St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-07-14
HOLDERS OF BANK STOCKS.
-.Number of Pieces of Paper Dis
counted by the Banks.


Exchange.
Ex-Comptroler Knox, in recent address
before the Bank Officers association Of Bos-
ton, Said that the majority of bank stockhold-
ers were not rich men, and that the national
and state banks and their officers are contin-
ually being misrepresented in and out of con-
gress upon the silver question. He said the
bank with which he is connected has a capt.
tai of 81, 900, distributed among $50 share
holders, one-third of whom are New England
men and women of moderate means, who have
been shareholders for thirty years. Only two
shareholders hold as much as 800 shares, rep
resentng 1000 The holdings on the av-
erage are S. coo, and this is about the average
held, in the aggregate, by the stockholders of
all the national banks. The small tCckhold-
ers, as well as large, under the national bank
ing system, as you know, are individually
liable for an amount equal to the amount
invested in the stock. The national bank
stock | of the country is not held, as
"a rule, by rich men, nor are the
officers of the banks generally rich men. The
average amount held by each stockholder in
the New England states is but $1,000. The
number of stockholders in 1876 in Massachu-
sets was about 6,000 of which $4,000 held
81, 900 stock or less. The whole number of
stockholders in New England was about 81
600, about two-thirds of whom held stock
VARYING from Sl00 to 81, 900. The same rule
held good in New York, where the number of
stockholders was $4,000, nearly half of whom
were small holders owning stock of ten shares
or less. The whole number of shareholders
in the Middle States was IS, 600, of whom So
900 held from one to ten shares only each. In
the Southern and Southwestern states there
were held 11,004 shares of stock, of which
6,052 were held in sums OF ten shares and
less, and 2,305 in amounts between LOCO and
81, 000 In the Western states there were
held 1T,I7O shares, of which 1894 were in
Of or,d Lose o,,dQ I,o
tween $1,000 and $1,000. The officers and
directors of national banks are the trustees
for thousands of these small shareholders, as
well as for thousands ofsmall depositors, and
there is nothing more absurd than the state
ment that they desire to maintain gold pay
ments at the expense of the debtor class.
Mr.. Knox estimated the number of pieces
of paper discounted in the year 1879 at $780,
600, and the amount of discounts at $600O-
600, 000 which was $40 for each voter, and
5000 for each family in the country. The de-
posts including those of savings banks, are
about $500, 000, 0G0, and it is believed that
not less than one-fourth of the population, or
one-fOurth Of the families and householders
of the Union are directly interested in the
loans and deposits OF the banks. Those who
are familiar with these facts find it difficult
to understand the prejudice which prevails
III this country alone, both in and out of con-
gresS. against banks that conducted
upon sound principles. The capital and de-
posts OF the banks are loaned to millions OF
people, and at the present time largely at
rates much lower than the rate fixed by law.
The coin and bills receivable held by the
banks belong to the depositors first, and the
remainder to the stockholders, who, as rule
are men of moderate means; and it is the
duty of the officers of banks to insist that the
borrower shall pay dollars having the same
intrinsic value as those which were borrowed,
in order that depositors may be paid in dol
lars like those which were deposited. To fail
to do this would be gross negligence of
duty.