July 6. 1867. N. 1245.
The Economist, 6. Juli 1867. S. 750–752.
Schließen
The National Bank System of the United States.
The notes of the States State Banks were purely a local issue, and
were, therefore, constantly and rigidly controlled in quantity by the
frequent exchanges and clearings. Notes issued by a small National Bank
in Maine may, and do, float away 1000ds of
miles from their point of starting. Wahrscheinlich Kommentar von
Marx.
Schließen ⦗Dieß
könnte einfach geheilt werden durch ein Gesetz wöchentlicher
Interchanges, Clearings, zwischen allen Branchen⦘ It is hence a common occurrence for
National Banks to have to provide for the redemption of a
very small fraction indeed of the Notes they have originally paid away.
The wide action of the Notes of National Banks has already
reduced a large part of them to a discount; and to remedy this discredit, the Comptroller urges that all
National Banks shall be compelled to redeem their Notes at
par at New York, by means of funds maintained there in the hands of
correspondents – that is, of some one or more of the New York
National Banks. Aber, says the Comptroller: „If all the
provincial National Banks are to redeem their Notes in New
York, they must constantly maintain there large funds – the New York
Banks will compete for the custody of these funds, and the more
adventurous of them will bid for accounts by offering high rates of
interest on country deposits. But if the New York Banks give high rates
of interest for money left with them, they can only make a profit by
advances more or less hazardous, and subject, therefore, to onerous
terms. In order, then, to avert the catastrophe of a Banking collapse,
Congress must pass a stringent law prohibiting Banks
from allowing interest on any sort of deposits.“ Such
legislation would be futile and mischievous. The Comptroller proposes
other checks for the supervision of the 1600 banks. Z.B. Prevent Persons
from setting up National Bks. who find the means of borrowing
the largest part of the available means, and applying them to most
objectionable speculations. Also clauses for monthly instead of
quarterly Bank Returns: the quarterly Returns enable Banks „to prepare
for a good exhibit on these particular days“. Zusatz von Marx.
Schließen
(Weekly public Reports!)
Schon cry in different parts of the Union about the dangers and abuses arising from the patronage
des Secretary of the Treasury in regard
to the selection of National Banks to be
depositories of public money and financial
agents of the Federal Gvt. It is a paramount object with a
National Bk. to obtain the custody of the Gvt. money.
Selection for such a trust is used as an |149 advertisement to
attract private deposits and private business, and largely succeed. The
First National Bank at New Orleans,
holding Gvt. Deposits, has just failed, under disgraceful circumstance –
about 300,000l. has been made away with in a
clandestine manner, and a leading authority in New York writes: „The
machinery of the National Bks. has proclivities to weakness et
danger which cause wellfounded apprehension. Disclosures at New Orleans,
and disgraceful previous failures of Natl. Bank Banks in various parts of the country, leave no room for further
doubt. The best way for a shrewd manager of a Nl. Bk. to obtain private deposits, is to get up an appointment
for his institution as a depository of Gvt. fund.“ Sagt ferner: the
increasing number of Banks which even on the face of their quarterly
returns do not hold the amount of cash reserved reserve required by law. The returns of October
1866 showed that 55 Banks then held reserves considerably below
the prescribed limit. It is now complained in New York, „that the
Comptroller has not announced publicly how many of
the Banks are defaulters in their reserves since Oct. 1866, nor
what measures have been taken to correct this serious defect“.
Up to March, 1865, or just at the close of the War, the circulation of the Nl. Bks. no more than about 25 mill. l. St. The expansion to the present limit of 50 millions l. is the work of the 2 last years. Their paid up capital only 30 mill. l. in March 1865, has risen to 84 mill. l. since that time. The advantage and strength of the State Banks arose from 1) Rigid enforcement of cash payments; und 2) perfect freetrade, subject to a few reasonable preliminaries, in banking business. The danger and weakness of the National Banks arises: 1) They have been called into existence, and been distributed over the country by the arbitrary discretion of a public officer, acting in most cases in perfect ignorance or misapprehension of circumstances, exceedingly prone to be influenced by motives of party patronage, and chiefly intent not on supplying the fittest banking institutions to the several parts of the Union, but on finding active and wealthy sympathisers with the Republican party, who, through the medium of the Nl. Banks, would support, first, Northern measures, and next, the views of the majority of Congress. 2) Under conditions like these, Nl. Banks have been set up by persons having no adequate knowledge of the business. They have started a Bank either chiefly as a party measure, or as a convenient mode of getting nearly double rates of interest for their money, or with a view of attracting deposits and employing them in private speculation of their own, or with the object of commanding a deposit of public money, and becoming Gvt. financial agents. 3) As the Circulation of the National Banks is essentially general and not local, the check of constant liability to its return through the exchanges does not operate. 4) The supervision of the Comptroller at Washington over 1600 Banks, of necessity, almost worthless for any purposes of practical control, ausserdem nicht desirable that all the Banking institutions of a country subject to the regulations of a party political officer.
