The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-12-03

with capital stock OF 50. IS. .0O0 the
smallest number chartered. as we'll as thu
minimum amount of capital, in any one
year since 1879. OF these new banks ~
in the Northern and Eastern states. 10
I'm the Southern states and i3 in the
Western or trans Mississippi division. On
October 81. 1894 the total number OF ma
tional banks ia operation was 3, ,756. with
an authorized capital stock of S672. .61t. .36s.
represented by T,o65,o76 shares OF
stocks owned by 81. .s92 shareholders.
On October =. 1894. the date OF
the last report of condition, the total
resources of the banks were s.. 473, ,022. .o55.
OF which their loans and discounts
amounted TO s2.0o7, 10. 19i, and the money
of all kinds in the banks. $422. 42S, / o. OF
their liabilities. 81. rs. AIS. $40 represented
individual deposits. 1884. 12i. 0s2 surplus
and net undivided profits. and si72, S3i. .97Sl
circulating notes outstanding. The fota
circulation of national banks on October
81. 1894, amounted TO s207. 472, ,603, a net
decrease during the year of 81, ,74i, 563, and
gross decrease of SS,6l4, SEA In circulation
secured by bonds. During the year sew
enty-nine banks. With an aggregate capital
stock of $40 $4,000, passed out Of the ays-
TEN by voluntary liquidation. and twenty
one, including two which failed In 1898,
with capital stock OF s., 77o, 900. became
insolvent and were placed in charge Of
receivers.
The feature OF the comptrolier's report
is his discussion of the currency question
and the defects which are said to exist in
the note issuing powers vested in national
banks. On this subject he says;
"No section OF the law should bs dis.
- 49, -. I'll
proved upon, and no amendment en-
grated unless such amendment will work
out better results than follow from the
existing order OF things. For the present
law IL must be conceded that IL has been
successful I'm every material feature. ex-
cepting in the matter of hAnk-note issue,
aud here the failure has been but par
tiRl one. The notes issued by the banks
under governmental supervision have been
uniform in appearance, and under any
and all circumstances OF the full face
vslue which they pnrport 10 carry. They
have possessed the tlrst requisite Of good
bank note issae-immediatc convertibilIty
in coin upon presentation.
-'It is probable that there could be no
better plan for amply insnriDg the note
holder against loss shan the present re-
auirement OF adeposit Of bonds 10 secure
banks circulation, but II is equally cer-
tain that method could be devised not less
safe In this respect. and IN addition thereto
possessing that which is essential and ~
/ now wholly wanting-eiasticity Of ISSUE
I The complaint, therefore, made against tho
I present system is that. lacking elasticity
] of issue, is fails - meet as fully s. il ought
/ the varying wants Of the country's trade
/ and commerce. This defect must attach
/ 10 every scheme for Il currency issued by
/ the banks against deposit OF bonds, ths
market value OF which finctuates, while
the percentage Of issues. less than the
value Of the bonds granted the banks, re-
main unchanged. IL must also be wanting
iu such a method because of the delay Ia
the face OF pressing need. oeeEsioned By
light money market or other reasons. 1n
securing and dapositsng the bonds re-
quired and taking out the circulation
thereon.
"Bns. serious a. IL this fault, and retard-
fai az il 10 to the business interests Of tbs
country, any attempt 10 remedy II which
should lose sight Of or in anywise IA axe
less certain the present unQuestionsd
credit aud convertIblltty OF the bank issnes
of the country could not be justified. Its
duty OF the government to see that shs
| currency which circuiates among the peo-
pc shall aisays De Of the very highest
/ character, the soanduess Of which should
never be q subject Of inquiry. For thirty
/ years the American people have had such
bank currency. and, having sesn tbs
value Of il both here ana abroad, they Will
not he content 70 have any innovation
rasde unless such 4 new departure iusugss
mol only equal bat better results.
ia - respectfully suggested that not
only as good, bus bsttsr. results would Re
attained If the present Daak act wers
amended 5y repeating the provision there
OF requiring each ba8k. as q prerequisite to
entering the system and issuing bank-nnts
currency. 10 deposit governments bonds.
In lieu Of such provision should be saesti~
tated one permitting the banks 10 issns
CIRCULATING notes on their assets 20 aa
amount equal ~ least 20 81 per cent Of
their unim paired capital"
The comptroller follows the suggestioa
with ths further one for the maintenancs
og q safety fgnd. 10 10 provided By q
graduated taxation upon the ontstandinx
circulation of the banks until the sans
shall be equai TO not less than 3 per cent
OF the total Of such outstanding cireula-
Iion this fund - be held By the govern-
uent As agent only. and for the purposs of
Immediately redeeming tie noses Of In
I solvent banks. Ii IS immediately TO 20
reIlentshed out 81 the assets of the banks,
/ on which IL shall have Grst aud pars-