The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1893-12-04
COMPTROLLER OF CURRENCY.
His Annual RopOrt-Iuporiant Recon-
mendntions Made.

congress IS more Drlet 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 3,79B national banks to have
been in operation at TIE close OF the
year with a capital stock OF 500, ,55S, l2O
represented by 7,450,000 shares held by
800, 1000 shareholders.
At the last report OF the total re-
sources of the banks then in operation
was So, 100 .563, ,2Si.36. The total amount
of circulation was on October 81, $209,-
81, 1893, net increase during the year
of $36, ,9S6,972.
During the year 1l9 banks were or
eanized in so states and territories, with
a capital stock OF $il, 100000. Within
the same period 15S banks suspended
with a capital stock of $50, 100000. OF
this number SO, with capital stock OF
SIS, POS, 900, resumed, and IS passed into
the hands of receivers with capital
stock OF $l0,SS5,0O0. At the close OF the
year seven remained in the charge OF
examiners pending resumption. The
aggregate resources or liabilities on
October 81, 1898, the date OF the last re-
port OF condition, compared with those
Of September 80, 1892, were $40O.53l ,613
less. The shrlnkage in liabilities is ac'
counted for by decrease 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 deposit
tors withdrawing so much money from
the banks, which caused sudden con,
traction in the volume OF money needed
or employed for business wants, by the
the banks being compelled to call in
loans and discounts to meet demands OF
depositors,, prevented the making OF
new loans and rendered it 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:
With full knowledge OF the general
solyency Of these institutions and the
causes which brought about their sus-
pension, the policy was inaugurated OF
giving all banks, which under ordinary
circumstances would not have closed,
and whose management had been hon
est, an opportunity to resume business.
This policy was one which seemed com.
mend itself to the comptroller as proper
to pursue under the circumstances, and
it is believed the results have justified
the experiment OF its adoption.
The matter of clearing house loan
certificates is briefly discussed. Upon
this aubiect the comptroller says:
Briefly stated they were temporary
loans made by tho banks in each city
issuing them associated together as a
clearing house association to the mem
bers Of such ASSOCIATION, and 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 always
settled in coin or currency.
Bearing upon the question OF what
constitutes lawful money reserve the
comptroller says, alter an analysis OF
the provisions Of the law:
In any view OF the matter, however,
the intent of the law is to compel a
bank to retain always on hand very
moderate proportion OF the money de-
posted with it for safe keeping by the
depositor who practically makes loan
to the bank payable on demand, for the
use OF which he ordinarily receives no
interest. The affect is to exercise a
wholesome restraint upon too i'm
prudent an extension OF business by a
bank and that this intent is recognized
as an underlying principle OF safe and
conservative commercial banking is
evidenced by the fact that those banks
which are compelled by law to maintain,
but Is per cent reserve have voluntarily
for years past held an average OF over %
per cent, the proportion required for
banks located in reserve cities.
The following amendment are recon-
mended:
/. That every association may issue
circulating notes equal to the par value
OF the bonds deposited.
2. That the semi-annual duty on cir
culation be so reduced as to equal one
per cent per annum.
8. That tho comptroller OF the cur
rency, with the approval OF the secre-
tary OF the treasury, be empowered to
remove officers and directors OF bank
for violation of law, first giving such
officers and directors an opportunity TO
be heard, leaving the vacancy 80 created
TO be filed in the usual way.
1. That no executive officer OF bank
or employe thereof be permitted to bor-
row funds OF such bank in any manner
except upon application to and ap-
proyal by the board OF directors.
5. That the assistant cashier in the
absence or inability OF the cashier of a
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 as to en-
power some class OF public officials to
administer the general oatha required
BY the provisions Of the national bank
act.
4. That bank examiners be required
to take an oath OF Office before entering
upon the discharge Of their duties, and
to give bond in such amount and with
such sureties as the comptroller OF the
currency may require.
8. That the 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 be
mid out OF the reimbursable funds
whose duty it shall be to visit, assist
and supervise the various examiners in
their districts, in order to secure uni
formity in method and greater efficiency
in work.
0. That the law be go amended as to
provide that the compensation OF all
hnnk nrnminara hn fixed by the com p.