New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-12-05
TILE NATIONAL EANKs.


United states silver bui0n..... "'54"'o'
Total. s5785si70l
THE NATIONAL BANKS.
The affairs OF the National banks during the current
year treated Of more fully in tile report OF the Con-
trollcr Of the Currency than space will permit herein II
gives abstract OF their Resources and liabilities for
each year since the National bank system went INTO
operation, together with statistical information for
series Of ycar drawn from official sources of the affairs
OF private bankers, saving banks, and banking nso-
Citations organized under state laws.
The number OF National bants organized during the
wear Is III. which Is the greatest number organized
operation j. 2,-63; NOR tlan as amy lcylon, date
They are located II every ate and organized Territory
of the Union. The returns made by ,HoV tnat on
October > ~ the present year they hla aS a@grate
ptal siS3 l0l.2l3; surplus, 1871 977l50; ~ ind-
amount, 81 23s,2 sG53i ana held specie. o2.oo7,77s
rhc number Oi banks whose cOtpOatr existence either
has expired or would nave expired II no hction La'l
been taken by their Stockholders, is eighty six. The
stockholders OF hty foir OF them, which nave been
placed in voluntary liquidation OF whose CHARTERS nae
expired by Imitation have organized new banks ~ the
same localities The Stockholders OF thhty banks Lave
extended their existence under the passed at tar lat
session q, Congress That net was we'll adapted to the
Tds corpotc existence Of 30 other banks win cTpiss
before February -. 1888 Nearly all OF these have
given horc OF an intention To s,- extended period
OF existence, under that act.
The report also tell, the total amount Of coin and cur
rency In the country and tine distribution OF acm In the
Treasury. in the banks. and among the people. Since
the day o. rcsumptiom-tne Isl day January. ls12-
n, of 80. g3G o7 in All Of ~ 49, g:,
The aggregate circulation OF the National hanks lad
steadily increased for series Of years The action Of
existing banks. in masking deposit for tire ultimate
redemption their circulating notes lcson"d the
year the amount o. those notes Tor which those banks
are liable, by the sum OF TJ,t1N,~JI.
TROUBLESOME CONTRACTION AND SUGGESTED
REMEDIES.
The National banks hold 5000, 100000 of United
States bonds which payable at the pleasure OF tho
/, III o.
amount outstanding of this class of bonds II the public
debt is TO be paid rapidly rs 1t has been Of late II Is
likely that all OF these bonds VIII be paid during the next
three years Whenever they are called for payment,
banks holding Them to keep Hp the circulation OF
their notes, must either deposit lawful money in tho
Treasury amounting in the aggregate 10 at least
300 100000, purchase and deposit there other
United states bonds The cheapest OF those bonds
a high premium in the market
II il estimated that tho profit from the dep sit of
those bonds and tile taking and issuing the circulating
furnished thereon when The lawful rate Of Interest
Is high per cent If not more than thrc-fiths Of
per cent IL Is supposed that this is moi enough to
lead the banks to buy them largely Tor the purpose O
Is there not reason for forethonght whether with this
embarrassment, the bank circulation will not
largely retired TO trouble the business community!
Nav. arc suCV.sted of forr,talln troubr sou,. con
traction the circuatiOnOne reduction or abolition
rate Of suc 70 90 per cent of the current market value
the bonds; another that the four and four and
half per bonds be refunded into three per cents
upon terms satisfactory % the holders. thus bringing
into market class of bonds purchasable at lower
rate; and another that the Treasury Department is
empowered TO take IA basis OF circulation, the three
sxty-iyes of the District OF Columbia.
