The New York herald., 1879-08-07
FINANCIAL POTENTATES.
Bankers Denying that They
Are Monopolists.
THREE ERAS OF AMERICAN CREDIT
Important Papers Before the Con-
vention at Saratoga.
SARATOGA, N. Y. August G. 49,

SARATOGA, n. y. August g. 1879.
The Convention os the American Bankers Associ-
alton assembled in the Town Hall ut har-past eleven
to-day. Invitations TO attend We're conspicuousy
posted about the town. and the attendance large
In the absence of President Mitchell the first vice
president J. d. yernilye. presided. James Buell.
secretary of New York. read his annual report and
in the absence of the also read his report
which showed a balance of 81 500 after Hquidating
all the expenses of the present Convention.
CAPITAL. RETIRED FROM BANKING.
The following are tine most salient points of the
Secretary report
The matter Of taxation has been brought
by parties interested before the courts of different
States. In Ohio informed that the courts
have decided that the banks unconsituJion-
been made. Both these cases. understand, will
come before the United States Supreme Court at
Washington in October next. II the "Oho idea" is
sustained that banks have rights under the consti
tuition OF the United States being taxed only as
other interests taxed. the commercial commu-
nifty will have to rejoice and get relief
Banks have no monopoly. They have special
privileges except circulation. They want none.
They merely ask for justice-ask that they may be
taxed only other corporations and property
taxed; no less no more. Now they are taxed by the
United States and also by the States the same
other corporations aud property taxed, i'll addi-
ton to the heavy taxation OF the federal government
Thus they doubly taxed. No other species OF
property is taxed Within the next years prob
ably large majority OF the charters OF the national
banks will exRlre. and unless some radical change
takes place IN UXatlon or this Kind OF capital nearly
quite all of these banks must 90 into liquidation
andtheir places will not be supplied by State banks.
because taxation is Us heavy upon them as upon the
The capital now in national banks will be invested
in some way where it will quite probably escape
taxation altogether as most other personal properly
does. Thus the present unjust system will defeat
itself by driving capital ont OF the assessors reach
altogether Already there have been retired from
New York city alone, within the past few years.
$50. 10000 OF banking capital and surplus. Proba-
bly, not onetenth part Of that capital is subject
Banks have privileges like other corporations: no
more, except that of issuing circulating notes. which
IL regarded by many as no privilege ut ALL large
number of banks take circulating notes. as it
affords little profit to them though it Is OF great
profit for the public to have currency at every
where. There are now nearly 10000. 900 of these
national bank notes to which the banks entitled
but they profit in their use and hence do not
On the 3Oth Of last month the total amount OF cur
rency in circulation was $734 S0l .9A 1s. worth its
face in gold. This is about S9.ooO0oo in Of
the purchasing power Of the total outstanding cur
rency at any previous period OF American history.
HISTORY OF AMERICAN BANKING.
MIR. Camp, OF Milwaukee. read u long history of
banking i'll the West. in which he divided it into
three eras. the first commencing in the different
granted by the several Legislatures for the various
kinds OF banks and banking institutions, and banks
were formed by honest men or schemers and specu-
lators, who procured legislation to enable them
establish credit on insecure basis. The Western
States referred to in connection with this
Ohio, Indiana Illinois, Kentucky, Missouri, Michi-
gan. Wisconsin. Iowa and Minnesota. This era was
ended in most of these States between 1850 and
1855 The second era commenced in 1882 and
the entire history of free State banking up to
1861 during which time these States either adopted
free banking laws or materially modified those pre-
viously existing within these dates. Indiana Illinois
aud Wisconsin flooded their States with and
disturbed the finances of the entire West by the
issues of their free banks and the collapse value of
state stock probably saved many other States from
being involved in q similar evil. The civil
brought this era in banking to a summary close.
financial credit of the nation trembled In the
balance. Banking experiences the causes
came prominent benefit, the National bank
ing law. and following in 1865 the accomplish
ment by Secretary Chase. OF Illinois between the
capital of the country and the government itself
aud the adoption of the General Banking law
OF the greatest financial events of time.
