National Republican., 1882-12-05

THE NATIONAL BANKS.
Upon this subject Secretary Folger says:
The affairs Of the national banks during the
port of the Comptroller of the Currency than space
will permit herein. II gives an abstract of their
natlonnl- bank system went into operation, to.
gether with statistical information for series OF
years, drawn from official sources, of the affairs of
private bankers, savings banks, and banking as
soclntions organized under State laws.
The number OF national banks organized during
the year Is III. which Is the greatest number
organized during any year since 1872. The num-
Der Of banks In operation is 2,269; more than at
State ana GRANTED Territory of the Union. The
returns made by them show that on October 3 OF
the present year they had as aggregate capital
deuosits Sl,122472,6s2; had made loans IN amount,
81 23S 2S6, ,524; and held in specie, sl02, ,S577!s
TIE hnm6er OF banks % wh9se corporate corp eS,senSe T @
action had been taken by their stockholders is
eighty-six. The stockholders of ffty-iour of
them, which have been placed in voluntary liqui-
dation or whose charters have expired by limita-
tou, have organized new banks in the same locali-
ties, The stockholders Of thirty banks have ex.
last session OF Congress- The act was well adapted
TO the purpose intended.
The corporate existence Of 305 other banks will
expire before Febrmry25, 1883. Nearly all of these
have given notice of AN intention to seek an ex-
tended period Of existence under that act.
The report also tells The tOtnl amount of coin
and currency III the country and the distribution
OF them in tue Treasury, in the banks, and among
! the people. Since the day of resumpton-the list
day of January, ls70-iherc has been IN increase
in gold CON of S2SS 7J5,33O in silver coin OF $780,
I50,5S2; and ~ nationnl.bank notes of SSS,9S6,-
| 0IS; III all, of Sil3 4Sl ,y35.
! The aggregate circulation of the national banks
had sltauily increased for number Of years.
| The action OF existing banks in making deposit
for the ultimate redemption of their circulating
| notes lessened for the year the amount of those
notes ior wnicn those banks are liable by the sum
| Tue national banks hold $4,000 900 of United
States bonds which are payable at the pleasure o I
the wnule amount outstanding Ut this class of
bonds. Ii tdc public debt is to be paid as rapidly
il has been OF late. IL Is likely that all of these
/ bohdS will be paid during the next three years
/ Whenever they are called Tor payment, the banks
holding tueE. 10 Keep up the circulation of their
notes, musy either deposit lawful money in the
| Treasury amounting i'll the aggregate to at least
| s.0l,CCU.0OO or purchase and deposit there other
| U1eu states bonds. The cheapest of these bonds
are nv high premium IN the market
tits estimated that tue profit from the deposit of
! those bunus aud tnr taking and issuing the circu.
! la,ing notes furnished thereon, when the lawful
| rae Of interest is high as per cent, is not
more than three fifths OF per cent. II is sup
| osed tnut tIis is not enough 10 lead the banks to
buy them largely, ior the purpose OF securing cir
CliltOn.
Is there not reason for forethought whether,
! with this embarrassment, the bank circulation
Will not be 81 largely retired us to trouble the
business community.
! Mays are Suggested of forestalling a trouble.
some conIrarti,!i OF the circulalIon-one a reduc.
| li,n or Abolition of tue tax OH circulation; an
! other an Increase of the rate OF issue To 90 per
| cent. of the current market value Of the
| Ccul UOnds be refunded INTO per cents. upon
| terms saliSiac,ury ~ Tie holders, thus UiugIng
! lower ratv; and another That the Treasury De-
| pnrlmcnt lie empowered to lake, AS bnsls of cir
| GuatlUn, t"e so bonds OF the district of Colum.
/ bin.
| Tne Comptroller gives statistics of the taxation
| of The national banks. and again recommends a
! repeal vi me lax upon capital and deposits, III
] n lAt.I NH
Tue capital invested III nptiOnal ban ks is Si623il
'-''. 1lc axe assessed upV" uiein by the Unlted
States states loT lhe year 1881 were 81, ,lS9
$50, being 1T The rate If 81 per cent. he amount
nssessed by the Uuied States is near one. half of
the whole. ~ repeal OF The laws providing ior it
! wOulI sill leave those banks liable 10 an assess.
| ment Ly tie States ol over seOOO,OOU per nnnum.
| The Co .ptrullcrof the Currency has completed
| his annual tables showing the amounts OF United
banks, savings banks and private bankers on the
Isl OF Novenuer, leS2. The national banks held
and fIr public deposil and other purposes, S396,
I2S, 40 interest bearing bonds OF the Uni ed
| States This is nearly s30U00,O00 less than the
amount hcid TN November l. losl, aud about ST.
U000O. icss than for the corresponding date in
/ 1850.
