National Republican. (Washington City (D.C.)) 1872-1888, 1882-02-11
NATIONAL BANKS.
THE EXTENSION OF THE CHARTERS
An Interesting Report from the CommIttse o.
Banking and Currency OF The House
Conclusions as to the Wisdom OF
the Proposed Legislation.

The Committee OH Banking and Currency Of ths
House has prepared bill relative to extending
tho charters Of national banks, which will be re-
ported TO the House. A very lengthy and intercat-
ing majority report accompanies the bill, In which
the committee discusses and defends the national
banking system. The report says "rhe national
banking system was established by act Of Congress
February 25, 1863 It's existence Of twenty years
covers periods OF business depression and pros
perlty, of war and Of peace. After this test
Of score Of years, the system can no longer be
regarded as an experiment The report then re-
hearses at some length the circumstances under
which the national banks were organized and the
work they have accomplished in enlistlng the CO.
operation and interest of the banking oapitalissof Of
the country for the maintenance Of the public
credit and for the appreciation In value OF the
Government securities, and claims that while thu
necessity which called the national banks into ex-
lsence has ceased 10 exist there are other aud
greateradvantages accruing from tho system which
| still warrants their continuance.
THE ADVANTAGES nEsuIr
from the work Of over 1000 institutions scattered
throughout the land In facilitating the business OF
their localities and In supplying the people with
circulating notes absolutely safe in the hands of
holders and current without loss or discount at
every point within the geographical limits OF the
| Union. BY the terms Of the national banking act
was limited to ihe perod d Of twenty years. THIS
| limit has been reached. The charter of one as
soclatlon has already expired. During the year
| of aos hants viii ier,njnate Tbese hants have =
capital of S90910.750 and bank-note circulation
OF 500 1609SO 1t Is apparent that some definite no.
ton should be taken by Congress without delay.
~ there is TO be legisation extending these char-
1T SHOULD BE KSowN by THE BANKS
at once, and ifsuch legislation Is deemed iuexpedI-
| ent the decision should be equally prompt II
has been suggested that in the absence Of legisa-
| tion extending charters or discontinuing tho
| national banking system that the associations
compelled by limitation TO go into liquidation
under present laws through tho action q such
socintions under different names, but practically
securing continuance of present organizations.
The committee. however, believe there are positive
advantages attending the extending OF their
| charters which cannot be gained by any reor-
ganization Of them under the most favorable cir
eumstances The national benks hold undivided
,uo,,, qu t dyos siei m ono naS W nein .
for his ,nd Of nndividsd ee ry,ngs ,arv ,n,nv =,
,b h, iu,u nia VI ,a 49, very niy y.
sessy es SSEr mst @fo nave oeen unable 70 nave sue
N'''-' rur rrx,xc,,, n,v,srr,s
| s,,nI I'M fiNnNoiAL N M pisNhLS uu
anu losses ioIiowing the pane o. lS8 During the
inc national banks through the FIXTURE OF debtors
20 pay tner oDlgatons w, aggreSaisd sSo,StSo0a.
| by the f,nd Of undecided earnings that no scrioa
conseguences IolloWe1. Ihe REFUSAL or neglect 70
exteha exlstng 0rganlzatlons comgsls the DIVISION
s ,viii s,a AZ new Hann
capitaI and with less ability to meet Iossea thar
| The hanks whose nlnces tbev taLa rho rerort
then recites the Sdyantneest 10 resnt from oontnn.
ing The present system and dlsposes Of the obioo.
| tions which have been urced AGAINST N '
| nv co,,-r,,,,,T,,,, ,r,,,,n ~, 80,
| pt 1, I-VNiiNoiN" - ihhiH ChAhIEN
| banks whieh nave galned'a good reputation VIII
reap the advantages therefrom, the expenses and
| lhG0nVenlences lncident 70 a new organi2atQp
VIII De AVOIDED While the trust funds invested In
| nationaI- pank STOCK can legally continue unqeF
tne exlenden charters, Mhlch could not be carried
70 new organizanons W Ihe Diil reported protects
not desire continuance beyond the original term
OF me charters, and also protects the majority
stockholders nom the power OF the minority 70