New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-12-05
viii cease during each year prior to 1891 is 1OsO with
canltal and circulation as foIlows:

Bills will undoubtedly be brought before Congress du-
ring It's present session for the extension Of the charters
of those banks corporate existence is soon to ex
pire
The principal reason urged by those who favor dis
continuance OF the National banking system Is that
money can be- saved by authorizing the Government to
te profit banks upon then circulation s excess
i've. Sixteen years ago the banks had on deposit as
secury for attenuation 276 miOnsO " dollars IN United
States bonds OF which amount nearly ZOO millions was
in six per cents and 90 millions IN hye per ceut he
hanks now hold ~ millions iOrraudaha per cent?;
81 millions Of four per cents; III millions OF threchhd
and also go millions OF Pacific Railroad skies. The re
naming live per cent bonds held by them amounting IN
The average premium borne by the per cent bonds
during the last months has been about 10 per cent
and at this price they net 10 the holders less than i2
per cent interest During the sine period the ~
per also have for considerable portion OF me
time been worm a premium in the market OF from 10
2per cent mat the bankSd not AT tue prescnte anu
it probable that they will not for long time to CONE
receive an annual rate Of interest IA great as
three aud mai per cent upon the United states bonus
Uuil the year 81 the banks continued To receive M
either i've or si pcr cent while the net
ceVed, already stated, does uot exceed three anu
on 10 Der cent Of the amount of bonds thus deposited
by the banks amounting 10 S39OOOOUO they receive no
circulation, from this portion o. their Dnhd uco
they derive no benefit or advantage possessed by
any other class Of bOndhOlder They pay tax OF one
per cent upon the amount O their circulating notes o
staning Keep on deposit with Treasurer amount
of Lawful money equal TO per cent OF issues
permanent redemption fund; aud also reino 70 INC
United states tue expense OF redeeming their notes al
the Treasury. The actual net profit upon circulation;
based upon different classes OF bonds, and WIN rates 81
interest on bank loans varying from 10 per cent -
lls per cent to l q per cent.
THE TAXATION BORNE BY BANKS.
The proportion OF taxation National and state I'M
posed upon the banks has been shown to be much
greater that upon any othet moneycd capital being
aggregate equal to average rate Of per cent
upon the amount issues. The amount OF interest
I,v ha han United IT bonds
hcd by them has IN late years gradually decfrascd anu
the profit upon circulation mas Ihtrrnl u'tn I.,
The minimum, such proht cannot now AT edst
mn if tbe Naoua Bank act has conferred upon the
a.socou ORGANIZED hereunder the right 10 issue cir
cuaIIg notes, 1t has placed them al u.urt lhe opera
non OF "A uniform system and has also surrounded tnem
with numerous restrictions, among winch are the iooW-
Tine cauaI stock must he fully paid in, and n portion
of rbs capa-uot less IL any case. than >JOOOO-must
be invested in United States bonds sud deposited with
tno Treasurer II the capital stock Of an association De
come, i'm AIRED 40 any tluc 10 must be- prompuy re-
stored. Tuor circulating notes must be redeemed al
par not only az te pace o l7Sut' Uu' az t"c treasury
Tne bInk- mus lend on personal security only, and
Uot upon that real estate, ana pny 10 per ccnt 81 hof
capltil may ice loaned upon accommodation notes. OF
utacr than actual business paper 30 my one reT-or'
company, uru or corp 'rioH lh} cannot i'hd money
on iueir circuatiS notes or uiyh -harr- 81 ueH
stucs, ANA must take iA' uutt7 90, ever! o,H'' '
u"na lauN ia pa' iurni OF d'u H'o U" l"'' -. ilt
Oh interest ,ed mast nos d. greater iah tht rare
provided by .aws " tie several states ia "h'eh
Inc, mus, payta or duties % tho Government upon
their capital clock deposits ana Circulation ana To- tAr
Stat,~ tncy must pay -l'h taxes s are p.-ri n "tI
muucyed capital Incy are required 70 Keep ON hand az
reserve, u com or other iawIu money, certain ,ror
portion OF their deposits There mubi DO u" preference
OF creditors 10 cases OF insolvency.
