The Morning herald., 1875-12-01
WASHINGTON.
7s FROM THE CAl>l7'AL

us FROM lHS CAi AL
CURRENCY.
e,,l History Of the Govern.
ment.
u,xc1oy, Nov. 30.-The report OF
mntro.l.r of currency is now in the
If the Congressional Printing Com.
After giving tho financial history of
krerument since 1919, the Comptroller
lone Of the principal objections urged
he Naticnal Banking System is
is monopoly. Moreoverthat it is q
bo,y authorized and continued at the
20 of the Government. The reverse
| is true for the National System so
I'M being monopoly has in fact up
thc real banking monopoly which
listed in this country since the founda-
the Government down to late day.
/ thc National system be unfortunate
bysrthrown the monopoly would be
and at once revived by the repeal of
DIVISION imposing a tax Of 10 per cent.
! he issues Of State Banks which pro-
| is known to be one Of the compensa-
bf the war.
National Banking System wac IN
4 10 le a flee system and the Or,
L,ion of banks was open to all but the
b of circulation originally authorized
! subsequently, become expanded the
|i.hment of banks with circulation was
Esssi,y for 3 time suspended.
Act of January IA, 1878, however re-
l all restrictions in this respect and
that date every application which has
rmcd to the requirements Of the law
ecn granted. A very erroneous idea
lis as 10 the amount Of profit derived
! National banks from, their circula-
into show that the profit from this
. is not nearly so great as is supposed
ny persons, it is only necessary to
MO consideration tho amount Of CAPT.
le banks necessarily invest in the
States bonds required to secure their
a.ion AMI then to compare tho COM
income received by them on their
and circulation with that which
be received on the came capital
On bond and mortgage security and
rom the restrictions governing Me-
banks.
November 1st, 1878, there was . de-
Nth the Treasurer as security for the.
Itivn Of the National banks $367,-
? in United States bonds. If from
IN he deducted the amount held as
y fer the notes of the National gold
and also the amount deposited in es-
that required by law there will re
'36l 498, liz Of bonds worth in currea-
s,sl0,5}3. If there be deducted from
'ount of capital required to purchase
bonds, s425,slo,533, the amount Of
i'm which they bore on Nov. 1st, 1875,
2,42l as the 10 per cent. margin for
10 circulation is issued $50, 1881,
aiab!e means Of the banks will be re-
to 9525,34s, ,2G0, the net interest on
5 shown 10 be $4,000, ,ss0ip currency.
amount really available for use is
70 be $500, ,o5o, ,s47, this at 8 per cent
n would produce s2l, l,726, ,467 interest,
added to the net interest gives S4e,
i, as the whole income derived by the
'al banks from their circulation end
!!t deposited.
fo!lowinr : table is given Interest on
'0,si7 Of circulation at s per cent,
1,4S7 interest on z. s. bonds cur
Sls,53o,55l; god, slo,299, ,4s4.
i'm at IS p'r cent, sls,5'o,5e4 gold
t, s2,asl,s total s46, 6,ooo,77e, when
'e Of IN crest is 7 per cent.
Talue o. tie circulation Is somewhat
al S5I5 per cent. and where the rate
I' cent. the profit is less than ~ per
'!c large margin exceeding one hum
liilion dollars between the value Of
'as owned by the banks, and the cir.
III 6 ued thereon would in case Of dis
c available for the payment Of the
.'rs or other creditors, and this is an
nal argument in favor Of issuing cir
III Under the restrictions ofthe law as
divided. If specie payments should
'ned within few years the premium
''hc National banks upon their bonds
DC nearly II not entirely lost while
ichls by private bankers end State
OF ah equal amount Of capital in
0E mortgages would not suffer depre-
1t has been proposed to withdraw
'lohai Bank notes from circulation
authorize an additional issue of $500
Erecntocks, the latter to be inter-
'aele III sums Of $50 for Treasury
earring interest at 3.e5 per cent per