Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1894-12-06
OUR CURRENCY.
Interes sting Facts Presented by
Comptroller Eckels.
He Favors the Establishment of a Com
mission to Devise Sound System of
Currency, and Offers Some
Suggestions to Congress.

WASHINGTON, Dec s-Suggestions have
been received, says Comptroller of the Curren-
cy Eckels In his report, from many eminent
financial sources that the whole question OF
banking and currency system ought to be re-
terred by congress, to q commission TO be Gre
ated by law, appointed by the president and
clothed with proper authority.
"A commission non-partisan in its character
he says, composed OF men of eminent abilities,
could unquestionably devise a currency sys-
tenn sound in every particular, and one which
would commend Itself to every interest
OF the country 1t could largely take
the question out of politics. and have
it considered simply in its business aspects
and upon merit aloneS but if the present con-
gress is to enact law upon the subject, the
appointment of a commission could avail moth
ing. If, however, nothing more definite can
be accomplished, the question of the creation
of such commission ought to be considered and
acted upon.
National Bank Statistics.
The repC t also gives full information in re-
gard to ne organization supervision and
liquidation of the national banks for the year
ended October 81, 1894. Ii shows that during
this period but 50 banks were organ
lied with capital stock OF s. .2s5 600
the smallest number chartered. as well as the
minimum amount of capital. in any one year
since 1879. The charters of forty-one banks
were extended during the year, having
an aggregate capital stock of s., $4,000
and q circulation OF S1,67s.O50. Ten banks,
with q capital stock of 81 ,575, 900 which
we're in me hands of receivers at
the date of the last report. resumed business
during the year, and the charters of six, with
a capital stock Of 1865 900, and circulation
amounting to S2S3,950, expired by limitation
i've OF which we're succeeded by new associa-
tions, with capital stock of $4,000 and cir
a. OH 90 OU
1894, the total number of national banks IN
operation was $3.50, with an authorized capital
stock OF s672.67 1.Ss5, represented by 7,s56,0Te
shares OF stock, owned by 287s42 shareholders.
Resources and Liabilities.
On October 2, 1894, the date Of their last re-
port OF condition, the total resources OF the
banks we're s. 473, 922 055.27, Of which their
10 ans and discounts amounted to 81 007. 122.-
1871 80 and money of all kinds in bank S422. 49,
1925. Of their liabilities Sl.728, AIS 619 IL
represented individual deposits, 1894 l2l 002 10
surplus and net undivided profits, and
I SIZE, 1871 e7s circulating notes outstanding The
total circulation of national banks on October
81, 1894, amounted to Se07 Az 603, net decrease
during the year of s1.74l,5s3 and a gross de-
crease of ss6l4,s34 in circulation secured by
bonds
During the year 70 banks, with an aggregate
capital stock Of Sl0475.000. passed out of the
system by voluntary liquidation. 81. including
10
S2,770,000, became insolYent and we're placed in
charge OF receivers.
Dividends.
The average annual dividends paid by the
banks between March, 1859, the date earnings
and dividends we're first reported to the Office
and March, 1894, is shown to be 44,355, e14 and
the net earnings $50 237 ,454 The rate per cent
OF dividends declared varies from l05
in 1870 to IS in 1894 The average
for twenty years is IS The net earnings
during the past year have amounted to only
Sc per cent and dividends to per cent. the
smallest percentage Of dividends ever paid by
the banks and the percentage of earnings falls
below all the years except 1878 and 1879
State and Private Banks.
The usual statistics are furnished in regard
to the banks other than national, which show
that the number organized under state
authority and in active operation July
l, 1894 was 6,033, and reports of
condition we're received from 43s4 Reports
were also received from 9O4 private banks and
bankers, and these, together with the state
bank reports, have been distracted and their
resources and liabilities are shown in detail in
the tables which form part of the report.
Information and statistics are also furnished
as to the failures of banks other than national
during the year. the number of which is
shown to be g., eliminating mortgage com
panies not doing banking business.
A Safety Fund.
The comptroller suggests the maintenance OF
a safety fund to be provided by graduated tax
alton upon the outstanding circulation 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 by the government agent
only and for the purpose of Immediately re-
deeming the notes of insolvent banks 1t is
Immediately to be replenished out of the as
sets of the banks on which 1t shall have first
and paramount lien and from assessment to
the extent of the double liability on the share
holders.
Should Quit the Banking Business.
Continuing, the comptroller says: The
general government ought to be wholly free
from tue direct issuing and redeeming of
notes to pass as money among the people. No
government has ever yet successfully engaged
in so doing and the experience Of the govern
mem Of the United States has proven no ex
ception to the rule The general cost and loss
entailed upon the government and the repeated
periods Of uncertainty as to the government
credit and the stability of our monetary sys-
tenn have been so great as to make the legal
tender and treasury issues Of 1890 one OF the
extraordinary burdens placed upon the people.
The issues ought to be redeemed and cancelled,
and the Government thus enabled to retire
from the banking business, business for
which Il is so poorly equipped"
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