The New York herald., 1878-11-21
Advantages to the Country
from the System.
PROFITS AND LOSSES CONSIDERED.
How the Government Is Assisted in
Funding Its Debt.
EFFECT OF INCREASING GREENBACKS.

Comptroller of the Currency, contalns tiApie, IL
compliance with the act of February 49, 1873, show
ing the total average capital and deposits OF all state
and savings and private bankers in the country
for the six months ending May 81. 1878. 1t shows
the number OF State banks to be S53. with an aSgre
gate capital of $124 347 262; deposits S229 1872 62
number Of savings banks with capital. 25 hav-
Ing aggregate capital of $3237342; deposits,
sec 968; number OF savings banks without capital
$685. with deposits amounting TO $S03 345 number
Of private bankers, 2,S56; capital. 22S; de-
poss $133 965. The whole number OF State banks
private bankers is 400, with aggregate capital
Of $205 3so000 deposits s1,2i2, 100000. The total
number of national banks in existence on June 29,
1s78 was 2056 with capital of 900; deposits
S677 1G0 O00 making the total number of banks and
private bankers in the country 6,f56, with an
aggregate capital of S675 776000 and aggregate de-
posts of 81. 9.954,00o.
The total number of national banks organized since
the establishment of the national banking system
February 25 1863. to November of the present year
Is 2400 OF these 273 have gone into voluntary hqui-
dation by vote of the shareholders owning twothirds
of their respective capitals and IA have been placed IN
the hands receivers for the purpose of closing
their affairs leaving 2O53 existence November
of this year. Included in the aggregate number or
ganized are national gold banks. located in the
State of California, which redeem in gold
coin their circulating notes at their places
of issue and in the city Of San Francisco.
These have an aggregate capital OF s43000OO and
aggregate circulation Of s146s9aO During the past
year % banks have been organized with an
authorized capital of s2775oo0. to which 81 500
IN circulating notes have been issued Fifteen banks
have failed within this period. having aggregate
capital of $2,712,5o0 and Al banks with
total capital S. 100000, have voluntarily discon
tined business.
THE NATIONAL BANKING SYSTEM.
The report is accompanied by numerous tables,
showing the resources and Liabilities Of the national
banks at various periods &C. He refers briefly to the
origin and growth of the national banking system
and the, answers heretofore given to the principal
Arguments against its continuance. He says
The establishment Of the system not advocated
In the interest of any political party and 1t has been
free from the control OF partisan sectional in
desire to engage in the business Of banking
The opportunity occasioned by great seized
upon in the interest of the to get rid of
circulation issued by authority Of many different
States which had been almost from the beginning of
the Commerce Of this country. It was shown from
the decisions in Congress ut the time OF the passage
Of this departmens and from the nnsorm
legislation since that time. that the national
banking system was i1 INTENDED nnsr to . be
by the express terms of the law authorized to
tinue for term of twenty years. while IT was
equally evident that the Treasury notes issued and
still in circulation intended to be funded,
stitute temporary currency issued from necessity
and to furnish the government with the means to
save itself from destruction; that the amount was not
to be increased but TO be Withdrawn from circulation
rs rapidly as possible.
THE SUBSTITUTION TREASURY NOTES.
Hefmther declares that it shown that the sys-
<ern not a monopoly, its privileges being free to
all, but that it uprooted many real banking monopo-
Lies authorized by the several States After reviewing
Mt some length his former argument in favor ofthe
system he says:-
The proposition for the substitution of Treasury
notes in place Of national bank notes having been
again revived and discussed. 1t is thought advisable
again the principal objections urged against
the national banking system. at the risk OF
peating to some extent although with recent
data what has already appeared IN previous reports
persons not less than five. in any part OF the
country. who together may have $4,000
of capital at command may organize
IN amount to ninety per cent Of such
capital the law discriminating in the lstter respect
the passage of the OF July IL. 1S70 is entitled
circulation in excess of $4,000. bank having
receive in circulating notes but eighty per
cent thereon; if between 1.oo0.0oo and s3,oooU0o
and if over s3,0o.ooo but sixty per cent.
Since the passage Of the act Of juno D, 1874, the
voluntarily surrendered $6c.23T 1913 of their notes,
which $40 467 than has been Issued all
OF the banks organized since tnat date. while IA
banks with capital stock amounting to S15.5l7,OO0
and circulation or 10 INTO vOlIl-
tary liquidation. He declares that the capital stock
bf the national banks is not largely in the hands OF
capitalists Among their shareholders may be found
persons in every station OF life, and great numbers
Of women aud children rely for their support upon
the successful management Of these institutions.
1t s not probable that the stock OF other class
corporations in the country is widely dis
ributed among people OF moderate means than is
that national IL also largely distributed
among members Of all political parties and o rule.
is free from the control of partisan influence.
MoSOPoIIF@
He denies that the national banks have at arv time
monopolized the business OF banking do they
ut present ON MAY 81 of this wear shere were in ex-
tsence than 800 state banks aud private bank
ing houses having an aggregate capital OF sS2OJgOoo
located in all the principal cities and
villages Of the country and IL IL to be presumed that
II the privilege Of issuing circulating notes were 50
rations and individuals who already engaged in
the business Of banking and who free to eater the
national system, would hasten TO organize under that
system.
Tie amount Of interest accr,iing annually upon the
bonds held by the national banks, November ],
less the tax paid by them upon their circulation IL
l4,544.692 only, while the annual profit upon the
a. gG 51g, less than two and half per cent upon
their capital. lie declares that the organization of
banks without capital OF the great abuses Of
previous banking systems. and says Il IL impossible
Tor bank Of circulation only, without capital to be
organized under the national system proper precau
tion be exercised and the examiner - competent
aud faithful in the discharge Of his duties.
III. proportion of capital and OF capital aud surplus
10 liabilities is much greater IA TINS country than
elsewhere, which is undoubtedly owing 20 the fact
that law requires that the full amount of
thorized capital shall be actually paid in IN Eng
land az rule only portion of the capital paid in.
but the stockholders are individually liable tor the
full amount of their subscriptions This restricted
liability is true of limited banks only. the stock
holders other corporations not limited being each
liable tor all Of the debts OF the corporation
BANKS or rHE UNITED KINGDOM.
The Comptroller submits a table, compiled from
statements in the London EcOnomia Of October
1s 1873 showing the amount OF capital. reserve
and liabilities aud the ratio of capital and
Of capital and 10 liabilities OF 34lT
banks f141 banks and are branches) Of the United
Kingdom. The total capital Of these banks
is s45V.VOo.ooo surplus. siso,ooo.oo; total capital