The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-12-04

NATIONAL BANKS.
In this connect on, the Secretary calls the Mt
t"nton ~ Congress to the report Of the Comp
trpilrr of the Currency.
Tue number ul national hanks in exstrnce
on the Isl day " November last was 1850 The
amount pi their circulating notes r tIr II within
the y'ar prior 10 Nov. /. 1871 IL 500 GS1 1897.
Tho amount uf rirru' Ting notes iesu 'd w ma
iIuinl han ~ during me SAM period e Sl6
VN O3o. The ni'grcgui" amount of their cir IL
hiiou outstanding ~ s3l6775lll. Thcir lOnns
Ind discounts amount to Ss.2l8 29O17;
~ now orrnnzod. and thcir hcnoii, TO tho
p"opl". have been demonstrated during "A period
ol ionfi"vn yihrs. No one has l9sl dolnr 10y
RECEIVING th"it notes. They have been less sub
tr"t t. rrvulsion and failure than any other cor
poratious or firms. Their organization under
general law containing every safeguard which
experience mas ~ug4s'strd-the supervision over
til. m hv the Comptroller OF tie Currency. the
frequent and Unforeseen examinations to which
th"v are subject. the sworn statements required
Oi them Of every detail u 'rpssnry TO dis lose
th"ir condition. the absolute security of their
iseu"s--makc- this system of hnnkln. ns snir
and efficient us any yet devised The remain.
ing condition To- perfect this system IL. TINT thor
notes should be readily convertible into go n.
Whilo ted states notes were rrdermable
and Deprecated. u WIS not possible thut bank
notes SHOULD rise above the par Of United States
notes. The true test of this system of banking
will come when the United States notes ara
maintained ut par with coin; then the banks
must redeem their notes in coin or United
States notes equal to coin.
The ample statistics given ytho Comptroller,
and his comparison of the reserves aud condi-
ton ~ the national banks. with the reserves
and condition Of other systems of hanking il
spece paying times, give assurance TINT the
national banks are able 10 redeem their cr''u-
atinE notes IN com M any date llNed upon
by the Government. They certainly should
not ENJOY the franchise of circulating IA
money their nOn-lntcrest bearing notes.
uni ~ they are prepared to redeem them.
The present system Of redemption ~ bank
notes NJ the Treasury ot tho United States can
be- continued after United States notes are at par
with coin ~ well ia now. II experience should
show TINT additional res.rvrs. arc necessary
Then.
will be amply secured by tho deposit OF bonds
and confidence in TINS security. will di-prl the
| fear OF failure. which, undrr former systems
has been the cause of sudden runs or demands
on banks Tor payment Of their notes. Ii the
| policy oi the Government should be- to maintain
| u 'lrcuntion NJ pnr Win com mnNimuin OF
| three hundred millions of United States notes.
nni to support them with reserve OF not Less
| uian On, hunlrcu mlllluns IN com. thts' notes
! will be the natural reserves Of the banks. and
mor' convenient for that purpose than u deposit
OF com IA thclr vaults
The real danger that in former systems
| threatened bank was It's liability for deposits.
| II these wer" suddenly Withdrawn, or greatly
diminished. tho note holder was tho chief sui
f"r"r. The first rumor of weakness about a
bank brought demand from depostors and
not" holders alike. hut under the national bank
ing system tn" note holder is secure and indf-
icrent whether the bank breaks or not. and the
deposition. who isa voluntary creditor ot the
bank. is not likely to hasten it, fail. He is
usually paid by a transfer ot credits. and in
most cnses IL n debtor us well III q creditor Of
the bank Scarcely five per cent. of deposits are
paid 10y currency.
The rpnl stock Of national banks pnid in is
now $40 .ibI1l. AMI the surplus fund and
other Undivided profits is now sl66 .3iS. 1896
Ihe BANKS are exceptionally strong IN their
cash reserves. Their condition IL as favorable
To maintain redemption in com Us in United
states notes. and the Secretary cOneurs IN the
opinion of the Comptrollrr that they ought 10
~. AN he. AMI will ice pr pared for redemption
OF their circulating notes in coin or in United
Stnt"s notes equal 10 coin ly tho time fixed hv
law. without mt ricrlng with their ability or
disposition .o rrndert hcir aid. lis now. hy iunns
AMI Ills cunts. IN con IN tlng the bus n - AMI
exchanges of the country. The mar ket value of
th"ir err uutlng note II W. per cent. The ill
terence II not euuul 10 SIX months interest IN
III" bonds drpo-4t"d Tor thu security OF the
not :. ana not nNr per cent. ui thrlr surplus ON
hand II il s-ar ely 10 ne credited that IA. pay
memt II this VIII d-turb in any way the even
cuurs, Oi their huslu. -.
