The record-union., 1892-11-26
NATIONAL BANKS.
REPORT OF COMPTROLLER OF
CURRENCY HEPBURN.
Hundred and Eighty
Eight In Operation, With
5000, ,S6S, ,G45 Capital.
Special to the REconp-UNrox.

Special to the RECoRD-UNIoN.
WAsHINGToN, Nov. 25.-The forthcom-
ing report Of Comptroller of Currency
Hepburn shows that l63 banks, with an
aggregate capital of S15, ,2S5, 600, were or
ganized during the year, So went into
voluntary liquidation and II became in
solvent. Nearly 80 per cent. of the new
banks were located west of the Mississippi
River, and 80 per cent. in the Southern
States. The number of banks in opera
ton is 3,7SS, having an aggregate capital
Of S693, 6C8, ,645; surplus and undivided
profits, $40, ,524. .179; individual deposits.
81, 100, AZ, ,9S3; bank deposits, $3.50, 457 ,ZO2,
and total resources, S., ,5l0,O ,Og4. .S97
The Circulation outstanding shows a
net increase for the year of $40. .4S6. .226:
gold held by banks, compared with Sep
tember %, 1891, shows an increase of
S2l 1894, rs; surplus and profits, an in
crease of S, ,O03, ,020; individual deposits,
an increase of Sl0, ,l04 1902, and bank de-
posts, an increase OF $I00, ,05S, ,42S.
over two-thirds OF the liabilities of the
seventeen banks reported as having
failed belonged to the Maverick Bank.
The Comptroller gives detailed intor-
nation OF the clearinghouse transac-
tions, and shows how, by means of book
money is minimized, less than 10 per cent.
of the business transactions being repre-
sented by money. The Commissioner
makes numerous recommendations.
among them:
That the tax on national bank circulation
be repealed. The banks have already paid
into the treasury 81, $40, ,40l in taxes upon
circulation. They should only be as
sessed sufficient TO detray the actual cost
to the Government of providing circula-
ton.
That the Government issue bonds hav-
ing twenty, thirty and forty years to run,
at low rate OF interest, with which to re-
tire the present bonded debt, which
bonds may be used as a basis to secure
national bank circulation. The Comp
trOller shows that by exchanging per
cent. bonds 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 S61 ,l6l .55I. In addition
to furnishing permanent basis of cir
culatiunS medium il would prove a great
saving TO taxpayers.
That the Comptroller Of Currency, with
the approval of the Secretary Of the
Treasury, be employed to remove officers
and directors of banks for violations of
law; that the law be so amended as to
prohibit officers or employees of bank
borrowing its funds in any manner. eX-
cept upon application to and approval by
the Board OF Directors.
In a chapter in regard to circulation
the Comptroller says: "Soiled paper
money is popularity believed to be a 20
tent means of disseminating infectious
and contagious diseases. The Bank of
England never reissues q note The
statute provides tor the redemption of
United States notes when so mutiIated or
ir,Tr rsfaI tn hn mt /
the accumulated filth of continuous use
is unfit for circulation and should be re-
deemed. send in the old, and let the
people have new and clean money"
National bank notes, saws the Comp
troller, have furnished currency adequate
to the wants OF the public, sound, eIastIc
and beyond criticism. This form OF Cur
rency should be continued as the money
OF the future. The Comptroller argues
against State bank notes, and says Con
gress must, under the Constitution, pro-
vide all money that possesses full, debt
paying power. By every consideration Of
sound business principles, it should pro-
vide all the money the country requires.
No public interest can be served by
dividing this function with forty-four
States. Every period of financial de-
preston in the past has resulted in the
suspension OF specie payments, more or
less general, by the banks: that is, re-
suited in the inability of the banks to re-
deem their notes. The same conditions
would produce similar results i'll the
future if State bank notes were allowed
10 circulate. Their acceptance is not
voluntary; it becomes a necessity. The
wealthy class could provide themselves
with means of discriminating against
notes of weak banks, and, if they found
themselves possessed of any, would pro-
ceed to work them off upon their less
L
of the past; it would be the experience of
the future.