The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1874-12-09
The National Banks.

An advance copy OF the forth-
coming report of the Comptroller
of the Currency furnishes some
Interesting information relative to
national banks, not contained in
the abstract sent by telegraph
The report shows that on the I'd of
October last there were two thous-
and and four national banks doing
business, with an aggregate capital
of S493,765.121. OF these 48 were
in New York city, "a in the three
cities of Boston, Philadelphia and
Baltimore, IS in the other redemp-
ton cities, and LIZA country banks.
The total number of banks organ
lied in this State has been one
hundred and four, of which SIX
have been closed or are closing,
and ninety~eight are still in oper-
alton, with paid in capital of
S1S,278,000, and an outstanding
circulation Of $14, 9O2, 266. On the
basis of population and wealth the
State has $279,005 less than its pro
rata share of the aggregate circu-
lation authorized by law, but there
is nothing in the way of the full
amount being taken up on applica
ton.
The common opinion is that
national banking is exceedingly
profitable and that these institu-
tons declare very large dividends
Many persons also think they pay
no taxes, and both of these ideas
have been studiously promulgated
for political purposes. The banks
are entitled to justice in this regard,
and no man ought to wish to he
self deceived or made the victim of
misrepresentation. The figures in
the Comptroller report show that
the banks do not declare exception
ally large dividends, and he also
calls attention to the fact, access
sible to all who choose to read the
law, that they pay a tax to the gen
eral government of one per cent.
year on their circulation, one half
OF one per cent on deposits, and
one half of one per cent. on capital
not invested in United States
bonds. The taxes paid to the gen
eral government by the national
banks for the year 1874 amounted
to S7,OS3, 1913, and the total of taxes
paid by them from the organization
of the system in 1864 to July 1,
1874, has been S68, 5SO,595. This
is National taxation alone. The
rate Of taxation under State laws
during the last year on national
bank capital in New York city was
about 2S0 per cent; in Buffalo and
Albany, 4 to 5 per cent. in Boston,
2 "a per cent; Baltimore, 2.53 per
cent; in Cincinnati, 2.57 per cent. ::
in Chicago, 2.34 per cent in st.
Louis, 244 per cent, and so on.
After very full and careful inquiry,
the Comptroller estimates the aver
age amount of local taxation asses
sed on national bank capital at
from 3 to 81 per cent. Real estate
and personal property generally
are assessed at much less than
their actual value, while bank
shares are usually assessed at their
full value. The Comptroller says
in conclusion that 'there is no
doubt that the ratio of taxation of
natianol banks is greater than that
of any other species of property"
So much for taxes.
The report contains a carefully
prepared table, showing the aggre
gate capital and surplus of the
banks, their total dividends and
total net earnings, with the ratio
of dividends to capital, dividends
to capital and surplus, and earn
ings to capital and surplus, for
each half year commencing March
l, 1869, and ending September L,
1874. This statement shows that
the highest rate of semi annual
dividends was for the six months
ending September l, 1869, when
the average was $40 per cent, or
nearly IL per cent a year.
According to the returns for the
six months ending September L,
1874 nineteen hundred and sew
enty-one banks. with capital of