Bunking ASSOCIATE ons other than national hold
! these D,nds ~ follows: Sttte banks in twenty
h onc states, ss,iS9,l12; uust1 companies IN five
sgs siG SeylnGs @ s banks III fifteen States
| IhrIr la, been du. ing the past year decrease
cI about Two millions in the amount held by state
: uNNkS hl.u trust anu I'LL Ol
,alrly twenty-SeVen millions III the amounts held
/ by Si, iGs laik'.
'Thc amounts held in geographical divisions by
these ussOcil ions in 1852 were as follows East
,.p Stale,. ~ GO124S Middle States sly7 1856 230
Southern States $50; Western States 3Gg ili
pacInc States, s-O,OlU, l75-Iotal, S263, ,46O,I26.
| 1Lssc return, have been complied from reports
made to the officers of the different States which
nave been forwarded by them to the Comptroller.
The interest bearing funded debt of the United
Sies Was on November IL AIS, ,OS0 200. The total
amount OF bonds acid ~ the national banks, State
bank, and savngs-bIn ut the nearest corre-
spond ny daG mat could uehscertatned, was s659-
yoo,s2j, WHICH amounts not greatly les, than one
ialt OF ,nu whoe interest bearing deot
! similar luctS have also been compiled from the
| IetulIIs made by state banks, saving banks and
| private bankers 10 the Treasury Department for
! The purpose vi tuXu,iuif, shown that the banks
| and blnkels of the country, exclusive OF the ma
| iiOuHi banks, nclu an areT"Sc amount Of Unied
| tales bonds during the SIN moGtls ending May 81,
1889, follows Saving banks, S2l20 02S, ,7S2; Stale
! anks aud trust conpunIes, s232ll ,43O; private
lanRers, sli,s7O7l5; Total, $50 ll0,0o7.
| 1he amount oi Londs gwen III Inc returns to
| the commissioner OF Internal Revenue, which Is
| The amount invested III Uni ed States bonds and
inny ncluuc the premium as well as principal of
The bonds, is SIG $50, go more than the amount OBJ
laincd from the returns TO State officers The dill
! ference Is comparatively small, and the amounts
ubtuned from the one source serve 10 cOrroborale
the general accuracy Of the returns obtained from
| the other.
AT the last session of Congress legislation was
| had 10 stop The over.certificntOn by national
| banks OF che cks, ~ iorn drawn upon them. (See
en- per 30 Of !So!, section 49, That ac! IS an
umrI;4n.ut If seC,iou 520S OF the United States
| REVISED SJaIucS, which nude it penal to certify
/ such check unIcSs tic drawer then had on de-
| post with the druwee money TO the amount of it.
eciOd H. aDoSe clteu, makes II penal to resort TO
any device, 10 receive any fictitious obligation,
Whereby u cvade the provisions of section 52OS,
above cited. since the passage OF section l3 in
| stead OF tue formal ccriiiCutlon OF checks, some
national banks have maie n formal acceptance
| thereof. They claim mat this does not break
| the law, and plant upon section 5l3U OF
! United states Revsel Statutes, wherein that
! 5ecli allows TIVE lnuklng OF contracts
and The use OF pnwc,n Incidental and necessary to
! Ihc business of banking; Una upon section 520y,
/ United S.ntes Revised Sialues which makes IL
penal for bank officer To accept without author
lty, whence, IL is claimed, the Implication is that
| iuF; ana upuu the absence from section IL OF an
express pr 'niblIlun OF making an acceptance. The
/ question remains, however, is thu maklng of ihe
Lccc ,,lahcu II resort IT, device or the receiving
Uf u fictitious uUdguton, in oider to eyade the pr
/ Visions OF section J2OS? For II Is understood at
| this department that these acceptanCos are not
| Always mHue upon AN amount OF money actually
OH deposit with the ncceptOr equal TO that OF the
check. Judging that Cullgress was earnestly trying
to o. praCl!ce which it deemed raught with
evil, / believed iC well to concur with ttIu Comp
| trUier Of the Currency III submitting the matter
to the Department Of Stice, for the official opinion
| OF the Attorney Gen raj, wuelhcr a national bank
| might lawfully make such acceptances and, as
the amount OF Them Is supposed 10 be large,
| whether, II the bunk might lawfully make tnem,
IL should be held, In doing, within the bounds
Of section 300, Revised Statutes United States 10
the one-tenln OF ts pnu-up capital and, II II
| might Be 80 held whether that limit applied TO
the gross amount OF the nceeptances, OF ~ single
| acceptance. (See section 52O2, United states Re-
| Nked StututeS) The Department. of Justice has
made reply TO the communication of this depart
IneuI. Tue opinion OF the Attorney General is
| that 20 write the word accepted" across u check
is 10 the same eiiect as To write the word good