The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1894-12-03

ment From the Banking Business.
The Currency Question Discussed
FulIy-Radical Changes in the
Present System Recommended.
WASHINGTON, D. C., Dec. 2.-The re-
port Of Hon. James Eckles, comptroller
Of the currency, submitted to Congress,
gives full information in regard TO the
organization, supervision and liquida.
tion OF the national banks for the year
ended October 81, 1894. It shows that
during this period but fifty banks were
organized with capital stock Of s., ,2S5,-
900, the smallest number chartered, as
well as the minimum amount Of capital,
in any one year since 1879. OF these
new banks twenty-seven are in the
northern and eastern states. ten in the
southern states and thirteen in the
western or trans Mississippi division.
On October 81, 1894, the total number
OF national banks in operation was
3,756, with an acssarized capital stock
OF S672, ,67l, 1866, represented by 1856, 067
shares OF stock, owned by PSI, 1893 share
holders.
On October 8, 1894, the date Of their
last report OF condition, the total re.
sources ofthe banks were s., AIS. 922, ,055,
OF which their loans and discounts
amounted to S2,007, l22, l9l. and money
OF all kinds In bank 1922, ,42S. 1872. or
their liabilities 81, ,73S ,4lS,Sl9 represent
ed isdividual deposits, and Sll2, ,33l, ,97S
circulating notes outstanding. The total
circulation of national banks on Octo-
ber 81. 1894, amouted to S207, AZ, ,60S. o
net decrease during the year OF Sl,74l,-
563, and a gross decrease OF S3,6l4,S64
in circulation secured by bonds.
During the year 79 banks, with an
aggregate capital stock Of SIC, ,47500O
passed out OF the system by the volun-
tary liquidation, twenty-one, including
two which failed in 1893, with n capital
stock of S2,770000 became insolvent and
were placed in charge otreceivers.
THE CURRENCY QUESTION.
The feature Of the comptroller's re-
port is his discussion OF the currency
question and the defects which are said
10 exist in the note issuing powers
vested in national banks. On this SUBJ
ject he says: mo section OF the law
should be disturbed which cannot be
materially improved upon and no
amendment engrafted unless such
amendment will work out better results
than flow from the existing order OF
things.
1t is probable that there could be no
better plan for simply insuring the
noteholder against less than the present
requirement OF deposit Of bonds to
secure a banks circulation, but 1t Is
equally certain, however, that q method
could be devised. not less safe in this
respect, and in addition thereto possess
ing that which ia essential and is now
wholly wanting-elasticlty of issue.
The complaint. therefore, made against
the present system is that, lacking in
elasticity OF issue, it fails to meet as
fully as it ought the varying wants Of
the country's trade and commerce.
This defect must attach to every scheme
for a currency issued by the banks
against q deposit OF bonds, the market
value OF which fluctuates while the per-
centage OF issue, less than the value Of
the bonds granted the banks, remains
unchanged.
"It is respectfully suggested that not
only as good but better results would be
attained if the present bank act were
amended by repeating the provision
thereof, requiring each bank as a pre-.
requisite to deposit government bonds.
In lieu OF such provision should be SUBJ
stituted one permitting the banks to is-
sue circulating notes sgainst their assets
to an amount equal to at least fifty per
cent Of their unimpaired capital"
SAFETY FUND.
The comptroller follows this sugges-
ton with the further one for the
maintainance OF a safety fuad to be pro-
vided by graduated taxation upon the
outstanding circulation OF the bank un-
til tho same shall be equal to not less
than Eve per cent OF the total OF such
outstanding circulation, this fund to be
held by tho government as an agent
only and for the purpose OF immedi-
ately releeming the notes OF insolvent
banks. 1t ia Immediately to be replen-
ishel out OF the assets OF the banks,
on which II shall have fret and par
amount lien and from assessment to the
extent OF the double liability on the
shareholders. The comptroller says:
"Whatever other changes, II any, 1t
would be necessary to make in the pres.
ent system relative to current redemp-
ton OF bank notes and the governments
position toward the same and kindred
matter, it is not necessary to set forth.
Ii the recommendations here made. 10.
Qsther with that which will follow,
should receive consideration at tho
hands OF Congress, bill drawn attor
careful study and investigation OF the
whole subject would necessarily en-
body all the details incident to charge
from bond TO safety fund security 4,
basis for bank circulation"
The. comptroller then cites such proof
and gives such statistics rs seem TO him
to make tho plan suggested a perfectly
safe ono to enter upon. He says: "The
change, thus outlined will. upon inves.
tigation, it ia believed, prove to DO safe
in afiording complete security TO the
noteholder and give TO the business in
terests OF the country banknote issue
responsive to their needs"
Continuing, the comptroller snys:
"The profit upon the issue Of circula.
ton to tho banks by such change would
be 30 augmented that It is giving to
them franchise, for which 1t Is suG.
gested they should bo called upon to
make proper return TO tho general gov.
ornmont. This result should not, how.
ever, bo OF such a character rs to defeat
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