The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-12-02

'"Third-That the assistant cashier,
in the absence of the cashier, be au-
thorized to sign the circulating notes
of the bank and reports of condition:
''Fourth-That some class of public
officers be empowered to administer
the general oaths required by the ma
tional bank act.
''Fifth-That bank examiners be re-
quired to take an oath of office and
execute a bond before entering upon
the discharge of their duties.
''SiXth-That upon a day in each
year, to be designated by the comp
troller, the directors of national banks
shall be required to make an eXamina-
ton of the affairs of the banks and
submit to the comptroller a report
thereon upon blanks to be furnished
for such purpose.
"Seventh-That the comptroller be
authorized to issue to national banking
associations circulating notes to the
par value of the bonds deposited by
them with the treasurer of the United
States to secure such notes.
'Eighth-That the semi-annual tax
levied on account of the circulating
notes of national banks be reduced so
as to equal but one-fourth of 1 per
cent per annum.''
With the exception of the sixth
amendment suggested, the comptroller
says all these recommendation have
heretofore been made to Congress-
To Better Banking Methods.
The sixth amendment is deemed adj
visable that the directors of national
banks may be compelled to know
from an examination required at their
hands of the condition of the banks
in whose management they participate
60, 4. s-II.x r,.I
share Of responsibility.
"Suoh a law" in the opinion of the
comptroller would lead to better
banking methods, less carelessness in
extending loans, and making less liza
bic the long continuance of any dis
honesty which might be undertaken by
any executive officer or employee of
banks, and it would also enable the
comptroller in case of the failure of
a bank to fix the responsibility more
clearly for negligence of duty on the
part of directors
In making suggestions relative to
the increase of note issues the comp
troller uses the following language:
''The issuing of circulating notes to
the par value of bonds deposited to
secure the same and the reducing Of
the per cent of semi-annual tax levied
upon such notes has been urged by all
the secretaries of the treasury who
have touched upon the subject at all
and by every comptroller from the
time of and including Comptroller
Knox. The provision of the law pro-
hibiting the former and the provision
the latter. however, are unchanged
upon the statute book.
Note Issues.
"At a time when the desire is so fire.
quently expressed that there be a
larger issue of bank notes and COM
plant is made that national banks are
Indifferent to the note issuing func-
ton vested in them, it may we'll be
considered by Congress whether it
would not be wise to do that which will
make it of sufficient interest to the
national banks to pay greater atten-
ton to note issues. The profit of bank
ing in the United States is now largely
in the deposit feature of it, and thus
it is of greater concern under existing
circumstances to the banks to secure
deposits than it is to issue notes upon
a return so small as to scarcely justify
the expense and trouble entailed
thereby
Banks are no elemosynary institu-
tions, and therefore engage only in
that which promises a margin of profit.
While on the one hand entitled to no
more favorS than are granted to other
corporations or enterprises, carried on
by associated individuals, on the other
they should not be denied any privi-
leges which they may justly claim, and
for the denial of which no possible
excuse can be given 1t is unques-
tionably true that national banks
would largely increase their note circu-
lation if the embarrassment arising
from the needless locking UP of a
large part of their capital, available
for other purposes, and the lessened
profit through excessive taxation now
imposed did not confront them. They
certainly would do so if the legal ten
der issues of the government were paid
and cancelled and the channel now
clogged by them freed from bank note
circulation.
Experience Gained.
THE experience of this and other
countries conclusively demonstrates
that the best and most rational note
issues are those put forth by banks. 1t
likewise demonstrates that issues made
direct by governments are always eX-
peusive, and under every circumstance
a source of danger to such govern
ments and less to their peoples bust
ness interests. No clearer proof of
this could be had than that furnished
by the difficulties which we have wit
messed on the part of this government
in it's efforts to maintain the full credit
of its practically limltlesS amount Of
demand obligations.
1.-The advantage aecruing to the gov
eminent by the substitution of a bank
note for a treasury note currency
would be irlmeasureably great. The
need of maintaining a gold reserve to
meet the recurring demand obIiga-
tons, 3ow never retired, would, within
a reasonable time, be obviated, and de-
livered from this vexatiouS and ex-
pensive difficulty, the treasury depart
ment could return to it's legitimate
function of collecting the revenues Of
the government needful to meet gov
ernmental expenses and disbursing the
same.
The Relief Gained.
with the relief gained to it through
the removal of this burden would come
a greater one to the business inter
ests of the individual citizen, whose
every operation would no longer be
harassed by the uncertainty springing
from a fear that either in the present
or the future the currency obligations
now forced by this government through
the provisions of an inf1eXible law into
the avenues of trade and commerce
may be discredited and dishonored.
The RELOCATING of note issue entirely
to the banks would give better
guarantee of meeting the varying
wants of trade which is impossible
with a legal mandate decreeing am
amount of treasury issues of no
greater and no less volume at one
season of the year than another,
or no there be a corresponding
increase or lessening of the demand
for currency to transact the business