Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1879-08-20
Onr National Banks.

The address of MIR. Knox, comptroller OF
the currency, to the bankers convention at
Saratoga contains much important informa-
ton and wise suggestion, expressed with
olearness and force that come from thor
ough knowledge of his subject. The ma
tional banking system he defends most eff
fectively against the assaults which are
made upon 1t by the Greenback politicians.
These assaults, professedly made in behalf
OF currency composed Of United States
notes exclusively, are in effect most zeal
ously urged by those who desire return to
the old system Of state banks issuing cir
culating notes more or less imperfectly Sc.
cured, and certain to cause large yearly
loss to the people who use them. That is
what the South especially desires. The re.
straints Of the national system are irksome
to those who would like to undertake a
banking business on the basis of political
influence without solid basis of capital
In Canada, at this moment, the bills Of
banks heretofore supposed to be perfectly
sound are selling at discount of ten per
cent, while no holder Of national bank
note has ever found it worth less than its
face. The national banking act expires in
1884, and the opposition to its renewal will
be strenuous and bitter, but less general and
hopeful, probably, than it would have been
year ago or would be next year. Mr.. Knox
takes up the various complaints that are
made against the national banks, and an.
swers each Of them in a way that is con-
vincing and satisfactory. He shows among
other things that the privilege of issuing
notes is not so profitable as is generally sup
posed, and he would not therefore advise
private bankers and state banks to take out
national charters, because they can make
more money by continuing as they are than
by subjecting themselves to the numerous
and burdensome restrictions of the national
bank act. He says further on this point
II you manage a state bank, and your stock
holders are In accord and do not take advantage
OF their position either as shareholders or direc-
tors to borrow all OF your money, your present or
ganization, which Is free from the trammels of the
national system, can be made more profitable as 1t
IL than as national association. That this view Il
In accordance with the judgment of many of those
engaged in banking Is evident, as have fire.
quently stated before, from the fact that there
are in this country eight hundred and ffty-three
state banks and twenty-eight hundred and fifty
six private bankers who choose to remain such
in preference to entering the national system
The profit arising from circulation, upon bank
ing capital Of $50 900, will not average more than
$500 or $500 annually And IL is easy to understand
why there is no particular inducement for we'll
established banker to subject himself to the yoke
Of legal restrictions imposed by the bank act for
this small amount of compensation. Yet have
of state bank, who did not acknowledge how
greatly the business of banking has been i'm
proved since the national bank act was passed,
and never met with one Of either kind who de-
sired that the system should be overthrown.