The Cairo bulletin. [volume] (Cairo, Ill.) 1872-1878, 1873-11-26
Reported Expressly for the Bulletin.
WASHINGTON.
THE EVILS OF PAYING INTEREST
On DEPOSITS.
IMPORTANT RECOMMENDATIONS
BY COMPTROLLER KNOX.
THE PREPARATION OF WAR YES.
Sells PROGRESSING.
THE SPANISH GOVERNMENT,

WAsHISGToS, November 25.-The nrs,
| 'n''.'"-N-- ySssvtuhy Of tno p.OLsui'
change Of the administration in SpaiI
with Serano Ms dictator, came through
British official sources. To-day the stor,
is heard through another quarter that TIL
CASTELAR, government will be overthrown
| by a com bination of tho ruling Spaniards
! The plan is said TO include the establish
ment of Marshall S.rano No regent for the
young duke Alfonso. Our government
has had no official advices on the subject,
nor does 1t consider these reports trust
worthy.
COMPTROLLER OF CURRENCY REPORT.
The forthcoming report of the comp
troller of currency, will contain the fol-
lowing on the subject of interest on de-
posts and certih cation of checks:
In my last annual report l referred
briefly to the evils resulting from tho pay
ment of interest on deposits; and my pre-
decessors have frequently referred more
Mt length TO tho same subject. The diff
Guilty has been that proposed legislation
by congress upon this subject would apply
only to national banks. Tho effect Of such
Legislation would be to bring state banks
and savings banks, organized by sutl. GRITTY
of the different states, IN direct
competition with national banks
in securing tho receipts Of
correspondent and dealers The national
banks Will be dcsirious of retaining their
business, and tho more interruptions
would not hesitate - avoid the law by Of
fering to make collections Throughout the
country free of charge; TO buy and sell
stocks without commission and to redis-
count paper to low rates.
The proposed plan Of tho clearing
house in the city Of New York, if adop-
ted by clearing houses of the principal
cities Of the Union, would do more to
prevent the payment of interest on de-
posts than any congressional enactment.
But the evils resulting from the payment
OF interest on deposits are by no means
confined to city banks. II may be safely
said that this custom which prevails
in almost every city and village of the
Union, has done moro than all else
to demorslize the business of
banking state banks, private
bankers and associations, under the guide
Of savings banks, every where, offer rates
OF Interest on deposits which cannot safely
DO paid by those engaged in legitimate
banking business. National banks desir-
gu, Of retaining the business of their
doslors, also makes similar offers and the
result is not only an increase Of the rates
Of interest paid but business men lent as
consequence Investments in unsecured
loans bringing ultimate loss upon the
shareholders Of banks and the depositors.
The kind of legislation needed is that
which shall apply to all banks and ban
kers, whether organized under the
national currency acts or otherwise. A
law prohibiting the payment of interst on
| deposits by national banks will have lit
! tie effect unless followed by similar lecis-
lation under authority of the different
states and then there is little
nope that such legislation can
10 obtained. Tho national currency
set, which was passed during the war, pro-
| vlded for tax for one-half Of ono Nor
cent of all deposits, and subsequent in.
ternal revenue legislation extended thi,
tax to all deposits made with state bank,
and individual banks. This was essential,
J ly war tax" and should, in my iude
ment, be repealed with other similar in ter
nal revenue taxation, and ] recommend
II legislation Is roposed on this subject
that the law be amended as to repeal thi
tax.
The construction bureau OF the nav,
department says il the work II, any Of th
navy yards has been suspended, IL is no
because Of orders from Washington. |
was only to-day that orders were received
from the bureau 10 make some addtiona
repairs on the Colorado at New York
The Roanoke is not intended for III
North Atlantic squadron, but for III
mouth OF the harbor, and as for tho Die
taior, there was very little necessary 4
; be done TO her.