The farmers' union. (Memphis, Mo.) 1891-1895, 1894-12-13
ECKElS ON BANK ISSUE.
He Discusses Currency and the Ecfects
ard Limitations of Present System.

hc hi~SuSScS NETfcACy ana tHt
ard Limitations of Present System.
The report of the Hon. James II.
Eckfls. Comptroller of the Currency. sub
mIttcd to Congress, gives full information
i'll regard to the organization, supervision,
and liquidation of the national banks for
the year ended oct 81. 1891. 1t shows
that during this period but fifty banks
We're organized. with Il capital stock Of
$3.50. 900, the smallest number char
tered, as we'll 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
crn or trans Mississippi division.
On Oct. 81. 1894. the total number Of
national banks in operation was :;.156,
with an authorized capital stock of SG12,-
81 1863, represented 10y 1.o:1l.U1G shares
Of stool. owned by oS1.S:'2 shareholders.
On Oct. =. 1854, the date of their last re-
port of condition, the total resources Of
the banks were 81. i73. 30, 90, of which
their loans and discounts amounted to ST.
W1. To-, 131 and money of all kinds in
bank, Sl.242S. 1872. OF their liabilities
Sits, i1S,Sl3 represented individual de-
posits, S:itl II! .OS2 surplus and net I'M
divided profits. and $172::;;31 ,9iS circulate
in>, notes outstanding. The total circula-
ton of national banks on Oct. 81. 1874,
amounted to $2O1. 412.Go3. n net decrease
during the year of $1.141 ,,G' and Il gross
decrease of S>Gli, Si;4 in circulation Sc
cured by bonds.
During the year seventy-nine banks,
with an aggregate capital stock of $1O-
10000. passed o5t of the system by vol
untary liquidation: twenty Including
two which failed in 1S.I:,,-with q capital
stock of S2,71O,uDn. became insolycnt and
were placed in charge of receivers.
The feature of the tomptroll.rs report
is his discussion of the currency quest ION
ana the defects which are said to cxis: in
the nntc-i>,uinS powers vested in ma
! tional banks. On this subject he says:
\" section of the law should he disturbed
which cannot he materially improved upon
| and amendment cn-raftcd unless such
| amendment will work ont better results than
! flow from the EXISTING order of things.
For the present law it must bt conceded 1t
| has been successful in every material feature,
| excepting il the matter ot hank-inte issues
! am! here the failure has been partial one.
| The nrt"s issued Ivy the l.al.i.s under govern
mental supervision have been uniform in APP
/ ptaranr" aEd under any and NJ! cirru!n-
| stances Of the full face value which they pur-
| port t. carry. They have possessed iii" first
| Requisite az II good bar,; note Extraordinarily
! ate cuuverlibiity into coin upon presenta-
| '' ,..,, .,.. .,-. .,.,,, 1. -
! II ~ Hro';i'ie 'i'.' tire 'niii "e IL" letter
! pan Tor Simply llSNr.h= tie note h"lder
against loss ,h'H ne present I'1I!reHl'iit or
| IL ''P,Sii "i """"H I, secure Il u''i'A riictit-
| 'i"ii' ''ut IL - tiua'tH ttl'.in' h""c''r mat
| a ii4'thoh '""lu DC u'i $50. not i'7S s'ic III
| tHl> ftSi"t!' Hlia 'i' ''""iil,n 'l'I',o pos
srssins mat whirh Is rS>r'ttiai ana Is row
nlaiui. therefore, made a.ai:lst the present
| system is that lacking in casticy Of issue.
H. r'irs ~ me-, a.. al l.,s ~ ] a,it vary
,nrrcr This defect must at;arh I" every
scheme for Il currency Issued by the banks
AGAINST IL unf,sl' OF no!!,iS .he niArhe'
aye Of issue. less than the value "f the houIs
granted the banks remains unchanged.
i;' stI',tS as Is .ii'S .aut a'iH F"aaruIu'
Try. any attempt To remedy il which should
los" sight OF or in any Wis, make less certain
,ir i Ia,,, e.. ",i'' "..
! COULD not he Justified l.; is duty Of govern.
! nrnls Ia see hat the currency which circu.
wi,l Snn,,1t n,v,r -. " s,,i,.,.- ~ ;it',lry
For thirty years the American people In "a
| had such bank currency. and having secE