The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1892-12-03
The CONTROLLER
VI the Currenoy's Forthcoming Annual Re
port-lnteresting FRcts Showing Condi-
tion and Prospects of Banks.

Ofthe Currenoy's Forthcoming Annual Re
port-lnteresting Facts Showing Condi-
tion and Prospects of Banks.
WASHINGTON, Nov. 26.-The forth.
coming report Of Mr.. A. B. Hepburn,
the controller of the currency, shows
that 1913 banks, with an aggregate cap.
1tal of S15, 295, 900, were organized dur.
ing the year, SO went into voluntary
liquidation and II became insolvent,
leaving net increase for the year OF
03 banks
Nearly so per cent of the new banks
are located west of the Mississippi
river, and 80 per cent. in south
ern states The number of banks
in operation October 81, 1899. was
s,Tss, having an aggregate capital
of sG93, ,645; surplus and undivided
profits, SS40 524, 179; individual deposits,
$1,T65, 422, ,9S3; bank deposits; $3.50, ,65s,.
2O2, and total resources, 3,510, ,O94, s97.
The circulation outstanding shows a
net increase for the year of $40, 4S7, ,226.
The gold held by banks, as compared
with September 25, 1891, shows an in.
crease of $21, ,994, lis; surplus and profits
increase, S9,663, ,020; individual deposits,
increase, S177, 1O4, ,0O2, and bank depos-
its, increase, slOO,o5s, 42s. Over two
thirds of the liabilities of the seventeen
banks reported as having failed belong
to the Maverick bank.
The controller gives detailed informa-
tion as to all clearinghouse transac-
tions for the year, the domestic ex-
change drawn by the bank. and shows
how. by means of bookkeeping substi-
tutcs, the use of actual money is min
imized, less than ten per cent of busi-
ness transactions being represented by
money.
The controller recommends, among
other things, that the minimum deposit
of government bonds required of ma
tional banks be 81, 900 in case of banks
of $4,000 capital, and S5, 900 in case OF
banks whose capital exceeds $50, 900.
That banks be allowed to issue cir
culating notes equal to the par value of
the bonds held to secure circulation.
That the monthly withdrawal OF
bonds pledged to secure circulation
shall not exceed S4,500,00 in the aggre-
gate.
That the tax on national bank circu-
lation be repealed. The banks have
already paid into the treasury S72, ,67O,-
G12 in taxes upon circulation. The
banks should only be assessed in
amount sufficient to defray the actual
cost to the government of providing
circulation. That the limit of the
amount which may be loaned to any
persons, company or corporation to ten
per cent of the capital stock of the
ho MI haa Cd 30 .A.T
and surplus, and also that an exception
be made in favor of temporary loans
secured by collateral in our largest
business center. That the government
issue bonds having twenty, thirty and
forty years to run, at low rate of
interest with which to retire tho pres
est bonded debt of the United States,
which bonds may be used as basis to
secure national bank circulation. (The
controller shows that, by exchanging a
two-per-cent bond having the same
length of time to run for the four-per-
cent bonds outstanding, at the market
value of each on the 31st of October,
1892, the government could have saved
S67, 1851. In addition to furnishing
permanent basis for circulation, it
would prove a great saving to the tax
payers of the country.)
That the controller of the currency
with the approval of the secretary Of
the treasury, be empowered to remove
officers and directors of banks for vio-
lations of law, leaving the vacancy so
caused to be filed in the usual way,
first giving such officers and directors
IN opportunity to be heard. That bank
examiners be required to take an oath
of Office before entering upon the dis
charge of their duties, and give bond in
such amounts, with such sureties as
the controller of the currency may re-
quire.
That the law be so amended as to
prohibit officers and employees of a
bank borrowing it's funds in any man
uer except upon application to and APP
proved by the board of directors