The imperfections of the Nl. Bk. System became already practically manifest: 1) in the admitted imperfection of the returns made by the Banks; 2) admitted abuses prevailing in the administration of many of them; 3) admitted exercise of unjustifiable patronage in the selection of particular banks to be depositories of public money, and to be financial agents; 4) admitted necessity of further stringent legislation (f.i. the prohibition of interest on deposits)
If no modifications speedily introduced: The large number of incompetent, inexperienced, careless, scheming and speculating people, who have forced themselves or been attracted into the control of the Nl. Banks, will grossly mismanage the business; dissipate the deposits in foolish or disreputable advances, and the Banks will fail. Under the law of prior lien, the Gvt. will, out of any available assets, as far as possible, pay itself first, and in full, and the ordinary creditors, as in the recent case of New Orleans, will be left without a farthing. The Notes of the failed Bank will be at least to some extent covered by the lodgement of Federal Gvt. securities, but there will be a wide field for ingenious financing in the realisation, sudden or gradual, of these securities, and in the cancelling, sudden or partial gradual, of the particular Nl. Bk. tainted by default. A series of failures of Nl. Bks. may create a panic and bring down a large part of the organisation at once, or the distrust and dissatisfaction may operate more gradually. During the last 2 years, the Nl. Banks have had all in their favour. They have run up their Circulation from 25 to 60 Mill. St., and prices have all been rising. They have now reached the limit of their Note Issue. Process of reaction has set in which, by the by, will render cash payments again possible. This kind of reaction wird Masse dieser hastily set up concern ruiniren.
Inhalt:
- 17 February 1866.
N. 1173. (Fortsetzung)
-
24 February 1866. N. 1174.
-
March 3. 1866. N. 1175.
-
10th March, 1866. N. 1176.
-
March 17, 1866. N. 1177.
-
24. March 1866. N. 1178.
-
31 March 1866. N. 1179.
-
April 7. 1866. N. 1180.
-
April 14. 1866. N. 1181
-
April 21. 1866. N. 1182.
- April 28, 1866. N. 1183.
-
5 May. 1866. N. 1189.
-
12 May. 1866. N. 1185.
-
May 19, 1866. N. 1186.
-
26 May 1866. N. 1187.
-
June 2. 1866. N. 1188.
-
June 9. 1866. N. 1189.
-
June 16. 1866. N. 1190.
-
23 June. 1866. N. 1191.
- June 30. 1866. N. 1192.
-
Saturday, 7 July 1866. N. 1193.
-
July 14, 1866. N. 1194.
-
July 21. 1866. N. 1195.
-
July 28, 1866. N. 1196.
-
4 August 1866. N. 1197.
- August 11. 1866. N. 1198.
-
August 18, 1866. N. 1199.
-
August 25, 1866. N. 1200.
-
Saturday September 1, 1866.
-
8 September 1866. N. 1202.
-
September 15. 1866. N. 1203.
-
September 22, 1866. N. 1204.
-
September 29. 1866. N. 1205.
-
October 6 1866. N. 1206.
-
October 13. 1866. N. 1207.
-
Saturday. October 20. 1866. N. 1208.
-
October 27. 1866.
-
November 3. 1866. N. 1210.
-
November 10. 1866. N. 1211.
-
November 17. 1866. N. 1212.
-
24 November 1866. N. 1213
-
1. December 1866. N. 1214.
-
December 8. 1866. N. 1215.
-
15 December. 1866. N. 1216.
-
22 December. 1866. N. 1217.
-
29 December 1866. N. 1218.
-
January 5, 1867. N. 1219.
