Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-12-11
OUR NATIONAL FINANCES.

of the Mountaineering Statistics OF
the National Banks-A Sensible Propo-
sition to Reduce Taxation-Silver En-
barrassment
The report of the Secretary of the
Treasury exceeds in length the ponderous
document submitted to Congress by the
President. The figures and salient fea-
lures were all covered by the message,
but the following points are little more
elaborated, and will be found of interest:
NATIONAL BANKS.
The report of the comptroller of the
currency contains full information in ref
erence to the affairs of the national banks.
1t shows that on Oct. of the present
year there were a greater number of
banks in operation than at tiny previous
time, the number being 2,132. Their re-
turns show that they had on that day an
aggregate capital of s463 81, 1855; sur
plus, s12S, 1867; individual deposits,
sl,O7O, 997, 531; loans, 81, 1863, 023 1903, and
specie, s1l4, 334, 1856. The aggregate cir
culation, $3.50, 344 $50, as well as the
amount of loans and individual deposits,
was much larger than at any time since
the organization of the system.
The corporate existence of 396 banks
will expire previously to Feb. 25, 1888.
The comptroller recommends that an act
be passed authorizing any national bank,
at any time within two years prior to the
expiration of its corporate existence, to
extend its period of succession by amend
ing the articles of association by votes of
shareholders owning two-thirds of the
capital of the association, if such associa-
ton, upon examination Of its affairs,
shall be found TO be in satisfactory con-
dition. The law provides that the comp
troller shall issue his certificate author
ling any banking association to COM
mence business if it shall conform in all
respects to the legal requirements.
Banks may, therefore, under the present
law, continue their existence, and, in the
absence of prohibitory legislation, many
of them undoubtedly will, on the expira-
ton of their corporate existence, organize
new associations and obtain from the
comptroller authority to continue bust
ness The passage, however, of an act
directly authorizing the extension of the
corporate existence of banks would, in
many instances, save much labor and
avoid distribution Of the present large
surplus fund among shareholders, which
would result from liquidation, and the
passage of bill authorizing such renew
al of their charters is recommended.
Under existing law any national bank
can, at any time, upon deposit Of legal
tender notes or coin with the treasurer of
the United States, withdraw bonds held
as security therefor, and leave the treas
ury to redeem an equal amount itself.
This privilege was givel the banks evil
IDENTITY for the purpose of securing proper
elasticity of the currency, and in view of
the rapid payment of the public debt it
would seem that this privilege is neces-
sary for the purpose of facilitating re-
demption of bonus held by banks. But
should many of the banks, through ap-
prehension of adverse legislation, or from
any other cause, desire to retire their
circulation, the deposit of such amount
of money with the treasurer might cause |
sudden contraction of the currency and
grave embarrassments in business. That |
apprehension of such action is not ground
less is shown by what took place on the
passage of the per cent. refunding bill |
by congress last session. If it is thought |
advisable, congress can enact that natl |
onal banks be prohibited from retiring |
their currency except on previous notice |
to do so, the length of that notice to be |
fixed by law.
The comptroller gives official lnforma-
ton in tabulated form of the proportion |
of coin, paper money and checks used by |
the national banks IN their business in |
each state and principal city. Returns |
have been obtained from the banks, show
ing their total receipts on two different |
dates The total receipts of 1866 banks |
on June 80 last were 1884, ia ,016, and of |
2,132 banks or September II, $685.
233, 49, Upon this latter date the re-
ceipts were composed of 81 ,07S, 0A in gold
coin, $500, 302 in silver coin, and S13 ,026,-
ST. in paper money; the remainder,
amounting to s277,626, 1862 being in
checks and drafts, including s6,593, 1897
of clearing house certificates. The pro-
portion of paper money and coin was SO
per cent, and of checks and drafts GAL
per cent. The receipts of As banks in the
city of New York were $165, 100000 and
the total percentage of coin and paper
money was - per cent. only, and of
checks and drafts 9S.S per cent. The re-
ceipts of 237 banks in sixteen cities, in
GLIDING New York, were S243, rs, 1874,
and the proportion of checks and drafts
was 96.7 per cent. The banks elsewhere
reported receipts amounting to $50, u.s.
lS5, in which the proportion of checks
and drafts was SIT per cent. These re-
turns show how small an amount of mon
ey actually enters into large transactions
and how much its use has been superse-
ded by the machinery of banking with it's
modern system of checks, bills of ex-
change, and clearing houses. Full stats
tics are given in regard to the taxation of
the banks, from which it seems that the
amount of taxes paid, both by the nation
al and state banks, to the federal govern
ment during last year has been greater
than in any previous year, the total
amount collected being SIS, 1885 from
the former, and 50, 762, 2OS from the lat
ter. The taxes collected from the states
have also increased, and the amounts as
sessed are alleged to be disproportioned
to the amount collected upon other mon
eyed capital
REDUCING TAXATION.
1t is matter of qualification that the
business of the country so thrives as to
endure the onerous taxation that is upon