Democratic Northwest. [volume] (Napoleon, Ohio) 1869-1894, 1886-12-02
NATIONAL BANKS.
A Years Operations of the System
Important Changes in the Banking
Laws Suggested, the Nature Of
Which is Not Made
Public.

WASHINGTON, November 25.-The
annual report of Hon. William Tren-
holm, Comptroller of Currency, con-
tains suggestions for the amendment of
the National Bauk laws in about dOz-
en- instances, including the contingent
liability of shareholders, requirements
as to reserve the limit on loans to indi-
viduals, more thorough examination of
banks and their protection against un-
equal State taxation. The specific
character of these suggestions is with
held for the present. Three thousand
five hundred and eighty National Banks
have organized in all, of which 2,S5S
are now in operation; of these ia have
been organized during the past year,
with q capital of sd 900, 900, circulation
S2, 100000. Twenty-fOur banks went
into voluntary liquidation during the
year, one ceased to exist by expiration
of charter and eight failed. Since the
beginning of the system, in 1868, only
ll2 National banks have failed. Of
these, thirty-siX have paid their credi-
tors in full and twenty-eight have paid
interest besides, fifteen in full and five
in part. Over 80 per cent. Ofall Nation
al Bank stock is held by residents of
the State in which the bank is located;
more than Gl per cent. is held by natur-
al persons and over 96 per cent. of the
shareholders are natural persons. The
total number of shareholders is 223 900;
the total number of shares over 7,000,-
600. 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 the
National Bank circulation during the
year exceeds 456, 100000. Besides the
usual tables showing the condition of
National Banks at various dates, the
report this year contains an abstract
which specifies each item Of their re-
sources and liabilities. The banks in
the several States, reserve cities and
Territories have their condition stated
separately. A large diagram, exhibit
ing the main features of the National
banking system and their variations
during the past twenty-One years, ac-
companies the report. From this it ap-
pears that the aggregated deposits in
the banks have increased from $522,
100000 in January, 1866, to 81 liza, ,000,-
uuu III oCJubcli IOOo, WhllC IOdiI' anu
discounts have risen from $500, 900, 900
to 81 ,443 100000.
The specie held by the National Banks
in 1866 was $40, 100000; in October, 1875,
it was only $S,0O0,000, while in July,
1885, it was Sl77,0O0,000, and is now
$l56,0O0,000. Mr.. Trenholm declines to
say whether his report contains any
specific recommendations in regard to
modification of the law making
United States bonds the basis of the
National Bank currency, but it is
understood at the department that he
has presented a strong array of facts
and figures showing how valuable the
system has become to the entire coun-
try, and how, important it is that it
should be made adaptable to the needs
of communities in the West and South,
where vast natural resources await de-
velopment by the aid of outside capi-
tai