The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1873-11-26
Further From the Comptroller OF the
Currency.-He DiScourses Upon In
teFest, Certificates, sc.

WASHINGTON, Nov. 25.-The forthcom
ing report Of the Comptroller Of the Cur
rency will contain the following on tht
subject OF interest on deposits and certid
cation of checks; "In my last annual re
port referred briefly toItheSeyilg result
ing from thepayment Of interest upon de
posits, and my predecessors have fre
quently referred more at length to th'
same subject. The difficulty has been tina
the proposed legislation by Congress upor
this subject would apply only 70 nationa
banks. The effect of such Legislation
would be 10 bring the State banks and
savings banks, organized by the authority
of different States, In direct competition
with national banks in securing the &C
counts Sotg Correspondents and dealers
The national banks will be desirous ofre'
tanning their business, and the more un-
scrupulous would not hesitate TO evade
the law by Offering 10 make collections
throughout the country free Of charge, tC
buy and sell, stocks Withoute com
mission,s, and I, to discount paper 81
low rates! The y proposed action
oil the Clearing House in the city
OF New York,-il adopted by the Clear.
ing houses Of the principal cities Of the
Onion, would do more to prevent the pay.
ment sof interest on deposits than any
Congressional enactment But the: eyils
resulting from payment Of interests upon
deposits arc by no means confined TO the
city banks. Il may possibly be said that
this system, which prevails in almost
every city and village iithe Union, has
done more than any other 10 demoralize
the business Of banking. State banks,
private banks and associations under the
guise Of Savings Banks everywhere, offer
rates Interest upon deposits which can
not safely be paid by those engaged In
legitimate business. National Banks de.
sirous Of retaining the business OF their
dealers also make similar offers, and the
result. Is not only an increase OF rates oil
interest paid by business men, but as a
consequence Investments in unsecured
loans which being IN ultimate loss both
upon shareholders Of the banks and de.
positors. The kind OF legislation need
Is that which shall apply 10 all
banks and s. bankers alike, whether
organized under the national cur
rency act or otherwise. A law pro-
hibiting the payment Of interest on de.
posits by national banks will have little
effect unless followed by similar .legisla-
ton under the authority Of the different
States, and there is little hope that such
legislation can be obtained. The national
currency act, which was passed during
the war, provided for tax oi one hall Of
one per cent upon all deposits and subSe-
quent internal revenue legislation extend.
ed this tax TO all deposits made with
State banks and individual bankers. This
was essentially war tax aud should, In
my judgement be. repealed with. other
similar internal revenue taxation, and l
recommend, II legislation Is proposed on
this subject, that the law be so amended
as to repeal this tax so far as 1t applies 10
demand deposits and that an increased
rate Of taxation bel imposed uniformly
upon all deposits which are either direct
ly or indirectly placed with banks
or bankers with the offer or ex.
pectation Of receiving ,,interest. Such
legislation, II rigidly enforced, will have
the effect not only 10 reduce the rate Of
interest throughout the country, but,will
at the sametime prevent the illegitimate
organization Of savings banks, the organ.
ization Of which should be allowed only
upon condition that the savings Of the
people shall be carefully and .prudently
invested, and that the interest arising
thereirom, after deducting reasonable ex-
penses, be distributed from time to time
to the depositprs, and to no other persons
whatsoever. The act OF March 8, 1860,
authorizes the appointment Of a receiver u
any officer, clerk or ragent of.any national
bank shall certify any check drawn upon
said bank unless the person or company
drawing said check shall have on deposit
In said bank at the time said check Is pre-
sented an amount Of money equal to the
amount specified in, such check. ;Receiv-
ers have been appointed for the National
Bank. nj the Commonwealth, Of New
York, and the New Orleans Banking
Association, during the past year, for
violations OF this act, and It Is the inten-
tion Of the Comptroller hereafter to
rigidly enforce this act whenever he Is
az nd IF on,h violation Z