Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1879-07-25
Banks and Bankers.

The American Bankers Association has
issued It's announcement Of the annual Con-
Ventlon Of bankers and bank officers for the
current year The meeting will be held in
Saratoga, commencing on the 9th Of August
1t Is announced that essays will be presented
upon the obligations of the country to the
banks Tor the success of resumption, and for
the saving effected by the rrfunding of the
pnhlic debt on the history and development
OF banking in the United States and abroad
AMI upon other subjects illustrating the pres
ent economic state. and prospects of the Ma
ton, the growth Of wealth and productive
power, the influence of sound banking upon
! credits sand productive wealth, the methodsand
| principles of currency reform, and the finan-
cial evils which threaten the foundations of
banking stability and thus injure the industry
commerce and material progress of the
| country.
/ 1t will he seen that the discussions of the
Convention are likely to have special interest,
and ii they cannot claim the charm of novel
/ ty, they will doubtless be practical and use
ful Indeed, ii IL difficult to believe that a
gathering OF energetic, grave, business men
from all parts of the country, who are So
well informed upon the topics with which
bankers are conyersant state of credits
the movements of business, the waning
profits Of banking the decadent rates of in
terest, the losses and savings of the industrial
and frugal classes, the financial progress of
the country, before and since the war-can
be held without the suggestion Of valuable
hints and important information. 1t is to be
hoped that in all these discussions due prom
lnence will be given TO the importance of
those safeguards of banking which are the
most important in giving stability to the
movements of trade and to the revival of in
dustry. The Bankers Magazine gives
table furnished by the Comptroller of the
Currency which shows that the National
banks in operation on the 4th of last April
We're entitled to call for circulating notes to
the amount of $3.50 37a 9l6, but had actual
ly applied for and received only S313, 045,-
circulation they had the right to demand was
not called for. Evidently, in the present
condition of business, the privilege of fur
nishing currency cannot be very profitable
when the banks decline to 50 great an extent
toexercise it. 1t is not the case of persons re-
iusing 10 form new banks but it is the case
OF banks already in existence and operation,
which take out only four-iifth of the cur
rency they might take out if they chose, and
for no other possible reason than that they
do not see their way clear to gaining any adj
vantage by it. If others can see exorhitant
profits in it, evidently the hanks themselves
do not see them, and they are certainly likely
| to he as well informed about it AS the rest of
the world. There is manifestly no ground
| for what is the chief popular prejudice
against the National hanks, that they gain
largely from what is strangely called the
monopoly of issuing notes for circulation
although it is free and open to everybody
who chooses To organize under the
National banking law, and deposit Govern
ment bonds as security. People do not COM
| plain if the National hanks make profits out
of their discounts. or by making loans, be-
cause that is equally done by State banks
and by private bankers The thing which
has been made odious 10 many hy persistent
clamor is the function of furnishing cur
rency, and not because the currency fur
nished is not safe AMI acceptable, but because
there has been believed To be en undue gain
in it, in the nature of special privilege roy
atty or monopoly. The statement uf the
Comptroller of the Currency disposes of all
ideas of that kind The Bankers HdgI-iHe
says, in connection with the statement:
This lack of profit. about which there is
thus shown To br no reasonable doubt, arises
{ from the heavy taxation on circulation, in
connection with the low rates at which
money must he loaned. if ii is loaned safely
! The taxation would not be- excessive. and
would not prevent the banks from applying
Tor much more circulation, il business was
brisk and if the market was full of good
commercial paper. which the holders would
offer for discount On the terms they would
gladly have accepted six or eight years ago.
But the taxation has been kept up, when the
circumstances which originally justified it
have ceased to exist.
The persons and classes in this country
who desire, Tor various reasons, an eXpan-
sion of the volume OF money. have very
great, and, perhaps, controlling influence
with Congress. Ii is remarkable that it has
not occurred TO them that they could effect
their object, directly and speedily, by CO
operation in repeal, or reduction, of the
: ia 4 th,. al han ES
/ We are quite aware that they would prefer
10 effect their object in other ways, hut they
must see that none .of those other ways are
open to them, except at the end Of, and by
means OF, the successful lssuc of a prOtTacted
and doubtful political contest. But they
want Immediately and without delay the
relief OF money, more abundant, and ex-
panded 10 the proportion of what they
call the "ants ottrade." Why should they
reject the present enjoyment of such
money when they have nothing to
do 10 obtain it, except simply 10 with
draw their opposition io Il reasonable meas
ure oi relief 10 the National banks in the
matter of the taxes on their circulation We
do not expect Ia convert these persons into
friends of the present National banking sys
tenn. But so long the system exists and
until they can succeed in overthrowing it
and substituting something which they
would like better, why may they not fairly
| cndeavor To get the most out Of the system,
in the line OF their own views and theories
about the volume Of money ?
The Grecnbackcrs it is safe 10 SAY, will
Hagdsiae. They hate tie hanks, and want
initiation, secured in sr.mc way which shall
not benefit the hank.