Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1893-12-04

total amount Of circulation was on
October 81, S2O9, Gil, ,993, net increase
during the year Of $50, SS6, 972.
During the year 1l9 banks were or
gsnized ia 30 States and territories
with capital stock OF S11, ,23O, 000
Within the same period 15S banks sus-
pended with capital stock Of $50, S0O,-
600. or this number. sc with a capital
stock OF SIS, 500, 900 resumed, and 65
passed into the hands of receivers, with
a capital stock of SiO,SS5, coo. At the
close Of the year seven remained in the
charge OF examiners pending resumD-
ton. The aggregate resources OF liza
bilities on October 81, 1893, the date Of
the last report OF condition, compared
with those Of September so, 1898, were
$500, 531,Gl3 less. The shrinkage in
liabilities is accounted for by de-
crease between the dates mentioned.
The Comptroller reasons from the
changes in these conditions that the
business depression of the past months
was ocCasioned by the action Of depOs
itOrs in Withdrawing so much money
from the banks. which caused a sudden
contraction In the volume Of money
needed or employed for business wants
By the banks being compelled TO call In
loans and discounts TO meet demands Of
depOsit0rs, prevented the making of
new loans and rendered il hazardous on
the part of the 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:
"Wjth a full knowledge OF the gen
eral sOlyency OF these institutions and
the causes which brought about their
suspension, the policy was inaug-
urated OF giving all banks, which
under ordinary circumstances would
not have closed, aud whose manage
meut had been honest, an opportunity
20 resume business. This policy was
what seemed 20 commend itself TO the
Comptroller as proper 10 pursue under
the circumstances and il is believed the
results have justified the experiment Of
its adoption"
The matter Of clearing house loan
certificates is briefly discussed. Upon
this subject the comptroller says:
Briefly stated they were temporary
loans made by the banks in each city
issuing them associated together as
clearing house association TO the mell-
bers of such association, aud were avail
able TO such banks only for the purpose
of settling balances due from and to
each other, these balances under nor
NAL conditions of business being al
ways settled in coin or currency.
Bearing upon the question of what
constitutes lawful money reserve the
comptroller says after an analysis Of
the provisions Of the law:
In any view of the matter, however
the intent of the law is to compel bank
TO retain always on hand a very moder-
ate proportion OF the money deposited
with 10 for safekeepinR by the depositor,
who practically makes a loan to the
bank payable on demand, for the use Of
which he ordinarily receives 10 interest
The effect is 10 exercise wholesome
restraint upon too imprudent an extern
sion of business by bank, and
that this intent is recognized as the
underlying principle OF safe and con-
servative commercial banking is evil
denced by the facJ that those banks
which are cOm mpelled by law TO maintain
but Is per cent. reserve have volunta-
rilv for years past held an average Of
over % per cent, the proportion re-
quired for banks located in reserve
cities. The following amendments are
recommended:
l. That every association may Issue
circulating notes equal to the par value
Of the bonds deposited.
.. That the semi-annual duty on cir
culatiOu be so reduced as to equal one
fourth OF one per cent. per annum.
8. That the Comptroller OF the Cur
rency, with the approval of the Secre-
tarY OF the Treasury, be empowered to
remove officers and directors OF a bank
for violations Of law, first giving such
officers and directors an opportunity 10
be heard, leaving the vacancy so created
10 be filled iu the usual way.
4. That no executive officer Of bank
or emp,oye thereof be permitted TO bor-
row funds of such bank in any manner
except upon application TO and approval
by the board of directors.
.. That the assistant cashier, in the
absence or inability Of the cashier OF
national bank TO act. be authorized and
empowered TO sign the circulating notes
OF such bank.
6. That the law may be amended by
appropriate legislation so rs TO empower
some e,ass of public officers to admins
ter the general Oaths required by the
provisions of the national bank act.
e. That bank examiners be required
90 take an oath Of office before entering
upon she discharge OF their duties, and
20 give O bond in such amount aud with
such sureueS as the Comptroller Of the
Currency may require.
S. That tBe Comptroller of the Cur
rency, with the approval OF the Secre-
tary OF the Treasury, be empowered to
appoint two general examiners OF con-
SpicuOus ability and experience, TO he
paid cut Of she reimbursible funds,
whose duty 10 shall be TO visit, assist
and supervise the various examiners in
their districts, in order to secure uni
formity in method aud greater efficiency
in work.
@. That the law be so amended as to
provide that the compensation OF
all bank examiners be fixed by the
COMPTROLLER Of the Currency, with the
approval Of the Secretary Of the Treas
ury.
The question Of loans to directors is
discussed. aud distinction drawn be-
tween directors, VINO are merely direc-
tors, ana those who are constituted the
executive officers of the bank, and are
paid by the bank for their service.
Upon the subject Of currency legiSla-
tiOn is the following: The comptroller
has been urged TO make some specific
recommendation with respect TO re-
vision OF the law 50 far as il pertains 10
the issuing Of currency. After care
ful consideration OF the question the
- ~ hba ow5-fN, that ocfIs