The Montgomery advertiser., 1903-02-27
BANK EXTENSION
NEARLY 800 TO BE GRANTED
 THIS MONTH.
Tremendous Growth of the National Banking System Since Its Estab- ishment as a War
 Measure.

Washington Special to New York Times.
 Near4y 300 National banks will obtain a second extension of their charters this month as their present ones expired lSeS' the act was passed by Congress establishing the National banking sys- tenn. While the purpose of the act was mainly to assist the government in pro- scouting the Civil War by creating a de- mand for government bonds and thus sustaining the national credit, sagacious men engaged in banking and commercial busiess recognized the great advantage that would attend the establishment of a system of sound and secure banking un- der government inspection and with cir | culating notes fully guaranteed to the holder
 There was considerable opposition to the measures proposed in Congress from men who doubted the wisdom of the gov ernment becoming associated with the banking business, but it was not long after the passage of the act and the establishment of National banks that the superiority of the system over the State and private banks of that day, with their circulating notes of fiuctuating value and uncertain genuineness. was recognized. and popular approval was given to the National banks, a fact which was made apparent by the rapidity of their exten- sion throughout the country.
 Tho first year of the act the number of National banking associations estab-
  In 1S64. 453 additional associations were organized. with an aggregate capital of $79,3G6,9o1 md the following year 1,0l4 were org 4ized, with an aggregate capital of SZ4!,oi- 9S2. Since 1865 additions have been made steadily to these associations, until the number Is 4,601 according to TO- ports to October 1, 1902, with capital stock aggregating STA, .695 and an aggregate circulation of $3S0 GOO, 0O0 The aggregate resources of the 1,513 National banks in operation at the close of the year 1865 amounted to $l .359. .76S, ,074 The aggregate resources of the banks now in operation amount to $6,1l3.9 ,9l2. The face value of the United States bonds now held by National banks is roudly $457. .000. GOO The individual deposits in 1865 were $500.Sl0,- S7J, against SS,29, 273s9S at the present time.
 These figures show the growth of the National banking system, but its great usefulness and conveience, joined with absolute assurance against loss to note holders, can only be appreciated by those who are o:d enough to remember the wretched system of banking that pre- vailed prior to the advent of the national banking system.
 Those persons who imagine the govern ment derives no direct benef1t from the National banks will be astonished to learn that since 1863 there has been paid Into the treasury by the banks as taxes on circulation, capital deposits. surplus, etc, the sum of $171 00O,000 which is about nine times greater than the cost or con ducting the office of the Controller of the Currency since its creation.
 The law limits the life of charter Of a national banking association to twenty years. Many banks obtained extensions of their charters twenty years ago. In the first months of the law the charters of all associations were made to expire twenty years from the date of the ap- provai of the act of Feb. %. 1883, and therefore it is that so many charters eX- fhOEa WhnGA charters must be renewed this year, PAS have been in active operation for nearly forty years, and will be granted extension for the second time: They have been present incumbent of the office being William Barret Ridgely.