should not be hastily
repealed; suggesting, however, that it
would be to the interest of banks to keep
a larger proportion Of their reserve in
their own hands, instead OF placing it on
deposit with city banks; and points out
the way by which this end may be ac-
complished to the general benefit. Con-
gress is informed Of various complaints
which have been made of usurious
transactions, and the Comptroller Incl
dentally suggests the propriety of re-
peal of all usury laws so far as they ap-
ply to National Banks.
Full information is given in relation to
banks which have failed, showing aver
age dividends upon aggregate of claims
proved, which amounts to about eighty
six per cent, leaving fourteen per cent,
which the law provides shall be assessed
upon shareholders. The locking up Of
Groesbeck's in New York city is re-
ferred to, and attention called to the
resolution passed by the Clearing
House, and belief expressed that its en-
forcement will do more to prevent such
illegitimate transactions among banks
than any legislation by Congress.
A table is given showing the total
amount of coin held by all National
Banks, together with the amount of
gold in the Treasury; notes, checks
payable in specie, and coin held
hN AAlE beAllhc III ANEM lOIh tIANr SLdlEu
separately. Amendments to the act are
suggested as follows: The organization
of banks without circulation, upon de-
posit of ten thousand dollars 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 re-
fuse to go into liquidation under section
forty-twO of an act TO prevent the circu-
latiOn of shinplasters by railroads and
other corporations in the South: defining
more fully the duties Of Comptroller and
Receiver in finally closing insolvent
banks; and an amendment permitting
banks to loan ten per cent, both on cap
ital and surplus. The proportion of tax
alton is believed to be much greater
than upon other property.
Full statistical tables are given, ex-
hibiting the amount of dividends
and earnings of the National Banks for
the last four years. The ratio of the
earnings of the National Banks of the
country to capital and surplus, without
allowance for bad debts, is about ten per
cent. annually, and the ratio of dfvi-
dends four and half per cent. Theap-
pendiX will contain much new statisti-
cal information in relation to the kind
of funds held as a reserve by the banks,
and their net profits; also comparative
tables, showing the amount of author
lied circulation, together with the pop
ulatiOn and wealth in 1870, the circula-
tion per capita, and the ratio of eircu-
lation TO wealth, to capital and TO de-
posits under the present system and un-
der the State banking system in the year
1872.
The importance of frequent examina-
tiOns, by competent and courteous ex-
aminers, is stated, and a small appro-
priation is asked TO defray the expenses
of special examiners, in order that such
Investigations may be promptly made,
as may be considered expedient for the
protection of creditors. An increase in |
the compensation forgentlemen holding 1
responsible positions in Office is also
urged.