Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1893-12-07
NATIONAL BANKS.
COMPTROLLER ECkELS REPORTS ON
THEIR CONDITION..
Capital stock Of 3i06 Banks in Opera
tion Aggregates %G0J, 55S. 12O--One Hun
dred and Flfty-right Have suspended
Issue of Clearing House Certificates
Commendcd-No Lack of Currency.

|
Communicates Lack of Currency.
WASHINGTON. Dec. 3.-Thc annual re-
port of James II. Eckcls, comptroller of the
currency. will be submitted directly to Con
gress tomorrow. 1t shows 1896 national
banks to have been in operation at the close
OF the report year, with a capital stock of
N605, J5S, l2O, represented by i.4j0. 600
shares, held by 300. 600 shareholders.
At the last report Of their condition the
| total resources of the banks then in opera
ton was S3, 100. j63, 2s1 3G. The total
amount of circulation was. on October 81
S2O0.3 | 1913, a net increase during the wear
Of S36, $50 012. During the year 10 banks
were organized in 30 States and Territories.
with capital stock of $l1. 930. 600
Within the same period lbs banks slis-
pended with capital stock of $50, BOZ. 600
! OF this number SO with capital stock Of
| SlS.2U1, 600 resumed and o. passed into the
| hands of receivers with capital stock Of
SlO, $500 At the close of the year seven
| remained i'll charge of examiners pending
resumption.
The aggregate resources of liabilities on
Oct 3, lS33, the day of the last report Of
condition, compared with those of Septem-
10 =
Upon the question of resumption of ma.
tionaI banks dnring the year the comptrol.
Ter says with n full knowledge of the
general solvcncy of these institutions and
the cause which brought about their suspan-
sion. the policy was inaugurated of giving
all banks which under ordinary circum-
stances would not have closed and whose
management had been honest an oppor-
tunity to resume business. The result of
this policy justified its adoption.
In No Instance Has Bank
been permitted to resume on money Dor
ro"ed or for which, as an association it has
become liable Whenever those active in
the management of the banks re,llninr.
| either as executive officers or directors. have
been debtors their indebtedness has been
paid OF secured, and whenever impairment
of capital stock has existed such impairment
has been made good either by voluntary or
enforced assessment on the shareholders
The one general criticism. however to be
| made upon the management of these banks
was tbs improper distribution of their loans
"a circumstance which greatly retarded the
conversion of such loans into cash and
thereby caused suspension
In regard to the matter of clearing house
certificates the comptroller says: Their
Issuance at so early a date in the financial
arrangement OF the country was most OBJ
FORTUNE i'll not only preventing an acute
pane but i'll tending to restore public conf
dencc. In inaugurating the issuing of Ger
tilicateS so promptly and issuing them to 50
large an amount, the clearing house associ-
alton of New York in particular rendered
the country good assistance and the associ-
ated banks of that city are entitled to the
credit which the public generally accords
them.
Amendments Recommended.
The following amendments to the law
are recommended
Il. That every association may issue
circulating notes equal to the par value of
the bonds deposited.
:. That the semi-annual duty on circula-
ton be so reduced as to equal one fourth of
one per cent annum.
:. That the comptroller of the currency
with the approval of the secretary of the
treasury be empowered to remove officers
and directors of a bank for violations of
law.
4. That no eXective officer of a bank or
employe thereof be permitted to borrow
funds OF such bank in any manner except
upon application to and approval by the
board of directors
D. That the assistant cashier in the alb
sence or inability of the cashier of a IA
tional bank to act be authorized and en-
powered to sign the circulating notes of
such bank
q. That the law may be amended by APP
prOpriate legislation so as to empower some
class of public officers to administer the gen
cral oaths required by the provisions of the
national bank act.
:. That the bank examiners be required
to an oath of Office and to give "a bond
= That the comptroller of the currency.
with the approval of the secretary of the
treasury, be empowered to appoint two gen
eral examiners, whose duty it shall be to
visit, assist and supervise the various exam
liners in their several districts in order to Sc
cure uniformity in method and greater eff
cheney in work.
.. That the law be so amended as to pro
vide that the compensation of all bank ex-
aminers be fixed by the comptroller of the
currency, with the approval of the secretary
of the treasury.
On the Subject of Currency Legislation
is the following:
After a careful consideration of the
question the comptroller is of the opinion |
tlIdA' uH'lt lipIIl heretofore
suggested the public good will be best sub |
served 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
a plethora, or Il want of elasticity |
III the present system Of issuing it, |
but arose from loss of confidence on the
part of the people in the SolNency of the dis
monetary institutions of the com-
try. 1t is worthy of serious consideration
that at the very time the scarcity of cur
rency for business purposes was at its height
the country's volume of currency was in
'reasing the most rapidly, and the amount
per capita was much larger than in any re-
-ent year.
In view of the fact that there is now "A
very great abundance of unemployed cur
rency in the country, as is shown by the
laly money returns from the commercial
'enters, it would seem that whatever need
r,l me h. 81 g., !