Ottumwa weekly courier. (Ottumwa, Wapello County, Iowa) 1872-1899, 1875-12-15
ing circulation under the restrictions

| ing circulation under the restrictions
Of the law, % now provided.
Ifspecie payments should be reached
within few years, the premium paid
lby the national hanks upon their
bonds would be nearly II not entirely
I lost. while Investments by private
bankers and State banks, OF an equal
amount Of capital in loans on bond and
mortgage wOuld not suffer flpm any
such depreciation. This loss has not
bean taken into consideration in the
| foregoing estimate. Another import
ant consideration 10 that the average
| ratio Of State taxation upon national
banks during the year lS74 was some
! what more than two per cent.
upon capital. 1.-THE national banks
should 70 into liquidation, and the
owners OF tho bonds shonld continue
10 hold tho same, the amount of State
taxation saved TO thom wonld nearly
equal he. benefit which they now
realize from circulation. ** u
| FAILURES OF NATIONAL RANKS.
The loss TO creditors from the fail
ures Of banks prior to 1868 cannot be
even approximately estimated, tho
only accessible data having reference
| solely to losses upon circulation. Mr..
McCullOch says that "the destruction
or the country banks in England has,
upon three different occasions, in 1852,
! ia l8l4.'l5.'l6, and In 1926, Pro-
dnced an oxtent Of bankruptcy and
misery that has never perhaps been
equaicd, except by the Mississippf
scheme In France. In 1926, forty
three cOmmissiOns of bankruptcy
were issucd sgainst country bankers,
and from 1900 to 1880 no less than
| 3lf" III
Tho total amount Of claims proved
against ali Of the insolvent national
banks. is $i4,672,106 Dividends
amounting 70 $S,292.S77 have been
paid upOn those claims; and It is esti-
mated that tho total loss to creditors
since tho organization Of the system
In 1863 will not exceed &3,9S6.OO0.
Tho total loss ID less than that real
izod. in more than ono instance, from
the failure ofa single banking hOuse
during the period frat mentioned.
There has already been paid upon the
total amount of proved claims an av.
ersge of fifty-six and one-half per
cent, and it is estimated that the pro-
portion paid and to be paid upon such
claims will be about scventy-thrcc per
cent. t Y
Six banks in Now York City and
one iu Brooklyn have failed, with an
aggregate capital OF 5000, 600; and
thrce Of those in New York, with q
capital Of 81, 100000. have paid their
depositors in full, tho amount so paid
being S1,3322, ,O3l. The bank in Brook
iyn, which failed with xl.l9l $50 due TO
the depositors. has paid to that class
, Of its creditors 96 per cent. in divi-
dends, amounting to $1,143,72J The
whole amount Of claims Ofth deposit
tors of the seven banks mentioned is
Si,4S2 5GS, upon which $3,S1S, % have
been paid, being an average dividend
of eighty-six aud one-half per cent.
| The total amount of losses OF deposit
tors of national banks in New York
and Brooklyn ia estimated at $24G, l30.
or five and two-fifths per cent. upon
the amount of claims proved.
There have been no losses by failures
of national banks in any Of the other
principal cities, except in Chicago,
New Orleans and Warrington. Ono
bank only has failed In the New Eng
land States, and the total loss to cred
| itOrs of that institution is but S1.379.
! The loss to all creditors Of national
banks in the Middle Statess is estima-
/ ted at *7Ol, ,4Ol, and in the Western
States at $Sll, ,729. The largest pro-
/ portion of loss has been in the South
crn State, where business has contin
ued unsettled throughout the entire
/ period since tho organization of the
system; the losses In those Statee be-
ing estimated at $22,4399A upon &c.
6'S, ,074 of liabilities.
CONSOLIDATION or THE NATIONAL. DEBT
| The Comptroller has endangered TO
/ answer, A. concisely ~ possible, the
chief objections urged az sainst the ma
tional banking system, and to present
some reasons why tho system should
be continued. Tho monetary prob
lem TO be solved during the next few
years. are the consolidation OF the na-
iional debt into bonds bearing low
rate Of interest and the resumption of
specie payment a
The conversion of the present nation
al debt into bondaboaring four and
one-half per cent. interest, would save
TO the Government nearly nineteen
millions of dollars annually, while
the reduction OF interest resulting
from the funding OF the national deb
into four pcr cent. bond, would
amount 10 twenty-sevc and One-hAl
millions annually, and there appears
no good reason why. during tho mex
ten years, the public debt should no,
be consolidated into bond bear
!. ing interest at no greater rate thar
iour per cont. In order to accomplish
this most desirable end, il will be nee
essnry to enlist in its support all tn,
leading monetary institutions Of th,
country. This assistance, as we have
seen, was needed during the war O
1872, and has been needed from thu
time OF tho organization Of the Banl
Of North America until the present :
a system Of economy in expenditure
together with All increased amount O
revenue, will coon give to the coun
try credit not oxcellcd by that q
, other countries, which reality obtai
loans at less than four per cent. pc
I aunum. n *.
But there are those who, seeing evil
5 which are largely Imaginary, desir
D the entire overthrow OF the nations
e banking system, for the purpose q
substituting therefor another systei
: which has bosn often tried withot
success, and which will inevitably lea
4 to loss Of credit, and partial or con
9 pIetc reputation, not unlike ths
. which has recently overtaken IN
: Turkish Government. The nation.
;, banking system should not he repcal
q cd, but should be SO moulded rs to b
I como and continue both profitable I
7 ihs people aud advantageous TO III
l. Government.
: Tho interests Of the national bank
: will be promoted by the reduction /
: = low ratio OF interest upon the publ
debt; for such reduction will carr
e with il = reduction of the present OF
Ie etous. taxation upon bank capital, eli
r cniati0n aud deposits. The banks An
!. ! bankers OF England have At all tins
II = fund at their command in whic
y their surplus and reserves can be ii
y vostctieG ithont danger OF loss, narncl
tho English console, hcnring intere
\ ut three per cont, The national banl
derive hut small protit--about ~
Z { aud Ou0-half per c0nt-irom their ci
calAti0n but II tho public debt wel
y consolidated into 4 fund rcsemb,iu
le the English eOns0ls, always saleble
:, the market at \ nearly uniform rat
~ it'WOuld furnish . resource in whit,
= the reserves of the banks could II ,
le times be placed, and thus enhance :
y only the profits but the seonrity a,
:. :. safety Of every monetary ins,ituti,
:. =. in the country. Tho funding OF 4
" national debt At . low rate Of inter-
:. : will also aid materially In brineiI
- about the resumption OF specie e
:, :, ments; for tho return to snecle %
al ments depends to great extent up,
6 tho credit Of the government.
al 1t 10 very generally acknowlodc
=. that the national banking system
"a superior to the systems which preCe
Il II od II in this country, and equal II 4
les superior, to any other system OF han
,,a ing yet devised and the nrincinal 8