The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-12-04
THE NATIONAL CURRENCY.
COMPTROLLER JAMES IT. EcHELSs
FIRsr ANIMAL REPoRT.


|
A Net Iuers.se IN tbe Circuistiou Durine
the Yesr OF $50, sso.sSs-Pr-ise Tor the
New York Clearing House Associations
for Issutne Loan Certificates - Amend
-snts to the BsBRine Law Recommended
WARRINGTON. Dec. 3.-The annual report Of
Mr.. James II. Eckels. Comptroller OF the Cur
rency. which will be submitted dlrectlyto Con-
| gross tomorrow. differs from former reports
in that no tables appear in the body OF the
text. IL shows that 3700 national banks were
in operation at the close OF the report year,
with capital stock OF $685.. 559 40. repre-
sented by 7.45O.OOo shares. held by 100000
shareholders At the last report OF con-
dtion the total resources OF tho banks
then in operation was S31Oo.5B3284.od
The total amount OF circulation was
on Oct. 81 s2Oa3l1.o93. a net In
crease during the year OF $40. 9S0.e72 Dur
| ing the year 110 banks were organized Ia
| thirty-two States and Territories. with cnpi-
tai stock OF s11.23O,O0O. within the same
period 15S banks suspended. with capital
stock Of $50. 100000. or this number 20. with
a capital stock OF s1S 2O5.OOO. resumed. and 90
| passed into tho hands Of receivers. with cap
ital stock Of SlO.sSj.OO0. At the close OF the
year seven remained in the charge Of ex-
amIners pending resumption.
ON the question OF resumption OF national
banks during the year the Comptroller says:
with a full knowledge OF the general solvency Of
these institutions and the which brought about
their suspension the policy was inauEuraed ~ giving
all banks which. under ordinary circumstance would
not have closed and whose management had been
honest oportunity TO resume business This policy
was which seemed to commend Itself to the
Comptroller proper to pursue under the circum.
stances and IL Ia believed the results have Iustned the
experiment OF its adopt In no instance has bank
been permitted TO re'ume on money borrowed or for
which az an association It has become liable
Whenever those active in the management
II tho bank rssumnG either as executive
onicers or directors. have been debtors, their
impairment OF capital stock has existed such impair.
f"fSed SSssssn"nt on the shareholders In a number
IL Instances change; have be, made N tue directory
cism, however. to he made upon the management ~
cs6s-a circuns tancc wGtH grcs II retarded the
Suspension
Regarding Clearing House loan certificates.
the Comptroller says:
At time when sans Of coin and currency wers
loan certhcate by performing the Functions Of the cur
reucv coin usually required tor settling daily bat
anceS released so much erte.cy or coln 70 the sGit
tonaoly Ilae.l II in re rover q the BANKS 10 me
ON tne "e hnm AMI on the Che RSsray eStsGGed
In no Instance mere these certhrates desgned TO nor
bilis and Their sole junction consisted IN dis
iiouss An atteinrt on tue part OF any bank IN any
OF he assoc atoms i'sa 4s these cettincntes to
and other penalties provided IN the rules GOVERNING
the financial derangrment OF the country was most
ii 't,ndtn. 10 restore pubic co"nd"nce SurR action
hsmons,T1ting TIA. by instnn, agreement the weak
and other creditors were concerned strong as the
50 PaSpy an" "If1 them % srSt an sinoant
the Cearms ll"ase AssocIston OF New iosk IN par.
banks Of that cIy are entitled to the credit
Tho following amendments 70 the National
Banking law are recommended:
That every alton may issue circulating notes
=. Tina. the s-mi annual nuty circulation be
duced as 10 equal oneourih OF one per cent per an
That tie Comptroller Of the Currency. with the ,H
10 remove oicer. aud directors bank violat ons
tany 20 be heard leaving the vacancy 30 created to
4 That no executive officer of a bank or employee
thereof be To- borrow funds OF such bank IN
by the hoard al rrctiou.
aGity = tie ca.icr OF nations Sank to "ct Se an
thoryed aud empowered 10 sign the circulating
{ That the law may TO amended by sppropriat. leg.
x TO ~ me GGneF ,n @IS' required by tue pro-
:, That the bank examiners be required to take All
osh .; once 10 ore enicr'ns pm the discharge ot
with such suretes as the Comptroller oftne Currency
= That ne ComptToerOt the Currency, with the ap
srsd to appoint sxSmnrrs Of con.pieuoHs
sSy an eNrcrenGs to be- PA,d cut Of me remours;
supervise the various examiners IN their several dis:
trIcts, IN order secure uniformity method
greater et.iC enry IN work.
o ma, The la. b. commended as to provide that the
compensation " ali bank examiners he fixed the
Comptroller OF the Currency with the approval Of the
secretary OF the treasury.
On the subject OF currency legislation the |
Comptroller says:
The Comutrnlcr las been urged TO make SONS sps- |
cine recommendation with respect to revision Of the
law 81 far IA II prrta 10 the issuing Of
troltr - Ot the opinion that aside from the amend.
best subsrryrd at tbs time by making radical |
The financial situation OF the past months not the
which there Is now plethora. or Il elasticity
loss OF confidence ghs OF the people
untry II Is worthy ~ and serious con sidsr-
AtIon that AZ the iime the scarcity currency
for business purposes I's height the countTy's
volume ut currency increasing he most rapidly |
and the amount per capita VAS much larger than In
recent
In Of he fact that there Is now a very great
abundance Il unelnp Dyed currency country a.
SHOWN By the daily money returns from the COM
mercia centres would seem that whatever zee AI-
pcared some months ago tor ATRlny To any marked
extent the circulating medium hA, ceased 10 eN-
tEt; and therefore Congress AOried
OF giving 10 tho whole subject that careful reseArh
and investigation that its Importance IN all Its bear.
n dem