The New York herald., 1879-08-08

New England States. 555 Sill Il66O5 $422. .s57 TAG
Middle states l.saS a1ossSiS 94a oSs
Western States..... 1.7S2 47.47O.2S6 126.2s4. .766
Pacific States and Ter
Total United States. 44OO s2O5 S32 9os
| He gave an account of the part which the banks.
State well as national. took in the work of re-
sumption. and. touching on the silver question, de-
! monstrated that demonstration of silver was
| thoroughly and for long time discussed in Con-
gress and was therefore not done in corner. as is
| often and falsely said.
THE NATIONAL BANKS
AS to the national banking systom. he pointed out
that it had worked admirably here that it had at
tracted the favorable notice of able European nsn
cieSs and of foreign governments
The English financial journals. said he are full Of
| discussion upon bank reforms. and many Of the
most prominent features of national system are
zealously advocated.by them. bill has recently
been introduced into the House of Commons..a copy
OF which have. advocating such features of our
law the auditing or examination Of the accounts
Of the banks of q limitation of individual lia-
Of loans permissible to any individual or
corporation. The leading financial journsl Of
England. the London Economist has suggested
banks Of giving security to their circulating notes
by the deposit of governments bonds. which is sub
stantialy the system OF the Bank OF England. There
is doubt that the question Of bank reform Is to
become one Of the principal topics of discussion
both in and out Of Parliament. during tho few
years. The old system of banking. with branches
In many different and remote places,. is sure
sooner or later, to be discontinued aud more COM
pact and uniform system will be established in Eng
land and in her colonies.
FAULTS OF THE EUROPEAN AND INDIAN SYSTEM.
The London Economist in referring to this matter
recently. says:-
Tho of the AngloIndian banks twofoldthe
* noss
banks Gables Of profit and loss and results and sxpen
favorable picture of the banks ssnoray for the 1877
In The Of the Oriental Chartered Mercantile
the public already know from the repsrs presented
that u the close q 1873 had become inn
s% avas9s:
whole group about ~ cent and for the three
%S sts' rs . s thu:
e are by q
the conclusion must be that for precsfous or ek
put his money into Indian bank shares until radical
In the case q the Oriental Bank IL is plain that. with
Gfsix branches and scattered over India
S sa@ .Ss
chartered Mercantile with brs,chos
sss :s s . sq The o.% the
y S sAs s s' II ndo on %
III
these large IiabiIito: covered BY docsmen, bin
tho in this kind Of business
6 % Ssss Ssss
large aud onerous the security has been inadoquate
the 1Ssn ssshs se. % q ,s M
amend thor system Ut business
The Minister OF Finance in italy had recently sent
tnan seventy pages of proof sheets. printed
in the French language in reference to our system,
which have been translated revised and returned to
him for the purpose of being published. so as to
give information of the principal features OF our
system to those Interested In financial matters in
| Italy. Correspondence has been opened with the
| Bank Department Of Washington by many of the
| different South American States. and by bank
officers and residents in Canada who look with favor
upon the principal features Of system, and even
| japan has system of national banking modelled
after own. which. am informed by the Japanese
Minister, is working to the satisfaction of that
| ernment.
Thus while portion of the people of this country
| seem intent upon the destruction of most excel
lent system OF banking. the people OF other coun-
| tries look with admiration upon 1t, while many ef
IN hs % sys
| tenn for those In operation among them.
THE CURRENCY QUESTION.
The most instructive part OF his address related
to the Inconvenience and costltncss of substituting
| greenbscks for national bank notes. He said:-
| Under our currency system as 1t now is the
tons banks hold nearly onethird Of the legal ton
der notes . reserve fund.- and the State banks and
private bankers also hold large amounts, so thai
comparatively all OF coin is sufficient for
| the government to hold for the redemption of its
present issues. But IL the government Is to issue all
4
banks fearing the result of such issue. will prefer
to hold coin for their reserve, and It will be
| ssry for the government to hold as Q fund for the
| redemption OF its notes increased amount of
| serve, the interest upon which, at four per
cent, wilLapproximate very nearly to the amount Of
net interest now received by the banks upon their
| bonds.
| Tho proposition now advocated is to substitute
United States notes in place of bank This Is i'm
possible OF accomplishment. mean that while this
project may to many seem judicious and plausible
| II is impracticable 1took some painsduring
the last Congress-not that of the extra sesson-to
| inform myself of the opinions OF the members OF
that body upon this subject, and came to the. con-
| clusion that there not six members from the
Eastern and Middle States who In favor of tho
issue Of the grecnback tho only paper currency OF
the country. and in the Southern States. far as
| could learn there was not member In favor OF
such substitution. believe that II careful can
| were made of the opinions OF the present Con-
| gress there would be found many members from
these States, North and South who would favor tho
abolition or the national banking system, but very
| few who expect to largely increase the amount OF
| greenbacks now outstanding. When l say this
that the repeal of the national banking system
will be Immediately followed. not by the issue OF
moro greenbacks but by tho repeal OF section 34l2
Of the Revised Statutes. consisting OF four lines In
| the statute book. which is ~ follows:-
sxcrloN 3.4l2-Every nationai banking association,
per tho OF of person Of
bank State king for
| culAaiou and paid out by them.
| OBJECTIONS STATE DANK CIRCULATION.
Tho South desires the repeal Of this section, be-
II believes that such repeal will be followed
by the organization OF humorous banks OF circula-
ton under State charters. which will. tho time
sxl.A. - .~Hx xI.A