Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1893-12-09
TELLS OF THE BANKS.
A Synopsis of the Report of the
Comptroller Of the Currency.
During the Year I10 National Banks We're
Organized and 1bS suspended-Cau
of the Depression = Shortage In
L. Liabilities and Resources.
MIR. EcKELs REPORTS.

MR. ECKEIs REPORTS.
WASHINGTON, Dec A-The annual report OF
the comptroller OF the currency will be sub
mitted to congress more briefly than the re-
port usually made by that oflcer, Itdiffers from
former reports In that no tables appear in the
body OF the text II shows 3,706 nationalbanks
to have been in operation at the close of the re-
port year, with capital stock of 1895 55S, l20,
represented by 7,450O00 shares, held by 100000
shareholders.
At the last report of condition the total re-
sources of the banks then in operation was
s3, i09 $685. 2Si. The total amount of circulation
was on October 81 S209, ,3il ,993, a net increase
during the year of s36,sS6,972 During the
year ll9 banks were organized In thirty
two states and territories with capital
stock of Sil ,23o 000 distributed as follows: For
ty-four with capital stock OF S. i35, 900 in the
eastern states, Al with n capital stock OF 81
10000 west of the Mississippi river and "a with
capital stock OF S3755 900 in the central and
southern states
Within the same period 1853 banks suspended,
with capital stock Of $50, 100000 or this num-
ber 80, with capital stock of Sls,2O5.OO) re-
sumed and 65 passed Into the hands OF receivers,
with capital stock OF $40 SS5, 900. AT the close
of the year remained In the charge OF examin.
ers pending resumption.
The aggregate resources and liabilities on
October 3, 1893, the date of the last report of
condition, compared with those of September 80.
1902, were S400. So, ,6i3 less The shrinkage In
liabilities is accounted for by q decrease be-
tween the dates mentioned in the following
items:
Capital Stock ssOs2, ,s77; Individual deposits,
$3il. pos, ,65S, and bank and bankers deposits,
&lsl, 1888 t25. The decrease in resources is as
follows: Loans and discounts, s327, 400, 926;
Stocks etc, S5 YES, ,56i, and due from banks and
bankers, si32054,654. Cash OF all kinds in.
creased $780, 6J6, including ss,41Os sl5 in gold
United States bonds held for all purposes in
creased $40, COL $50.
The comptroller reasons from the changes in
these conditions that the business depression
OF the last months was occasioned by the action
OF depositors Withdrawing so much money
from the banks, which caused sudden con.
traction in the volume OF money needed or
employed for business wants, and by the banks
beiug compelled TO coll in loans and discounts
to meet demands OF depositors, which prevented
the making OF new loans and rendered 1t haZ-
ardous on the part OF banks TO grant renewals
ofcredit or extensions.
The sus pension OF national banks during the
year is discussed, and also that of resumption
Upon the question OF resumption the comp.
troller says: with q full knowledge OF
the general solvency of these institutions
and the causes which brought about
their suspension, the policy WAS inaug-
urated OF giving all bsnks which under or
dinnry circums stances would not have closed
and whose management had been honest, an
opportunity 10 resume business. This policy
vas one which seemed TO commend itself to
the comptroller proper to pursue under the
have Justified the experiment Of its adoption" 4"
The following amendments are recom-
mcnded:
IL That every association may issue circu-
lating notes equal 10 the par value OF the bonds
deposited
- That the semiannual duty on circulation
be so reduced US 10 equal onefourth OF l per
cent per unnum.
"S. That the comptroller OF the currency,
with the approval of the secretary OF the treas.
ury, be empowered to remove officers and d.
roctors of u lank for violations of law, first
giving such officers and directors an opportuni-
~ TO he heard, leaving the vacancy 50 created
to be filled in the usual way.
- That no executive officer OF the bank or
employe thereof be permitted TO borrow funds
OF such bank in any manner, except upon ap-
plication to and approval by the board OF d.
rection.
'5. The assistant cashier in the absence OF
the cashier, or inability of the cashier or au'
thorIzed and empowered official to sign the
circulating notes OF such bank.
-, That the law may be amended by appro-
pirate legislation so as to empower some class
OF public officers TO administer the general
oaths required by the provisions OF the national
bank act
- That bnuk examiners be required to take
an oath OF Office before entering upon the dis
charge of their duties and TO give bond in
such amount and with such securities as the
comptroller OF the currency may require.
"a That the comptroller of the currency, with
the approval OF the secretary Oh the treasury, Dc
empowered to appoint TWO general examiners
of conspicuous ability and experience to bs
paid out of the reiu,bursable funds, whose duty
II shall be to visit, assist and supervise the va
rious examiners IN their several districts II
order TO secure uniformity In method and greater
efficiency in work.
80 That the law be amended as to pro
vide that the compensation of oil bank ex
aminerS be fixed by the comptroller OF the cur
rency, with the approval OF the secretary OF ih'
treasury"
The uues tion OF loans to directors Is dis
cussed and u distinction drawn between di
rectors who are merely directors and those VIII
are constituted the executive officers OF th
bank and are paid by the bank for their serv
iceStsf
Upon the subject Of currency legislation 4
the following
''1he comptroller has been urged to max
some specific recommendations with respect L
revision OF the law 80 for as II pertains to tn
Issuing of currencv. After n careful considers
lion OF The question the comptroller Is OF tn
opinion that, aside from the amendments here
tofore suggested allowing banks to issue cir
cuating notes to IN amount equal to the pa
value of the bonds held to secure circulation
and abolishing o portion OF the tax on na
tonal bank circulation, the public good will b
best subserved at this time by making rat
ical change in the provisions OF the law as
now stands
"The financial situation OF the last fe,
months WAS not the result OF either lack 1
the volume OF currency of which there
now plethora, nor want OF elasticity In IL
present system OF issuing IT, but arose froI
q loss OF confidence OH the part OF the pee
pie in tho solvency OF the distinctiyel
monetary institutions of the country.
view of the fact that there is now very grea
abundance OF unemployed currency in the coul
try, as Is shown by the daily money return
from the commercial centers, IL would seei
that Whatever needs appeared some month
since for enlarging to any marked extent III
circulating medium has ceased to cxis
and therefore congress is afforded an opport,
nifty OF giving to the whole subject that carr
full research and investigation that II
Importance In all OF It's bearings demands
1t will not do TO place upon the statute book
any experimental legislation upon this subjec
but whenever u new law governing bank issue
is enacted II must be one that immediate
upon going into operation commands In ever
respect the confidence OF the whole people. M
insures 10 them o system OF currency issue