New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-11-26
4 hEPORT ON THE CURRENCY.
CoNl ROLLER HEPBURN GIVES THE YEARS
RECORD OF THE NATIONAL BANKS.
RECOMMENDATIONS FOR AMENDMENTS IN THE
PRESENT Law

PRESENT LAW
Washington nov oj-Tho ,ortfcon,,nr report OF |
a. b. HepouFn the Controller o, the Currency shows
'H' i"' o"'hN' with aggregate capital OF SD
'0VO "'F " Hanled during tho year. 80 went Into |
N'u"'y .'quidatlon. and II became insolvent. lcav
~ "' ''''ease ior the year OF 80 banks. Nearly
% per cent Of the rev banks are wc.t Of the Mis-
H'pP "F'r' ana 30 per GER: H. the southern states
Inc number OF banks In operation october 81 was
49, mVns al aggregate capital OF 1868. SOS. $685. |
surplus anu u"ivd'd profits. $40 52417o individual
depoN' Tl'''422oS3. bank deposits, $3.50 653, 2O2
and total resources, 500 o94 s07.
The circulation outstanding shows net Increase
FOR III" year Of SlOfs722G. The gold held By banks
as compared with september p ls9l shows an In
crcas" OF T2i.oof1lj; surplus and profits increase.
s9,do3,02o. Individual deposits Increase s1771O4-
D02, ara bank deposits. increase slOOO5S,42S.
Tn" Maverick National Bank closed It's doors october
81. ISL not within the year covered by this report
but too lat" for Insertion In last years report Over
twoihS of IN" liabilities OF the Il banks reported
aS having hiled belong 10 the Maverick Bank. - per
cent has bcef paid In dividend, TO dcposors in that
bank. ana IL l. estimated that a final dividend OF from
= 20 per cent will BE- paid. Five Of the remainder
failed before December l. and no bank has failed since
July &.
The Controller H'cs detailed information as TO ali
Clearinghouse transactions FOR the year. tho domestic
exchange drawn BY he banks. and shows how. by
means Of Bookkeeping substitutes the use of actual
money Is ulHimizcd, csS than 10 per cent OF husncs
transactions being represented by money.
The Controller rccomncnd, that On the minimum de-
pD,lt n Government bons required Of Natlona, banks
he $1,000 In case Of banks Of $50 900 capital, ana
5000 in case OF banks hose capital exceeds $50,
600
That banks be allowed 10 Issue circulating notes
cqul 20 the par value Of TN bonds held TO secure
circulation.
81. pon ,yi. drat oI nsho nd rlp
TO circulation shall not exceed +4,5OO00o In
the aggregate.
Tat The tax National bank circulation be
repealed. The banks have already paid into the
Treasury S72.67O4l2 In taxes upon circulation. The
bank. should only be ps.esscd In amount sufficient 10
dciray the actual cost 70 the Government Of providing
circulation
> That tho limit Of The amount which may be
loaned 20 any poison. company corporation. or firm
- 10 pr cent ~ tho capital stock Of the bank be
,, Amended 10 read "caplta and surplus and
also that an exception he made IN favor Of temporary
loans secured by collateral ~ the largest business
centres.
g. That the Government issue bonds having twenty.
thirty and forty yolr 10 run. at low rate II Interest,
with which 10 retire the present tOndcd debt Of the
United states which bonds may be used N basis
10 secure National bank circulation. crbe Controller
shows that nv exchanging per cent bond having
the same length Of time 20 run for the 4 pc: cent
lr,n.s outstanding. at TIE market value o. each on
&C, ,bcr ~. l-g2 the Government could have saved
.s;I6ls5l. In addition 10 furnishing permanent
bi,ls for circulation. II would prove a great saving
10 the taxpayers OF The country
: That tie Controller ~ the Cunercv. with the
approva 4 the Secretary of The Treasury bc empowered
10 remove officers ard directors II banks i'r violations
Of law. leaving The vacancy 20 caused 20 De hiied
IN the usual first giving such oh'eS ana directors
IN opportunity TO b. heard.
