The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1873-12-05

OF the bank ana QepOhlLOlh. Inc hlllu OF
legislation needed is that which shall apply to
all banks and bankers alike, whether organized
under the National Currency act or other laws.
A law prohibiting the payment Of interest on
deposits by national banks will have little
effect unless followed by similar Legislation
under authority of the different States, and
there il 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 / per cent. upon all deposits, and subse-
lucnt internal revenue legislation extended
this tax 10 all deposits made with State banks
| and individual banks. This was essentially a
war tax and should, in my judgment, be re-
| pealed with other similar internal revenue tax
| alton; and | recommend that If legislation II
| proposed ON this subject, the law be so amend
| ed as to repeal this tax so far AZ 1t applies to
| demand deposits, and that an increased rate
| Of taxation be imposed uniformly upon all de-
posts which either directly or indirectly are
| placed with banks or bankers with the offer or
| expectation Of receiving interest. Such legis-
! laton if rigidly enforced, will have the effect
not only TO reduce the rate of interest through
out the country. but will ut the same time pre-
| vent the iogtimate organization of savings
banks, the organization of which should be
allowed only upon condition that the savings
of the people shall be carefully and prudcntly
invested, and the interest arising therefrOm
after deducting reasonable expenses, be dis
tributed from time to time TO depositors, and
no other persons whatsoever.
The act of March 3, 1869, authorizes the
appointment of IL receiver if any officer, clerk.
or agent OF any national bank shall certify any
check drawn upon said bank, unless the per-
son or company drawing SAID check shall have
on deposit in said bank at the time said check
il certified an amount of money equal 20 the
amount specified in such check. Receivers
have been appointed for the National Bank Of
the Commonwealth. of New Nerk, and the
New Orleans Banking Association during the
past year for violation of this act, and 1t Il the
intention of the Comptroller hereafter TO
rgidly enforce this act whenever he II satisfied
OF such violation,
The Comptroller repeats the recommenda-
ton in last years report for the repeal of See.
i Of the act Of July, 1870, which provided
that after the whole S5i, 600 600 Of circulation
shall have been distributed, $50, OUO coo addi-
tonal shall be withdrawn from the banking
associations organized in the States having an
excess aud distributed among the States hay-
ing less than their proportion. Under this
section that amount would be Withdrawn from
New York Massachusetts. Connecticut and
Rhode Island. The Comptroller also recon-
mcnds the authorization of $4,000 600 more
currency TO be distributed among the States
which are deficient. namely, those Of the South
and West. He is Of opinion that it would re-
quire from three to five years to distribute
this additional amount.
The Comptroller says the present financial
crisis may IN great degree be attributed to
the intimate relations OF the banks in the city
of New FORK with the transactions Of livestock
Bo2rd-more than one-fourth, and in many in
stances nearly One-third, of the bills recciv-
able OF the banks since the late civil war hay-
ing consisted of demand loans TO brokers and
members Of the Stock Board. which trausac-
tions have tendency to impede and lnsettle
instead of facilitate the legal business interests
of the whole country. Previous to the war
the Stock Board il said TO Lave consisted of
only $50 members and its organic principle
was strictly n commission business, under 2
stringent and conservative constitution and
bylaws. The close Of the war found tho
membership of the Stock Board increased to
!, 100, and composed of men from all parts OF
the country. many Of whom had congregGted
in Wall street. adopting for their rule of busi-
ness the apt motto of Horace. " Make money;
make IL honestly if You cau-Gt all events.
make money! The law of the State Of New
York, which had been retained on the statute
book since 1913 restricting the operation Of
the Stock Board had unfortunately been re-
pCalcd in 1853 so that it members and mauip-
uiatOr- were enabled to increase operations TO
a gigantic scale. The quotations OF this stock
Board are known TO be frequently hctions OF
speculation. and yet these fictiOns control the
business and commerce Of a great country,
and their influence is not confined to this
seriously impairs our credit with foreign ma
tions. Railroads and othercorporations which
we have bolstercd up, aud which have OBJ
tanned quotations in London and other
markets Of the world, have now been reduced
to a more proper valuation or stricken from
the list.
Unity Of action. it il said. among the lead
ing banks Of the great cities will do more to
reform abuses than any Congressional enact
ment: for unless such corporations shall unite
and insist upon legitimate way Of conducting
business, the laws of Congress i'll reference
TO them will be likely soon to become inopora-
tive. The banks are disncned to unite for
such purpose. The legislation required of
Congress will be such will induce aseocia-
tiCus outside Of the city of New York TO re-
tain in their vaults such funds as are not need
ed at the commercial center for the purposes
of legitimate trade.
The following statements have been pre-
pared showing the amount Of national bank
currency, legal-tender notes and fractional
currency issued up to Oct. -, and Nov. !.
1873:
National bank currency oct. 3D.: a5o.o79,o5t
N"' L.. ........,.... .............. j5u,3326,4
Lcsa-tendcr notes oct. 13............ s59,5dd,sss
Fractional currency oct 13........... gG,Go9Igl
Noy l........ Observation-Disclosures. 4',s'',l4s
Total OCT. 75G,ai5,la1
Total Nov. ACKNOWLEDGEMENTS. t'',ltl 2''
D.duc, amounts held by the Treasury
ana by the hunks Oct. l3............S d,!t6g9I
Nov. l2s, l50.721
Which VIII leave uuaecouutd FOR Oct13s t2n,sls,l3s
nov. I.......-. 5ltV-u'I%
After making due allowance forthe currency
held by State and saving banks, trust COM
panies. private bankers, these are larger
amounts than can be supposed TO have been
in the pockets of meu or the tils of small
dealers, but it may be left to the ingenious in
such matters TO divine what portion thereof
was boarded by the ignorant or coyetous.
SteambOat-InspectiOn.