The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1880-12-03
THE NATIONAL BANKS

hoh Ou SaNuiuhJ iholhIlS i"9" ''S %
tleman in the country ought to be anu IS
thoroughly posted as to national banks 1t is
Mr.. Knox. lie il n gentleman of line a0il-
ties, is cultured, and possessed oi II rare fund
Of general information and the natural bent
of his mind tends to the discussion OF finance
and the solution of finsncial problems The
national banking system has been under his
control and supervision for years, and there
is no feature or fact connected with it that he
is no. familiar with. The conception
of Judge Chase's prolific m nd, the
national bank act WAS framed by
him when secretary of the treas
ury in 1861, and recommended by him
to congress for enactment. Every predic-
ton made by the secretary in 1861 and 1862
in relation to the ben, fetal effects of this
act hns beel realz d. The National banks,
h. said, have continually he nearly four
fifths Of the bonds of the United States, this
making them Of more value and strengthen
ing the credit of the government SO that
when, not great while ago, our bonds were
returned TO us from across the ocean in large
amounts, they we're Immediately taken at
home without depreciation. The currency
of these banks, too, has been both Safe and
IL iform. These banks, he said, receive but
a small profit on circulation the exchanges
OF the people amounting to Sl,OO0,OOO, an
nIally being made at u minimum point,
aud almost without cost. They have largely
reduced the rate Of interest, and the Losses to
depositors by failures have been insignificant
compared to these by other banking systems
while the IUsse, Of the banks themselves in
njudicious loans and bad Investments, aggre'
eating SlO0,000,000, have been promptly
paid of and large surplus, the result OF
good management is now on hand as
SAFETY fund against future disasters. They
are, no says, now doing business ON strict
specie basis and with the true standard He
gives the average amount OF coin held by the
banks for the three years prior TO the resump-
ton Of specie payments at $26, 3O3,3O9, the
bank, of New York holding all this ex'
cspt $S,5i0,2j2. AT times the amount
of coin III hand largely exceeded
this average, us for instance on 20!h January,
1871, when it amounted TO more than
Si9,0O0,000 which on the following April
was reduced to 100000, the previous in
crease having been due to disbursements of
intellect by the government. AT other time;
still the amount was much less than tht
average rs on October lst, 1875, when it VIZ
only SS,U50,329, the banks in the city Of New
York holding S4,955,6 24 The reason Of this
was that the paper currency of the govern
ment and Of the banks was at its highest cir
culaton, that Of the government being $43S
900, 900, and that Of the banks being 1854
0JO,09O maktdg = total of S792, 100000, tn,
proportion Of coin to this circulation thsI
held being but about three per cent. Or
the l4th Of Jnne last, the banks reported
to the comptroller S99,000000 of specie il
their vaults, aud on October /, more thar
100000. 900 In specie, including nearly si'
and one hslfper cent Of silver, which NOR
than equals one-thr1 OF the circulation o
, the banks. The amount Of gold coin nos
held, he says but $4,000 QUO less than tn
whole cash reserve required by law, an
would be more, but for the high pric
e charged for transportation of gold coin. o
I, the question of silver coinage he takes tn
ground that the arguments made in favor {
c the accumulation Of silver under the existin
i law, ARE unsound in principle, and against II
d experience, because silver not being unifOrI
Q in value, is liable to deteriorate in value b
v the lapse of time and corporations, governe
g b the same motives Observation-Disclosures are, wi
o no. hoard up that which Is lab
e T. spoil or decrease in worth, and while Il
d law compels the bank and the citizen
receive all legal tender in payment Of debt
it does not require either to receive that {
= deposit which will net be received as readi
~ in return by the depostor. In his str OF
a, opposition to the present silver law he say
"a "On September 80, 1877, the treasury he
,r $l07 500 Of gold and 81, 425, 454 of silvt
-. or 95i per cent Of the former and g per co
At of the latter. 0n.November l, 1880 it hol
I, in all $40, 726, 95S of gold and S77757,3
10 of silver, or GA per cent of gold and 86 p
10 cent Of silver. Everything is favorable
bo the present time but tho operation of la
now in force will continue to reduce the &C
sld increase the silver. Any future secl
az tary of the treasury (you all know there
NJ danger while the present secretary l
'9Sgg mains at the helm, by trying to force sily
. upon the holder of bonds mstursd, or
aSo payment of legal tender notes, thereby
m Stunning that the silver dollar is not the 90,
an of the gold dollar, and by taking the Opt
An away from the holder Of the note, may 9
do day bring the nation upon the silver stal
nd ard, which will at once advance the price
nd all products, and place gold at such a ?
es. MUM that an investment in it at par would
I'm at least twice as profitable rs in United st:
IN bonds. Such situation is not satisfactory
ost any Intelligent business man. and no Of