Complaint is made hy the banks and bankers
attention Is called To what Is said hvthn CnnIl,-
trOieru i tie Currency as to tiic repeal Of tbs
tax. While the necessity exists for eOlltrting
the amount Of revenue now r'qu red. The Seer'-
t;iry IL not prrrored 4" recommend su II repeal.
but Whenever a sum 'icnt amount OF revenue
Tor the support 81 the G"v"rnm' mt AN be- de-
taxation a reduction sf bank taxation viii then
The cost Of the redemption Of bank notes in
uIted States notes at the Treasury under tho
present system. does not exceed on,-slNth of
one ter .rnt. On the amount r"'ie"mrd. ami Is
rrluml"d 10 the Government ny tho b.ukS The
redemption Is u Lre I ruuN "a nee To- them and
To the uuhur, and sIould bs cont .ulrd.
The uot r. ,ut NJ the national tam king sv4tnfn
recognizes the character 90 tl,-. banks dr. Cow
rrniurut agents or Il Ittrlr- 'rhrv could
greatly ass ~ IN tI. rr,.-- If rf,it',ii NJ. inv
are ""nvr nirnty distributed - az 10 hr within
riiSN 'a'h of IN" people pl the United States
The 'rrettry rs OF tn" opinion TINT they can
he. under eAlstlng law, and ought 10 be-. made
IN" agents ~ u" uoN"rnmrnt n thr sal" Of
bonds. upon conditions that will make Il tor
MIR nt,r' II {" promote 81 II -al"s, aud VIII be
al" ana hlNhnltEtous 10 ia" Government.
Various plans have been submitted "a secure"
their COOPERATION and the best Will be adopted
SAVINGS RANKS
The attention Of Congress is called 10 the
great yHlur to our fellow cuiarn- of the nrgnni-
zitlon % some pan iprth"rullo.t ion. -nt" Ae,.p-
INK, and proiiab" employment OF small drpo~-
lis 10y IN" people How far this un Dee don,
without trrnchlng upon the proper functions II
the Stat" Governments il "a question of d III
Guilty yet il ~ important Ia sicur" # ro--ihlr. "a
general system throughout the Tn r'o Stat =
THIS an hHrily be- effected by tho organization
Of multitude OF savings banks. dep nd NJ up
ON the iiirlty. integrity. and skill OF their nfli
GERS; Tut the hrn"iir'rl ohlrct Of such banks
might Dee - ured 10y authorizing The post Of
small sums WIN any postal money -ori,r OH 20
IN ihr lnt.d STATES. and the issue OF Gry"rn-
mont rrrtiii at =. convert. bic on demand uf the
1nld"r into / per cent. bonds of the United
amount ~ VIII enable and induce prld nj per
sons Ia rpnv RI their earnings into a puhe -
cur rs ot Stable value. The money thus To-.
rrlNed coud b" employed in tn" redemption N
Oui-iand NJ bonds bearing p higher r'.t'tot in
t,r"st BY som - n -ySi"ni II 5 belrved that
tn" gront body oi our pupI' drii reduced To lis
small 81 pnss nlr burden; could be- Il iln!trd
among our own p"ppln. Win "A slight mudi n n
ton oi "N, slim lHw IN : benz fund sun would
b" -" ur"d IN" Il posts now hrii ly sax rs
banks throughout the r.uu'i, nirouut =. 1913 p
1Jl., sol. drlu- ted by 23N1uon persons. ana
most v hv Il serving rIt ,tlr, who mus ~ -"y
-.'rk 90 pros rtt -u.ll -ay'u .or lu'ur. u rnl.
NloN. at could more ~irNn-lY ulpohl 10 ilrruu-
drr,te lud-mrnt ol ton-T.-a. Tur heavy
loss M 70 have hnru sustained tarNu-N SLY
naa bun's whose funds hny. been IMPROVE
d"ntv lnnu-d upon lu-unl innt -"rur IS. have
t.Du Noull 20 sImilar ln-s suffered hy prr-nus
.h-A;'d IA i"nhin@ "r romn'r'hi lmiS,' H.