Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1894-12-03
ON NATIONAL BANKS.
Report Of Comptroller Of tha Cur.
f6lCy ECkelS.
CURRENCY QUESTION DISCUSSED.
Amendments Suggested 10 the Present
Bank Act-SuggesilOns aud
Recommendations

wAsHINdTON, Dec. 2.-rhe report
Of Hon. James II. Eckuls, comptroller
Of the currency, submitted 10 Congress
today, gives full Information In re-
gard to tho organization, supervision
aud liquidation Of the national banks
or the year ended O1t9ber "a, 1891.
Itshows that during this period but
hity banks were orga1izsI, With n
capital stock Of IS ,2sj. 800, the smallest
number chartered, as well as the min.
imum Of capital, In any one year since
1873.
On October 81, 1894, the total mum.
Dor oi national banks Ia operation was
3,T0B, with an authorized capital stock
Ut sBI2, $3.50, represented by 1885,
UIB ahafea u stock owned by 257 SOP
shareholders.
During the year seveuty.nine banks,
with an aggregate capital stock of
$40, ,OJl, passed out OF the system
Uy voluntary liquidation; twenty-one,
Including two which failed In 1898,
" ith q capital stock Of 81. 10000, be-
came insJlvent aud were placed In
charge OF receivers.
Tue feature Of the compirollcr's re-.
port ~ his discussion OF tue currency
question.
"No section Of the law should be
disturbed which cannot 10 materially
improved upon, and no amendment
drafted unless such Amendment will
work out better results than follow
from the existing order OF things.
"FfOm thv present law, II must be
conceded, II has been successful In
Ovory material feature excepting In the
MISTER Of bank note issue, nnd here the
failure has been but partial one. The
complaint maize against tie present
system IL that, lacking In elasticity Of
tssuc,it falls 10 msBt as July as 1t ought
tue varying wants oil the CuuntryiH
trade anu commerce.
"But, serious M 10 this fault and re-.
taruiui a8 n " 20 the buHintta OF this
country, any attempt To remedy 10,
which should lose sisnt Of or IN any
Wiru make lOsH certain the present uu.
questioned credit and CUnvertlOility OF
tue hank isRueB of the COuutry, could
not be iuatltied. II IL thB duty OF gov.
otumouts 10 SEQ that the currency
when cirCulateB among the people
shall always DO OF tue worry highest
character, Che HOuniness VI wbiCn
should never DO y subject OF inquiry.
"lt 10 respectfully suggested that not
only gs good, but better results would
DO attained II tho present bank act
were amended by repeating the pro.
vision thereof roquiriug zach bank, Ne
n prerequisite to entering tho Bystem
and Issuing bank nDto currency, 10 de-
pOnlt government bonds. In lieu " such
provision should be substituted one per.
hitting tbs banks TO issue circulating
notes against their assets q an amount
equal ~ NJ least 30 per cent OF their un-
impaired capital.H
The comptroller follows tho suggea.
ton with the further suggestion Tor the
maintenance OF a safety fund, to bu pro.
yidVd by graduated taxation upon the
on tetandiug circulation OF the banks
until the same shall bs equal to not
less than per cent OF the total OF such
outstanding circulation, this fund to
Uu held by the government as nm
agent only, and for the purpose OF im-
meliat0ly redeening the notes Of IN.
solvent banks. 10 Ia immediately to be
repleniEhed cut OF tue assets Of the
banks on which II shall be first ani
paramount lieu, aud from assessment
TO tho extent Of double liability ON the
shareholders.
Tha general government ought 10 DO
wholly free from the difeuI Issuing
and Tedesming VI notes 60 pass as
money among the people. The general
cost aud loss ontailel upon the govern.
meut and the period OF uncertainty "
tup governments credit and stability
OF our monetary System have been 40
great as 10 make the legal tender and
treasury tissues Of 1880 one VI the OK.
traotdinary burdens placed on tho
people.
Tue elasticity Of issue IN the national
bank circulation will be found Ia the
percentage OF Issue az alnst assets, sub
luCt 10 thu necessary rate VI taKAtiOns
and Insured by an adequate safety fund
TO guarantee tho mole holders against
loss, The government will be aided,
the bank gwen in exchange n dollar
for every dollar deposited, and thus 70.
lioy0d Of the loss Incident to dep0alt-
ing an amount Of It's capital stock iu
excess Of the return In notes granted H..
lt IL suggested that, M n necessary
element 10 the securing OF proper elias.
tluity VI issue In our bAuk note cur.
runcy, section o, act Of July IL, 1892,
regulating tho retirement and issuing
OF circulation - banks with tixed
period Ot time, should be repealed, ami
also that an amendment should be
made TO tne law nouessltaung tho
banks keeping In tho office VI the
comptroller OF the currency a sufficient
amount Of bank noGeh ~ will enable
them 10 secure circulation " once iu-
stoad VI after period OF delay.
Suggestions have been received
from many 0minont sources that the
whole question Of banking aud ourren.
cy bystem ought 20 bB referred by
Congress 10 d committee, to be created
by law, appointed by the President anu
clothed with proper authority.