The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1892-11-26
NATIONAL BANK NOTE.
Comptroller Hepburn Says 1t Is
the Best Paper Money.
CONDITION OF OUR BANKS.
Abolition OF Tax ON Bank Circulation
Recommended - Government Could
Save Money By Issue Of e Per Cents.

WASHINGTON CRY, Nov. 25-The forth
coming report of Comptroller of the Cur
rency Hepburn shows 1853 banks. with an
aggregate capital of SIS, 2S5 900, organized
during the year. Fifty-three went into
voluntary liquidation and seventeen be-
came insolvent. Nearly so per cent. of
the new banks were located West of the
Mississippi river and IS per cent. in the
Southern states. The number of banks in
operation is 1873, having an aggregate
capital of $6g3, s63. 645; surplus and I'M
divided profits, $40 524,179; individual
deposits, Sizes, 422. 1913; bank deposits,
$3.50, AS, 202, and total resources $3.50. Co.,
SAT. The circulation outstanding shows q
net increase for the year of $40, 4S7. 226.
Gold held by the banks compared with
September p. 1891. shows an increase Of
s2i 1894. rs; surplus and profits increase,
,020; individual deposits increase,
SIT. ic4.902. and bank deposits increase,
SlO0,05S, 428. Over two-thirds of the liza
bilitles OF the seventeen banks reported rs
having failed belong to the Maverick bank.
The comptroller gives detailed Informal
ton OF clearing house transactions. and
shows how, by means of bookkeeping, the
substitutes of actual money are mini
mixed. less than 10 per cent. of the bust
ness transactions being represented by
money. The commissioner makes numer-
Gus recommendations. among them that
the tax on national bank circulation
be repealed. The banks have al
ready paid into the treasury $.2,670.-
40l in taxes upon their circula-
ton. They should only be assessed
sufficient to defray the actual cost to the
government in providing circulation.
That the government should issue, bonds
having twenty, thirty and forty years to
run. al a low rate of interest with which
TO retire the present bonded debt, which
bonds may be used as a basis to secure a
national bank circulation. The comptrol-
Ter shows that by exchanging per cent.
bonds, having the same length of time to
run, for per cent. bonds outstanding
at the market value of each on
October 81. 1892, the government could
saved $67, l6l 551. In addition to furnish
ing permanent basis of circulation it
would prove great saving to the tax
payers; that the comptroller of the cur
rency, with the approval of the secretary
OF the treasury, be empowered to remove
officers and directors of banks for viola
tons OF the law; that the law be so
amended as to prohibit officers and en-
pioyes of banks borrowing its funds in any
manner except upon application and ap-
provai by the board of directors. In the
chapter in regard to circulation the comp
troller says:
Soiled paper money is popularity believed to
be potent means OF disseminating infectious
and contagious diseases. The Bank of England
never reissues note. The statue prohibits the
redemption OF United States notes when so
mutilated or injured rs to be unfit for use. The
accumulated filth of continuous use is unfit
Tor circulation and should be redeemed.
Let people have new and clean money.
National bank notes have furni ned currency
adequate TO the wants OF the public, sound,
elastic and beyond criticism. This form OF cur
reDcy should be continued as the money of the
future He argues against state bank notes and
says that congress must, under the constitution,
provide all money that possesses debt-paying
power. By every consideration of sound busi-
ness principles it should provide all the money
the country requires. No public interest can be
served by dividing this function with forty
four states. Every period of financial depres-
sion in the past resulted in the suspension of
specie payments more or less general by the
banks, and it resulted in inability Of the banks
to redeem their notes. The same conditions
would produce similar results in the future. II
the state bank notes are allowed 10 circulate
their acceptance becomes a necessity. The
wealthy classes could provide themselves with
means OF discriminating against the notes OF
weak banks, and II they found them
selves possessed Of any would proceed TO
work them offupon their less fortunate neigh
bors. That is the record OF the past. 1t would
be the experience of the future. The note of
defunct national bank is as good as that OF any
bank in the system. The rotation OF bank cir
Gu alton needs and must have the right - ask
protection from the government. State bank
circulation loses its money power in
crisis. Instead of paying debts in colnes for.
ward itself to be paid.
An Aztec Demon Hanged.
Ell PAso, Tex, Nov. 25.-Rosallo Cos
tello was hung in this city this afternoon
for the crime of rape on September II, 1891.
tRasalio Costilo assaulted little Mexican
girl near the town limits and most cruelty and
brutality outraged her. leaving her in such
condition that her health never recovered. He
was captured few day, later near lslc:ta, ana
was soon afterward put on trial. His tinai trial
caIae on during the present term OF the district
court and he was sentenced by Judge Buck!er
on October 5, 1897. Costello was almost a pure.
b.ooded Aztec OF the most brutal type He wss
ahO,1r old md had lived in tba