The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-12-05
From Great Britain.
REPORT OF THE CONTROLLER OF THE
CURRENCY.
National Bank Earnings and Dividends
Amounts and Denominations of
Outstanding Currency.

National hank Earnings and Dividends
Amounts ana Denominations of
Outstanding Currency.
WASHINGTON Dec. 4.-The following extracts
from the annual report OF the Controller of the
Currency are new and OF interest to the general
Dividends during the past six months--Two
hundred and eighty-eight banks. with q capital
ber pad mo ba and NJ py
usual dividends, Associations of high char
acter and standing always refuse to improve
their capital stock under. such circumstances.
The average annual dividends upon capital
rnf t shs @ 9sst year we're ssy per cent while
hesame period was but Z. % per cent.
The ratio OF earnings to capital and surplus
during dur the past SIX months ending March /.
months ending September l, 1877, 1t was but 2.5
per cent.
rent year was but 500 per cent, from which 1t Is
evident that o large portion Of the dividends for
ms yer s4 have q b,en I made from the surplus
that not more than ne-sixth part OF the notes
furnished TO any association shall be Of less
specie payments are resumed no association
shall be furnished with notes Of less denomina-
Hon than i've dollars and section 5sS prohibits
less denomination than FIVE dollars.
The amount OF such notes issued to the ma
greatly below this limits. The whole amount Of
one and two dollar notes in circulation at the
pTeSoub blne IL pub So 1913 340, which Is less than
legally entitled.
The small amount of these issues is attribu-
specially to the time and labor involved in sign
Ing them as well as to the further fact that le-
readily obtained at the Treasury.
me amount mt OF Of, such sac legal tenders now out
twenties OF national bank notes outstanding is
$f91 SIT $50, and the amount of outstanding ie-
gal tender notes OF these denominations is
Of the denomination Of fifty dollars and over is
600 and OF legal tender notes s129. .1si 1885,
of the eatire amount Of legal tender and ma
cent are OF the denomination OF ones and twos,
nearly % per cent OF tiyes. "a per cent OF tens.
sues less than 25 per cent are of ihe denomina-
ton of fifty dollars and upwards,
that the circulating notes of the national banks
ANAL Anal na bs sgh9d hy the h yee pes rs j.
between the officers and the issuing bank. for If
the the question M OF an oyer-lssps Of notes should
mine the genuineneSs of the note.
number Of banks. however issue notes with
printed ,sd signatures and in some cases litho- 10
executed as to excite suspicion as to their gen.
uineness.
The Controller recommends an amendment
of section 51s7 OF the Revised States, i'm posing
penalty Of twenty dollars for every note Isl ued
withogtthe written signature Of at leat one Of
dividends disbursed by the Controller to the
creditors and shareholders of insovent banks
sle8 1851. The total amounts OF the dividends
paif. since the organization Of the system is
s1I.i93,4e2; Assessments have been made upon
the shareholders Of 20 insolvent banks tor the
purpose OF inforcing their individual liability,
the amount OF such assessments being s51os.OoO
Of which ss2AO32 80 has been collected The
amount OF assessments made during the past
From the date OF the establishment of the na-
Tn Tn -Hyp
banks have fail sd. with an aggregate capital Of
sio.s75 ,1oo. The amount # creditors ,cl ,ims,
was $40 02so!b. The total loss to creditors Is es
timated at ss,s25.ooo.. There has been no loss
whstsyer upon % ba bercuaHoa s9a
could not be organized in England with limited
liability. EXCEPT bT EFay ef privilege under spe
cial acts OF Parliament royal charters or letters
The Bank Of England and three banks in
was passed authorizing the formation n' and dr. reg. M
istration Of banking companies with limited
liabilities; that is. lioited to the total amount of
paid up at the time. In the Scottish banks. with
the exception OF the Bank OF Scotland. and two
chartered banks with large capitals, the nrvate
the debts Of the bank.
The elaborate banking law of Sweden. viz:
The act Of 1864, which contains severe restric- |
I t1ons together with many excellent features re-
Auires the transfer of shares to be registered in
s me the aso q In the
partners In such banking companies must be
Swedish subjects, in number at least thirty, and
they are responsible one for all and ali for ona. |
for the fulhllment of all engagements of the |
banking company.
They are called partners with Joint RESPONSE |
biity. These partners may unite with them |
selves shareholders, whose respons bility for |
the engagements of the company is limited to |
the full amount of their shares. These are |
called shareholders with limited liabilities and |
such may not be received into the company for |
more than at most one half Of the amount which |
the partners with, joint responsibility put into
from those partners only who have Joint re-
sponsibility and similar provisions in refer |
ence to the liability OF shareholders are In ex-
istence in other countries.
The safety fund system of the State Of New |
York, authorized in 1929. contained no provis- |
ion in reference to the individual liabl ,ty of |
shareholders, nor did the free banking act of |
1883. An attempt was made in the year 1928. and
many times subsequently, to enact such pro- |
vision, but it was always bitterly contested In |
the Legislature and defeated. The principle |
was however considered of so great importance
that section was incorporated In the constitu- |
ton Of the State In 1s46. providing that after
the first day OF January, 1850. the stockho ders
OF all banks issuing circulating notes shall be
Individually responsible for the amount Of
their respective share. or shares, 1f stock In
any such corporation, or association, for all its
debts and liabilities of every kind contracted
after the first day OF January, 1850. and the con-
tally the same provision. The Same pri icipie |
legislation OF other States.
Enrk}f@n 6fk1 nf kha RavfAnd 9fnkufao 49,