Show rjiir uiuvvi HVMCIMI 1 SSIIM I 1110t mmIlroller ol In < urrrni > K IIn Ih > > IIIIIIIII UutKtluii 1 WjsmwTos NovI Illon Win Iron iolm Conintrollerof l I tho Currency conchidoi rhc R h1 annual report to nonpros1 with renmrlts I Ik the subject of tho National Hanking BJH llera Tlio present nnancinl prosperity of lite country indorse tho oxpectanoo that Iho tootl rll rr tl llanfal debt will ho paid off as fast ns tho llonclsmntun aud in consequence tho ques It on his nnsen as to whut changes Bhould It I raado III tho National Hank system in Inlet Hint it Ahnll 1I0t suffer deterioration or illeitraotiuii upon tho withdrawal of tho sup rt upon which it is based Iij the present fwj which requires ovory bank before com Lnciiig business to doposit n certain Ifmonnt in United States liondH Iho pay Jlient of Ilor I cent bonds the maturity in I I Ij 31 l of 41 per cent bonds neRreRatiiif It MW3 and in l37 of I per cont hands lUonntini to nearly > 7 W033C0 have com I lined to irodiicoa 1 prospective scarcity in itlH il j t IfCtmtiM available I o banks as a basis I Jr their corporate oxistoneo and this n rciltcled in tlio advanoo of those bonds iiapremiuir so hieh that ovory day thoir rJ J J liforced 1 pureliaso hoeomcs moro and moio I normonl Jlanks 1I0W holding a 1 per cent I ads and newly or anied national bink jtKKiatlons aro forced into tho market hiparchncriiof 1 per cOllt or l1 I poi cent fcads and thii coiiHtant demand in con toctionwitlitho prospectivo scarcity already lAt jiVt Ur rtc rt f ttferred to sustains and tends still further Ltbato tho proiiiium of thoso bonds AH Ice lime nipraiclicH for tho payment of tho 1 lper cent bonds it is ronsonahlo to expect litill greater domaud for 1 per cents and I question of serious mportanoo i whether links can afford to hold or to buy I per nt boiidj after 16J1 Iu the pre sent aeo all linc89 men try to anticipate full condt jus and to provide woll in advance aRnuist plorsicii cinerRCiicles and lienoo it is to bo Bpectedthat banks will not wait until tbo Broach of 18J11 > shape their policy with Icrcncoto tbo continued holding of lilRh I toedbonds lor tint reason it is not too early now to consider what legislation may be proper to remove this cloniont of future uncertainty from tho national hanking HJH temancl looking to tho possible lon illorn tlonuflliH subject by Congress I1 respectfully submit tho follouinc stato Dent of the question as it appears from tho point of view occupied by tho Comptroller rri cog ilouYI il i of the Currency Iho fundamental princ 1 pies niiderl int our bunkum sjstomestab I Wed by law whatever maj bo its form I mOil necessarily bo llrst that banks promote pro-mote tho UOllorl 1 wulfnro of tho community m mil secondly that tho pirtioular system tttiUisheJ t dl by law 1 is i hfhJIL best obtainable JnJsrtho onditions provaillug nt tho timo irJ place Iheso postulate thoroforo tnJerlio our Nation banking lawn Ihe first pistnlata will not bo qnosdonod nice in people in modern times havo over l ten ti I civilizatum or maintained their pilization without banks and least of nil CAO it lo questioned this country where 1 KsiJes 02 bo3 National Hanks now in opora i niihfivoovcrrOOObtato banks I Bavings its and private banks nnd bankers whoso rations uitond to tho minutest ramllica raof tho employments and resources of Brsuty millions of people NO B tha BCD > nd i poitulnta 1 Oi involves tho questien Wher the present National Hank system L t ll lihsnl ild bo preserved and 1 if so whether it is lenonuli as it is or whothoi can bo itovi d l u 0 1011 u jiirriinoy act of lubrunr III < IVlli ounlrnolOlI us to its Imrposos Iby Ihe plirumollllt 1I0ceAliity of mdllolllg okR aud olher OllpitllUHtR to hecomo pllr tnJri or loVorlllllont bomlH lllIlor COli wiium tlmt would 1 eivo a basis of solid llpiutotuouirrenoy then boiiiK paid out i tJil I tJilIINrol laiinraeiimt volume uiuUr tho pressure of I II Kiry oinuicios henoo the consolidation