St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-12-04
NEAR UNCLE SANS DOODLE
COMPTROLLER ECKELS DISCUSSES
THE NAT OT'5 MONEY.
sOMEvEHE GOOD SUGGESTIONS

itors.
WASHINGTON, Dec. 3.-The annual
report of the comptroller of the cur
rency will be submitted TO congress
more briefly than the report usually
made by that officer. 1t differs from
former reports in that no tables appear
in the body of the text. 1t shows 5,796
national banks to have been in opera
ton at the close of the report year with
a capital stock of $685., 1858. 12o, repre-
sented by 7,450,0O0 shares. held
by 100000 shareholders. At the
last report of condition the
total resources of the banks then
in operation were IS. 100. 563. 2S4.36
The total amount of circulation was on
Oct. 81 S209, 81 1893, a net increase dur
ing the year OF $50, SS6,972. During the
year ll9 banks were organized i'll thirty
two states and territories with capital
stock OF S1l.230,000, distributed as fol-
lows: Fortyiour with a capital stock
of S., 135, 600 in the Eastern states; forty
one with a capital stock of 50. 54t, 900
west OF the Mississippi river, and thirty
four with capital stock OF 1915. 900 i'll
the Central and Southern states. Within
the same period
13S BANKS SUSPENDED.
with capital stock of S30.000,C00. OF
this number 81. with a capital stock of
SlS,205, 600. resumed, and % passed into
the hands of receivers. with a capital
stock of $40, $50, 600. AT the close of the
year seven remained in the charge of
ho
aggregate resources and liabilities on
Oct. 8, 1898, the date of the last report
of condition, compared with those of
Sept. so. 1892, were $500. 53l ,613 less.
The shrinkage i'll liabilities is accounted
for by a decrease between the dates
mentioned in the following items:
Capital stock, SS,O32.677; individ-
ual deposits. 1914, 29S,653, and bank
and bankers deposits, slSl, 1888. 125.
The decrease i'll resources was as fol-
lows: Loans and discounts. $685., 406,-
926; stocks, etc. IS, ,564, and due
from banks and lankers. s132, 054, 654.
Cash Of all kinds increased $50, 96S, COG,
including SS.4i0,Sl5 in gold. United
States bonds held for all purposes i'll
creased $4,000, $50. The comptroller
reasons from the changes in these con-
ditions that the business depression of
the past months was occasioned by the
action of depositors in drawing so much
money from the banks, which caused a
SUDDEN CONTRACTION
In the volume OF money needed or en-
ployed for business wants by the banks
being compelled to call in loans and
discounts to meet demands of deposit
ors, prevented the making of new loans
and rendered it hazardous on the part
of banks to grant renewals of credit Or
extensions. The suspension of national
banks during the year is discussed, and
also that Of resumption. Upon the
question of resumption the comptroller
says: "Wuh full knowledge of
the general solvency of the insti-
tutions and the causes which brought
about their suspension, the policy
was inaugurated of giving all
banks which under ordinary circum-
stances, would not have closed, and whose
management had been honest, an op-
portunity to resume business. This
policy was one which seemed to COM
to pursue under the circumstances, and
it is believed the results have justified
the experiment of its adoption. The
matter Of clearing house loan certifi-
Gates is briefly discussed. Upon this
subject the comptroller says: Briefly
stated. there were temporary loans
made by the banks in each city issuing
them, associated together as a clearing
house ASSOCIATION, to the members OF
such association. and were available to
such banks only for the purpose of set
ting balances due from and to each
other, these balances
UNDER NORMAL CONDITIONS
of business being always settled in coin
or currency. Their issuance at so early
date in the financial arrangement of
the country was most OppOrtune in not
only preventing an acute panic, but in
tending TO restore public confidence.
such action demonstrating that. by mu-
tual agreement of all, the weak banks
of the association would be, so far as
depositorS and other creditors were
concerned, as strong as the strongest
Bearing upon the question of what con-
stltutes lawful money reserve, the
comptroller says, after an ANALYSIS OF
the provisions OF tie law: s'In any
view Of the matter, however. the in.
tent OF the law is to compel bank tc
retain always on hand very moderate
proportion Of the money deposited with
1t for safe keeping by the dep0sitor. who
practically makes a loan to the bank
Nd J.,
he ordinarily receives no interest. The
entire erect IS 10 exercise wholesome
restraint upon too Imprudent an extern
sion OF business by a bank, and that
this intent Is recognized as an underlv-
Ing principle of safe and conservative
commercial banking is evidenced by the
fact that those banks which are com
PEELED by law to maintain but ID pei
cent reserve have voluntarily for years
past held an average of over % pei
cent. the proportion required for bank.
located in reserve cities.
Inc following amendments are rec
commended:
AMENDMENTS SUGGESTED.
l. That every association nav issu,
circulating notes equal to the par vain,
or tho bonds deposited.
2. That the semi-annual duty on cir
cniation he so reduced as to equal one
quarter of per cent per annum.
g. hat the comptroller of the CIR
rency, with the approval OF the secre
tary Of the treasury, be empowered t,
remove officers ami directors of a banl
for violations of law. first giving sucI
officers and directors an opportunity /,
be heard, leaving the vacancy so ere
ated to he filled in the usual way.
4. IhaL no executive officer of baui
or empl0ye tiier2oi &c permitted TO Dor
row funds Of such nas:k in any manner
except upon application 10 AMI APPROVE
by the board OF direction.
.. That the assistant ca=hfcr. in III,
absence or inability of the cashier of
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