The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1894-12-06
MONEY OFTHE NATION

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MONEY OFTHE NATION |
CONTROLLER ECKELs SUBMITS HIS
ANNUAL REPORT.
Ne Recommends That Bunks BE Per-
United to Issue Circulating Notes
to an Amount Equal to Fifty per
NJ Cent Of Their Unimpaired Capital. 4
Washington. Dec. 4.-The report of
Hon. James FL. Eckels, controller Of
the currcDcy, was submitted to con-
gress to-day, and gives full informa-
ton In regard to the organization,
supervision and liquidation of the ma
tional banks FOR the year ended Oct.
81, 1894. It shows that during this
period but fifty banks were organized,
with a capital stock of $5,2S5, 900, the
smallest number chartered, as we'll as
the minimum amount OF capital, in
any one year since 1879. OF these
new banks twenty-scven are in North
ern and Eastern states, ten In the
Southern States and thirteen tn the
d Western and trans Mississippi diyis-
Ion
On Oct. 81, 1894, the total number
of national banks in operation was
$3.50, with an authorized capital stock
of $672, 81, 3G5, represented by 1856
O76 shares of stock owned by 2S7, 1872
shareholders. On Oct. 2, 1894, the
date of their last report Of condition,
the total resouces of the banks were
$3,473, 1922 O55, Of which their loans
and discounts amounted to $780,, 1922
191 and money Of all kinds in banks
$422, 1923, 1872. OF their liabilities ST.
TBS, 41S,S19 represented individual de-
posits, 1894, 121 ,O62 surplus and net I'M
divided profits and SIZE, 1871 ,97S circu
lating notes outstanding. The total
circulation Of national banks on Oct.
81, 1884, amounted to $2O7, ,6O3, a
net decrease during the year of 81 III,
563 and gross decrease Of $S,614,S64
In circulation secured by bonds. Dur
ing the year seventy-n banks, with
an aggregate capital stock Of Sic, 47a-
900, passed out of the system by volun-
tary liquidation; twenty ne, including
two which failed in 1893, with a capt.
tai stock of $2,77O.OOO, became insolv-
ent and were placed in charge Of re.
ceivers.
New Currency System.
He considers that the present nation
al bank note system is sound, but it
lacks elasticity, but the people will not
he content with any innovation unless
such new departure insures the same
safety that now exists. The report
then says:
1T is respectfully suggested that not
only as good but better results would
be attained if the present bank act
were amended by repeating the pro
vision thereof requiring each bank, as
e prerequisite to entering the system
and issuing bank note currency, to
deposit government bonds. In lieu OF
such provision should be substituted
one permitting the banks to issue cir
culating notes against their assets tc
an amount equal to at least, 50 pei
cent of their unimpaired capital"
The controller follows this suggestion
with the further one for the mainte
nance Of safety fund, to be provided
by graduated taxation upon the out
standing circulation Of the banks, un
!. til the same shall be equal to less thar
e per cent of the total of such out
standing circulation, this fund to be
held by the government, as an agen1
only, and for the purpose of immedi
ately redeeming the notes of insolven
banks. 1t is Immediately to be re
plenished out of the assets of thu
banks on which it shall have frs
and paramount lien, and from assess
ments to the extent of the double liza
!bility on the shareholders.
The controller then cites such proc
and gives such statistics as seem tt
him to make the plan suggested per
fectly safe one to enter upon. HI
says: 'The changes thus outlined will
Upon investigation it is believed. prov
to be safe in affording complete sc
curity to the note holder and give t.
the business interests of the countr,
a bank note issue responsive to thei
needs
To Avoid Delay.
1t is suggested that, as a necessar
element to the securing of prope
elasticity of issue in our bank note Gu,
;rency, Section 9, Act Of July IL, 1S9.
regulating the retirement and issue o
circulation to banks within a fixe
period Of time, should be repealed, an
also that an amendment should b
made to the law necessitating th
banks keeping in the office Of the COL
,troller of the currency a suf1icier
amount of bank notes las will enabl
them to secure circulation at once, IL
stead of after period OF delay.
suggestions ihave been received frol
many eminent sources that the whol
question of "a banking and currenc
system ought to he referred by col
gress to commission, to be create
by law, appointed by the president IN
clothed with proper authority. con
mission. non7partisan In its characte
composed of men OF eminent abilitie
could unquestiOnably devise a GU
rency system sound in every part, an
one which would commend itself
every interest OF the country. It wou
2 largely take dtbe aIestinn ont of mol