l lO U MOI IJ auks into a National llankine aYH I IK adapted to Iho commercial nnd Indus I1 t i weds 1 npiears only ns n wihordlnato II t entliitlioLenoral i scheme 1A early how Tlr nstlio jear 18M I il vvas perceived that ftr I ltv of tho pooplo would bo otoa by LIV ing uroalor cohesiv ness nnd atboJ to a system u gardod moro uHpeoiiilly hllt itsbiiikiiig tban in its other features from th it lime to this efforts of legisla J oniniloen to Biibordinato tho issniiiK Prarrenoy to tho moro important functions PlrlorulC hy IIIIIIICH l im inslutioim of dis Ioonl > ana U posit 1 ho effeot of this Icjis K ollllllH wlmlllniooxemillllod in tlio Itll > llul liisji oudit and oonmqiiont com WiisofulueHs of National Hanks If tho m could nn 1 discount bo preserved thero purely would as iirobably ono of Ise an nlluoit IInivorslll aontilllellt In rllvnr itli lre orvlltloll hUlllel1i I ate and I bel cardulllltcntioll bllt It I dnllht1I1 her hnnltH wOllldlhll I sltoiellt IIIOO to Iln1 tho rellll I aYRtolll wlthollt 01 orCluj MOle rVilOSIlR to tho IAHIIO uf l rreley lIuIl It hllH boell IlloRtonell 111 Is Iwor Indor tho UoUStltll on or tho chllrlcr ur Illo II III hlllllR ox OI aM for lllOlle orell IHtrUlelllllltl > Ol hon I Cluws tllrofol thllt IIn IIgl I 1111otoll 10 tho inllrvemont 1111 I tnuluenl HlllhhillllIt ur IIlntonlll hllllk K system HUst inoludo Homo provision for COIIILInunco i of a national hank cironln on 1I111luIIIII hlnl II it f6 I WIULlovr w thu ythcr hand it appears r pisiticm nttnohes lo thorn ns al ot 1M IIld under 0111 system of t I II IINy 1 1Inil al 1 1 I I u Uw tlrfr Iled MIHrtof Hcltollllhlo UlilllulI I < nt Ihllt 0 Holvall IVI tlo plllullloW to Ii huw tu tho 1 bOlll I Iho tlIlv Clrtlloy I o nUlullllllllildnl sHtcm HU I IIIIU I llllar II1prV11 uf Ihol I k c I III t1rt I Ul l Ih 01 11 UiiH Illllwly 1IrHI UII I IJ1 11 I IIPlr IIllluy inlllY Cnrl hJclnu In Nutinnll BUlll h OIHIII Ihu 1 0 IIAHIIIUlltlllllllt Ihoy D JcV lio t 1llc of IInIluII I IllIunt Ir 111r R Illht IslII liroctly f eIrIUIII thirl Iho oJJeotlll UJOII I IIIIIOhlho 101 Ii 10rlInIIII IlooHltcll 1 IIjh IIIn tlo HYRtCI I I lhlIln 10lll UH O H tlm I I llI 1 lOlly IC I1UIII vhioh I lux reIII 0 11 rOlll IllvlllnlI or 1111 011 IIIIIY flll AgIIIHt tllHO 11 I 1 nhJoctonR u tii 1urll FhHI tlml Ihl 11 i 1 I I 1 r at nil is i ui hlVIII 1 i i r ut JIIIIr money lt 11 IrMI11 a praiilioal I Jloliol omi htuauso it is JI ovldelt U11t ° lr 100 > l0 Wi lmVO 1 U 1 wil i i mnm In uonoy II ono fonn or nnothor nnd that of I ini ol USO lnlor > onoy of which wo havo mil nny experience tho present National Bnnk currency Is loast objectionable t oven to oljectolnhlo I I hoso who thfnk that all such mono should he avoided second that while bank tmt whio blnk currcnc based on government bonds nverlent and redceraab o in honLR redeellblo II greenbacks may bo con f hi s I dg tllve a c ln mo H R 11U11U uiuiKHjfnomooniu vl over I havo loen established nor can it now bo main nliiwl nnd that this is tho cheapest price at which tho peoplo or government could havo got any bunking system so good in all 10 peels nnd so valuable as this his proved to hem Anothei argument Is that tho Government mist pay tho ml interest upon Gi bonds J whether thoso aro held by banks or not icnco tho profit to banks on these bonds his jcen obtained without charge on tho ireas iry while on tho other hand If tho banks tlloet md not been offered sufficient inducement to Invest in these bonds II hOlds many moro of hem would havo abroad gono nt lower irices and the country as a wholo would 10W ho J so much worse off lhat want of loxlbility in the currency and elasticity of foluuio nro consequences timing frpm the ligh prices to which bonds hnvo risen and hat this could not hnvo been foreseen nor lor provided against in the original acts but nay now bo remedied by proper legislation hoso objections and answers to them aro tated without comment hey seem worthy or consideration erllto |