Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1894-12-03
CURRENCY QUESTION
Discussed By Comptroller Ecklos in
His Annual Report.
HIS SUGGESTIONS FOR RELIEF.
"No Section of the Law Should
Be Disturbed Which Cannot Be
Materially Improved Upon.
Statistics of the National Banks
for the Past Year.

The report Of Hon. James II. Eckles,
Comptroller Of the Curren, ?, submitted
10 Congress. gives full information in
regard to the organization, supervision
aud liquidation OF the National banks
for the year ended October 81, 1894 II
shows that during this period but fifty
banks were organized, with capital
stock OF s., 2s5. 600, the smallest number
chartered. as we'll as the minimum
amount Of capital, iD any one
year since 1879. OF these new
banks twentY-seven are 10
the Northern and Eastern States, ten In
the Southern States and thirteen in the
Western or trans-Mississipp division.
On October 81, 1894, the total number
of national banks iD operation was
3.756, with an authorized capital stock
Of S672, ,67l, ,3G5, represented by 1855,
OG7 shares of stock, owned by 2SL9S3
shareholders.
On October 3. 1894, the date OF their
last report OF condition,
THE TOTAL RESOURCES
OF the banks were S3. .473, ,922, ,O55. of
which their loans and discounts amount
ed TO S2,OO7, l22, l91, and money Of all
Kinds in banks S422, 42S. 1872. OF their
liabilities 81, 1,73S,4lS,S19 represented In
dlvidual deposits, S334, 12l,0S2 surplus
and net undivided prodts, aud Sl72,-
331.97S circulating notes outstanding.
The total circulation Of national banks
on October 81. 1894, amounted 10 S207,-
472, 6O3. a net decrease during the year
= "a nn nn al
SS,614,S ,S64 10 circulation secured 0y
bODd-.
During the year seventy-nine banks,
with an aggregate capital stock of Sl0,-
AIS. 600, had passed out Of the system
by voluntary liQuidatioO; twenty
ooe, including TWO which failed TO 1898,
with a capital stock Of 50, 10000, Oe-
came insolvent aud were placed Ia
charge Of receivers.
THE FEATURE
OF the Comptroller's report is his dis
cussion Of the currency question and
the defects which are said 20 exist Ia
the note issuing powers vested iu na-
tiOual banks. On this subject he says:
''No section OF the law should be dis
turbsd which cannot be materially In
proved upon, and 20 amendment en-
grated unless such amendment will
work ont better results than flow from
the existing order OF things.
alt is probable that there could be no
better plan for simply insurlng the
note holder against loss than the present
requirement of deposit of bonds to
secure banks circulation, but IL is
equally certain, however, that a method
could be devised, not less safe 10 this
respect, and Ia addition thereto possess
ing that which Is essential and is now
wholly wantinR-elasticity OF issue.
The complaint, therefore, made against
lhe present system is that, lacking in
elasticity OF issue, IL falls 20 meet as
fully as it ought
THE VARYING WANTS
OF the cOuntry's trade and commerce.
This defect must attach 70 every
lcheme Tor a currency issued by the
banks against deposit Of bonds, the
market value Of which ductuates while
the percentage Of issue, less than the
value Of the bonds granted the banks,
remains UNCHANGED.
"It is respectfully suggested that not
only as good, but better, results would
be attaiLed u the present bank act
were amended by repeating the pro-
vision thereof requiring each bank, as
a prerequisite to entering the system
and Issuing bank note currency, 20 de-
posit government bonds, In lieu
Of such provision there should be
substituted one permitting the banks 90
issue circulating notes against their
assets 10 an amount equal 70 at least
fifty per cent. Of their unimpaired capi-
sal"
The Comptroller follows this suGEes-
tiop with the furtsr one for the main
tenance OF safety fund TO De provided
By graduated taxation upon the out
stasding circulation Of the bank until
the same shall be equal 90 not less than
FIVE per cent Of the total Of such out
standing circulation, this fund 10 be
held by the government as an agent
only and for the purpose Of immediate
ly redeeming the notes Of insOlvent
banks. lis Immediately 70 be repleR-
ished cut OF the assets Of the banks, on
which it shall have
A FIRST AND PARAMOUNT LIEN
and from assessment 20 the extent OF
the double liability on the shareholders.
The Comptroller says:
whatever other changes, u any, it
would oe necessary 70 make IN the pres
ent system relative % current redemp-
tioo of bank notes and the govern
maot's position toward the same ana
kindred matter 10 Is not Necessary 10
set forth If the recommendations here
made toqatberl with that which will
forlov s6opid receive consideration at
tha hands Of Congress, q bill drawn
aftar carsfnI stbdy and investigation Of
tba whole snbiset would necessarily en-
bodv All the details Incident to 8
change from a aond 70 a safety fund Sc
cpritv ssa pasi9 for bank circulation.
The Comntr3iier then cites such
proof and givesl such statistics as seem
~ him N make the plan suggest
Cd "a narfsctlv sisfe Que 10 enter upon.
he saws. ..Tbe (changes thus outlined
will uoon fnvssliQatiou, u is believed,
prove N ba ssf4 ip aTording complete
sscp-itv m tbe hote- holder and give TO
the business intArests OF the country 3
bank no,e issuA responsive TO their
needs"
CoatluuipV. tha ouAptroller says:
.,The orost \ nd issue Of circula-
Alan N the hsDls b change would
ne 40 aumsprs1 I giving to them
a franchise. "a is suggested
tb4y should be G. sn
To MAKA AETURS
n tbs veneraI ns TAis re-
su saoaia not, Noi such a
iCuuineed