shhrc"oii ger. are 'Iu ~ SD'7''.' LOT az
couiric.-, denis ana 'h tt'l.I'g VI | h7' ,i. on W
rue extent OF par value o their STOCK ~ addition 10
tue amount csien ~ -ur shares The bduhs are ro-
quircd before the dt'aI''l"H o any uIN"'"h' N'"' an
ualN to Increase their surplus fund uy au nuuut equal
W onct-ntn their earnings ioI the preceding Fix
months, uutu It sua! equal twenty per cent OF ihrF cap
tn.
loss account before diyIdcuds are pad Ia other ""5-
dividend. must Dee earned before th} are drcl'red ran
ana Ia nue. , 49, and nj ,I.. Lr l..a.G ~ t,' *
pcn-e OF the dsOclaOn making the same other state
Homa' I 80, bc ref ,Tn, .I, -f ri-ts A. I,.r
cncr to business Of any association may Dee required
o. as! b NV d,av L. comply with I'M, "a, t.rrriof
The hanks are subject to personal examinations, ami
hank usulvcut Receiver may les At once APP
pointed. uirector- knowingly yoaie, permit &"
rights and privileges OF the BANS are thereby iorrit
ana the directors held personally and lld'IdAaly
responsible Tor tl damage sustained By 4EJ person ~
consequence II such violation.
lrIs recommended THAT an act he passed during the
present session authorizing any National Bank wiz tur
approval ot the Conoer, al any time wtuu two years
pror the date OF tnc expiration o. s CORPORA, exist
cucc To extend t- period u succession flr "oIty years.
py amending its articles Of association Tue Du. may
provide that rucn amendments must be- authorArdht
Inc Of snAfchoiurIs owning not lees .aan Two
thirds VI the catii OF the association the amendment
10 he Ccrtncd 10 the 'ohtIoHri oI h" currency oi l'
president cashier verified by the seal "i the a-DUgI
valid ulll the TUl'rIr al
thereof shall nave bteh ob.hi""I' ana DE- snail nave
gwen tue ASSOCIATION certificate autnurHuE 70 to
coufuuc ITS business under rucn extension E'sppu-I-
bty for the extension OI tIc corporate existence p tue
banks will thus Iu measure icrt WH iur Controller,
aud ne can require rucu au examination 90 re- affairs Go
he made PRIOR "a granting tbe extension may seem
him proper in UrdCr To- d-c,Iiah "a, capital -iugA Va
intact aud all the Isscts oil the uauk IN suusiIetuIy
condition. 49,, ,,.
syrt,n the large surplus when tuc National hams.
have hoT co. M - ,|,'I7' ana
It.t INV lodi
many the safeguards dud restrictions OF tuc present
cituer be abolished OF so changed by tue varying leg
.ltvu Oi tuc state as 40 uu practically Ell little
value IN comparison with inc present homogeneous
system. ,,
National hauKs shall hr extended, u the advantages al
Inc cXIaug system Will De preserved subject To sucn
me circulation OF the banks WnIcn j. prime m ob,r-
ton urged against the system, w under existing laws
as the luulIr dcut shall be
The whole number 81 National bauks ~ operation on
October / last was 2,lIS. or Tins number, 3J3 were
as-OciationH having capital OF $4,000 cacn lGi lad
captal oil over 100000 aud css tndu 90 OOJ and the
capla of 500 Dauks ranged nom rlOOUUU to 900
each. THc minimum amount Of bonds required be- ac
posted by banks Ul the capital named Ouc-tnIid oil
inor capital, not lcsa IN any case Than $4,000
Inc minimum amount required by All other banks Is
$4,000, and least amount Of bonds which, under
cxstlug laws may he dePo-cd by - lis banks now
in operation, IA about 972tiOuOOU IL rs probable that
from 100 To 80 millions oil UnItd STATE, bonds vuud
10 be deposited WITH the Treasurer by the bauks
which may be established during the next twenty years
IL il, therefore, evident that the National BANKING
ten may be continued without change TINS respect
io1nany years even tine bonded debt OF the United
states shall, during that Time continue be REDUCED
rapidly AS IL mas III the pact year me discussion
Inc question the KIND OF circulating note, gurn
latter retired, Is postponed Tor the present. a. It Is
impossible 10 fUcsec the events when MAJ occur TO nj.
| feet tliat question WITHIN the next few years.
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