National Republican., 1886-11-27
CURRESCY OF THE COUNTRY.
eral Amendments to the National
Bank Law.

Comptroller Trenholm Suggests Sew
eraI Amendments to the National
Bank Law.
The annual report Of Hon. William l..
Trenholm, comptroller Of the currency,
contains suggestions for the amendment of
the national bank laws in about dozen
instances, including the contingent liability
of shareholders, requirements as to reserve,
the II NIT on loans to individuals, more
thorough examination OF banks, and their
protection against unequal state taxation.
The specific character Of these suggestions
is withheld for the present.
Three thousand five hundred and eighty
national banks have been organized in all,
OF which 2,S5S are now In operations: of
these la have been organized during the
past year, with a capital OF $2l, 100000,
bonds S3,7O0,000, circulation $2,900,O00.
Twenty-four banks went into voluntary
liquidation during the year, one ceased to
exist by expiration Of charter, and eight
failed. The failed banks have an aggre-
gate capital of SG50,O00, surplus and un-
divided profits $204,O00, liabilities 81, ,3O0,-
| 600. The creditors of two OF these banks
have been paid in full. principal and inter
| est. In two cases dividends have reached
! 80 per cent, in one case 75 per cent, and
| one 20 per cent. The total dividends paid
during the year by all insolvent banks eX-
ceed 81, 800, 900, and eight banks have been
finally wound up and their accounts closed,
leaving twenty-five insolvent banks still in
the hands OF receivers. Since the beginning
! of the system in 1868 only ll2 national
banks have failed, of these thirty eight have
paid their creditors in full and twenty have
paid interest besides fifteen IN full, and five
In part.
An interesting comparison is made be-
state institutions and those originally Y organ
ICED under the national bank law. In each
case only per cent. of the number organ
ICED became insOvent.
Very full tables are given showing the
distribution OF the shares OF stock in ma
tional banks in every state and territory,
distinguishing between the shares held by
residents of the state and non-residents, by
natural persons, and by the various classes
of corporations Total shares over 1000
600; total shareholders 223OOO,
Over 80 per cent, OF all national bank
stock is ned by residents Of the state in
which the bank is located, more than 81 per
cent. is held by natural peLsons, and over 9G
per cent. OF the number OF shareholders are
natural persons.
The effect Of the reduction Of the public
debt and the high premium on bonds upon
the volume Of national bank circulation is
very fully illustrated in the report. The
contraction In national bank circulation
during the year exceeds S56, 100000,
Besides the usual tables showing the con
dition Of national banks at various dates
the report this year contains an abstract
which specifies each item Of their resources
and liabilities. The banks In the severa
states, reserve cities, aud territories have
their condition stated separately,
A large diagram, exhibiting the main fea
lures OF the national banking system an(
their variations during the past twenty Ont
years, accompanies the report. From th
1t tappears that the aggregate deposits II
the banks have Increased from 1922 ,OOO,O ,OO
in January, 1866, TO $l,lT3 900 in OctO
Der, 1886, while loans aud discounts hav
risen from $500, 900, 600 at the former dat
to 81, ,4i3, 900, 600 at the latter date
The specie held by the national banks II
1866 was $l9,000,0OO; in October, 1875,
) was only $S,000,00O, while in July, 1885,
was Sl77, 900, 900, and is now Sl560OO, 900.
Mr.. Trenholm declined to say whethe
his report contains any specific recon
mendatlons in regard TO a modification o
1 the law making United States bonds th
basis OF the national bank currency, but
) Is understood at the department that b
has presented strong array OF facts an
figures showing how valuable the systeI
mas become TO the entire country, and ho'
important 1t is that II should be made adap
able TO the needs OF communities In TIL