The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-11-21

and savings banks ana nrlNlt" bankers IN the
oantr, for the six months ending May 81. 1878.
neiollowing is a summary'
~ u,s y" '9 "a ,ii as .s s,'l l.ie.,
fa, H"i, 2ssd 777ovgss T iSs sS' ' .
saoaa sans. aose I75ss5G 10 y di5i iS's
Grand total ..... o45o so7o.77ss3a siopo5i goa
The total number Of national banks organ
fed since the establishment Of the national
banking system on Feb. 25 1863 to Nov /. 1878
$4,000 OF these 273 have gone into voluntary
liquidation 10y vote Of the shareholders owning
twoih'rls OF their Respective capitals. and "A
have been placed in the hands of receivers 10
close up ther affairs. leaving 2053 in existence
GU Nov. I. Included in the aggregate number
c-lHniznd are nine national gold banks in the
STATE u California. which redeem in gold coin
heir circulating notes ut their places Of issue
hnl in the city Of san Francisco. These have
al aggregate capital of 81. 500 900. and an ng-
eregltc circulation " ~ iGs. 800. During tho
IU-t wear y banks have boon organized with
an authorized capital of t2.77j 900 TO which
g il~ 500 IN circulating notes have been issued.
ffaon banks have failed within this period.
having an aggregate capital 81 2.7l2jQO, and
Al banks wtn u total cnpital ~ t52OOOOO have
Voluntarily discontinued business.
The Comptroller refers briefly to the origin
hnl growth - tho national banking system,
ard the answers heretofore given TO the prin-
c'pal arguments against its continuance, and
says.
itva. shown from the decisions In Congress At the
uH, M 'g ..as, Of thc lfsai Tender act from The re-
tun .u,c ihet time that the national banking system
n, nie heinz by the exprcsste Of the law author
irl ,nn, ieI ef ID OF WENT YEAR while Y was
nor0usuon were intended 60 be funded 10 constitute a
rmetn Int the amount sss no., 10 he ,p ,rp ed
~ ~ 70 We Withdraw" '''" '''''''''" as rapidly as pos
After reviewing at some length his former
arguments in favor Of the system. he says
by. Gia Ne IN any pSr 81 re S eanntr, OF w6d
io'ehc may lavS 20 40 OF capital at command may
ouarlta utuoual bank and receive circulating notes
tla smount 90 o. Per cent Of such capital the law
& as "a. no s aSs Sc the S S"y ss 81 Sc ae
q WY w. ~ : entitled to circulation in cxcessof
20 sl".@" esn Ieceiye IN circulating notes but
fg1o...' II can receive but rs yer cent and II
..sf f''''" but go per cent since n,e
n,Hls niuk. far from considering Tie privilege of
@ s gts4ss ga Of m9sn9P' Gs,. have yol99
- 49, 90 more than has been issued TO all OF the banks
M mandus 10 ssi7S5 ana Si"s ci M,s Ssro Of
El-l7i- have gone into voluntary liquidation.
he declares that the capital stock Of the ma
tona banks IS not largely in the hands of CAPT
taliss. Among their Shareholders may be
found persons Ia every station OF life. and great
numbers 81 women and children rely for their
support upon the successful management OF
these Institutions.
on May 81 ~ this year there were I'm exist
ence more than 3 100 state banks and private
banking houses, having an aggregate en- ital OF
t4u2u0O pOu. and deposits OF t4l3 900, 600 and il
is 90 Doe presumed that II the privilege OF issu-
ins circulating notes were so great as II is per-
ssienily claimed 10 be. these associations and
individuals, who are already engaged in tho
business oi banking. and who are free to enter
me national system, would hasten TO organize
u9dcr that system.
The amount OF interest Rccruing annually
bonds held ke
NV /. less III" tax paid by them upon their cir
eulaiion. Is sl45I4.692 only. while the annual
banks is but <s.g6l $40. or loss than q, per
c'nium upon their capital He declares that
6os org9 ,5 l,ion Of Sanss without capital was
bank oi circulation only. without capital. to
y organized under the national system, II
proper precaution be exercised and the Ex-
discharge Of his duties. lie submits a table
Economist Of Oct, y. 1873. showing the
rio 81 capital TO liabilities ~ 34l7 banks in the
United Kingdom 10 be 1913 per cent, and the
rhtlo Of their capital and reserve 10 liabilities
D. be 23.07 per cent, while the corresponding
ratios Of the national banks are 40 81 and 5473.
