, 1877-01-15

A good many people still cling to the no.
ton TINT the National Bauks Of this county
are monopolies of tho most profitable kind,
and that they arc, therefore, proper subjects
for extortionnte tn1ation. II these people
would take the trouble 10 study the statistics
Of the National Banking business FIR the
rast year they might quickly undcceive
tIetnselvts, and they might also foresee the
danger Of crippling the National Banks to
such nn extent as to seriously impede the re-
cureration Of business enterprise. Tile
latest of1cial accounts show that seventy -ono
National Banks have gone into voluntary
liquidation wi hin the past two years; TINT
is, without any serious Losses or actual neccs-
aity for closing their doors, TINT number
Of banks discovered that they were
not making interest on the capital invested,
and preferred to retro from business. This
is nbout one.hnlf tho number TINT surreu-
dered their charters during the previous ten
years. The same statistics show also that
the losses Of the National Banka during the
year ending Sept. /, 1876, were nearly
$20, ,o0O, 900, or 2 per cent Of all their loans /;
thia merely represents tho losses that are be-
yond recovery and have been marked OF tho
books. The popular error that thero Is n
vast aud reliable profit On circulation is s,1fli-
ciont1y answered by tlIo facs thnt IN tie first
ten months Of the past year the National
Banks voluntarily surrendered 351 ,G2l,G7S of
their currency, aud mauy would not keep any
circulating notes II II wore not necessary
to retain their charters. As to pro!ita the
average dividends OF oil tho National Banks
dunng tho year were fesa than per cent,-
or less than can be currently earned by oat,i-
tal in nny other Investment.
Tho trouble is amply TINT tho National
Danks nro osertazcd. They cannot bcar up
Under the burden. Tho United States tax il
levicd on circulation, capital, and deposits,
aud amounts OIL MI average to II per cont on
capital mud surplus, in some cases running
up as high as 3 per cent. Tho banks pay on
money deposited with them, whether it is In
uso or not. Tho State taxes vary all tic way
from to q per cent on tho capital, aud
average more than 2 per cent, anil tho great
irregllarity Of tho tux In different parts
Of tho country renders their business par.
ticularly hazardous. Tho relief they are en-
TILED to III ~ taxation by The States anl
municipalities on the same basis ~ other
property, md (2) release from tho excess
iyo Government taxation put on them in
War times, Which could only DO sustained
in tiH,o Of tho livcliest speculation. As 1t IL
now, the ratio for local taxation may be at
one-thirl the actual yaluo Of property, but
tho banks haro to pay on their full showing,
and their statements nrs 80 complete that
they can never avoid my share Of 1t. The
National banks loau about Thousand mill
iona yearly, and are tho chief agency for the
exchange of money according to tho demands
Of business; II they nre 80 taxed ~ to rem
der their business less profitable thnn 1t their
capital wcro otherwise invested, tho ultimate
effect will be to incrcase the rates Of interest
they charge, 80 That tho compcrcial business
Of the country IL equally Interested in secnr-
Ing for them the fair treatment they asl,.