The times. [volume] (Richmond, Va.) 1890-1903, 1895-02-19

OF the USEFULNESS OF lHeae ~ tHe PuOiiN 80
full of instruction, especially at this june
ture, when our banking system is so
much under discussion.
The national bank, as fostered and ia
vored by the Government, we compare
to the other (Which we may call free and
untrammelleGD banking institutions
At the close OF business October 2, 1884,
the $3.50 national banks, discarding frac-
| tons, stood thus:
| Captai $50, 900 600
Surplus and undivided profits. S5i,OOCD
Deposits ACKNOWLEDGEMENTS l''%s'ooVVoO
| Loans and acknowledgements ,OO',Wo'oV)
The 5.73S State banks. loan and trust
! companies, savings and private Dahks'
| had:
CapitaI $50 600 900
| Surplus ........................''' o1z'pV'VVJ
BeDosits OBSERVATION-DISCLOSURES. 2,913, 1000 900
Loans and acknowledgements. 2,l@5OJ0,OCO
\ will be noted that the national banks
had upon their
Capital a surplus of............ 80 per cent.
Capital deposits of............2o S per cent.
Capital loans and discounts. .3Ol per cent.
While the corporations had on their
capital
Surplus Observation-Disclosures. IS per cent.
Deposits .........................145 per cent.
Loans and discounts. per cent.
The conservatism of the free institu-
tons is shown by the fact that their
surplus or capital is 70 per cent. greater
than the Government banks on their
capital.
The greater usefulness Of the State In
sututions is further shown by loans on
real estate, aggregating $SS9,oo0 900. while
such loans are prohibited to national
banks entirely, and that this confines
their operations to cities is shown by the
fact that the city of New York, having
40 out of $3.50, or Is per cent. of the
banks, has 73 per cent. of the capital,
l7.5 per cent. of the surplus, 20 per cent.
of the deposits and is per cent. of the
loans, and also 42.5 per cent of the SiO5.-
100000 of specie, legal tender and United
States certificates of deposit, while the
country banks other than in the reserve
cities. with o. per cent. Of the capital
has only 265 per cent. of these quick
assets. showing the concentrating ten
dency Of the national system.
As TO the national bank notes. we find
sl72 100000 issued. against S200.0ooOOo of
bends. face value. If these bonds were
sold in Europe at lO5 the proceeds could
retire the bank notes and leave Sjo,VV'Vc
in addition TO be loaned to the people.
To offer the national bank note for cur
rency is to affront free men.
The "A reserve cities of the national
bank system. New York, Chicago st.
Louis. Boston. Philadelphia, Baltimore,
Albany, Brooklyn, Pittsburg, Washington
New Orleans, Louisville, Cincinnati
Cleveland. Detroit, Milwaukee, Des
Moines, Minneapolis, St. Paul, Kansas
CITY, ST. Joseph. Lincoln, Omaha and
San Francisco. having only Sc per cent.
of the capital, hold 80 per cent of the
deposits and carry the same proportion
of the loans. 1t is hardly necessary TO
note that no one of the money centres
is located in Virginia, North Caro-
lima, South Carolina. Georgia, Flor
ida. Alabama or Mississippi, States
that have only sl9,5OOOOO of the
1868 100000 of national bank capital, and
that when we hear of cheap money il
never refers 20 this section. Our people
do not know what one, two and three
per cent. means. They do not believe that
any such rate for money exists anywhere.
The only resources banks have and can
trade on is gotten in one of two ways,
either from their stockholders or their de-
postors. Everything else is at last
mere cross entries. Now the aggregate
capital Gnclud.ng surplus and undivided |
profts) and deposits Of all the banks
national, state, trust companies. &c
amounts to 81. As. 100000. and. against this |
enormous resource of capital. there are
only s172, 10000 of bank notes-of course. !
national bank Notwithstanding and OF |
these the seven southern States east of |
tie Mississippi. mentioned above, have !
only $4,000 notes, while their banking |
capital is SIS, 100000.
The curse Of the national bank act and |
its 10 per cent. prohibtory tax on State
bank notes has been the cause of evils TO |
us in the South almost as great as those |
we endured because OF slavery. The ne
groes have now been set free; the next [
step will be to take this yoke Of bondage
off all the people-white and black.