The enterprise. [volume] (Wellington, Ohio) 188?-1899, 1893-12-06
THE CURRENCY.
Annual Report OF Comptroller
James h Eckels.
Recommendations to Congress Urging Leg
islation to the End That Further
f safeguards be Thrown Around
the Business of National
Banking.

tional banks TO have been in operation at the
close OF the report year. with capital stock OF
te95 555S 1aO, represented by $50 900 shares held
by 100000 shareholders
At the last report OF condition the total re-
sources of the banks then in operation was
t3,lO9,56S aSL36 The total amount Of circula.
tion was on October 81 s2oo,Sil,s9S, q net in
crease during tho year Of Ss6ss6,972 During
the year ii9 banks were organized in thirty-two
states and territories with capital stock OF
il,23O,0o0.
Within the same period iSs banks suspended,
with q capital lstock Of t3), ,so0oOl OF this num-
ber 90 with q capital stock OF 49, 100000, re-
sumed, and 0o passed into the hands Of receiv'
ers with capital stock OF tl0SS5,0oO. AT the
close OF the year seven remained In the charge
OF examiners pending resumption
The aggregate resources or liabilities on Oc-
tober 81, l993 the date OF the last report OF con-
dition. compared with those OF September 81,
1892 were t4J0,53l, ,6I8 less
Upon the question Of resumption OF national
banks during the year, the comptroller says:
With full knowledge of the general solvency
OF these institutions and the cause which
brought about their suspension. the policy was
inaugurated Of giving all banks which under
ordinary circumstances would not have Closed
huu NuOnB uuuuBSulCubllh uCcu hohSo't "A
opportunity to resume business This policy
was one which seemed TO commend itself TO the
comptroller as proper TO pursue under the cir
cumstances and II Is believed the results have
justified the experiment Of It's adoption
In no instance has bank been permitted TO
resume on borrowed money or for which as an
association II has become liable Whenever
those active In the management OF the banks
resuming either rs executive officers or direct
ors, have been debtors, their Indebtedness has
been paid or secured and whenever impairment
OF capital stock has existed such impairment
has been made good. either by voluntary or en-
forced assessment on the shareholders.
The matter OF clearing house loan certificates
is discussed The comptroller says;
At time when vast sums OF coin and cur
rency were being withdrawn from the banks to
be boarded, these loan certificates, by perform
ing the functions OF the currency or coin usu
ally required for settling daily balances, re-
leased so much currency or coin TO the legitt'
mate and current demands Of business and un.
questionably placed Il in the power Of the banks
In the cities named 10 extend 70 outside banks
the aid needed on the one hand, and on the
other literally extended In no instance were
these certificates designed to, nor did they cir.
culate as money. They were but due bills and
their sole function consisted In discharging the
tempt on tho part OF any bank In any Of the as.
sociations issuing these certificates to use
them otherwise would have incurred q fine and
other penalties provided in the rules governing
such associations. Their issuance at so early
date in the financial enlargement Of the coun-
try was opportune. not only preventing an acute
panic but tending 10 restore confidence.
In inaugurating the issuing Of certificates so
promptly and in issuing them to so large an
amount the clearing house association, OF New
York. in particular, rendered the country great
service and the associated banks OF that city
are entitled 20 the credit which the public gen,
orally accords them.
The following amendments 70 the law are
recommended:
First-That every association may issue cir
culating notes equal 10 the par value OF the
bonds deposited.
Second-That the semi-annual duty on circu-
lation be so reduced as 10 equal one.fourth OF
per cent per annum
Third-That the comptroller OF the currency,
with the approval OF the secretary OF the treas.
ury, be empowered TO remove ofhcors and di-
rectors Of bank for violations oflaw, first CIV
ing such officers and directors an opportunity
10 be heard leaving the vacancy 80 created 10
be filled in the regular way.
Fourth-1hat no executive oficer OF n bank
or employe thereof be permitted 10 borrow
funds Of such bank In any manner, except upon
application to and approval by the board OF di.
rectora
Fifth-That the assistant cashier in the ab.
sence OF inability Of the cashier OF national
bank 10 act be authorized and empowered 70
sign the circulating notes OF such bank
SiXth-That the law may be amended by ap-
propriate legislation so as 10 empower some
class OF public officers TO administer the general
aas rod h,,e ha 81 ,ha
bank act
Seventh-That the bank examiners be re-
oured to take an oath OF once before entering
upon the discharge Of their duties and 10 give a
bond In such amount and such surety ns the
comptroller OF the currency may require
Eighth-That the comptroller OF the currency,
with the approval OF the secretary Of the treas.
ury, be empowered 10 appoint two general ex-
aminers OF conspicuous ability and experience
10 be paid out Of the reimbursabe funds, whose
duty Il shall be TO visit, assist and supervise
the various examiners in their several districts
in order TO secure uniformity in method and
greater efficiency in work
Ninth That the law be so amended rs 10 pro
vide that the compensation OF all bank cxnmin.
ers be fxed by the comptroller OF the currency,
with the approval OF the secretary OF the treas.
ury. Upon the subject Of currency legislationis Is
the following:
The comptroller has been urged 10 make some
specific recommendation with respect 10 a re-
vision OF the law so far as II pertains TO the Is.
suing Of currency After q careful considera.
ton OF the question the comptroller is OF the
opinion that aside from the amendments here.
toiore suggested, the public rood VIII be best
subserved at this time by making no radical
change in the provisions OF the law as It now
stands
The financial situation OF the past months
was not the result OF either lack In the volume
OF currency OF which there Is now plethora, or
q want OF elasticity In the present sgs'em OF
issuing II, but arose from q loss OF confidence
on the part Of the people IN the solvoncy o:
the distinctively monetary institutions OF tho
country II tis worthy OF note and OF serious con.
sideration that At the very time the scarcity OF
currency for business purposes was atits he ,ht,
the country's volume Of currency was increi ".
ing tho most rapidly and the amount per capita
was much larger than IN any recent year
In view Of the fact That there Is now yvry
great abundance Of unemployed currency IN tao
country, as is shown by tile daily money ret rnG
from the commercial centcrs, Il would seem
that whatever need appeared some monihS
since for enlarging to any marked extent the
circulating medium, has now ceased 10 exist
and therefore congress ia afforded on opror-
tunity OF giving TO tho whole subject that care
ful research and investigation that It's impor.
tanoe in oil bearings demands.
|
Wholesale dali Delivery.
MEMPHIS, Tenn, Dec 4.-Al the
prisoners confined In the county Jail at
Camden, Ark, mnde their escape Sun