Evening star. [volume] (Washington, D.C.) 1854-1972, 1878-11-21
Thc Ranks Of she Country.
ANNUAL REPORT OF CONTROLLER KNOX.

The sixteenth annual report OF Hon. John Jay
Knox, controller Of the currency. contains ii
table, in compliance with the act OF February
l9. 1873. showing the total average capital and
deposits OF all state and saving banks and nr-
Nate bankers in the country for the six months
ending May 81. 1878. IT shows the number OF
state banks TO he s5S. with an a-gre gate caUitai
OF sl24, .262 deposits. 500. .4s26.5 numbtc of
savings banks With capital, -. having an aGgTe-
Sate capital OF s., 3,231.. ..i2 deposits. S2ilI9.:6S
number Of savings banks without capital. 6jS
with deposits amounting To sSG3 29g, ,s45: number
OF private bankers. 2-s56; capital. SI,19S 22S; de-
posts, SIS2S32,!6j. The Whole number of state
banks, savings banks and private bankers is
4.it0. with an aggregate capital OF SOS $50 02a;
deposits. 81 ~. $4,000 The total number Of na-
tioGal banks in existence on June %. 1873. Was
2c55. with capital Of $40 39a 098. and de oOStS
Sc. .,l600o0. making the total number Of banks
ard private bankers In the country 6,455. WITH
an aggregate capital Of $50, ,0ao. aud ag-re-
gate deposits. 81 a1?. .954 900 Two thojiSa nj nd
ntty-tGree national banks were in existence
November i. last. including nine gold national
banks. During the year IS banks were organized
with capital OF 2.,i5.ea0. The controIierenterS
into an elaborate
DEFENSE OF THE NATIONAL BANKING SYSTEM
II il not probable that the stock of any other
class CT corporations in the country is more
widely distributed among people of moderate
means than IS that of the national banks II Is
also largely distributed among members Of all
Fohtical parties. and as rule is free from the
control Of partisan influence He denies thar
the national banks have at any time In1n1oS
uZt0 the business Of banking, nor do they dn s1
4t the present time. He refers 10 the convert
h!litE nf the natlonal-bank note. and SAYS: II
the New \ ORR system of redemption were u be
applied TO the nati0Ealbanh circulation IN
place Of the existing method i would problbl
at once raise the price Of exchange to the
rate current under that system. whicl was
generally one-haif OF one per cent The ba.ief
50 widely entertained that the profits made
by Tie national banks are excessive is in a
great part due TO the exceptionally large diyi-
denGs paid by few banks which are favor
aoiy located and have d large surplus and
which make large returns 10 their share
holders Oh the amount Of their nominal
capital. The profits OF these banks are no. to
any considerable extent derived from Their
circulation. but from surplus and dpDosifS
The national bank system has been OF rrelt
service IN supplying 4 steady market Tor and
Facilitating the negotiation OF United States
D0EdS. AS s2i,Rm.d1o yearly may be saved ID
the government by funding tie and i per
cent. bonds into per cents. while the amoint
which is claimed may be annually saved by the
repeal OF the national ban, act and the issue of
o2o-0ooOe OF Unc0nyemab'e treasury notes Is
l3.Wo,Wo only. With the issue CT this large
amount OF government notes the funding of the
public debt will be- rendered Impossible for the
pledges OF The government viii then be violated
and It's credit permanently Injured. The con-
tIolier then argues that there viii b. no
saving 10 the government by an additional is
ste OF treasury notes.
RESUMPTION OF spECrE rAYNENTs.
lie refers 10 the amount of coin noW in the
treasury. and says: This amount is con
stantly Increasing. and il is to-day "a solid
OASIS Tor circulation. Congress has fixed the
day for the restoration OF specie standard and
the legislation needed is that which will not
overthrow but cooperate with the present We'll
managed monetary institutions Of tile country
IL accomplishing this result. When this is done
The present banking SYSTEM If then thought de-
slrabe, may be modified without DANGER to the
credit or the business and commercial! Interests
d