Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1879-12-09
Boston Journal.
THE NATIONAL BANKS-THEIR BUR
DENS AND THEIR PROFITS.

THE NATIONAL BANkS-THElR BUk-
DENS AND THEIR PROFITS.
Quite a portion of the report OF the
Comptroller Of the Currency, which has in
part been given TO the puDlic, is devoted
TO the consideration of the burdens Of the
national banks and the pronts OF the bust
ness. As there are many people who still
give credence to the campaign assertion
that national bank is bonanza and the
sure source of fabulous wealth. it Is well
10 set forth some Of the facts given by the
Comptroller, even If they are not original.
In the lrst place, no species Of property
i taxed As Is the stock, circulation and
business OF the national banks. The tax
imposed was essentially war tax. All
other war taxes have been abolished eN-
cept that imposed upon the national banks.
For the past twelve years the average COM
Diu,d capital aud surplus OF these banks
has been $685., jj4, l13. and the average net
earnings have BEEN Ge,Oao, III or this
sum >lG,y5".J1s. or about One-fourth OF the
whole, have been paid annually rs Federal
ANA state taxes. During tine last h>cal
year the 2uls national banks, having q cap
itdl uf Stjj.2iU 900, and deposits agsrrg,t-
/ Iug Sis. 10000 paid Federal take, OF So
5UD.O 900. while all other bank, and bankers.
numbering 1912, aud having IN aggregate
capital OF Sol 2i0.OuJ. and deposits aSerc-
gazing = ,lsu 10 900, paid only IS. l9o .OuU
a> taxes. Since 1864 the national banks
have paid iutD the Treasury go, .jI19Io,
- taxes, while all other banks ,ud bankers
doing q much larger business have PAID
only sJ+,42I 900. Ia other words Oh,
national banks have paid more than two
third, OF the taxes imposed upon the bank
/ iug business OF the country by the Federal
/ Government. The capital Of natioua.
banks is compelled To pay very much the
heaviest rate OF taxation Of any property
! in the country. To prove that this is the
case, 1t is only necessary 20 give the rat,
OF tax imposed in the following cities and
States
I Boston, 30. New York, 81; Albany. So Phil
adclphia, -. CiucinnRti, %, Chicago, 81, Nil
wrukVr, 5. y. Louis, 4, New York state 80
ohio. So. Indiana, 81, Illinois, s., Wisconsin
3g, kansas. ~, Nebraska, 80.
The report Of the Comptroller show, that
the national banks have not avoided the
! losses and disasters which have Oyertaken
other branches OF business during the past
/ hve years The reports Of the banks show
that during the fiscal year ending last June.
I the banks charged off losses" amounting
/ to sol 725, 654 in 1873, the same amounted
/ TO s2i, i66, 500; in 1871, SlS,933,5so; IN
! 1876 TO $40, 7l9, 024-a total IN four years
OF SIS. Si5, OGg OF the losses charged
OF" within the last two and l half years
[ a.. 63g, tO7 was on account OF the deprecia-
/ ton in the prcmiun on the nstional bonds
/ held by the banks Thus it appears that
the total sum charged of as losses the past
! four years Is more than - per cent Of the
entire capital OF the banks. But for the
wise provision Of the National Banking
act, which requires the banks 10 set aside
before the semi-annual dividends tenth
OF the net profits Uf the preceding six
months ss surplus, 1t Is fair 70 assume
that many OF the banks would not have
been able 10 have withStood the losses of
the past i've years and retained unqucS-
toned solycucy. These total surplus funds
of the banks increased until june, 1873.
Since that date each succeeding report has
shown a constantly diminishing surplus.
The report shows that there has been a
constant falling OF in the earnings Of NJ.
tiousl banks since 1870. I'm 1870 the ratio
OF dividend, 20 capital and surplus was
% per cent, while during the fiscal ycl
which CLOSED last June II WI, 600 per cent
The number Of bank passing dividends 10
the first dividend period of 1879 WAS goo
These banks had a capital of r5}.>l3..u'
cor nearly lu per cent. OF The entire capt.
invested iu The business. During the las.
four years the average number OF banks
passing sem.-anDual dividend, was 29-
These lluk, have 10 aggregate capital u
s45.-tuI}- lU other words, one ~ryen'.
OF The number % national banks BASIN.