New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-06-30


CONDITION or THE NATIONAL BANKS
The official return, showing the condition of
the National banks on the list of May, is at last
published. We learn from it that the amount
of the loans and discounts has again risen to
very high figures BY the statement of April
25, 1873, the amount of this item was $685.
OF AR. By the statement of February I, 1874,
it was $S93,5OS,90S. BY the present statement
it is $9l9,25S91S. The growth of this item for
several years up to the outbreak of the panic
is shown by the following table:
October 1865 .sS717o36 October. 1870 SIS 92s $50
October 1866 603 October, 1871 83 $50 20
October 1851. 6Os,6152 October, 1877? s72s2olo
October 1861. 65766SSiI September 1873 2Oll6
October, 1867. 6S2,sS3lO6
These comparisons are, to our mind, very
suggestive. The aggregate of bank loans at
any moment is supposed to indicate the state
of business. If the business is large the loans
will be large, and if the business is small the
loans will be small. We must Judge, then,
that very active trade is now being carried
on, since the aggregate of bank loans and
discounts is far greater than it was at any
time from 1866 to the Summer of 1878. But,
unfortunately, we know that business is not
active, and we can only explain the bank
figures by the supposition that there is some
thing wrong in the system by which their
business is conducted. 1t has been supposed
that people have been liquidating their in
debtedness during the last eight months, but,
so far as indebtedness to banks is concerned,
the contrary is shown to be The fact.
The individual deposits of all the National
banks are now reported to be $649, 2S6, 800, an
aggregate never before reached. The cor
responding amount year ago was 96l6.S4S,3 1853,
and on the 9th of February. 1874, 1896, 15S, 942
Thus we have between the LIST of March and
the 1st of May an expansion of S26,O0O,OOO in
bank loans and S54.O0O,OOO in bank deposits,
and Congress all the while endeavOring to
relieve" the country by further initiation.
Now 1T seems to us that the National banks
can do all that is wanted in the way of such
relief, judging from the start they have made.
The actual cash reserve of legal tender notes
and certificates representing them was $141,-
e27,93o, against Sl19,6S5,237 year ago, and
Sl39 1881 no on the 9th of February. From
this it appears chat the banks are not quite
so strong, taking into consideration the
amount of their deposits, as they were two
months ago. 1t further appears that, after
deducting seventeen millions in grecnbacks
which are required to be secluded in the Ma
tiOnal Treasury for the purpose of giving
greenbacks in sums of thousand dollars to
those who may prefer them to bank notes
(Which will be an accommodation to banks
and serve to keep our paper money clean)
the reserve remaining will be pr0pOrtionately
no greater than that held n year ago.
Our banking system in former times was
considered by those in this country and in
Europe who had studied it the most and
were best qualified to form judgment, to be
the worst in the world. Our present one may
be an Improvement, so far as the ultimate
security of the bill holder is concerned. He
can always have the greenback if he prefers
it. But it is still unwieldy, subject to no
efficient influence proceeding from the fnan-
cial center, hampered by the usury laws, and
last and worst of all, the currency issued is
utterly incOnvertible. In countries where no
small notes are issued two checks
are quickly applied to any excessive
development of bank credits One pro-
ceeds from tho retail trade. which is