lat,l be required u take an Oafn
VI see before entering upon the discha o. u their
du e- and give bond in such amount ana Wan such
surcfle, "A 40 Controller OF the Cnrrc cy may re
qulc.
s. chat the Controller OF tho Currency ie al owed
p atl-!at two general examiners, Of oorsplouous
utility ana experience to be paid out OF tie public
funds whose duty IT shall be TO vis assist and
-upcr1-. ~, various examiners In their .s""ra DIS
'rci- In order TO secure uniformity IN relod and
Greater ci, ieucy IN work.
10 That law be amended ms TO prohibit officers
and employee, Of bank borrowing It's funds ia any
manner except upon application to and approval by
the Board Of Directors.
H. I'm order - facilitate the collection Of assess
cnt upon stockholders Of failed National banks. that
tho receivers Of such banks be- required to lille with
tie county clerk or register OF each county In which
any sfochholdcr mny statement showing the
names II the -tochhold no reside IN such county
and IN. amount Of the oes ID By them respectively,
m. filing Of such stat ment t. constitute n lien upon
any realty II said stakeholder which lien may be
vacated on motion and giving proper bond. and shall
De- discharged by the receiver upon payment Of the
assoc. mcnt.
IL section SO. Il. =, reads All suits and proceed
ing, arising ont Of the provisions Of Law governing
National banks, IN which the Cn I'd states any Of
g. officers agents shall be- pai.te, ,ha be- CON
Quoted by the United States attorneys Of tie several
districts. under the supervision OF the SOL gr The
Treasury Under this section It is con''nt 'at
United States attorney, eX. orico atto
receiver, Of all failed National bank, loca.ci 80 zig
their respective districts. and that all suit, and ~
cccdiugs must be- instituted By through th"'r It
is difficult to believe that the will sustain such
a construction Of IA" statute. that simple action Cor
debt. watch can be- maintained In state court 81,
we'll In United states court. and /, not based
upon any provision Of the National Bank act fail,
within The provision OF said act thai receiver OF
National bank Is agent Of the United states within
the meaning Of the said section. The Controller
recommends that the section be- 80 amended IL to
lpavc the employment of other than United States
attorneys IN the discretiCL Of the Controller.
In chapter In regard circulation the Controller
says:
National bank notes constitute a little lG
coinage under Act 81 ls7, was 80. lGG701; tic
teal cot of the silver coined, sos, l09362; the
signcraso or apparent profit, tuJ.GG1.j3l Tic
MARKET value Of such silver on October 81 was 80
1O5.3.j Les than it cost the Government. Under the
Act OF July, 1880, the GOv,luu.cnt mad puNhaa"d
SILVER and issued certificates therefor up TO ,mbrr
last. to the amount Of tl1o,Gll 2IJ. The press nj
market valu" 81 the silver purchased WAS sand
d. 5iI l3i,ttl6 less than IL cost.
Currency furnished by the Government viii not
commend Itself to the taxpayers upon the score Of
economy. The Government cannot Issue money
eIaiuitousy 1t must be- ia exchange for some value
II cannot pcs,r,- elasticity. Tie practical wOrhng
has been to arbitrarily Increase diminish the
currency 10 the drlriment vi bushes, interests.
National banks have furnished a currency adequate
10 the wants Of the public. sound. elastic and be-.
yond cliticism This form OF currency should be
continued ~ the money Of the future. The Con
.uturlOn Of III" United States prohibit, the States
from coming money or making anything except gold
and silver legal tender. slate bank bs, wncn
Issued. adj Just much To the liabilities Of tIr
bank. They would circulate freely In times OF pros
lrrity and confidence. Ia times OF monetary strin-
gene, ana general dstru.t they would return 10 the
bank, for redemption. They would have 10 BE- ic-
deemed In legal tender money provided by Congress.
Congress must under the Constitution. provide all
the money that possesses full debt paying power.
By every cons Iteration OF sound business principles