The Delta independent., 1894-12-05
MIR. ECKEL'S SCHEME.
FAvORS THE NATIONAL BANKS
IIe Would Give Them the Exclusive Privi-
lege of Issuing All the Paper Currency,
Based on Deposits of Fifty Per Gem.
of tho Circulation.

Based on Deposits of Fifty Per Gem.
of tho Circulation
Washington, Dec. 2.-The report of
Hon. James II. Eckels, comptroller OF
currency, to be submitted to Congress,
tomorrow, gives full information in
regard to the organization, supervisio
and liquidation of national banks fo:
the year ended Oct. 80, 1894. 1t show
that during this period but fifty banks
were organized, with a capital stock o.
So, ,2S5 900, the smallest number char
tered, as well as the minimum amour
Of capital, in any one year since 1879.
OF these new banks, 27 are in tn"
Northern and Eastern states, 10 in til"
Southern states and 13 in the Western
t1ansmississippi division.
On Oct 31,1S94, the total number of
national banks in operation was 3,7o6,
with an authorized capital stock OF
$672,6I1 ,3S5, represented by 7,055,07G
shares Of stock, owned by 2S7, so.
shareholders.
On Oct. 2, 1894, the date of their last
report of condition, the total resources
of the banks were $3,473,922,O55, of
which their loans and discounts
amounted to S2,OO7, 100. .191. and money
Of all kinds in bank. $422, 42S, 1872. OF
their liabilities, S1,72S,41S,S19 repre-
sentcd individual deposits, S33f, 121 ,OS2
surplus and undivided profits, and
/ $172,331, ,97S circulating notes outstand-
ing. The total circulation of national
! banks on Oct. 81. 1894. amounted t."
| S207 ,4T2, COB. Il net decrease during the
year of $1,741, ,3G3, and gross de-
crease of S,614,S64 in circulation s.
cured by bonds.
During the year, 70 banks, with All
aggregate capital stock of S1O,4I5OOo,
passed out of the system by the volun
tary liquidation; 21. including tw"
which failed in 1893. with capital
stock of S2.77O.OOO, became insolvcnt
and were placed in charge of receivers.
| The feature of the comptrollerS re
port is his discussion of the currency
| question and the defects which as'c
said TO exist in the nOte-iSSuing powers
vested in national banks. On this sub.
ject he says:
NO section of the law should BE-
disturbed which cannot be materially
improved upon. and no amendment
engrafted unless such amendmcn.
will work out better results than fo.-
low from the existing order of things.
| 1t is respectfully suggested that not
only as good but better results woul'i
| be attained if the present bank act
was amended by repeating each bank
as prerequisite TO entering the sys-
tenn and issuing bank note currency to-
deposit government bonus. In lieu of
such provision, should be substituted
| hn MI n, aii
culating notes against their assets to an
amount equal to at least 30 per cent.
of their unimpared capital"
The comptroller follows the suggcS-
ton with the further one for the main
tcnance of Il safety fund to be provii-
| ing by graduated taxation upon the
outstanding circulation of the banks
until the same shall be equal to no.
| less than ) per cent. of the total of
such outstanding circulation, this fund
| to be held by lie government as an
agent only and for the purpose of i'm
medately rcdceming the notes of in
solvent banks. 1t is Immediately TO be
replnnishcd out of the assets of til"
banks on which it shall have a first
and paramount lien and from asscess-
ment to the extent of double liability
Oh the shareholders. The comptroller
says:
"Whatever other changes, If any, l.
| would be necessary to make in the
| present system relative to current re-
| demption of bank notes and the gov
| ernmcnt's position toward the same
and kindred matters, it is not neces-
sary to set forth. If the recommenda-
| tons here made, together with that
which will follow, should receive con
| sideration at the hands of congress. II
| bill drawn after careful study and in
| vestigation of the whole subject would
necessarily cmbody all the details in
cident to n change from bond to 4
safety fund necessary as a basis of
bank circulation"
The comptroller then cites such proof
and gives. such statistics as seem to
him to make the plan suggested per-
fectly safe one to enter upon. He says:
"The changes thus outlined will, up
on investigation, 1T is believed. prove
to be safe in affording complete secur-
ity to the noteholder and give to the
business interests of the country Il bank
note issue responsive to their needs"
Continuing, the comptroller says:
-"I'he profit upon the issue of circull-
tiOn to the banks by such change would
be so augmented that it is giving tn
gested they should be called upon t"
make proper return to the general gov
ernment. This return should not. how
ever, be of such character rs 10 de-
feat the ends sought in the privilege
given. The currency redemption of tn,
legal tender issues and the treasury
issues under the act Of 1890 and til,
re-issung instead of cancellation of the
same, must always create distrust Of
the governments credit abroad and AT
home so long as the laws now upon
the statute book remain unchanged.
"The general government ought to BE-
wholly free from the direct issuing am.
rendering of notes to pass as money
among the people. No government har
ever yet successfully engaged in 81
doing. and the experience of the gov
ernment of the United States has
proven no exception to the rule.
Suggestions have been received from
many eminent sources that the whole
question of banking and currency
system ought to be referred by con
grcss to a commission to be created by
law, appointed by the president, and
clothed with proper authority.
A commission, non-partisan in lis
character. composed Of men of cmin-