The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1886-12-16
FINANCIAL AFFAIRS.
romptrOller Trenholm on
Banking and Currency.
" WILSON SUCCESSFUL L n
o.. .,fpe 20 the Reorganization OF the
Present system-Doibgs In
Congress Wednesday.
Banking and Currency.

w.sH-EGvoS, DC. December 10
,,-.,,--oller Trenholm appeared before
me House committee on banking and
----g1cy to-day, by request, to state
"a. views touching the national bank
--.--n. The Comptroller stated to the
.,nu,itree that he was not yet fully
1-a7s-ed to suggest a plan looking TO
he organization of the present sys-
-, mt believed that he would be able
:, gnggest q practical plan sometime IN
T.7rsrv next. Meantime, he submitted
- the consideration of the COMMITTEES
s5-sff al the bill amendatory OF the
49, relating TO national banking. The
IN alter proposing a number OF IN
;r,1o--ent changes in the present
svsteu requires that the bonds
-s5rired 10 be kept on deposit
~ the Treasury as a basis Tor
circulation shall be Understanding,
and when such bonds are called they
must be replaced within three months
efrar notice by Understanding bonds,
and in default, the Comptroller IS
authorized 10 appoint a receiver 10
Close mn the affairs Of the bank In case
the bonds deposited to secure clrcula-
ton exceed the minimum amount re-
-riraS nv law. the excess may be placed
with the other interest bearing bonds
or the circulation secured by the excess
shall be surrendered BY the association,
wbereupon the excess shall be delivered
bv The TrsasureT- OF the United
Siatas 10 the Secretary OF the
Treasury for redemption, With
instructions 10 deposit from
the proceeds with the treasurer, lawful
money TO the amount OF the OutStand-
ing circulation secured BY such bonds,
and hold the residue on account OF the
ASSOCIATION holding the bonds. The
bill provides that q board OF directors
shall be constituted. of not less than
five directors, exclusive Of the vice
president and cashier, If he be a mem
Der OF the board. The seventh section
makes ii unlawful for bank to take
either in its own nsmR or that of any
C rp0ratiOn.Or person, Or its beneft.any
mortgage upon real estate as security
FOR cOntempOraneOus loans, or for I'D
vances. But no association is pro
hibited from discounting any bill
Of exchange or pTomissOry note
not having more than four
months 10 run, although the
same may be secured by real estate,
when discounted for the endOrser in
the ordinary course of business and
when the mortgage Is merely collateral.
Referring 10 surplus funds, the bill
provides that whenever the surplus
fund OF any bank shall exceed by 20
per cent. the amount Of its capital
stock, the shareholders may be relieved
OF individual responsibility and every
association may be relieved OF such
liability 10 proportion o which The
surplus after deducting % per
cent. reserved, bears 20 the whole
amount OF spital stock No ex-
emptiOn however, can be Obtained
through any process BY which any por-
ton Of the capital stock may be con
Yer!ed into the surplus. In case the
surplus IS reduced, by loss or otherwise,
below heamOunt required for exemp-
Con, the association is required. after
notice to pay the deficiency by an as
sesSment upon the shareholders. and
u me 1enc ency be not made good, the
oana is to be placed in the hands of a
receiver
The supplement- TO the bill relating to
ialied bank, provides that where the
asse's Oh any lnSO'yent association for
"nieh q receiver has been appointed
sAal- be sufficient to pay all the credit
GFs N iull, the association shall not
o ccemed to be dissolved, but
s,'er delivery TO the. agent Fot
tne shareholders, the association shall
o. entitled to resume business, If the
snase9olders owning two-thirds of the
capital stock shall be decided to do so.
d lore resuming business, however, the
ASSOCIATION IS required to restore the
SSltFe amount Of its capital stock,
pon the approval OF the COMPTROLLER
.he amount OF the capital stock NAV be
lsiuHed before the restoration.