The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1890-08-01
NATIONAL BANKS

Letter from the Comptroller W. tt. VA. -
rsncy Regarding National H..
htton-Propo~cd Liquidation \ f
ter~st of the Hanks aud the rAfaissf
WAsnIScTox. July a5.-Nr
has laid before the senate lst
the Com ptroler Of the Currcnr
gard 10 the bill affecting Mate, s...
circulation recently reported NV ~
ate. The Comptroller says:
II Twin be observed that ther, . WI -
18th Of Nay last s.s3s NatiorAl y, 49,
sociations in operation In tl,t 1 .s -.....
having 4 total capacity OF ~. .- Ny-s r,.s.
associations had a total cu;n'afinsE-, ..f<,,r
1880. secured by pic'ies q I N. sr..d Ss.,.s
bonds amounting 20 <lahsAss Il ,,,.,r ~ q.
value. The circulation rhtsi doe A. ..f ~
ciudc So 5ly.5,5 la prsc> N f.fl
and represented BY an e1A amount ~ i.-
ful money on deposit IN ti1rreasnry ~ sh-
United States. II also arpo|~ that the ,..,.'
mum amount 81 bonds retired 10 4. 49,
posted by these banks ts6 cxistinr 4. = ~ \
Ss,-p,.s co. upon which ~ would H. -
titled 90 maintain circula,n ~ ssy.oI. -
y would. therefore, be in,ssbic ~ t.,.--
banks r. Withdraw bond the ars, .,,ns -
~ 80 80 and surrender 73sl.s1f ~ tn.,s'.r
circulating notes under rxng law. 1fho
bond- IN deposit IL sxces .iexai ~. v re-
ment~ are. a. rule. pr.n,A1Ksv e
the older banks u Gated MI. J. .yt.rn
Middle states. where currra<..l.s 81 Ins.,-
est are relatively low. III ssfrcc.ntix ~.
ganixed have. ~ a rule. 4 = yininf.n,,,. 49,
posit ~ bonds. and this Is 4, 4 genera 1890
true ~ Ill banks located y states ana ~.
rtorisS where interest RACES are selat.v.lv
high The fr-t section - the bin ~.naf.
s.ssz) reported from tho committee
finance on the 18th in-t WI aslcy~,us..r..<S.
provides that National bAnkin- associations
may be organized ana operated with nom
inal drpo-i. of bonds % secure circulation.
THIS provision standing alone would BE- IA
voraDiy received ~ tie banks II ~onih.low
ever tend to a contraction ~ the bank note
circulation, unless accompanied by the sec
ond section whica entities said associations
60 receive circulating notes equal In amount
% tile par u ths bonds pledged fyF shels re-
hrinptinn. The operation ~ tn Bill, A.
wluic. would IA iny opinion. b. -aiutary IL
Aould enable new ban X : 10 or1anlx witnDrt
forcing ~, 20 appear III the bond luArketia
competition with the Secretary ~ me
Treasury. Thi- would result in adyantt1s
20 b.tn the Government and Tie hAnxS
Many banks located in the newer ~tlt =
where the interest rates are high. wound 10
doubt reduce the present amount M -Ae
bonds now held to secure their circulation,
and this would result Ia benefit 20 TIE
banks and also 70 tho people whom tAey
serve, as u would Increase locally tns
amount 81 fund~ available for loan. by put
ting IN circulation the sums now locked nr
In bond premiums.
In conclusion the comptroller SAYS that
Congress seems TO have determined thss
the further issue Of bank notes j. nc'
desirable, and in that event the buries
Of maintaining circulation. he thinks
should be removed from these associa'
lions, so that they may more faithfully
and satisfactorily serve the people q
banks Of discount and deposit in which
sphere they have never been adversely
criticised by any portion OF the people