Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-11-26
WILDCATS SHOWN UP
In the Coming Report of the Comp
troller of the Currency.
CLEAN, SAFE MONEY is REQUIRED.
Huge Liabilities We're Involved in the
Maverick Failure.
NEW BANKS IN THE WEST AND SOUTH

| WASHINGTON, Nov. 25.-The forth
coming report of A. B. Hepburn, Comp
troller of the Currency, shows that 1853 banks,
with an aggregate capital of SIS, 2S5. 900, were
organized during the year; 80 went into
voluntary liquidation and II became in
solvent, leaving net increase for the year
of SO banks Nearly 80 per cent of the
new banks are located west of the Missis-
sippi river and So per cent in the Southern
States
The circulation outstanding shows a net
increase for the year of $40, 4S7, ,226 The
gold held by banks, as compared with Sep
tember 25, 1891, shows an increase of S21,
994 ll5; surplus and profits. increase
$9, 663, ,020; individual deposits, increase
SLIT, 104, 902, and bank deposits, increase
S1O0, ,05S, ,428 Over two.thirds of the la
biiities of the II banks reported as having
tailed belong to the Maverick Bank.
The Comptroller recommends that the
minimum deposit of Government bonds re-
| quired of national banks be 81, 900 in case
OF banks of $4,000 capital, and 5000 in
| case OF banks whose capital exceeds $50, 900.
Changes of Legislation Desirable.
Among his other recommendations are:
That banks be allowed to issue circulating
notes equal to the par value of the bonds
held to secure circulation; that the monthly
withdrawal of bonds pledged to secure cir
culation shall not exceed 81 500, COO in the ag-
gregate; that the tax on National bank Cir
culation be repealed; that the limit of the
amount which may be loaned to any per-
son, company or corporation or firm, to
10 per cent of the capital stock of the bank,
be SO amended as to read capital and sur
nj fhof hn CNryA Nar,f h<r,h do
having 20, 80 and ~ years to run, at a low
rate of interest, with which to retire the
present bonded debt of the United States,
which bonds may be used as a basis to se-
cure National bank circulation; that the
Comptroller with the approval of the Sec
retary Of the Treasury, be empowered to re-
violations of law; that Bank Examiners be
required to take an oath of office and give
bond; that the Comptroller be allowed to
appoint two general examiners; that the law
be SO amended as to prohibit officers end
employees o. a bank borrowing its funds in
any manner except upon application to and
approval by the Board OF Directors.
Give the People Clean Money.
In a chapter in regard to circulation the
Comptroller says:
Soiled paper money is popularly believed
to be a potent means OF disseminating in
fictitious and contagious diseases. The Bank
OF England never reissues note. The
United States notes when they are SO mutt
lated or otherwise injured as to be unfit for
use and tor the redemption of National
bank notes when they are "worn, defaced,
mutilated or otherwise unfit foI.circulation."
note with the accumulated filth of con-
tinuous use is unrit for circulation and
should be redeemed. Send in the old and let
the people have new and clean money.
National bank notes constitute q little |
over 18 per cent of the money in circulation.
Currency furnished by the Government will |
the score of economy. The Government
cannot issue money eratuitously. 1t must |
be in exchange for some value. 1t cannot |
possess elasticity. The practical workings |
the currency to the detriment of business |
interests. National banks have furnished a |
currency adequate to the wants of the |
public. sound, elastic and beyond criticism. |
This form of currency should be continued |
as the money of the future.
The Constitution of the United States pro- |
hibfts the States from coming money or |
making anything except gold and silver |
legal tender. State bank bills, when issued, |
add just SO much to the liabilities of the |
bank. They would circulate freely in times |
of prosperity and confidence. In times OF |
monetary stringency and general distrust, |!
they would return to the banks for redemp- |
tion. They would have to be redeemed in |
legal tender money provided by Congress.
Worthless Money in Financial Crises.
Congress must. under the Constitution,
provide all the money that possesses q full |
power. By every considera- |
tion of sound business principles, it should |
provide all the money that the country re- |
qures. No public interest can be served by |
dividing this function with A States. Every |
period of financial depression in the past re-
suited in suspension of specie payments,
more or less general by the banks; that is,
resulted in the inability of the banks to re- |
deem their notes. The same condition would |
produce similar results in the future. If |
State bank notes are allowed to circulate
their acceptance is not voiuntary;it it becomes
q necessity.
Many mine owners, manufacturers and
large employers of labor practiced paying
their help in store orders in order to control |
their trade and make the extra profit.
Surely, under the law, the acceptance or re-
lection of such orders was purely volun-
tary, and yet their acceptance for fear of
great did this abuse become that many |
States have enacted laws compelling cor |
porati to pay their laborers at regular |
intervals in money, The wealthy class
of discriminating against the notes of weak |
banks, and if they found themselves pos
sessed of any would proceed to work them
off upon their less fortunate neighbors.
That is the record of the past. 1t would be |
the experience of the future.
To the average laboring man a bank note
reporter and detector would be as mex
plica BILE the binominal theorem. When
1 bank suspends, the fact that the note is
secured and will be eventually paid is poor
to the laborer who needs his
money tor his daily use. The note of
'ailed national bank is as good as that OF any
bank in the system. The restoration OF
State bank circulation portends disaster to
that class of our citizens who most need and
nave the most right to ask protection from
The Government. State bank circulation
oses its money power in crisis. 1t is
source of weakness and adds to the danger.
Instead OF paying debts it comes forward