The weekly miner. [volume] (Butte, Mont.) 1878-1881, 1881-12-13

Inc TcCORUlZ6Q dDltSL uu1liCiOIS ~ tnC S0uh-
try. The total number of National banks in
operation Oct. LIST, we're 1921. The estima-
ted losses to creditors from failures of banks
during the eighteen years since the passage o!
the act, was Sc, $4,000; average annual loss,
about S349 900. The Comptroller calls at
tention to the opportunity bankers have for
the arrangement of the circulating medium.
Bonds de posted by national banks to secure
circulation have been frequently called by
the Secretary, and the banks may therefore
have occasion to withdraw them after the in
terest has ceased, and it 10 important that
they continue to have this privilege on de-
posit of lawful money As nov provided by
Jaw. If banks, either National, State or
private bankers, should At any time desire to
derangs the money market, they can do so
independent of any legislation by Congress,
by calling in their demand loans. Such a
course would be more easy of accomplish
ment than depositipg legal tender notes in
the Treasury, and would be much more
effective. If, however, Congress shall deem
it advisable to prevent the banks from depos-
ting in the Treasury for this purpose, larger
amounts of coin or other lawful money, then
Section 4 of the act of June, 20, 1874, may
be so amended as to require those desiring to
withdraw bonds to give reasonable notice OF
their intention before completing the transac-
ton.
The comptroller, without suggesting legis-
latiun, merely points out where il is needed.
We cannot withstand the power ane infu-
ence of the national banking interest, but he
suggests wherein the system can %perpetuats
itself without prohibitory legislation. The
banks, under the. present laws, renew their sx-
istence if they so desire, and in the absence
of prohibiting legislation, macy of them I'M
doubtealy will, on the expiration of their
present charters, organize new associations,
will elect near y the same stockholders as be-
fore, aud will then apply for and obtain from
the comptro Ter certificates authorizing them
to continue business for twenty years from
the respective dates of their new organiza-
ton. Certificates in such a course of pro-
cedure will be perfectly legal, and indeed,
under existing laws, the comptroller has no
discretionary power on the matter, but nee
e~sssrily sanctions the organization of such as
sociations as shall have conformed in all re-
spects to legal requirements.
The Democratic platform adopted at Gin
cinnati last year declared for: "Honest
money-the strict maintenance OF the public
faith-eonsisting of gold and silver and paper
convertible into coin on demand" This was
esteemed hostile te the national banking sys-
tenn, and Democratic stockholders in those
institutions were assessed for a campaign
fund to be used in promoting The election of
a Republican President. 1t is a power in the
land that dominates Congress, and cannot be
easily overturned until the bonds of the gen.
eral government, which form the basis of the
system, shall have been completely extin-
guished. The only point to which the Comp
trellsr directs attention is tbs danger from
disarrsngsment of the currency through con-
traction which may be accomplished by the
withdrawal of bauk circulation. He states
the increase in the circulating medium to be
$4,000 900 since resumption. This consists
of coin, gold and silver certificates, national
bank notes and legal tenders. The prosper
ity of The country indicates that its present
volume is commensurate with the business
wants Of the country. If any large portion
of il should be Immediately Withdrawn from
circulation ~financial distress would inevitably
follow. 1t is important, then, that the VOL
ume should De a fixed quantity, to be affect
only by the requirements Of business.
A matter intimately connected with this
but to which the Comptroller does
not call attention, is the profit arising from
and destroyed currsncy, the advantage of
is row gained By the national banks.
The November statement of the public debt
shows that the natuved bonded indebtedness
Of the country Is over $l1 100000. 1t is all
over eight years past maturity, and is proba-
bly, lost. The fractional currency is carried
Oh the books at nesrIy $4,000, 00O. Tie
treasury books haze bsen corrected by est
mating over S7,UO0,05O lost or destroyed, but
.he probability is that almost the entire
is Of thai character. The debt of
he United States bearing no interest is 1884,
10000. The probability is that at least one
half Of this amount will never be presented
for redemption. II requires but a curssry ex-
animation of ~tnauciai matters to show the
immenserproft arising from this source, flom
the government aud people should de-
the full benefit and not private corpora
lions.
The types made lis say yesterday that the