The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1892-11-26
NATIONAL BANKS.
Annual Report of the Comp
trOlIer Of the Currency.
INCREASE DURING THE YEAR.
Fifty Per Cent. OF the New Banks Are in the
West. S5 Per Cent. IN the South
His Recommendations.
INCREASE DURING THE YEAR.

WASHINGTON, Nov. 25.-Ths forthcoming
report Of Comptroller Of the Currency
Hepburn shows that 1853 banks, with an az-
.gregate capital Of SIS 2s5, 900, were organ
lzed during the year, fifty three went into
voluntary liquidation and seventeen be-
came insolvsnt- Nearly 90 per cent of the
new banks are located west Of the Missis-
sippi river and 80 per cent. in the southern
states. The number of banks in operation
is ass, having sn aggregate capital OF
S593, S6S, 645, surplus and undivided profits
sS4O, 524, l79, individual deposits 81, 765, 422,
9S3, bank deposits $500, 453, 202, and total
resources Oh $3,5l0,094 s97. The circulation
outstanding shows a net increase for the
year Of $40, 457, 226. Gold held by banks,
compared with Sept. p. 1891, SHOWS
an increase OF SCI, 994,115, surplus
and profits increase 50, Cos. 020 individual
deposits increase Sl77, 1O4, 9O2; and bank de-
posits increase 500, O5S, 42S Over two
thirds OF the liabilities of seventeen banks
reported as having failed belong to the
Maverick bank.
The comptroller gives detailed informa-
ton of clearing hourse transactions and
shows how, by means OF bookkeeping sub
sututes the uso of actual money is mini
mlZed, less than 10 per cent Of the business
transactions being represented Oy money.
The commissioner makes numerous recon-
mendations, among them that the tax on
national bank circulation be repealed as
the banks have already paid into the treas
cry 81, go 401 in taxes upon circulation.
They should only be assessed sufficient TO
defray the actual cost 10 the government
OF providing circulation; that the govern
ment issue bonds having twenty,
thirty aud forty years to run
at low rate of interest
nit n Hf1f rfro
debt, which bonds may be used as basis
to secure national bank circulation. The
comptroller shows that by exchanging a
2 per cent. bond, having the same length OF
time to run, for the per cent bonds out
standing, at the market value Of each on
the 3lst OF October, 1892, the government
could have saved s67, l61, SOL, and in addi-
tion to furnishing a permanent basis Of
circulation, it would prove great saving
10 taxpayers. He also recommends that
the comptroller of the currency, with the
approval OF the secretary of the treasury,
be empowered to remove officers and di-
rectors Of banks for violations of law.
That the law be so amended IS to prohibit
officers or employees of q bank borrowing
its funds in any manner except on appHca-
! ton TO and approval BY the board Of d.
rectors.
In the chapter regarding circulation the
comptroller says: 'SOiled paper money is
popularity believed 70 be potent means OF
disseminating infectious and contagious
diseases. The Bank of England never re-
issues = note" The statute provides for
the redemption Of United States notes
when so mutilated or injured as to be unit
for use, and says the accumulated filth OF
continuous use is unfit for circulation and
should be redeemed. Send IN the old, and
\ let people have new and clean money. Ma
tiOnal bank notes, says the comp
1 troller have furnished currency adj
equate to the wants of the people
sound, elastic, and beyond criticism. This
1 form of currency should be continued az
the money Of the future. The comptroller
argues against state bank notes and says
that Congress must under the constitution
make money that possesses full debt DayiI g
! power. BY every consideration Of sound
| business principles IL should provide ali the
money the country requires. No public
interest can be served by dividing this
function with fOrty-fodr states. Every
period o. financial depression in the past
| has resulted in the suspension of spec:s
payments, more or less general. by banks.
That is, it resulted in the inability
of the banks 70 redeem their notes
! The same conditions would produces
similar results in the future. If state BANK
notes are allowed circulation, their accept
ance is not voluntary, it becomes g neces-
/ sity. The wealthy class could provide
/ themselves with means Of discrimination
against the notes OF weak banks, aud if
they found themselves possessed OF any
would proceed to work them of upon their
less fortunate neighbors. That is the re-
cord of the past II would be the expert
ence of tue future. The note Of a national
bank that has failed is as good as that of
any bank IN the system. The restoration
Of state bank circulation would need and
have the most right to ask protection from
the government. State bank circulation
loses its money in a crisis, and instead OF
paying debts II comes forward Itself to be
| mid