The Controller gives statistics OF the taxation of the
National banks, and again recommends repeal OF the
upon capital and deposits In which
the Secretary eoncnrs me capital invested IN National
banks is The taxes assessed upon them by
the United and the States for the lSSl
SI71s9OsO, being at the rate OF 81 per cent Tho
amount assessed by the United states IS one half
of tho whole repeal Of the laws providing 1orit
would still those banks liable 10 an assessment by
thcStacs Of over eight millions OF dollars per anuum
The Controller Of the Currency has completed his
annual tables showing the amounts of i'ued states
bonds held by National banks state banks. savings
banks aud private bankers on the Ist OF Ncycmbrr
as security Tor circulation and fog public deposits and
other PURPOSES 96,52s 100 OF Understanding bonds
than the amount held on November 1881 and about
seven millions less than for tue corresponding date in
Banking associations other than National hold these
bonds as follows. state banks IN t%enty one Statcs
savings banks in fifteen States $2577s6,l42-total
Their has been during the past yeara decrease OF
about two millions in the amount held by state banks
and trst companies and an Increase OF nearly twenty
seven millions i'm the amounts held by savings banks
The amounts held In geographical divisions by these
associations in 1882 follows: Eastern States
SD 667,2lS; Middle States Sl97, l35259; Southern
States S2GS.350; Western states, S33G9,411; Pacific
States, S2O O10, l75-total S263,46o426.
These returns have been compiled from reports made
TO the officers Of tn different States, which have been
forwarded by them TO the Controller
The Understanding funded debt Of the United sta.es
on November ], Sl,4lsUso2OO; The total
banks and savings banks at the nearest corresponding
date could be ascerained was e26 which
amount is not greatly less than onr-ha OF tho whole in
teresi-bcarng debt
similar facts have also been complied from the returns
made by State banks savings banks and private bankers
to the Treasury Department for the purpose VI taxation.
exclusive the National banks, held an average amouu
OF United states bonds during tue six months ending
stale banks and companies, S232 1896 private
bankers, Sl4,s70 745-tOtal, $3.50, ll0,0"7
Thc amount ~ bonds given In the returns 10 the Com
mi ssner OF Internal Revenue, which is the amount
we'll %
moro than the amount obtained from the returns to
state ofccrs The difference II comparatively small
and the amounts obtained from the one source serve
corroborate the general accuracy OF the returns oh
tanned from the other
OVER-CERTHICATiON
At the last session Of Congress legislation WAS had 10
atom tho ovcr-cerhcaton by National banks of checks
ia form drawn upon them tSee chapter 300 of 1852,
section 49, That act Is amendment OF section Dos
OF the United states Revised Statutes which made II
pcnal 10 certify such check unless the drawer then had
ON deposit with the drawcc money to the amount Of it.
section 49, above cited makes it penal TO resort any
dovce or TO receive any fictitious obligation, whereby
to evade the provisions Of section 5,2Os, above cited
Since passage of section 10. instead OF the formal
cctincuon checks. some National banks have made
formal acceptance thereof Ihcy clam That TINS does
not break the law, and plant upon section 5l36 OF
limited States Revised Statutes wherein that section
allows the making OF '"nIacS anu inc usc OF powers IN
cIdcnta and necessary to the business of banking and
upon section 5,2O9 United states Revised statutes, |
Which makes 1t penal for bank officer To accept with
Out authority. whence, IL Is claimed the implication is
md uuou the from section 10 express pro-
hibition, OF making an acceptance. The question
mains however l. the making OF acceptance
o device. the receiving of fictitious obligation In
order To eyae the provisions OF section 52Os For
understood this Department that these acccpanccS
nre not nways made upon an amount of money actually
nm depost with the acccptOr equal tn that OF the check
Judrlng that Congress earnestly trying to stop
nrncc0 which IL deemed iraught with evil believed il
well 10 concur with the Controller Of the Currency I'm
admitting tho matter to the Department OF Justice for
the official opinion Of the Attorney General whether
National bank might lawfully make such accc tanccs:
md he
whether If the bank might lawfully make them, 10
should bc held, IN doing, within the bounds OF section
300 Revised Statutes United States, To the
OF its pald-up capital and II 1t might bc held.
WHETHER that limit al kicd 10 the gross the
a .Innlc LnDlL