Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1894-12-08
FAvORS A CHANGE.
Comptroller Tclkles Suggests a
New System of Currency.
His Plan for Improving the Present Ma
tional Bank-Noto Issue-Intorestlng
Facts Extracted from His An
nual Report


been received, says Comptroller of the Curren-
cy Ecltels in his report from many eminent
financial sources that the whole question OF
banking and currency system ought to be re-
ferred by congress- to a commission to be ore-
nted by law, appointed by the president, and
clothed with proper authority.
"a Acommission non-partisan in Its character"
he says, composed of men of eminent Abilities
could unquestionably devise 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
IL considered simply In its business aspects
and upon merit alone: but II the present con-
gress is to enact q law upon the subject, the
appointment of commission could avail moth
Ing. IT, however, nothing more definite can
be accomplished, the question OF the creation
of such commission ought to be considered and
acted upon"
The report also gives full Information in re-
gard to the organization, supervision and
| liquidation of the national banks for the year
ended October 81, 1894 1t shows that during
| this period but 80 banks were organ
ized, with q capital stock of s5, ,psS 900,
the smallest number chartered, as well as tho
minimum amount of capital, In any one year
since 1870. The charters OF forty banks
| were extended during the year, having
on aggregate capital stock of $4,000
and circulation of Si,e7s,0oo Ten banks,
! with o capital stock OF 81 5000. which
| were in the hands of receivers nt
! the date Of the last report, resumed business
! during the year and the charters Of six, with
| o capital stock OF S06S 00). and circulation
| amounting to s2sa960. expired by limitation,
| five OF which we're succeeded by new associa-
tions, with capital stock of 100000 and cir
culation amounting to sea25o. On October 81.
| 1894 the total number of national banks In
| operation was $3.50, with an authorized capital
stock OF s672.67l, ,365. represented by 7,e55,07d
shares Of stock, owned by 2s7 $40 shareholders.
On October 2, 1894, the date OF their last re-
| port OF condition, the total resources of the
banks were s3,47 ,922, ,0S537, OF which their
loans and discounts amounted to s2.oO7l22,-
Is1 30. and money Of all kinds in bank S422, 42s-
o2.45. or their liabilities 9l. .728, ,alS, $40. 10
represented individual deposits, 1884 l21 002. 10
surplus and net undivided profits, and
Sl72, 331, ,e7S circulating notes outstanding. The
total circulation Of national banks on October
81, 1894, amounted to S20T <T2. .6oe net decrease
during the year of Sl.7<Ib b6a and q gross de-
crease OF ss.61 rs34 In circulation secured by
bonds,
During the year 70 banks, with aggregate
capital stock Of SI0475, passed out of the
system by voluntary liquidation, 81 including
which failed in 1893 with capital stock Of
S3.77o,00 became insolvent and were placed In
charge Of receivers.
THE comptroller suggests the>matntenance OF
. safety fund to be provided by graduated tax
alton upon the outstanding circulation Of tho
not less than per cent. OF the
total Of such outstanding circulation, this
fund to be held by the government as an agent
only and for the purpose of Immediately re-
deeming the notes OF insolvent banks. 1t In
Immediately to be replenished out of the as
sets OF the banks on which 1t shall have Arst
and paramount lien and from assessment to
the extent of the double liability on the share
holders
Continuing, the comptroller says: THE
general government ought to be wholly FREQ
from the 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
ment of tho United States has proven no ex-
ception to the rule The general cost and loss
entaied upon the government and the repeated
rSriods of uncertainty as to the government
credit and the stability OF our monetary sys-
TEN, have been so great as TO make the legal
tender and treasury issues OF 1900 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 1t Is SO poorly equipped
In the light of the present condition of the
governments finances, Mr.. Eckels says, that
which ought to have been done when there
was surplus in the treasury cannot
now be undertaken. and the same con-
ditions must continue to weaken the country $
credit and plague the lines OF business unless
means Is devised for removing these issues
from the channel of current redemption until
such time as the government finds itself in o
position to do that which at first was the In
tent of sll-gradually redeem and cancel them.
II the franchise is granted the banks of Is
suing circulating notes against their assets.
instead Of against bond security, 1t is suggest
ed that the banks in return should recompense
the government by relieving the treasury de-
partment of the current redemption in coin Of
the present treasury issues. The ultimate re-
demption, OF course, must fall upon the gov
ernment. but the embarrassment does not
arise from their ultimate, but from their cur
rent. redemption.
1t Is therefore suggested that II congress
shall repeal the provisions Of the present aot
requiring the national banks to make deposit
of government bonds in order to secure circu'
lating notes, and substitute therefor provis-
ion giving them instead the right to issue the
same against their assets, it incorporate
therein and part thereof that Us prere-
quislte to so doing, the banks be compelled tc
deposit with the treasurer OF the United States
legal tender issues or espunder the act oi
1890 equal in amount to tho difference between
the percentage OF their capital stock OF issues
granted against their assets and the
total OF such capital stock. Tho de-
posits thus made ought to remain with the
treasury until the bank ceased either through
voluntary or involuntary liquidation, to dt
business, and in either case the government
ought To then redeem and cancel such treasury
issues deposited. 1t is only by such deposit
during the life of the bank that the issuei
named can be removed from current presenta
tion for redemption
AS against this deposit OF legal tenders anC
treasury notes so made there should be issuet
to the banks, dollar for dollar, national banl
notes, either OF the same or different design
as might be deemed best, that thus the volume
of tho currency as 1t is now contributed TO b!
the issues OF the government shoul'
nOntrAlIRn
as the banks making such deposit
are in existence. The percentage OF tn
bank notes issued against the deposit shoul
be free from any taxation imposed upon circu
lation and ought to be such percentage as
deemed equitable to be used as u part OF tn
banks legal reserve held against deposits
The law should make it incumbent upon tn
banks TO deposit with tho treasurer for tn
current redemption OF suoh notes, gold COIN I
an amount necessary to make sure their cur
rent redemption
A FATAL BLAST.