New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-02-28
NEW RULES FOR BANKS.
Controller of the Currency adopts
Some Important Regulations.

The March circular CT the National City Bank
describes some Of the measures adopted by
the Controller Of the Currency in his endeavor to
improve the service under his Jurisdiction, among
them the decision to dispatch examiners at large to
examine into eases of apparent infraction of the
law by banks. instead of sending out admonttory
letters has heretofore been the custom; also the
simpfcation Of the form of the statement of con-
dtion which the national banks required to
transmit TO the Controller at least five times year.
The circular also suggests that the Treasury De-
partment may before long abandon its present pol
icy of accepting state municipal and railroad bonds
collateral for deposits. The circular says:
The future of government bonds is a matter now
seriously engaging the attention Of banks which
the holders of these issues. Under the depressing
in the last twelve months prices have fallen to un
precedentedly low figures The 2s of 1880 have sold
a few years since they were bought by many banks
qualifying for the reception of public deposits as
this issue is carried the books of national banks
marketed by the government Al prices ranging from
III to s15 points higher than may now be obtained
for cirCula ton and public deposits some $3.50 O00,
600 of 2s and it is safe 10 say that they have cost
$50. 100000 in excess OF current prices win the
which prevailed for number of years? That is a
question of moment to those who invested at the
concerns the Treasury. in its bearing upon favor
able market for future issues.
The high water mark of public deposits was
reached December q, 1907, when the amount Of
public funds in national banks reached S26OOOO,OO0
In the brief space of fourteen months these de-
posits have been reduced nearly 5000 900 by re
peated withdra walls This large decrease in deposit
fary accounts has naturally adversely affected the
price Of bonds The 2 per cent bonds are attractive
to banks almost wholly because of their availa-
biltty as security for circulation and DEPOSITS
Little by little business has been reviving. and
with the settlement of such great economic ques-
lions as involved In new tariff bill. a more
active and proftab bic for bank notes may be ex-
pected. With business activity fully restored It
may well be expected that the advantages these
bonds enjoy as security for circulation will have a
tendency to help their market There is sun
margin for the of $500 600 900 in circulation
counts to be secured by bonds
The interest viii, h the Treasury has in the pres
ent state of the bond market relates largely to the
effect il will have upon its ability to make favor
able market for Panama bonds. Such prices as
We're obtained for the old issues are out of the
Question so long the market is ruled by condi-
lions which affect it All this leads to the
conclusion that the government will in the end find
necessary eliminate state, municipal and rail-
road bonds from the depository accounts thus Civ
ing 10 government issues ali their oldtime pres
tge as an exclusively available security for public