Savannah morning news. [volume] (Savannah) 1868-1887, 1886-11-26
NATIONAL BANK NEEDS.
IMPORTANT SUGGESTIONS BY
THE COMPTROLLER.

-.a Soecific Character of the Recon-
,sndatiors Not Made Public-2,85S
Tustttutions in Operation Under Gov
eminent Auspices-Their Combined
Capital S21 ,OOO, O,OOO-Eight Failures
During the Past Year.
WASHINGTON, Nov. 25.-The annual
renort of Hon. William i. Trenholm,
ComptrolIer OF the Currency, contains
sucoestions for the amendment of the ma
tionaI bank laws in about dozen in
stances. including contingent liability of
shareholders, the requirements as to re-
serva limits on loans to individuals,
more thorough examination of banks and
their protection against unequal taxa
non. The specific character OF the sug-
eestions Is withheld for the present.
Three thousand five hundred and eighty
national banks have been organized in
all. of which 1883 are now in operation.
Ofthese ia have be en- organized during
the past year, with capital of $2l,-
100000, bonds OF SO, 100000 and circula-
ton of $2,9O0,00O.
OUT OF BUSINESS.
Twenty-four banks went into voluntary
houidation during the year; one ceased
tOexist by the expiration OF it's charter,
md eight failed. The failed banks have
an aggregate capital of $650,0 surplus
and undivided profits OF $204,00O. and liza
biuties of 81, 100000. The creditors OF two
of these banks have been paid in full.
principal and interest. In two cases the
dividends have reached 80 per cent, in
one case 70 per cent, and in one 20 per
A.Yr
the year by all insolvent banks,
banks have been finally wound up
and their accounts closed, leaving
twenty-five insolvent banks still in
the hands Of receivers. Since the begin
ming of the system in 1865 only 112 nation
Al banks have failed. of these thirty
eight have paid their creditors in tull and
twenty have paid interest, besides fifteen
IN full and five in part. An interesting
comparison is made between national
banks previously existing as State insti-
mtions and those originally organized
under the national bank law. In each
case only per cent. of the number Or
ganZed became insOlvent.
DISTRIBUTION OF SHARES.
Very full tables are given showing the
distribution of the shares of stock in ma
distinguishing between shares held by
residents of State and non-residen ts, Dy
natural persons and by various classes of
corporations. The total number OF
shares is over 100000 and the total
number of the share holders is 223, 900.
Over 80 per cent. of all the national
bank stock is held by residents of the
State in which the bank is
located; more than 80 per cent.
is held by natural persons, and over
96 per cent. of the number of shareholders
are natural persons. Among the cor
pOrations holding national bank stock the
greatest amount is held by savings
banks, trust companies and insurance
companies. More than half the entire
number OF shareholders hold ten shares or
less; about One-third hold over ten shares
but less than fifty, while those holding
4 more than fifty shares number but little
more than One-ninth.
CONTRACTION OF CURRENCY.
The effect of the reduction of the public
debt and the high premium on bonds
upon the volume of the national bank cir
cnlation is very fully illustrated in the
report. The contraction in the national
hank circulation during the year exceeds
Sj6,000,000.
Besides the usual tables showing the
condition OF the national banks at various
dates, the report this year contains an
abstract which specifies each item of
their resources and liabilities. The banks
u the several States, reserve cities and
territories have their condition stated
separately.
large diagram exhibiting the main
features Of the national banking system
and their variations during the past
.Wenty-one years accompanies the report.
from this it appears that the aggregate
uueposlts in the banks have increased from
S%32OOO 900 in January, 1866, to $1,173,-
wVO0O III October, 1886, while the loans
ana discounts have risen from $500, 900, 900
u, 100000. The specie held by
nauonal banks III 1866 was $40, ,000, 900. In
Uctooer, 1915, it was only 5000, 900, while
IN July, 1850, it was $177, 100000, and is
now Sl5G,00O,0O0.
MI trenholm declines to say whether
MS report contains any specific recon-
euuations IN regard to modification of
.e law making United States bonds the
a O@siS oil national bank currency, but it is
unuerstood at the department that he has
osehted strong array OF facts and
sues, showing how valuable the system
Iss become to the entire country and how
Important 1t is that 1t should be made
M MuSPtaDle to the needs of communities in
,at ae west and South, where vast natural
sources await development by the aid