New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-23
FOR 4 NATIONAL TRUST SYSTEM.
VIEWS OF GEORGE NJ. COFFIN ON FINAN-
CIAL CONDITIONS.

Washington, Feb. p CspecaD.-George NJ Conn,
formerly Deputy Controller OF the Currency, now
vice-president Of the Phenix National Bank Of
New-York. passed through Washington to-day on
his return from extended business trip. in
which he visited tho banks IN all the leading cities
OF Texas Louisiana, Mississippi, Alabama, Geor-
gia and South Carolina AS a Southern man, for
twelve years connected with the Controllers ONCE.
the opinion he gives to the South and the Ma
-ionaI banking system Is interesting and timely
He said to Tribune representative:
The authorization OF National banks with SIS 900
m64e Of tBe sotber5 Cotton stass Where the
National bank system IS both popular and salts
doubtedly be the arena for the greatest develop
ment in the next ten years. The financial con
solid foundation Of patient frugality. The banks,
money largely from Northern and Western banks
to move tie cotton crop, have the last season &C
sources and the amount Of money borrowed outside
the cotton Hilis have borrowed money from South
ern banks at lower rates than they could obtain
Speaking Of the National banking system IT IS a
class Of corporations in the country is subject to
closer governmental supervision and greater pub
between these banks aggravated and intensifed
By the fierce competition they suffer from trust
companies and other outside banking institutions.
ent National banks scattered throughout the coun-
ny, many doing business in the same place, coupe
luton is the nevltaole result. As 10 their super
vision they are compelled to render sworn reports
sworn reports Of their earnings losses and Ifvi-
the Currency. While these dividend and earning
reports Of each bank are not published, abstracts
Of the results OF all the banks in each reserve CITY
and state are published in each Controllers annual
report. so that the banks and the public are fully
nf9rmed as to the profits made on capital invested
No National bank can begin business unless its
capital IS actually paid IN cash, and the capital
cannot Re reduced increased without the an
prevail Of the Government. which sends a special
agent TO each bank twice year 10 verify its con-
dition by searching examination of its affairs
The system Is thus carefully guarding against the
glazing evils Of trusts so-called. and in enforcing
publicity Of the condition OF the affairs Of each
bank and its earnings furnishes a splendid model
for general application TO the wholesome super
vision OF the great combinations OF the day. which
by regulating them would make them useful public
become oppressive and dangerous masters Of the
people. II the Federal Government can lawfully
thirtysix hundred corporations with $3.50 900 of
invested capital and surplus, why may not each
State which grants corporate powers control its
own creatures in the way for the public good?
Thinking men OF the great political parties now
for the threatening evils Of great combinau TONS and
this and other respects the National system pre-
sents the best working model for effecJing such
cure.
Only in one way can the National banking sys-
TEN be converted into great monopoly, which Il
is most enormously represented to be and that
IS by ENGRAVING on II the British and Canadian
feature OF branch banking. In Scotland the bank
ing business is done by ten great banks with
thousand branches. Applying this ratio Of branch
the National banks instead Of thirty-sfx hun
dred Independent banks competing with each other
TO pay the highest rate Of interest on deposits and
make the lowest rates on loans consistent with
moderate dividends should have thirty large
banks with thirty-six hundred branches practical
" controlling the entire business Of the country.
So the great majority Of National banks which
monopoly. are, by reason Of dangers which con-
front them in this respect, as much opposed to
can institutions