The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1874-12-01
PRICE THREE CENTS.
THE NATIONAL TuEAsUuy
annual Report of the Controller
OF the Currency-EHOyv specie paw
mcnts May be Resumed.


The annual report of the controller of the
currency shows that during the past year.
II national bonks were organized with an
authorized capital of SG,745,OO0. Three
banks failed and 90 went into voluntary
liquidation. The actual increase of nation.
al bank circulation, during the year, So
070,207 and the total circulation outstand-
ing, Nov. 1, including SO, 1876, O04 due to
banks for mutilated notes destroyed. was
S35l, 1927, 2f6, leaving So, 072, 754 yet TO be
issued Of the 1854 100000 authorized
since the passage of the act of June 20.
1874, AZ national banks have been organic.
cd with capital of 81, 019, 900, to which
circulation has been issued. Applications
have been made for the organization of GA
other national banks, with capital of So
10000, and circulation amounting to 81
300 has been assigned to these pro-
posed organizations. Legal tenders to the
amount of S77l4,550 have been deposited
Tor the purpose of Withdrawing from cir.
culatlon the same amount of national bank
notes. The amount issued to national
banks since June go, 1874, is SO. $3.50. 1870.
divided as follows: To the District of Co.
lumbia, 5000; Virginia, S51 800: West
Virginia, $4,000; North Carolina, SIS, 800.
Florida, s27, 900; Alabama, As 900; Texas
S61 800; kentucky,S1 142, POO Tennessee.
S72,OO0; Ohio, 1928, 210; Indiana, sG45..
Illinois, 100000; Michigan, s19G, 900:
Wisconsin, $40 800; Iowa, S211. 500; Min.
nesota, $4,000; Colorado, $4,000. The
amount authorized to be issued bv banks
already organized is SO, 701 900, and to be
issued to proposed organizations, S4, sos. 900
OOO, of which Rhode Island, Connecticut,
New York and Pennsylvania receive none.
but Ohio receives 81 1906 900, Indiana
1854, 900, Illinois $40j, 600, Iowa, $4,000.
The amount subject 10 withdrawal IN states
haying more than their proportion of cir
culation Isl From four banks in New
York city, 1883 53s; II banks in Provi-
dence, S2SS, 100; Is banks in Connecticut.
S3,O34,0 20; 30 banks in Boston, S12, s53,-
800 20 other banks in Massachusetts, So
DOB, 225 four banks in Maine. S6GS. 600
four banks in Vermont, S595, 600; 10 banks
in Baltimore, So 112.S1G; one bank in Del
aware, 800, $50; Al banks in Pennsylvania,
S3967, 1875; II banks in New Jersey. $780,
900.
The controller says:
If congress should provide for the with
drawal of legal-tender notes and issue of
national bank notes as needed il place
thereof, when the amount of legal-tender
notes should be reduced to, say $500, O0O.-
600, the legal-tender notes would then be in
demand, and, in proportion as they should
be reduced in amount, the demand for
them would increase, till finally. when the
amount of bank notes issued should be
largely in excess of the amount of legal
tender notes outstanding, the national bank
notes would themselves be withdrawn at
certain seasons of the year on account of
the difficulty or expense of obtaining law
full money with which to redeem them,
The gold coin of the country would then
make Its appearance in answer to the de-
mand for an additional amount of lawful
money, and specie payment would follow.
Redemption i'll its proper sense implies the
exchange of a promise to pay for the thing
promised, namely, coin, or It's representa-
tive which is convertible into coin on de-
mand. The effect of such redemption is TO
coniine banks of issue to a legitimate bust
ness, which is the dscounting of CONNER
cial paper. If banks of issue are obliged
pay their circulating notes once in 60 or 80
days. they must discount such promissory
notes only as will certainly be paid within
that time If the payment of bank notes
be frequently demanded, banks of issue
cannot safely invest their capital in real
estate loans, IN doubtful stocks or bonds, in
accommodation notes which require renew
al, or in loans on doubtful security, but
must have their capital at all times invested
IN loans which will he promptly paid at
maturity. Such condition indicates a
healthful business and promotes sound
banking, and the reduction of the amount
OF legal-tender notes, accompanied with
such increase of national bank notes as
may be required, will secure proper sys.
TEN of redemption. render free banking
practicable, and gradually restore specie
payments without necessarily decreasing
the amount of the circulating medium.
The following amendments to previous
acts are recommended First, an amend
ment to section | of the act of March 3,
providing that if any shareholder or share
holders OF banks whose capital stock is inn
pared shall refuse, after three months no.
uce, to pay the assessment as provided in
said section, a sufficient amount of the cap
i,al stock of such deliquent shareholder or
shareholders may be sold to make good the
deficiency Second, an amendment of sec
ton 30 of the national bank act, extending
the limit of Liabilities of any association,
person, company or firm, for money Dor
rowed from 10 per cent of capital paid in
to 10 per cent of the capital and surplus for
banks located in the redemption cities and
one-tenth of the capital and surplus for
other banks, Third, also prohibiting the
deposit of more than 10 per cent of the
capital of a national bank with any private
banker or any person or association other
than Il national banking association.
Fourth, that no national bank shall be liza
bic to make good any deficiency which
may hereafter arise in any special deposit
made with such bank, unless a receipt shall
be produced by the owner of such deposit
in which the liability of the bank shall be
distinctly stated. Fifth, the repeal of the
two-cent stamp act as an act providing that
ali bills OF exchange, checks, or receipts in
place OF checks, drawn upon any bank or
banker, shall be subject to q stamp tax
with a penalty of 500 for each violation
thereof.
The controller renews the recommended
ton contained in his last two reports for
the passage of an act to prevent the Issue
and circulation of unauthorized currency,
and requiring the words g counterfeit"
CATERED" ''illegal," to be stamped on all
counterfeit or unauthorized issues also his
recommendation for the repeal of the fourth
section of the act OF June /, 1870, so far as
it applies to the organization of savings
banks in the District of Columbia, and for
the enactment nj its stead of general law
in reference TO such savings banks, with
judicious conditions and restrictions.
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