Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-11-26
FIN ANCTAL.
Recommendation of the Comp
troller of Currency.
Over Nine Million Reserves Out.
The Banking Reform Postponed.

The Banking Reform Postponed.
The Report Of the Comptroller of Cur
rency.
WASHINGTON, Nov. 25sAThe forthcoin-
ing report 81 the Comptroller of the Cur
rency will contain the following on the
subject of interest; In my last annual re-
port referred briefly to the evils resulting
from the payment of interest upon depos-
its, and my predecessors have frequently
referred more at length to the same sub
ject. lThe difficulty has been that the pro-
posed legislation by Congress upon this
subject would apply only to National
Banks. The effect of such legislation
would be to bring State banks and savings
backs organized by authority of different
States in direct competition with National
Banks in securing accounts of
correspondents and dealers, The
National banks will be DESTROYS of retain
ing their business and the more unscrupu-
lous would not hesitate to eyade the law
by offering to make collections throughout
the country free of charge, to buy and sell
stocks without commission, and TO redis-
count paper at low rates. The proposed
action of the Clearing House in the city of
New York if adopted by Clearing Houses
of the principal cities of the Union, would
do more to prevent the payment of interest
ON deposits than any Congressional enact
ment. But the evils resulting from the
payment of interest on deposits are by no
means confined to city banks. 1t lnay be
safely said that this custom which prevails
H., &tSabslcf axar oft anH rillann of fha
Union, has done more than any other to
demoralize the business of banking. State
banks. private bankers and associations
under guise of savings banks, everywhere
offer rates OF interest upon deposits which
cannot safely be paid by those engaged
in legitimate business. National banks,
DESTROYS of retaining the business of their
dealers, also make similar offers, and the
result is not only an increase of rates OF
interest paid by business men, but as
consequence investments in unsecured
leans, bringing ultimate loss both upon
shareholders of the bank and depOsitOrs.
The kind of legislation needed is that
which shall apply to all banks and bankers
alike, whether organized under the ma
tional currency act or otherwise. A law
prohibiting the payment of interest on de-
posits by national banks will have little
effect, unless followed by similar legisla-
ton under 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 of one half of one per cent upon all de-
positS, and subsequent Internal Revenue
legislation extended this tax to all deposits
made with State banks and individual
bankers. This was essentially war tax,
and should, in my judgment, be repealed
with other similar internal revenue taxa
tion. and recommend, if legislation is
proposed on this subject, that the law be so
amended as to repeal this tax so far as it
applies and demand deposits, and that an
increased rate of taxation be imposed uni
fornly upon all deposits which, either di-
rectly or indirectly, are placed with banks
or bankers with the offer or expectation of
receiving interest. Such legislation, if rig
idly enforced, will have the effect not only
to reduce the rate of interest throughout
the country, but will at the same time pre-
vent the Legitimate organization of saving
banks. the organization of which should
be allowed only ON condition that the
savings of the people shall be
carefully and prudently invested and the
interest arising therefrom, after deducting
reasonable expenses, distributed from time
to time to depositors and to no OtherperSon
whatsoever. The Act of March ), 1869,
authorizes the appointment OF receiver,
if any officer. clerk or agent of any nation
al 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 certified
an amount Of money equal to the amount
specified in said check. Receivers have
been appointed for the National Bank of
the Commonwealth, New York and New
Orleans banking associations, during the
past year for violations Of this act, and it
is the intention of the Comptroller here
after rigidly to enforce this act whenever he
is satisfied of such violation.
The Comptroller renews the commenda-
ton that twenty-five millions national
bank circulation be withdrawn from the
Eastern States havingan excess and distrib-
uted among the Southern and Western
States, which are deficient.
The First National Bank.
In the Supreme Court of the District OF
Columbia, to-day, an order was passed
authorizing the receiver Of the First Ma
tional Bank of Washington to sign prop
osition making E. A. Rollins Trustee, with
consent of creditors, as heretofore submit
ted by Jay Cooke & Co., unless good cause
to the contrary be shown by the proper
parties by next Tuesday. The application
was made on the sworn petition of the re-
ceiver, and by direction of the Comptroller
of Currency, after consultation with the
Secretary and Solicitor of the Treasury
The matter rests by law in the direction OF
| tile receiver, and the Comptroller's order is
| deemed to be final.
NEW YORK, Nov. 2j.-The Associated
banks hold $34, SS5, 900 legal tenders, an in
crease of 5000.
POstPOning Good Resolutions.
At a meeting of the Associated banks thi
| evening a full representation being presen
| action on the late report of the COMMITTEE
| of Nine, was postponed for sixty days, anC
the committee discharged. The whole SUB
iect is again to be referred to a new com
| mittee to be appointed. The Chairman O
the Clearing House Association has APP
! pointed the following new committee: W
| ii. Kitchen, of the Park Bank; II. T. Val
of the Commerce; D. G. Hayes, of tn
| Union; Richard Berry, of the TradesmeT
George w. Duer, of the State of New York
John Castree, of the Irving; James Bull, {
the Importers, and Tradus F. Chandler, G
the Mechanics Banking Association; {
W. Jourdan, of the Third Avenue National
and o. II. Shriner, of the German Amer
can.
Great Expectations.
a buoyancy in stocks was occasi0ned b.
telegram from Washington that both tn
President and Secretary Of the Treasur
would recommend to Congress that IL
$4,000, 900 reserve be made part of til
permanent circulation of the country, tn
the reserve would be heavily drawnupont tn
week. 1t is reported that the Crime
matters have been privately adjusted.
The suspended Bank of the Common
wealth will pay dividend to deposition
of 80 per cent. in December.
CIews g. 60.
The Times says the fact is well authent
7 Gated that the banking firm of Henry Cley
& Co. having effected satisfactory arrang
|, lnents with most of their numerous CRED
4 tors, contemplate full resumption of bus
: ness withina few weeks. ThepresentatiC
| ~