Show THE NEW BANKS Since January last between three hundred and lour hundred new banks have been organized in this country About oneseventh of these are national banks The capital invested ranges from 10000 to 3000000 National banks are manifesting less disposition to surrender their charter or reduce their note circulation to a minimum than at any time since the withdrawal of the three per cent bonds The securities last mentioned are being replaced with bonds for which the banks pay a high premium It has been remarked that as long as Ihese bonds do not depriciate in price it makes no material difference to the banks whether they pay dollar for dollar dol-lar for them or 125 for one dollar as the Government cannot call them until the date of maturity and if it sees fit to bujvthem up before that date it must pay the current price for them VIhe Bankers Monthly thinks that the only embarrassment that can come to the banks which take a part in this transaction tran-saction is the locking up of the extra capital required to purchase the bonds in the first place for which extra capital the banks can receive only 4 per cent instead of the higher rate which they receive re-ceive on their note circulation based thereupon As it is however every dollar dol-lar of note circulation issued by National banks brings in Interest revenue including in-cluding the 4 per cent bond interest of 6 to 8 per cent net |