New-York tribune., 1878-11-21

F"@s's GsEG;as i5 Sss
savings bank without cap cos eoa 900 "a,
Private rS bankers 77.7ss22s isSs$&s65
Total Of state concerns 400 sos sl2t 10000
National bsnks..........2O56 47O39OOOo s67Il6"oOO
Total OF all s67J716OOO SlSl1VoAoOO
Further. the report says:
The total number Of National banks organized since
the establishment Of the National banking system on
February 2j 1868, TO November OF the present year.
400 OF these. 273 have gone into voluntary llu
daon by vote tho shareholders owning twothirds OF
their respective capitals, and "a have been
placed IN the hands Of cceivets for the purpose ot clos
ing their an rs, leaving 2O33 IN existence on NOVem
Der OF this Included IN the aggregate number
organizrd are ne National gold banks, located I'm the
St,c California, which redeem In gold coin heir CIR
cdtiuS note. at their places Of issue aud III tue Ct OF
san Francisco. These have an aggregate captai OF 81
100000 and aggregate circulation OF 9l'4oso-o
organized with an authorized capital OF S2775OOO, 10
which ~ l59s 500 IN clrGuatlng notes mas pee n Issued
apgIcgate capital OF S27l2,JOO; and Al banks,
win total capital OF s52OO,OO0. have voluntarily dis
continued businesf.
The report IL accompanied by tables, show
ing The resources and Liabilities Of the National banks at
various periods. Mr.. Knox refers briefly to the origin
ana growth Of the National banking system and the an
swers heretofore gwen to the principal arguments
against it- continuance. II says:
The c-tab Of the system not advocated In
the interest Of any political party, aud IT &, b'eh llee
from The control Of partisan or sectional ilnence Its
]
me nn,ine-' "i Danh'S ] ln' m no. Ir t "a tp Gov
cnmyut To get rid 0t circulation lsSurd by the au-
thurity Of nv different States, Ecb nad bc,n, almost
nom The beginning Of the Government. a grievous
| tax uuuu o.. bu-.urs- and tie commerce ot TINS
country. II shown from ho decisions in CONGRESS
time oL ,nr passage OF tie Loga lender Act from
tHc report. ut th, department. aud from the uniform
lrrSitou since that time, that the National banking
system Wa intended 70 be prruhh'h' inc ln-,'u'Ch7
organized under II beng, by the express tctr- OF me
law, ortnH % continue for term oi tWtAty ears
wnc 30 was equally evident that the Ir'ishrl notes
issued, aud suh u circulation, were mttndrH TO oe
funded To constitute tcupo' ary currency issued from
necessity, aui to furnish the Government WIN tn@
moan, 10 save itself lrou destruction mat me amount
not to Doc increased, hu. To be Withdrawn GOm CIR
culatiou rapidly as possible.
80 MONOPDLY ~ BANKING.
Mr. Knox further declares tUut u WAS shown that tae
sysrm was no, monopoly 10, privileges being free to
all but that % UpIUot many real banking monopoucs
authorized hy the several States Afr'r reviewing AT
some length Dis former arguments IN favor Of the sys
ten. lie says:
The proposition for n" sub''ituiion Of Treasury
revived aud discussed it L. thought advisable Igan 1"
answer the principal objections urged against tne ~
sPrns,iv sGlns appssarrd in previous reports.
under he law tncn a, it now stands any number OF
persons not less than hyc my part oi the country
NAV organize National bank ard receive cir
culaiing notes equal IN amount 10 30 per
in the latter respect only against the large institutions
no uauS since the pd,s1Ac oi th' aSt 9 JUI t9,G
hnyinga capital ~ bet yccu 100000 and SlO0oOOO
ibrtwGcn II 90 200 ana $1,000 600 il can receive Out
75 yer cent and II over - oJ0 900, bat 90 gcr cent
tloual banks from considering he privilege OF
issuing circulation profitable monopoly have voluuta
ri IA surrendered 500 32J OF tucr notes, which II
SO i67 more tlau las been isn to al OF the banks
organized since Thar diici Gh IL 3"nAs WIN .aia,
E" LOCI Of The N,tom BANKS i not largely
IN tue hands OF capitalists. Among Their shareholders
may be found persons ~ every station of nc aud great
numbers Of women aud children rely Tor their support
mon the successful management Of these Institutions.
IL - probable that tuo stock Oi any other class o
corporation, u the country Is more widely dls'rbnted
among people of moirr,te means Than Is that OF Ma
tioua banks II &, also largely distributed among mem
brrs of AL political pariics aud 80 IuIc l.! 'eo rom me
control ~ partisan Influence.
M Knox denies that the National banks have at any
time monopo.izcd the business of banking They do not
do 10 al present on Nay 81 of this year there IN
existence more than state banks aud private bank
ing houses, having an aggregate capital OF S2O?OOoOOO
and deposits Of Sil30OO0pO. These banking establish
nents wero located In all tho principal CITIES and vil'
agcs of the country, and rs - be presumed That the
privilege OF issuing circulating notes 50 great as per
sistcnty claimed the associations ana individuals who
have been engaged the business Of banking and who
nave been enter the National system, would have
hastened To organize under that system.
Tho amount OF interest por year nccruing upon the
bond, held by the National banks on November less
the tax paid by them their circulation, Is Sl404l
Gg2 only while the annual profit upon the entire crcI-
aton OF the National banks only SS9Gl5l9, or less
than IL per cent upon their capital
THE SAFETY or THE NATIONAL BANKS.
The Controller declares that the organization Of banks
without capital was OF the abuses OF the former
banking systems He says IL is impossible for bank Of
circulation only. without capital TO be organized under
the present system, II proper precautions be EXERCISED
aud II the examiner be competent and faithful In the dis
charge Of his duties The proportion Of capital and OF
OF capital aud surplus TO liabilities Is much greater in
this scounry elsewhere which is undoubtedly owing
10 the fact that the law OF the United states requires the
full amount of authorized capital to be PAID IN actually
In England rule, ouly portion OF the capital IL
paid in the stockholders are individually liable for
the full amount their subscriptions. This restricted
liability is true OF the limited banks only, the stock
holders Of other corporations. limited, being each
liable for all OF the debts OF the corporation.
table Is submitted, complied from statements in The
London Economist OF October 10, 1879, showing the
amount capital reserve and liabilities, and the ratio
OF capital and OF capital and to liabilities OF
34l7 banks Q4l banks and 1926 branches) OF the
United Kingdom. The total capital OF these banks Is
$50 900; the surplus $40 600 600. and total
capital and surplus SG20, 900 The liabilities
go 700 100000. comparison Il made between this
table aud similar statement as to the National banks,
winch have capital and surplus OF SG2i,000, ,000 and
liabilities 81 10000 600. The comparison shows the
ratio Of capital to liabilities In the 34l7 banks In the
limited he 10 7S per cent against 40 50 per
cent America and the ratio OF capital and to
liabilities to be 2307 per cent, against 5473 cent in
America the ratios Of the American National banks be-
ing In each instance more than double those OF tho
United Kingdom.
Mr. Knox refers. then, to the cOnvertiby OF the Ma
tiOnal bank note. and says:
II the NewYork system OF redemption were 10 he APP
Piled 10 the National bank crciOn IN place OF the eN
Isung method would probably nj once raise the price
OF to the rate current under that system, which
was generally oue-haf OF one per cent Under
the system now IN vogue the notes OF the National
banks. wherever located, have possessed uniform
value and the prices OF exchange have ruled at the low
est rate The rates OF exchange between 81 Louis, Cn
Nnu hnen lreuuenllY ~