, 1874-03-16
4~--
$1,463

Lces an per cent loasaa 1,8B7
.... si,1os
Less ofcc-rcnt salaries, stationery, etc. -.
We have omitted tho local tar on banking oap-
ita1, because wo not sure that that applies to
the portion invested III United states bonds.
It docs, however, apply to all other capital on-
ployed In tho buBiness. We leave Mr. Chandler
to fill up tho last item in tho foregoing tablo
himself, In order to show how much Is left on
the per cont baBis, to be carried to the credit
Of profit and loss. It may DO snid thas such o
bank will hayo deposits and Will bo able to make
Office expenses out Of them. It's deposits will
certainly DO small, II the bank is located in >
small town; and 1t Ia an observed fact that the
banks ia large cities, East or West, havo takon
out very little circulation, and arc now trying to
withdraw and retire even that littlc. Mr. Buell.
saws TINT such ia tho fact in Now York. Indeed
1t is generally admitted that imitation ia to be- up
prohondcd, if ut all, from tho small towns Of tho
Eastern States.
Wo will now let Mr. Buoll show what are tho
probabilities Of imitation in that quarter. We
copy from bis testimony before the Committee
Oh Banking and Currency:
It requires much solicitation and effort anywhere to
get tho capital for bank subscribed; and at the pres
ent time, owing to tho high price Of stocks, the profit
uppn national banking Ia not such AZ to tempt capital
rapidly Into Nattonnl Hanks. Thore IL very general
misapprolension pervadnR the public mind upon this
subject. Tho restrictions to National Bank currency
induce people to regard National Bank . uine Of
weath-A monopoly. Such restrictions should be re-
moved by allowing troo banking as heratoforo Bug-
Rested Allow me to illustrate and suppose, for ex-
AMPLE tho caso Of bunk orgauized in Bmau town in
Now York Btate.
Tho capitalists Of tho place subscribe cap-
gi.s s sum sum is taken to te United states
Treasury md lent to the Government, md
for which tie bunk receives IN Uutted
This Gnited statea stock j. then taken y
the bank uud lodged with the Comptroller
! Of tue Currency, aud he iaaues to 1t W per
cent national cureency-say ....,...... 100000
eens Is roservs nuat 6e kept on hsnd-ssy u,s4o.oo
| Which, deducted from tho S7b, COO, leavca the
bunk to loan out TO ta deaars Ind ohtu!n =. nm m
Nov tho practical operation Of this IL TINT Of tho
loanabo capital Of the place GOO hus been contrib
utcd aud paid to tho bank mud the place has got back
as loanuhle capital croa 1ts own notes for only
&Gi 40. The place, instead Of tnnating Ns loan-
abls capital h, organizing bunk, has got one-tlird
ess by the operation. Now lot see how tho profits
stand. Tho principal sources Of profits by banks IN
| small places arc from circulation and deposits:
lst Interest Oh tho United States
| bonds 1884, 600; 8 per cont in gold
iysi,20U, which, Ut II tsr cant
premium, iH worth. ......... 81, ,7o&.0o
I'd. 1nterest nt7 par celt ort tho $64,~
29o. currency, allowed by law TO ,,,,r
Sd. %s S9sewa's vii sppo:o tiS San; s6is to
atsract-say,, *aouoo deposits,
upon which It lIays no interest,
which IL a nbpral Hupp0st!0n
| for bauka Of this churacter de-
duct reserve required by lAw-lB
| per rent, 81, 7,6o0-leayea $t2,boo,
| which, at per cont inte1est,
| gives tl6 bank. l,t1b.W
| Total rro1ts-say. 20
| From total profits we haye to deduct
for United States ta1 on capital
not IN United Suites socks,
$4,000, u per cent. t......,......$ 5000
Atao tax circulation, per CENT. 769.00
Also Tux on $5o,00o deposits, u per
In oty Ssasi' Il Now Ycii, sos is7!, ii: 1''
siate, county, and city tax rato
| W.T.! probably 10 per cent ;.aad
In Albany City per cent apa up
wards. In smaller cttisa aud
] yiagea III State Of Now York,
| tho ratio Ut tax is from q 10 por
| cent. III New York and Alhany
! citiea tAuka asBeaasd upon
the whole capital, par yalue;
nnl by tho law Of tho Btats Il re-
CURED !: t. b 30 assessed evosymhere
stato and county and town tux On
tue capital-Aay, only per csns 1000
6AlAry OF unlcoss, rent, eto..,.... $500
l. Total tszes, e1psnaes, eso.... &tteo!ct
Leaving total balance Of profit
| abovo paying expeuaeat taxes,
] etc., but no allowance for b+d
| 1ehta...,...s..s *.tssttts*Ha u bDl.G
Not enough Of totd profits sft to pay tho ttoc2hold
! Jl.tA. An&.- A