River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1874-12-18

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Ths aggregate call loans of these banks on
TIE I'd OF October last were 5G,20o,329, cor.
responding very nearly in amount with the
same class of loans on OctoL or 3. 1872, which
then stood at $50, 500, 1868, showing that he
character of the loans of the New York Ctty
banks has not materially changed slIce the
panic of 1873 The net amount on deposit
with these banks by other national banks was
$50. 237 452 1t thus appears that nearly the
whole amount OF tie balances due to other
national banks Is invested in loans payable on
call Interest is paid a large pOrlOn of
the balances due to other banks, and they
must be so invested as to be readily available,
such deposits being subject to Tar greater
fluctuations in volume than similar line Of
CO mmercial deposits. Tho banker thus makes
the broker convenience for obtaining inter
est on money which he could not prudeG'iy
invest IN commercial paper. The statistical
ibe of the rate Of interest in New York CITY,
prepared from daily reports. shows the fol-
lowing results, to wit: The average rate OF
inter, st for the past year was per cent. on
call loans and Ga per Mt on commercial
paper. nd for the SIX months ending October
81 1874, the average rate was ~ per cent
on call loans and ) on commercial pager.
The attention of Congress has frequently
been called by the Secretary aud ComPtrcl er
of the Currency Is the evils arl,iug from the
payment OF interest on deposits. and Efforts
have been ma e bY the more cgIsefvative
bankers TO discourage the practice. The'dlth-
cul:y 10 the way OF legislation is, t rat while
Congress has the power to prohibit the pay
ment Of interest on deplsi's. bv the national
banks, by the imposition ct pCnaI-
ties, u has no such power with ref
eren6e~ to the state banks and private
bankers. The only practicable leglslatiou
upon this subject which would not discilml-
nate against the national banks would stem
to be the imposition of special tax upon all
Understanding deposits.
The act of June 30. 1874, limits the amoaut
of legal tender notes to s3S2, 100 900. Iae
authorized amount of national bank notes was
not changed, but remains at 1854 OOO,OCO.
This act provides. however, for the transfer OF
circulation from the Eastern and Middle
States to the Western and Southern States, as
NAV be required to supply applications Tor
circulation, upon an apportlonment based on
Dopu alton and wealth according to the census
returns OF 1870 The act also provides tor the
deposit OF legal tender notes in the Treasury.
and the SUR ender OF bonds deposited with
the Treasurer as security tor the Ike
amount of circulating notes. Under TINS pro-
vision the banks have voluntarily snrl. ldcr-
I'd S7,714 $50 OF their circulation So, 492, 2S5
Of the notes OF banks IN liquidation are still
outstanding. and a small amount (S2.p12, f3il
of the S354 ,000 900 remains unissued. The
whole, amounting to SIG z79,5S9, Is nov az
the disposal of the G jmptrOllet, and will be
ftat. 10 a nj In
circulation rhail be red emed; so that IL is
not probable that il will be q cssary to with
draw circulation from banks located IN states
which are IN excess for some time to come.
The same act Tepeals the provision requiring
reserves upon circulation, aud requires de-
} ost equal TO five per cent. II the circulation
in the treasury for the redemption OF such
circulation. The effect of tnls iaN upon the
reserves OF the banks, rs shown by their last
report October q, Is the retcase OF $50, $50,
74S of legal-tender notes. whith IS about one
sixth of the amount thar would base been lc-
CURED under the law previously 10 force.
line amount of cash reserves held by the
banks a { that time IN excess # the reQuii e.
ments of the act was 500, l02 4s7, and the
amount held in excess by the New York City
banks was ST. la, 400
The Comptroller suggests that the provis-
ions Of the act of June 20, 1874 ~ reference
to the redistribution % the currency
reserves and REDEEM ton be more tulls
tested before any changes shall be made,
and. according Y, no anne / im ats are rec lm
mended to that act, unless mOditc ttiUus shall
become necessary IN aoOrtng essUles Tor q
return to specie payment.
The foregoing tables and IA is fully estab
fish the conclusion that thei, Is large amount
OF cur ency in excess of the legitimate ne eds
OF business, and should serve 10 di-pel thG
fallacy that greater eXpansI u Of currency !:
the proper remedy for the general depression
and contraction Of the volume OF business.
COINAGE
The report of the Director of the Mint pre-
sents IN detail the operation OF the mnts anC
assay officer, and contains valuable Iuiorma
ton relative 20 coinage, ioreign busys, and
international exchanges.
Ihe amount of bullion 81 Grated upon dur
ing the fiscal year was
Gold ............... Sss, SOL ,5g4 ~
silver ACKNOWLEDGEMENTS. I5.122, Isl 81
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