-
January 12, 1867. N. 1220.
-
19 January, 1867. N. 1221.
- January 26, 1867. N. 1222.
-
2 February 1867. N. 1223.
- 9 February, 1867. N. 1224.
-
16 February. 1867. N. 1225.
-
23 February 1867. N. 1226.
-
2 March 1867. N. 1227.
-
9 March, 1867. N. 1228.
-
16 March 1867. N. 1229.
- March 23, 1867. N. 1230.
-
March 30. 1867. N. 1231.
-
April 6. 1867. N. 1232.
-
13 April. 1867. N. 1233.
-
20 April. 1867. N. 1234.
-
27 April. 1867. N. 1235.
-
May 4, 1867. N. 1236.
-
March
May
11; 1867. N. 1237.
-
May 18. 1867. N. 1238.
-
25 May, 1867. N. 1239.
-
June 1. 1867. N. 1240.
-
June 8. 1867. N. 1241.
-
June 15. 1867. N. 1242.
-
22 June 1867. N. 1243.
-
June 29. 1867. N. 1244.
-
July 6. 1867. N. 1245.
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July 13, 1867. N. 1246
-
20 July 1867. N. 1247.
-
July 27. 1867. N. 1248.
-
3 August 1867. N. 1249.
-
10 August, 1867. N. 1250.
-
17 August, 1867. N. 1251.
-
August 24, 1867. N. 1252.
-
31 August. 1867 N. 1253.
-
September 14, 1867. N. 1255.
- 21 Sept. 1867. N. 1256.
-
September 28, 1867. N. 1257.
-
October 5, 1867. N. 1258.
-
October 12, 1867. N. 1259.
- October 19, 1867. N. 1260.
-
October 26, 1867. N. 1261.
-
November 2. 1867. N. 1262.
-
9 November 1867. N. 1263.
-
November 16, 1867. N. 1264.
-
Nov. 23. 1867. N. 1265.
- 30 November, 1867. N. 1266.
- 7 December 1867. N. 1267.
-
December 21, 1867. N. 1269.
- December 28, 1867. N. 1270.
- Saturday. May 19. 1866. N. 311. Panic.
Bank o. E.
- Money Market. (Reserve of B.o.E.)
- The Recent Panic and Bank Act Suspension.
- The Panic and its Remedy.
- What to do with the Act of 1844?
- The Times and the
Panic.
- Investors Losses from „Bear“ Frights.
- The Stock Markets of the Week.
- The Limited Liability Act of 1862.
- Railways. (don’t pay)
- The Reports of the Asiatic Banking Co., and the Bank of Hindostan, China
and Japan (Limited.)
- The Economy of B.o.E. Notes. 1000£ Notes.
- Money Market. (Reserve of B.o.E.)
- May 26, 1866. N. 312.
- The Bank of England and the London Bankers in the
Panic.
-
Lord Clarendon on
the Panic.
- Transfer of Business of the Bank of London to the Consolidated Bk.
- Loss in Investments since beginning of 1866 – May
26.
- The Stock Markets of the Week.
- What is a Five-Twenty Bond? (Neue Art Convertibility for paper
currency)
- The Annual Circular of the American
Commercial Agency. (Vehmgericht)
- Act of 1844 and Bank of England.
- A Pluralist Director.
- The Directors of failed
Cos.
- The Bank of England and the London Bankers in the
Panic.
- June 2, 1866. N. 313.
- John
C.
G.
Hubbard, M.P. On the Bank Act and the
Currency. (Letter to the Times on 14 May.)
- The Theory of Panic etc.
- Board of Trade Returns.
- The Consolidated Bank
(limited)
- American Exchanges and Grain Trade.
- Pressure and securities.
- Variations between Prospectus and Articles. The
Russian Iron Works Co. (lim.)
- America. U. St. (Trade)
- Bearing.
- John
C.
G.
Hubbard, M.P. On the Bank Act and the
Currency. (Letter to the Times on 14 May.)
- July 21, 1866. N. 320.
- 28 July 1866. N. 321.
- August 4. 1866. N. 322.
- 11 August, 1866. N. 323.
- August 18. 1868. N. 324.
- 25 August, 1866. N. 325.
