New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-08-12

equivalent to coin in every part the land be made
al @e point S 81 S s%Scst TO
general national control and regulation do nor pro
pose to spend the valuable hours of an association
OF bankers in discussing the intrinsic absurdy OF any
form OF notes to circulate money; IN which inc ,
name rom whatever source derived all sneh notes
care only evil and that continually me hgner t ,
authority that emts Them the greater their '
We are then finally reduced commercial assets as
the original and only remaining basis OF currency ISSUES
liable foundation Tor the community to rest upon All
financial yaluS consists rsdn q" ace s constitute
the real capital OF society upon theIn 1sunu, S %
Government draws its total strength anu vitality, ana
the share OF them which can be e9ntIlou.ed TO II IN he
possess. All reserved forces Of the country are In
these articles subsistence and comfort and commerce.
That most independent that has the most OF
them ana 20 ir as o bank Is TO ASSIST jG IN b
exchange and distribution OF these productions both
that ba,is soundest and its power most effective whose
assets are all composed OF notes drafts and obligations
of the people, that constitute title deeds To those
articles most demanded for the subsistence and
conyenience together with a due propcrt ton
OF ready money, into which all those things are ex
country aud in the civilized world are commercial
currency fully demonstrates the superiority of the COM
these Ql The pledge of bonds security circulating
notes ( the respcnsiSiy OF shareholders for another
of the banks condition by requirements of re-
ports; l4 the inspection by Government officials ~
The regular and central redemption of all the notes and
The retention of coin deposit for that purpose. With
the exception of the FIRST these reasonable prac
ucable and just regulations They may all be preserved
TEN. In place of the security now required the Cir
cuating notes may he limited to equal to half
An extra rate for ever day dav tbat fhr a @
deemed in cOn after presentation AT the home central
Office with the prohibition OF any circulating in
tions. These win perfect security
the public, and are sufficiently severe to prevent any
notehoder preferred creditor the capital and assets
eas Ss hs as S6 s ' be
free to employ them at it's discretion for business
purposes controlled and admOnished by the ceaselcss
requirements ofShe central coin redemption. Thus VIII
such commercial will keep the entire fluid in
constant useful aud heathu activity and give to the
country currency so representing and keeping pace
ITS moving S w IN tine Very nature
MIR. KNOX ON BANKING AND CURRENCY.
The Hon. John JAY Knox then read long paperon
The Banking and Currency of the Country" He
said in part
The great majority of persons-and, may say, OF
bankers we-have little study of bank
statements in which they personally interested
One Of the successful bankers of the country said
10 me day, when had given him the
interesting which had been recently collected "A
animation Of such Objects While osher people are study
ing your tables am making money" On similar oc-
TINS whole subject OF finance is TO me incomprehcns
Die cannot understand it, and If asked for my views
financial subject, should reply by giving the we'll
know answer of the seochman who, when asked for
listens dnna ken what the chie wha speaks means and
Shen the e9iei wha speaks dnna ken what he means
:, The average number Of depositors in 600 savings
amount OF each deposit was $3.50 r. Later statistics,
Revenue show that the average deposits of the
banks 900 tor the year ending May 80 ISL were
the total number Of depositors more than $500 600
composed on an average Of not less than ye persons
SO thai it probable that there at least 900
tional and state Banks and private bankers now hold at
a. you Know oten transferred by check from one de
Postor to another and it therefore reasonable to
6 q the 10 of sS country are directly or in
other banks and bankers.
LOANS AND DEPOSITS NEARLY EQUAL.
The deposits of the banks and bankers Of the United
States, including savings banks, were in May 1881
about 50 0Oo00o0 and if the aggregate loans of the
National and state banks be compared with their de-
posits it will be found that they do very largely diff
fer In other words, the commercial banks in the ag
gregate loan or invest in way their deposits,
yestment IN real estate, which they may be obliged to
take III the settlement of debts and for banking purposes
and for expense and suspense accounts. and the re-
serve and working fund of the bank The savings banks
eight hundred and eightytwo millions sSS1 S55 s9sS
They hold less than per Of their deposits ncud
lng their bank balances, reserve according their
loans aud other forms of investments while their sur
nnq IN r9 and o ener minor liabilities
represented by real estate and other miuOr aseets
ercal banks and private bankers. together with the
loans real estate and other Investments of saw
ings banks, had amounted, in 1885, according
timates, 70 more than twenty-five hundred millions OF
dollars, which also about the OF their de-
poss at that time These two items-one of them con
shutting resource and the other a liability of the
banks-wlth almost universal system of checks
oank accounts form the basis OF almost every business
transaction Why, then, should so few people under
stand, interest themselves bank statements
ana 4ah ,h similar at rary 6ecause the nstrue
political economy in the abstract, una ccompanied by
practical illustrations drawn from the actual operations
OF business The people and the schoolboy are inter
ested Ia such practical illustrations details hay
ing acquired familiarity with them better prepared
20 comprehend and appreciate the aggregate
the abstract principles deduccd therefrom an old
%elestabshed banker become Unexpectedly inso vent,
how quickly then the interest OF all persons is mani
Tested; alone OF those who in the bank
but of those who have not The creditor and the
rover the iaborer and the lounger unlimber their
tongues and talk finance more giby than the most pro
found economist; and the men gaher around
as active and numerous bees to obtain the material
meet loss and somebody to he Obliged TO pay; and
everybody, the world around, is deeply Interested
Those who must pay and those who must lose
The law authorizes the Controller call for state
mens OF the resources and liabilities of the National
banks and also Tor special reports, whenever in his
Judgment such reports necessary The most recent
special called for is asking the amount
currency and in checks and bills of exchange June
30 last. 10 which reference will made hereafter.
IreVlo returns made by the banks relation
the ulstrlDutton OF their bills receivable October 2
1879, and during the panic OF amount of their
LOANS deposits specie and legal tender notes,
anu othef Items were gwen at two different dates
m the midst OF the crisis, and the other day on
which currency payments resumed. Yearly reports
Tor some years have also been made of amount OF
taxes paid under the laws of the states This
Information can be obtained in other way, and tho
returns snow that the OF State taxation upon
capital ia the principal cities is from l 10 per
CENT and in the States outside Of these cities to
pei cent ana thst the National and state taxation
combined varies in the several States a little more
than per cent to over per cent. These abstracts,
carefully compiled each year from reliable staements
exhibit with force than words express