Abstract

The National Banking System

Nearly a year has passed since the Treasury has issued a bond call. The discontinuance of bond calls has temporarily relieved the national banks from the pressure caused by the gradual disappearance of the security upon which their circulation rests. At the Chicago meeting of the Bankers' Convention a paper was presented by W.W. Flannagan, Cashier of the Commercial National Bank, of New York, which deserves something more than passing notice. It suggests a plan for protecting the depositors in national banks, by creating a fund to be contributed by the banks themselves, for the immediate liquidation of claims against failed banks, so that the creditors of such banks need give themselves no more concern about a suspended bank than the note holders now do.