- 1 Sept. 1866. N. 326.
- 8 September 1866. N. 327.
- Sept. 15, 1866. N. 328.
- 22 September, 1866 N. 329.
- 29 September 1866. N. 330.
- October 6, 1866. N. 331.
- 13 October. 1866. N. 332.
- 20 October, 1866. N. 333.
- 27 October 1866. N. 334.
- 10 November. 1866. N. 336.
- 17 November 1866. N. 337.
- 24 November, 1866.
N. 338.
- December 1. 1866. N. 339.
- 8 December 1866.
N. 340.
- December 15, 1866. N. 341.
- 22 December, 1866. N. 342.
- 29 December 1866. N. 343.
-
5 January, 1867. N. 344.
-
12 January 1867. N. 345.
-
Proposed Expansive Clause in the Bank Act of
1844.
-
Evidence of John Henry Gurney
and Mr. Robert
Birnbeck
Birkbeck
before Vice-Chancellor Malins.
-
Cotton Market. Past and Present.
-
Thomson
Hankey: (formerly Governor of B.o.E.) „The Principles of Banking, its Utility
and Economy; with Remarks on
the
the Working and Management of the Bank of
England“. Lond.
1867.
-
Proposed Expansive Clause in the Bank Act of
1844.
-
19 January, 1867. N. 346.
-
26 Jan. 1867. N. 347.
-
February 2, 1867. N. 348.
-
9 February, 1867. N. 349.
-
16 February
1866
1867
. N. 350.
-
23 February 1867. N. 351.
-
2 March 1867. N. 352.
-
The Joint Stock Co’s Directory for 1867. London.
Charles Barker et Sons. 8, Birchin-lane.
-
Overends. Report of Liquidators and Report of Defence
Committee.
-
Leeman’s Bill respecting
Dealings in Bank Shares.
-
Limited Liability. High Nominal Shares.
-
London, Chatham and Dover
Railway Co.
(faux frais)
-
Plethora of money.
-
1915
on Overends.
(David Barclay
Chapman)
-
London, Chatham et
Dover
(Zusammensetzung des
Investigation Committee) (Solicitors)
(Scapegoats)
-
The Joint Stock Co’s Directory for 1867. London.
Charles Barker et Sons. 8, Birchin-lane.
-
9 March, 1867. N. 353.
-
March 16, 1867. N. 354.
-
23 March. 1867. N. 355.
-
30 March 1867. N. 356.
-
April 6. 1867. N. 357.
-
13 April 1867. N. 358.
-
April 20, 1867. N. 359.
-
April 27, 1867. N. 360.
-
May 4, 1867. N. 361.
-
11 May 1867. N. 362.
-
25 May. 1867. N. 364.
-
June 8, 1867. N. 366.
-
15 June. 1867. N. 367.
-
22 June 1867. N. 368.
-
29 June. 1867. N. 369.
-
July 6. 1867. N. 370.
-
July 13. 1867. N. 371.
-
July 20, 1867. N. 372.
-
July 27. 1867. N. 373.
August 3. 1867. N. 374.
-
August 10. 1867. N. 375.
-
August 17, 1867. N. 376.
-
August 31, 1867. N. 378.
-
14 September. 1867. N. 380.
-
21 September, 1867. N. 381.
-
28 September, 1867. N. 382.
-
Gold mines of Victoria. (Kitto: „The
Goldminers of Victoria.“ Lond. ’67)
Expropriation of Individual
Labour. (Property)
-
Public Debt of Russia. Consul
Michell’s
Report.
- Robert Knight: Letter to the
Right.
Right
Honourable Sir Stafford Northcote on
the Present Condition of Bombay. Lond.
1867.
-
Limited Liability Cos formed since
1865.
-
Gold mines of Victoria. (Kitto: „The
Goldminers of Victoria.“ Lond. ’67)
Expropriation of Individual
Labour. (Property)
-
5 October. 1867. N. 383.
-
Money Market Review. 12 Oct. 1867.
- 19 October 1867. N. 385.
-
October
27
26
, 1867. N. 386
-
9 November, 1867. N. 388
-
16 November 1867. N. 389.
- 23 November 1867. N. 390
-
7 December 1867. N. 392.
-
21 Dec. 1867. N. 394.
-
28 December 1867. N. 395.