ilities and proceedings on
the part of the comptroller provided for in section 5234 of the
Revised Statutes of the United States: _And provided further_,
That section 4 of the act of June 20, 1874, entitled: "An act
fixing the amount of United States notes, providing for a redistribution
of the national bank currency, and for other purposes," be, and
the same is hereby, repealed; and sections 5159 and 5160 of the
Revised Statutes of the United States be, and the same are hereby,
re-enacted.'

"Under this section it is obvious that no additional banks will
hereafter be organized, except possibly in a few cities or localities
where the prevailing rates of interest in ordinary business are
extremely low. No new banks can be organized, and no increase of
the capital of existing banks can be obtained, except by the purchase
and deposit of three per cent. bonds. No other bonds of the United
States can be used for the purpose. The one thousand millions of
other bonds recently issued by the United States, and bearing a
higher rate of interest than three per cent., and therefore a better
security for the bill-holder, cannot, after the 1st of July next,
be received as security for bank circulation. This is a radical
change in the banking law. It takes from the banks the right they
have heretofore had under the law to purchase and deposit, as
security for their circulation, any of the bonds issued by the
United States, and deprives the bill-holder of the best security
which the banks are able to give, by requiring them to deposit
bonds having the least value of any bonds issued by the government.

"The average rate of taxation of capital employed in banking is
more than double the rate of taxation upon capital employed in
other legitimate business. Under these circumstances, to amend
the banking law so as to deprive the banks of the privilege of
securing their notes by the most valuable bonds issued by the
government will, it is believed, in a large part of the country,
be a practical prohibition of the organization of new banks, and
prevent the existing banks from enlarging their capital. The
national banking system, if continued at all, will be a monopoly
in the hands of those already engaged in it, who may purchase
government bonds bearing a more favorable rate of interest than
the three per cent. bonds prior to next July.

"To prevent the further organization of banks is to put in jeopardy
the whole system, by ta