The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1892-10-31

Having banking capital OF over s75 per cap
tia our banking facilities are, In proportion,
greatly in excess of those of the large Eastern
cities: our individual deposits average the re-
spectacle sum vi $3.50 per capita and 1t will be
interesting 10 note that seattle represents more
than one-third Of the entire banking capital of
the state. Our exchanges for clearing house for
the last three years were:
For year ended September so. 1880 ssh IS. 6S4
For year ended septem Der 80 1s9i -. 81, 1881
Fox year ended september 80. 1892. 1879, T54
This shows AN increase over 1891 and virtually
over 1899 also. inasmucb the large building
operations caused ~ The rebuilding of the city
after it, destruction by fire did not enter as q
factor into last years business
Ia view OF the bitter war waged against the
national bank in the present campaign IL may
not 10 aIniss - refer At some length to the his
tory aud record of the national banking system
This system of national banks authori zed TO is
sue bank notes secured by the pledge Of United
States bonds WAS recommended 10 congress in
the report of Secretary OF tho Treasury Chase in
Decent her, 1851, Is Il means OF raising the reve-
nae necessary ID carry on the war. The alter
native put by him further issue OF de-
mand notes of which 50,001,009 had already been
issued sud the continuance Of which he re-
earded IS dangerous. The advantages claimed
by b!m for this system were n safe aud un form
currency. greater ease for the government in
equivalent 10 the participation OF the people in
the profits on circulation, avoidance OF a
money monopoly and a distribution OF govern
rnent securities amongst the moneyed instftu-
tons 81 the country, thus identifying their in
forests n those Of the government The sug-
gosaon was not scted upon at that time and
legal tend treasury notes amounting in the ag.
gregate 70 s50j.00)090 were authorized. At
length. on February -. 1866, the national bank
act having been passed by congress was signed
by the president
IL provided fos the organization OF national
banks ~ not less THAI FIVE persons. for all cant
tai stock 20 DC fully paid up anu each subscriber
10 "a -at.e ;or twice the amount of his sub
scriptau; tor circulation 10 the extent Of % per
cent Of the market value OF government bonds
deposited, bur not TO exceed 20 per cent of the
par value. The circulation was guaranteed by
the government, which had in return a first
lien upoa all the assets OF the bank 20 cover any
de1clt. provided the bonds deposited did not
fully protect Il No bank was allowed % Of
ganize VITA a capital OF less than sso,0o0 and
then only n towns of less than 600 inhahi-
tants; ~ larger PAGES Aluminium Of 500, 900
capita. aut an cities Of $1,000 inhabitants or
mere s.So, ~ i required.
The conversion oi state banks Into national
banks was authorized, but only q few banks
sysiled thenss.ves of the privilege until tie
passage 81 the act OF 1875, which placed tax OF
Il per eent on all notes OF state banks or OF
individuals used circulation or paid out BY
them
The nsiiona! banks are subject 10 rigid gov.
eminent supervision. and beside reports re
asired 20 lie made at leas, ave times q year.
ihey are liable 10 &c called upon at any moment
for statement al their affairs or 10 subject
themselves to a. exam nation at the hands of
the bsnk examiner They are prob hited from
making loans on real estate, or on the shares Of
their own capital stock. or ca their own notes
or On legal tender notes, or from making loans
TO sny one concern 10 tie extent of more than