Marshall County independent. (Plymouth, Marshall County, Ind.) 1894-1895, 1894-12-07
ECkELS ON BANK ISSUE.
He Discusses Currency and the Defects
and Lin tn tons Of P,-o.cr4 S,-rto.,,

and Limitations of Present System.
The report of the Hon. James II.
Eckels Comptroller of the Currency. sub
mitted to Congress. gives full information
III regard to the organization, Supervision,
and liquidation of the national banks for
the year ended Oct. 81, 1894. 1t shows
that during this period but fifty banks
were organized, with a capital stock of
So,2So, 900, the smallest number char
tered, as well as the minimum amount of
capital, IN any one year since 1879. OF
these banks twenty are in the
Northern and Eastern States, ten in the
Southern States, and thirteen in the West
ern or trans Mississippi division.
On Oct. 81. 1894. the total number of
national banks in operation was 3,756,
with an authorized capital stock of S612,-
611,360, represented by 1.955.016 shares
of stock owned by 2S7 .S92 shareholders.
On Oct. =, 1904, the date of their last re-
pert of condition, the total resources Of
the banks were S3,4I3, 90, 900, of which
their loans and discounts amounted to So
0O1, 122, 191, and money of all kinds in
bank, $422, 42S, 192. OF their liabilities
SLIPS, 41S,S19 represented individual de-
posits, 1884, 121 ,0S2 surplus and net I'm.
ing notes outstanding. The total circula-
ton of national banks on Oct. 81. 1894,
amounted to S207 AZ, COS. n net decrease
during the year of 81, al ,J63 and q gross
decrease of SS,614,S 64 in circulation ser
cured by bonds.
During the year seyenty-nine banks,
with an aggregate capital stock of $1O,-
$4,000, passed out of the system by vol
4 ..
two which failed in 1S93-with a capital
stock of $2.IIO,O0O, became insolvent and
were placed in charge of receivers.
The feature of the Comptroller's report
is his discussion of the currency question
and the defects which are said to exist in
the note-issuing powers vested in ma
tional banks. On this subject he says:
No section of the law should be disturbed
which cannot be materially improved upon
ana no amendment engrafted unless such
amendment will work out better results than
flow from the existing order of things
For the present law ii must he conceded IL
has been successful in every material feature
excepting in tie matter Of bank note issues
and here the failure has been a partial one
The notes issued by the banks under govern
mental supervision have been uniform in ap-
pearance and under any and all circum-
stances of the full face value which they pur-
port to carry. They have possessed the first
requisite of Il good bank note issue-immedi-
ate convertibility into coin upon presenta-
ton.
1t Is probable that there could be no better
plan for simply insuring the note holder
against loss than the present requirement Of
Il deposit of bonds to secure n banks circula-
ton, but it Is equally certain. however, that
a method could be devised. not less safe In
this respect and in addition thereto pos
sesslng that which is essential and is now
wholly wanting-elasticity of issue. The COM
plant, therefore, made against the present
system is that. lacking in elasticy of ISSUE
1t fails to meet as fully as 1t ought the vary
Ing wants Of the country's trade and com
merce This defect must attach to every
scheme for Il currency Issued by the banks
against a deposit of bonds the market
value of which fluctuates while the percent
age of issue, less than the value of the bonds
granted the banks remains unchanged.
But serious as is this fault and retardful
as it is to the business interests Of the covn-
try, any attempt to remedy it which should
lose sight of or in any wise make less certain
the present unquestioned credit and con-
vertibllty of the bank issues of the country
could not be justified. 1t is duty of govern
ments to see that the currency which crcu-
lates among the people shall always be of
the very highest character, the soundness Of
which should never be n subject of inquiry.
For thirty years the American people have
had such a bank currency. and having seen
the value Of 1t both here and abroad they will
not be content TO have any innovation made
unless such new departure inSureS not only
equal but better results.
1t is respectfully suggested that not only
as good but better results would be attained
If the present bank act were amended by re-
pealing the provision thereof requiring each
bank as n prerequisite to entering the sys-
TEN and issuing bank-note currency to de-
post government bonds In lieu of such
provision should be substituted one permit
ting the banks to issue circulating notes
against their assets to an amount equal To
at least 90 per cent OF their unimpaired
capital.
The Comptroller follows this suggestion
with the further one for the maintenance
of safety fund to be provided by grad
uated taxation upon the outstanding cir
culation of the banks until the same shall
be equal to not less than ) per cent. of
the total of such outstanding circulation,
this fund to be held 10y the Government
as an agent only, and for the purpose of
Immediately redeeming the notes of insol-
vent banks. 1t is to be Immediately re-
plenished out of the assets of the banks,
on which it shall be first and paramount
lien, and from assessment to the extent
of the double liability on the shareholders
Miss Della Shenk, a respectable young
woman, has mysteriously disappeared
from Kokomo, Ind.