The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1893-12-04
BANKS and CURRENCY.
What Comptroller Eckels Says Of
Them in His Report.
THE FINANCIAL DERANGEMENT
OF LAST SUMMER.


Exists-Praise for the New York Clear
ing House During the Crisis-Many
Amendments Suggested to the National
Bank Law.
Washington, December 3.-The annu-
al report of James H. Eckels, comptrol-
Ter of the currency, will be submitted
directly to Congress tomorrow. 1t
shows that 1896 national banks were in
operation at the close of the rep ort
year with capital stock of $685., $685.
12o, represented by 7.450,OOO shares,
held by 100000 shareholders. At the
last report, the total resources of the
banks then in operation was So, 109, $685.
284 SO. The total circulation October 81,
was $209, 9,311, 1893, a net increase during
the year of $36, 6,sS6,972 During the year
119 banks were organized in 80 states and
territories with capital stock of $11,-
100000. Within the same period 1853
suspended with capital stock of $50, )
100000. Of this number, Sc with a cap
ital stock of SIS, POS, 900 resumed. and 65
passed into the hands of receivers with
capital stock. of $1O,ss5,0O At the
close of the year seven remained in
charge of examiners pending resump-
ton.
Upon the question Of the resumption
of the national banks during the year,
the comptroller says: ''With full knowl.
edge of the general solvency Of these in
stitutons and the cause which brought
the suspension, the policy was inaugural
ted of giving all banks which under Or
dinary circumstances would not have
closed and whose management had been
honest, an opportunity to resume bust
ness. The result of this policy justified
its adoption. In no instance was bank
permitted to resume on money borrowed
or for which as an association it had be-
come liable. Whenever those active in
the management of the banks resuming,
either as executive officers or directors,
had been debtors, their indebtedness
was paid or secured. Whenever impair
impairment was made good by voluntary
or enforced assessment on shareholders.
In regard to clearing house loan cer-
Issuance at SO early date in the fnan-
cial arrangement of the country was
most opportnne in not only preventing
an acute panic. but in that it tended to
restore public confidence" He espec-
tally compliments the Clearing House
Association of New York and the associ-
ated banks of that city.
The following amendments to the law
are recommended;
THAT every association may issue
circulating notes equal to the par value
of bonds deposited
25That the semi-annual duty on circu-
lation be reduced to an amount equal to
one-fourth of one per cent per annum.
3-That the comptroller of the curren-
cy. with the approval of the Secretary of
the Treasury. be empowered to remove
officers and directors of banks for viola
| tions of law.
4-That no executive officer of bank
or employe thereof be permitted to bor-
row the funds of such bank in any man.
! ner except upon application to and ap-
proval by the board Of directors.
.5-That the assistant cashier, in the in
ability Of the cashier of national bank
to act, be authorized and empowered to
| sign circulating notes of such bank,
| pirate legislation to empower some class
of public officers to administer the gen.
| eral oaths required by the provisions of
the national bank act.
THAT bank examiners be required
to take oaths of Office and give bonds.
S-That the Comptroller of the Cur
rency, with the approval Of the Secretary
of the Treasury, be empowered to ap-
| point two genaral examiners, whose du-
| ty it shall be to visit. assist and super
wise the various examiners in their sew
eral districts to secure uniformity in
method and greater efficiency in work.
9-That the law be amended so as to
provide that the compensation of all
bank examiners be fixed by the Comp
troller of the Currency, with the APPROX
al of the Secretary of the Treasury.
Upon the subject of currency legisla-
ton, the Comptroller is of the opinion
that. aside from the amendments hereto
fore suggested, the public good would be
best subserved at this time by making no
| radical change in the provisions of law
regarding the issuing of currency as it
now stands. The financial situation of
| the past months was not the result of
lack in the volume s.of currency, of
/ which there is now plethora, OF want
| OF elasticity in the present system of isz
suing it, but arose from loss of conf
dence on the part of the people of the
solvency- of the distinctively monetary
institutions of the country. 1t is worthy
| of serious consideration that at the very
time the scarcity of currency for bust
ness purposes was at its height, the
country's volume of currency was in
creasing most rapidly, and the amount
per capita was much larger than in any
recent year. In view of the fact that
there is now very great abundance of
unemployed currency in the country, as
shown by the daily money returns from
the commercial centres, it would seem
that whatever need appeared some
| months since for enlarging, to any
marked extent, the circulating medium
has now ceased to exist. Congress is af-
forded the opportunity of giving to the
whole subject the careful consideration
| and investigation its Importance de-
| mands."