Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-12-01

hank. have been Srres,c :; as, been
vIcted. and the her j. undergoing trta,; whs!e
the president OF the first bank which taitsi
dining the wear left the country on toe pr-text
Of visiting some of the foreign Shareholders OF
'be bsnk for the purpose OF inducing -hem IN
subscribe for additionsl stock, but did nor of
cSursC, return upon the announcement Of the
failure Of the bark.
THE Controller desires to call the attention
Of Congress TO the necessity for some legtsi it;1n
authorizing him to appoint receivers of
tionai banks, for Insolvency, when such tn-oi-
veIcy shall become evident from the protest III
the drafts OF such a>spci al ons, or otherxise,
after due examination shall have been mad., l.
the assets are found not sufficient 70 liquidlte
its debts The Controller also desires ~ cal
the attention of Congress % the fact thar where
snits are brought for the forfeiture Of the char
ter of bank, as provided ia SECT n So the
act. no provision exists 10. the appoiHtn ent OF
a receiver where the charter j. determined and
adjudged forfeited By the United States court
before VIII m the anti = rcquire1 TO b. -aUgar
by the G, ntrul r. 1t il desil able thai promp,
measures snou be tASrn FOR forcing S-<S
banks into llduidation under section AZ OF che
act when it t. believed thsf the otfica rs and III
rectors will honestly wind 40 the AFFAIRS Of sucu
banks, and that full authority should he z ven
to appoint a rec yer in a. cases where the fer
fixture OF the charter IL All Idgrd Provision
should also be mad, after tull payment Of .it
the debit OF the association, for placing the
naming assets in he hands OF agent ~
.ointed ~ the shsrrh Il Is OF the bank aus
discharging tn CONTROL aud tue receiver.
by vrtur Ut snch I.g'-I4-tO1, from al fu-rhHr
responsibility. ProvI-ion should also be m II
fol tn 'nve-treui Of the funds on deposit VII
tie TIeaSur T in in ..'rr-s- bearing securities
wb Re dividends are d: syst by reason OF pro-
traced lltlga iOu.
sAvIEGs INSrirUTt"N2
The deficiency OF official reports l. shown
by the t1Ht tHst tn. Contt...eg' has been
able to obtain in form fOr US yh- condition VI
these Institutions in Oniy q GA &c th+ Ia rtg-
seven s'ate- III the Union and tue District IT,
Co umbla and none a. al from the nice terri
torres. The inA"rursCy and iUcom pi-'s nrS> %
many oil these official returns Wi show how up
awaiting have beea his etio-ts 10 comply WITH
the acquisitions OF the act Oaly about twenty.
"ikEtOf the states have made any reply Ia his
applications for the required iufOrmatinn, Aud
ten of this number answer that thew have nom
to give; ten OF them Iua Ike such returns aud ia
such form that they cannot be put into sltt>far-
tory statements They afiOrI no clear exhibit
of either the whole number at those state iusti
buttons any means of balancing their re-
sources ami liabilities.
The Controller renews his recommend alton
for the repeal OF the fourth section OF the act OF
let June, 1870, which provides ''tOF the c.eatian
of corporations IN the District OF Columbia by
general law" so tar a. it applies t. the orgaut-
ZatiOn of savings banks. Tor the reasons gwen
IA Lis last report, and for the enactment in IT.
stead of = general Law with judicious provisions
and restrictions.
INITIATED CURRENCY.
During the past year SIS, III Of national bank
notes have been redeemed 30 the Treasury tUr
q. struction, amounting 20 more than ne-tenth
of the whole amount OF circulation. The Comp
tToller recommends that instead OF bu ming mu-
ttlated rOtes an appropriation be made to test
the practicahihty by experts, and TO authorize
the purchase of suitable machinery for grinding
mutilated notes, thus utilizing the paper IN ate
Tial now lost, amounting in value to thousands
of dollars annually.
Section Al Of tie currency act provided that
the plates and special dies ID he prepared by the
Comptroller OF the Currency tor the printing Of
such circulating notes shall be under his control
and direction, land the expenses neCe-s tTily in
CURED in executing the provision o. this acr re
specting the procuring OF such notes aud an
other expenses of the Bureau, shal b. paid On
OF the proceeds OF the taxes or duties now Oa
hereafter to be assessed Ola the circulation, and
collected from associations organized under this
act"
He recommends that the section in the apprO-
pTatiOn bill referred TO be repealed, or 50
amended a. to provide that the expense OF such
notes shall be paid by the Government. The
appropriation for the issue OF new ltes would
not result, as Is supposed, ia the issue o new
notes in place OF the WORKOUT and mutilated
notes now in circulation, for the reason TIA At
such notes must be returned 10 the Treasury by
The banks themselves for destruction, and the
rUtos would not be likely 10 be ~ returned 10
the expense Tor engraving ANA printing were 10
be Gone by the banks instead OF being paid out
OF the taxes already collected and appropriated
for that purpose
Previous 10 the organization Of the national
banking system, counterfeit bank notes OF more
than three thousand different deeIgns were IN
circulation. These notes were retired 8u the
national banks notes issued In their place, An Z
during the last ten years tine notes of but thirty
seven and only forty three plates OF the whole
sIN thousand plates which have been counter
teited.
The correct policy IL undoubtedly TO prevent
The COunteTteiiiug Of the nOtCs nov in circula-
ton instead OF introducing now notes uppn
which the Counterieiter may practice has art;
ana correspondence with all the banks whose
notes have been cOunterfeited shows that, 50 far
from counterteiting being on the increase dur
ing the last two or three years, the number of
notes counterteitcd has sensibly diminished
A method, both simUle and practicable, exists
by which the issue Of such counterfeit notes
can be readily prevented, and that 10 by the
withdrawal from circulation of such denomina-
ticBs of the genuine notes Of national banks As
have been cOunterfeited.