the ratios OF the national banks being ~ each
Instance more than double those OF the United
hingdom; lie then refers 70 the convertlOility
OF the national bank note, aud sage:
II the New York system or redemption were 10 be ap-
sun msthod i YOU'D prosa6y a, once r.i.. I've g..
pu.c Of exchange 70 ne faic current unier mai
system. which WAS generally one hair II one
u national bank. wherever located have po..ss,ed
~ we, rae The ses OF ,xebsnsse "sSr ,sSd Z.
l'ui. Cincinnati Chicago. AMI New Yurk have been ire
Of qGq S a so to ss ar & =. 'S ws:
common under rfovions Hstems kedcmuu'ns have not
tn. .f N-w YORK and Sew England ior liz reason tat
ecnan or Treasury notes has not been great
, 1s9Enart 10, ~ g.9 s9!er similar eirenn
~ 'Ni il' r. qnency OF re'icmptons Will % great
N'rHi 90 upon thc demand for gold after specie
y have been resumed but the notes VI the
,~clle hey. nd r"radvcntire. tins dcmrni
W. 10 a.. Disability be much less than under former
tna,-.. amounsi on 6c, ,I ne ie' ki,- W. ma
"a. t. sum represents the profits earned BY former
s.F Ni As re sipus tu their conversion into national
,n'e .rHon WAS however, accumulated by bank.
s.stI,, n, ~ No. 'nc.s prosperity immediately sue
Then flI vs. a table showing that the maxi
nga. -ur. Us Was reached in 1873, when il WIS
ll'Sl'' 20, y - which time il has been in-
creased o. tls17s53l. Tho dimnuiion has
Ten caused 10y charging thereto from time To-
w" j. y MS OF the losses sustained by the
nv .. tnhs sncn i ,e agsggregating during
,,y tI'.il'm2l in 1871, 1899 5ss in 1875
49, 49, Inr greater portion of tho losses
Men'i %" has boon cancelled hy charging II to
" H''"l4L a current profits In consequence
" WIZ j'l banks, with an aggregate capital
VI f'' 'll have IN the last six months paid
|. lNi lend At all, while during the last three
lrnrs iae average number Of banks semi
aa.I its-i * dividends On account Of losses
49, I'H -'0' MS uuiunfr IL equal 70 about
..' -,''ltl ~ the whole number now in OPP
w".ph j ,e average amount OF capital upon
~. l' dividends have been paid during
.W .ihe II fii 5S3.jl5. from which IL follows
n."t % ntinuous period Of three years
more man oue-tonth Of the total capital Of the
HHa.'lN nnhNs has been without profit to the
lAe TOTAL amount Of United States taxes col
r.v.l " % lue beginning Of the system to the
BTe,srll t-me If AS follows; On circulation, 800
~ =! .33; on depOsits $40 32s 25G 80! on capt
, t'3-H l'p73; total. is6 O33. 554.4O. The
Rw TAXATION upon the banks in the city Of
SvN l"rA and IN other cities has averaged
49, 'uau ny9 per cont annually during the
ne next rrfors 10 the failures OF national
snAhS tn gives a table showing that the total
pntNNi ", hplWl ~ all the insolvcnt national
t""HH t4tul1llOi amount Of claims proved |
80 'Nj, 90 dividends paid tl40lO3l3;
i. ." W." estimated losses are hut sG.4lj .423
a-r number of failures during each NJ the past
MA 'I' NA' beg ers tl nyr. ant inc average an.
~ tss Nlu g nsftffp and uaMltrs n more than
No. ~ Ut loaned 10 tour debtors uf uie bank more
'i .Iun WHICH there IL loss of more than
o. ~. lNr irnr 'ncy m the assets IL nearly SIG.
tt r.,t T ~ iNuf times AsEreat A. the losses To all
H. ''l.Is 1i national hanks which have JAILED sincs
81 be- go" w o." !c system The Bank superintendent
tar .... Now YORK reports the liabilities OF twenty
ne s.t .Ah, Nhieh have jailed in hat state dummy
h. o. N' nan years At tl2 lss, III and estimated
U.f ','' l' Ner creditors at s48a6l6 which ismore |
u'si.. . Iiid ~ their entire mdobtedncss lie ESD. |
wItI 'ft ilrlne the last three years a. e. 4O0O0
tf.dl,o Nhh One haf " the estimated losses 10 lc
ue t N 'h' national banks in the United states from
Ia ut.x