Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-11-30

will be 20 rapidly retired az TO cause con-
fraction of the currency, which will affect
the price of commodities and create embar-
rassments in business; but there is now no
such pressing necessity for the speedy pay
nent Of tbe public debt as there
Is Tor reduction Of the redundant revenue.
II s ueIIeved Congress viii soon provide for
90 large reduction of the revenue that a
| sufficient amount ot bonds will remaiq Tor
.he secutity OF bank circulation. II the
| Whole public debt were reduced 10 uniform
rate OF three per cent, The present high
premium upon bonds would almost entirely
disappear, and the volume Of circulation
| would respond more readily 10 The demands
oI business. The temptation to sell such
| bonds for the purpose of realizing the
premium would ne longer remain. Ii il
shall be the policy OF the government 10
| accumulate revenue, instead of largely re-
| ducIng 1T, thus rendering If asOe1sHTy 10
continue the rapid reduction of the debt,
even II II is 10 be purchased at the price
fixed by holders, it is of the greatest impor-
lance that the basis upon which bank eur
reney is issned should be enlarged 80 as to
inclcde some other form OF security besides
government credit.
The comptroller, while he believes 1t is for
the best interests Of the government TO con-
| tinne The national banking system, subject
to tuch improvements az shall hereafter be
autnorlzsd by Congress, is, after all, Of the
opinion that il would be better that the cir
culation should dimIn nieh 10 volume than
that the issue should be increased at the
risk oil placing in the hands of the poorer
ciasses an uncurrent and irredeemabe cir
cnlstiou, or of giving to associations organ
tzed DT ppscruplous men an opportunity to
use an excellent system of banking for bad
purposes
Upon the subject of restricting loans, the
report Gays the attention of Congress has
previously been called to section 500, Re-
vlsed Statutes, which places restriction upon
loans, and TO the difficulty Of enforcing its
provisions. In cities where large anoHnts OF
produce are received and stored, il is rep |
resented Il is impossible for the banks |
TO transact this class OF business If |
restricted 10 loans in an amount |
not exceeding in any INSTANCE one-tenth of |
their capital. It ID true that the Limitation |
does not apply TO loans upon produce in |
translts, where drafts are drawn on existing |
values, but if the produce is stored, instead |
OF being shipped, large loans cannot be made |
except IN violation of the law. In such |
cases the comptroller has no means
OF enforcing -the law except by
bringing suit for forfeiture of the |
charter, and this course might result in great |
embarrassment to business, as well as loss to 4
many innocent stockholders of banks. IL is
evident that the law should be 80 amended |
as TO exclude from the limitation mentioned |
legitimate loans upon produce or warehouse /
receipts and come other classes of collateral 1
security, well as loans upon United States
bonds,
The comptroller calls attention TO the
great neglect of national bank officers" in
falling to stamp the word Counterfeit" or
altered" on worthless bank notes presented 1
al tnelr counters, - they are, required !
to do by law. He. also refers with
disapprobation TO the custom in many ma
tIonai banks c. issuing notes with printed
or iiihographed sigaaturss Of the president
and cashier. He also repeats his recon-
mendation that the Law i1posing a tax
upon bank capital and deposits and re1uir-
ing stamps on checks be repealed. State
laws imposing tax upon national banks he
also asked should be repealed.
For the year 1882 the proportion of divi-
dends 20 capital in the banks Of the United
States was 81 per cent. Of the dividends to
capital, and surplus OF IS per cent, and
OF earnings TO capital and surplus, 80 per
cent. One hundred and seventy three banks, !
having capital of $17,0000e0, paid no I
dividends during the Six months ending I
March /, 1882, and 2l9 banks, with capital /
Of Sc, ,0O0, 900, paid no dividends during the
six months ending September 1, 1882
Ihe estimated total currency Of the eonn- | |
Try November 1st appears TO have been more
than 81 ,4SS. 100000 which is S433, 100000 in
ekcees q the amount held January 1, 1879, I
and $lS6,OOOOOO in excess Of the amount (
held Two years ago, November lsi, 1880.
lhe gain 10 gold coin alone since the re-
sumption OF specie payments has been ]
sSS8 'OOO, 600; and in gold and silver coin,
'oS4,oOO.ooo' The increase in national
sank notes has been nearly $4,000 900.
No change has been made in the
'mosnt oil legal-tender notes out 1
tandlng; 1t remains at S346, ,68I ,OI6. The
anne causes which operated to bring
'6out the rapid redectioA OF the public debt 6
.Iso tenner 10 increase the circulating me- !
ilum. Large imports of coin in excess of I
xPorts, together with the products of the 6
mines, have filled the channels of circula-
Ion. The circulation during the past year
las undoubtedly been much larger than at
my period since the organization OF the 8
government. The per capita of circnla- q
ion is larger, and it Is probable its {
proportion 10 wealth lie greater than at any {
previous tifss. 1t is undoubtedly large {
nough to supply the legitimate demands of '
'usiness. and there is little doubt that the I
ddition to the coin OF the country since !
ne resumption of specie Payments j
las been III advance of the en- Q
atged demands of business. There has q
'een no complaint of the scarcity of money '
which cannot probably be traced to those '
ngaged in speculative business, and how
yer great the aggregate of the circulating 9
nedium may become, complaints of scarcity
Till always be heard frem those who desire I
rise ia prices. No other nation economies j
he use of its circulating medium as does @
his, and it is probable that but a slight I
nnusl increase In the amotint of national d
ank notes outstanding will hereafter be /
equired, provided exports of coin are not a
realty in exces, of imports, and receipts v
rom our increasing revenue in excess of 8
ne requisite reserve ARE kept in circulation c
nd not boarded in the treasury.