The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-11-26
NEUTRALITY-SUSPICIOUS.
Points from the Forthcoming Report of
the Controller of the Currency.
Recommendations and Suggestions That Have
Added interest in View OF Iemocrecy's Pro-
posal to Return 10 Wildcat Money.

aggregate capltoi OF Slo.Soo,OU. were organ
lied during the year. fifty-three went into
voluntary liquidation and seventeen be-
came insolvent, leaving q net increase for
the year of ninety-three banks. Nearly 80
per cent. of the new banks are located west
OF the Mississippi river. and SIS per cent in
Southern States. The number of banks In
operation Oct. 81. 1892. was 3,7sS. having an
aggregate capital Of e69S. SOS. 645; surplus
and undivided profits. $3.50, 524. 10; lndivid-
nal deposits, $l.765. Az. 9s3: bank deposits.
$3.50. 65S, 202. and total resources. $3.50. GA
Sg7. The circulation outstanding shows o
net increase for the year of $40. 49, 26. The
gold hold by banks, az compared with Sept
2 ,1S91. shows an increase of $2l. 994, lis;
surplus and profits, increase. &c. 6S, 02O;
individual deposits. increase, SIT. 104. 902.
and bank deposits, increase, 800. 05s.42S.
Over two.thlrds of the liabilities Of
the seventeen banks reported, as having
failed belong to the Maverick Bank. The
Controller gives detailed information as
to all clearinghouse transactions for the
year. the domestic exchange drawn by the
banks. and shows how, by means of book
keeping substitutes, the use or actual
money in
The Controller recommends that the
minimum deposit of government bonds re-
quired of national banks be 81 .000@in caoe
of banks of $4,000 capital. and s., 0C0 in
case of banks whose ca pital exceeds $50, 600:
that banks be allowed to issue circulating
notes equal to the par value Of the bonds
held to secure circulation; that the month
~ withdrawal of bonds pledged to secure
circulation shall not exceed S4.500.O 600 in
the aggregate, that the tax on national
bank circulation be repealed. He says the
banks have already paid into the treasury
81. SIC, 412 in taxes upon circulation. The
banks should only be assessed in amount
sufficient to defray the actual cost to gov
ernment Of providing circulation.
Low-INTEREsT
The Controller also recommends that the
limit of the amount which may be loaned
to any person, company or corporation to
10 per cent. of the capital stock of the bank
be so amended as to read capital n sur
plus" and. also. that an exception be made
in favor of temporary loans secured by col
lateral in our largest business c~enters; that
the government issue bonds having TWEEN
ty, thirty end forty years to run ct q low
rate of interest, with which TO retire the
present bonded debt of the United States.
which bonds may be used as q basis to Sc
cure national bank circulation. The Con-
troller shows that by exchanging q two
percent. bond having the same length OF
time to run. for the four-per-cent. bonds
outstanding at the market value of each
on the 3lst OF October. 1892. the govern
ment could have saved S67, Isl. 55L In ad-
dltion to furnishing q permanent basis for
circulation IL would prove q great saving
to the ~x-pay of the country.
Mr.. Hepburn further recommends that
the Controller 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, leav-
ing the vacancy so caused to be filed in
the usual way. first giving such officers and
directors an 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
suoh amounts, with such suretles, as the
Controller of the Currency may require;
that the Controller of the Currency be al
lowed TO appoint two general examiners OF
conspicuous ability and experience, TO be
paid out of the public funds, whose duty il
shall be to visit, assist and supervise the
various examiners in their several districts
In order to secure uniformity In method
and greater efficiency In work; that the law
be so amended IS TO- prohibit officers and
employees of q bank borrowing its funds in
any manner. except upon application to
and with the approval of the board of di-
rectOrs.
In order to facilitate the collections of
assessments upon stockholders of failed
national banks the Controller recommends
that the receivers of such banks be required
to file with the county clerk or register of
each county In which any ~stOckhOlder may
reside a statement. the names of
the stockholders who reside in such county
and the amount of stock held by them, re-
spectively. the fling of such statement to
constitute a lien upon any realty of such
stockholder, which lien NAV be vacated on
motion and giving proper bond. and shall
be discharged by the receiver upon pay
ment of the assessment.
In q chapter in regard to circulation the
Controller says: "Soiled paper money is
popularity believed to be a potent means Of
disseminating infectious and contagious
diseases. The Bank OF England never re-
issues a note. The statute provides for the
redemption of United States notes when
they are 80 murilated or otherwise injured
as to be unfit for use and for the redemp-
ton of national bank notes when they are
worn, defaced, mutilated or otherwise I'M
fit for circulation A note with the ac-
cumulsted filth of continuous use is init
for circulation. and should be redeemed.
Send in the old and let the people have new
and clean money
NATIONAL VERSUS STATE BANKS.
National bank notes constitute q little
over 16 per cent. of the money in circula-
ton. Currency furnished by the govern
ment will not commend itself to the tax
payers upon the score of economy. The
government cannot issue money gratui-
tiously; it must be in exchange for some
value. 1t cannot possess elasticity. Tho
practical workings bave been to arbitrarily
increase or diminish the currency to the
detriment Of business interests National
banks have furnished n currency adequate
to the wants of the public, sound. elastic,
and beg u criticism. This form of cur
rency should be continued as the money of
the future. The Constitution of the Unit
ed States prohibits the States from c1ining
money or making anything except
gold and silver legal tender. State
bank bills, when issued, add Just So much
to the liabilities of .he bank. They would
circulate freely In times of prosperity and
gency and general distrust they would re-
turn to the banks for redemption. They
would lave to be redeemed in legal tender
money provided By Congress.
Congress must. under the Constitution,
provide all the money that possesses a full
debt-payIng power. BY every considera-
tion of sound business princh pies il should
provide ell the money that the country re-
Quires. No public interest can bc served
by dividing this function with the
forty -four States. Every period OF
financial depression In the past re-
suited In the suspension of specie
payments, more or less general. by
the banks; that is. resulted in the inability
same conditions would produce similar re-
| suits in the future. Ii State bank notes
are allowed to circula to their acceptance is
not voluntary: il becomes q necessity.
Many miDe-owners manufacturers and
large employ ers of labor practiced paying
their help IN stt g orders, in order TO con
troll their trade and made the extra profit.