Under the heads of these eras MIR. Camp analyzed
the laws OF the States mentioned relating to bank
ing aud their influences on banking interests, and
read many interesting statistics.
Messrs. Butts. OF Pittsburg; Henry. of Mobile.
and Halliday, of Cairo, nominating committee ap-
pointed by the Chair made the following nomina-
tions for officers the association which we're con-
Armed by the Convention
Observation-Disclosures Mitchell. president Marine
aud Fire insurance Sank, Milwaukee. Wis.
First Wee Pyesidcnf-Jacob ID. vermilye president
Merchants' National Bank. New York city.
v,se Iresiasns'Twilliam @ Ayord, president Bank Of
WE'LL president Citizens National Bank,
s,,v OF Washington Mavsn, D. x,,, c.; John De Koven
J. J. Tareton, cashier Citizens Bank, New Orleans
La; William Z. Gould. cashier First National Bank
d.
tional Bank. Bsltimore. Md; Charles b. Hail.
president Boston National Bank. Boston, Mass;
Henry r. BALDWIN president Second National Bank
Detroit. Mich; Horace Thompson, president First
National Bank, st. Paul, Mimi; Rufus J. Lakeland,
president Bostmen's Savings Bank. ST. Louis. Mo-:
Jacob ID. Vermyile, president Merchants National
Bank. New York city; Daniel J. Falls, president
Merchants National Bank. Cincinnati. Ohio: Henry
W. Corbett, ex-senator United states and vice.
president First National Bank, Portland, Oregon:
Joseph Patterson. president Western National Bank,
Philadelphia. Pa; J. W. Vernon cashier Merchants
Nuftn k1Yak prNv t1ana neAn
cashier First National Bank, Charleston y. c.; s. p.
Reed. Union and Planters Bank Memphis, Tenn;
Is. A. Shepard, president First National Bank. Hous-
ton, Texas; William II. HoopcrO president Deseret
National Bank. Salt Lake city. Utsn. and others.
c.n Tsnanss National ssn c'e vent Aer
James Buell., president Importers and Traders
National Bank. OF New York; Morton McMchaci.
yr.. cashier First National Bank OF Philadelphia, Pa:
Edward Tyler. cashier SUFFOLK National Bank
of Boston, Mass. j. W. Lockwood cashier
D. Hayes vice president d1 Merchants ns" and
Msnufacturers National Bank. Detroit Mich:
l. j. Gage. cashier First National Bank. chi
cago, H.; nj. kopperl, president National Bank
of Texas. Galveston. Texas: Charles Par
sons. president state Savings Association.
ident National Bank OF the Republic. PEila-
dephia, Pa; H. II. Thurman, cashier First National
t%ssy National BANK. % louisville Ky; W. n MHrri
son, president First National Bank, indianapolis,
Ind, and others.
nASKINa IN CALIFORNIA.
Mr.. GIBsoS. of California followed with paper
banking in that state. Its history, said he,
like that of the State is brief and recent dating
back further than the American occupation OF
California and discovery of gold IN lS4S. This greatly
augmented production found it's way into the chan
of trade through San Francisco. simultaneously
banking I'm California took its RISE the first banking
and exchange once being established January ..
ls4g. Private banks ana exchange Offices increased
until the winter OF 1s54-5 when an almost general
collapse occurred. Credit was. in those days.
unorganized. the population was excitable
and unsettled, and Uy reason of distance
from base Of supplies the market huctu.
ated from a ''glut" to perfect barrenness.
During the following decade banking was system
atize6 One of the most notable events the
foundation OF the Bank of California, which was in
corporated on June Is. 1864. and began business
July l. Though California escaped the panic of
1sT'it had two years later disturbance OF it's
On the LIST of september a syndicate was formed to
extricate the Bank OF California from its embarrass
ments, and guarantee fund Of $75ou,UUO was sub
scribcd, and on the I'd Of October II reopencd it's
doors for the transaction OF bhsiness. Iwo days
later October 4, the Scvaoa Bank of San Francisco
opcned with q cash capital OF $50o0,D0. increased
October 4, 1876. to xiO0OO.OOO. and at present in-