The times. [volume] (Richmond, Va.) 1890-1903, 1899-02-04

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dare court martial him for fear Of cx-
posing the beef scandal.
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4 STRIKING EXHIBIT OF Ma
TIONAL BANKS.
The New York Journal Of Commerce
OF Thursday last contains the follow
ing most interesting and instructive let
ter from Mr.. VIM. h. Trigg, OF this city,
in examination and criticism Of the ope-
ration Of our national bank system:
Richmond. Va. Jan. 20, 1899.
Editor Of "The Journal of Commerce and
Commercial Bulletin:
A resent Washington dispatch gives
an abstract OF reports made by the
Comptroller Of the Currency showing
tho condition of the $3.50 National banks
In the United States at the close oil
business ON Tuesday. the first day OF De-
cember. 1888
The statement is most interesting and
instructive, and especially so as 1t is
issued. when everything in financial cir
clcs reflects hope, and when compared
with a similar statement OF the Comp
troller covering 1916 banks dated Octo-
her C. 1896 Just before Mckinley cleo
tion. when everything in hnahciai CIT
cles reflected despair
Omitting cross entries and iracuohs'
and showing United states bonds, etc.
less National bank notes and Govern
ment deposits, etc. as an investment win
the Government the comparison Is as
follows-the figures representing millions
and thousands, hundreds being omitted:
1896 1898.
oct G. Dec. s. Incr'se.
Capital ...... ...$ 64s540S go. SIS 't2S, O2Z
divided profits. sss.sis 3nloO 4757
Deposits .... go. 1882. 400 2,ls2.75S 00.265
Total &C.,. 600. s2.577876 s3.l5is7s $4,000
PER CONTRA.
1906 1895
oct g. Dec. s. liner So.
Loans and dis
counts .......... 81 ,654 30l s. POI. $40 &l3,Js
vestment 49,. -. s5.47 1893 s2.432
Stocks and bonds s95 256.lS0 iVl4O
Banking houses
and real estate 1850 lO5.l56 -
Money ...... ... 343143 4Gi356 12l,H3
Total .... .... S2577,3 $40 s3,l54.s76 $4,000
SUPPLEMENTAL STATEMENT
1896 1S9S
oct. 6. Dec. s. Incr'se.
Number or banks. 3,b'S 5'osV %
notes r. 49,. - % "a. s2ossH s2oloss 1921
Silver and silver
certificates coo. 400A 4rlz9 "Vl
Gold and gold GER
certificates and
legal tenders o.. SOC. 059 ~ ui,li-
Decrease
This re-statemont gives the whole mar
ratiye. but. as the subject is important
! will make some comments upon IL.
The National banks. under the laws OF
their Incorporation. now suffer the great
est disadvantage. They are not free to
handle their resources. they have the
shadow but the substance is gone. the
restriction they willingly submitted to IN
order 10 issue currency remains, while
the profit in issuing It has disappeared
That the restriction is bearing heavily
upon the banks, see the decrease Of 80 IN
the number. that the issue Of currency
is Improbable. see the reduction OF
S29l1 900 i'm its amount, and this In the
face of am increase of S600Oo0.OJ0 Of de-
posts. when prosperity is rampant, when
aggregation of capital in the form oI
trust companies. State banks and other
credit companies are going forward the
National banks reduce their capital SIS
UD0. 00p
loo my Judgment. a proper currency law
mot necessarily excluding State banks
giving National banks the right TO issue
notes would enable them 10 meet the
Government restrictions and utilize their
thorough system and organization for the
good OF the people. Note how il IS now
OF the 220S, OOO, 900 loaned to their Gus
toners all save yl5OOO.00O is furnished bv
the depositors; the banks capital and
surplus being otherwise absorbed, the
banks are deprived not only of their cap
ital but of their credit; they cannot uul-
ize either for the beneht of their patrons.
The statement demonstrates that IL
some magician, on December lsL had
brought the borrowers from the banks
and the depostors in the banks together
for settlement Of their interests, they
could practically have Cleared without
the INTERPRETATION Of the banks. leaving
the stockholders alone TO settle with
themselves.
The public is under the influence Of
the proclamation that the National bank
system IS the best ever devised and the
National bank note IS the best currency
ever issued. As d matter of fact the
people (and. rs IL turns out. the banks,
too) lost heavily i'm the exchange Of the
use Of their credit for a note good every
where" The National bank is more in
peal of the present and the enactment Of
q good currency law.
Very truly yours.
WILLIAM r TRIGG.
The fact is a very striking one as
brought out by Nir Trigg that prscti-
cally tho whole business done by the
National banks is done with the money
Of customers and that the great sums
OF nearly one thousand millions Of dol
lars owned by them bears practically no
part whatever In the business Of the
country II must necessarily be
wretched banking system that produces
such a result as that.
But striking as this fact is II is triling
compared with the other one that the
number Of National banks has decreased
So since November l. 1895. when our de-
preston was al its greatest. their CAPT
tai has decreased over twenty-eight mil
lions of dollars and their note issue has
decreased &2Sll.OO0. although the bust
ness OF the country has been advancing
IN all that time by leaps and bounds
that are beyond precedent.
SO absurd a banking system as our
National banking system never cursed
any other people.
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SOUTHERN IRON.
We printed yesterday IN our news
columns an interesting interview with