The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-01-16

department. was elghtY-One. Az the same date in
1873 eighty State banks were engaged In business
Five banking associations were organized during
the nsca year. Three CT the new banks are or
gained under the law OF 1874 (chap. 1881 with
less than one hundred thousand dollars capital.
Four banks have closed during the year. Three OF
these went inso liquidation voluntarily. the fourth
failed.
Condition Of the State banks September 10,
1873
capital. s26 95s 800
Loans and discounts. 71,o7s.544
Due depostors... 7o,733. 491
Condition OF the banks, September 20, 1s74:-
Loans and Observation-Disclosures g. 49, z YsS
Due aeposit0rs az AZ, 800
The ammunition in capital is tring during s the
year, while tue shrinkage IN deposits and in loans
and discounts Is considerable. This reduction is
an exponent OF the contraction In the volume OF
business since The panic OF 1873.
Inc total amount OF outstanding secured circu-
lation September 80, 1873, was $3.50 240; this sum
was reduced during the last year to 1857 4ss. the
gregate circulation not secured, but still outstand.
ing amd cnarsed TO the incorporated banks on
OF the same on september 80, 1879 was s743 $40 so
me decrease during the last year was so.l25. rhe
amount OF the Oils received and burned during
the year Is s9,36s. Ot these SIS 535 were notes or
free banks and $3.50 were those OF incorporate
Circulation to the amount OF $2s5. $50, the time for
the redemption Of the bills, as Fixed by law, hav-
ation issued by all the banks in the State on the
Soth OF september, 1874, was .1S9 so. The
nave S731,75l 90 or this CtrCu-
latlon The incorporated banks which are now in
the way OF closing have a circulation OF sieO 3oI.
when VIII be cancelled during the next year.
The whole amount OF securities held by the
superintendent in trust September 80, 1874, was
ST. AZ 90; s79o,O43 II were deposited by banks
and s63O37s 9S BY trust companies The mort.
cages have nearly disappeared in the list OF Sc.
curlties deposited by the banks only $23 300 now
remain, these having been deposited many years
ago.
PRIVATE BANKERS.
The state once prohibited private banking to
aYfent n n no fnr "A
In the end 1t was thought that the prohibiton WAS
which should be permitted IN business The re-
strainlng act was, therefore, repealed. But a
call for legislation, IN order to remedy what
threatens 1 TO- become an unsafe and too extended
are In the 'bank" or brokerage business,
Of taking such title as g give the
chartered Institution. There are now IN the
State twenty-five or thirty ''privaten banks which
have assumed names that give to the world the
strong presumption that tney are Incorporated.
1t Is question which deserves the consideration
by purely private bankers and brokers should be
permitted whether IT is Just to the associated
banks TO allow this practice; whether 1t Is sound
banking to remain passive and submit this sub
stantal overthrow OF the rules and methods Of
ful and Salutary.
Under the law passed ct the last session OF the
made on the Both OF June last BY twelve moneyed
CORPORATIONS, varlousy styled trust or loan, or
These 1s snow Sa 81 tse @
aggregate capital OF s1l,752, O4G Their deposits
amounted to SSs,479, 764. sum which Is nearly
three-nltnS as much as the entire deposits held 0y
the State banks
The ratio OF increase In the number OF State
heretofore. The reason Is obvious. II may be
found in the depressed condition or manufacCur.
ing, industrial and mercantile pursuits OF the
country.
DO we require the present existing volume OF
currency? In 1860, before the normal monetary
conditions OF the country were disturbed by the
rebellion We had circulation Of about s2o7 900
Yer Of about s14o 900, IN ali sa97 900 The
population at that time was, IN round numbers,
s. S. OF s ge 9 SaS
IN round numbers 4l,0O000O; an increase OF
10, oco, 600. while the paper money was. including
fractional currency, In round numbers $778 900,
which, added TO the gold aud silver. Sl40 000, 000
made the total circulation authorized by law
gold ana silver which Is practically Withdrawn
from the channe.s OF business, and we have
5 @ aganss 90 and nnu p PER c Sa'a OF OF
So SO in 1880; an increase Of population the last
fourteen years o. about 33,s per cent and an ln-
crease OF paper money Of nearly $50 per cent.
The demands OF business were ully met IN 1860
with the thep circulating medium. and 1t would
lation, If redeemabe in coin in proportion 10 the
increase OF population since that date, would not
business of to-day. Many considerations enter
into discussion OF how much money Is needed
ior a medium OF exchange, and no specinc or ap-
quality Is fixed by The common standard, and
then the quantity may be lett to regulate ITSELF
But IN measures advocated 10 reform the paper
MONEY, the amount OF which has been limited
arbitrarily by law, u is proper to look at existing
increase OF business and wealth, improved
methods and multiplied facilities Tor the conduct
winch DrOduCta d--tn
many others bear direct relation TO the question
OF resumption. 1t Is urged more money Is required
than heretofore because oil prevailing high prices;
that resumption can ne maintained only by a con-
traction oil the currency. The first proposition Is
OF the character Of the money used. The second
IL unQuestOnably true. Actual resumption OF
specie payment, and paper currency redeemable
contraction OF the outstanding paper in some
degree: There must be just relation in amount
make resumption and redemption possible. That
condition must be attended not alone by con-
traction OF The paper money, but by a general re.
trencnment in public ana private expenditures;
greater economy IN the Affairs OF business and do
lnestlc lie less speculation and stockjOpbing
PRESENT CONDITIONS FAVOR RESUMPTION.
The present business condition OF the country.
the limited trade, lack OF confidence In future
LEGISLATION, the temper OF the people. all favor a
quick return to the old landmarks.
Prices OF the great staples. DreadstufTs, cotton
are nearly or quite as low as tney were when the
Imitation began, and the maximum during that
period was July double the minimum or present
price. The gradual reduction IN the COST OF lv-
ing, the price OF labor and all manufac ctires, the
excess OF exports over imports; the Increase III
the accumulation OF gold, are all favorable to re-
sumption.
METHODS OF RESUMPTION.
How shall we resume
Primarily, a pellet in the doctrine OF hard
money, or Its paper equivalent is necessary: q
lust conce ption OF sound financial principles and
ready cooperation IN measures adopted to es-
tablish them are prerequisite. Public sentiment
must Sustain In everyday practice the agencies
employed. and thus make resumption not only
possible, but profitable. Any method which win
substitute the gold and silver coin OF the country
for IKE amount OF greenba or, to stale 1t
differently, any method which Will bring the paper
money TO gold standard oil value and thereby
permit the gold to circulate freely, would so lar
remove the assumed necessity or the present
amount OF paper. rhs can be done only by pur.
chasing the grcenhacks with gold, ana by making
bank notes redeemabie In specie.
1t would be ieasi0ie for the government to issue