The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-12-02
MR.. ECKELS'S REPORT
FACTS ABOUT NATIONAL BANKS AND
THEIR CONDITION.
Changes i'm the Lnvv Recommended by
the Controiier-SuEHcs to
Increase Of Note Issues.

WASHINGTON, Dec /. - The report OF
Hon. James II. Eckels, Controller of the
Currency, TO be submitted to Congress to-
morrow gives information in detail In re-
gard to the organization, supervision and
liquidation of the national banks for the
year ended Oct. 81, 1895. ana similar infor-
nation as far as obtainable relative to
banks, banking companies and savings in
situations organized and doing business IN
der the laws of the several States and Ter
ritories. tA@ee
In addition to the foregoing the report
shows briefly the various systems of bank
| ing in operation in foreign countries and in
| the States and Territories comprising the
| Union. as afrording information as to the
different methods employed to facilitate
commercial exchanges. and sustain bank
! note circulation.
| The total number of national banks or
ganized since the date the first certificate
! OF authority was issued, June 90 1863, to
| the close of the report year, has been seq,
| making yearly average of i52. OF the
number organized there were in active OPP
Grafton on Oct. 81 last ais. with an author
! lied capital stock of 1864, 1926, represented
| by 2S5,19O shareholders, or an average capt.
! tai stock of s17S.77s for each bank average
| number of shares TO each. 2.ls6 and of
| shareholders. n. The total amount of their
circulation outstanding was s2l3. SS7 $50. of
which amount $3.50, ls0,9Sl was secured by
United States bonds. and s23.7oS.6s $50 by law
| full money deposited with the Treasurer of
| the United States.
! During the report year forty-three banks
were organized. locatedrin twenty different
| States. with an aggregate capital stock of
| .S9c.00a. OF these new banks twenty-elght,
with capital stock OF ss,5so,OOO. are in the
northern and northwestern sections of the
country. and fifteen, with a capital stock
aggregating s. coo. in the South and
| Southwest. The number of banks organized
during the year was less than 30 per cent.
/ of the yearly average
| There was net increase during the year
! Of $lO.779.597 in the amount of circulation
secured by bonds and a gross increase of
| S.. 3d. $40 in the total circulation
| On Sept. %, 1895, the date of the
last report Of conditions of the S.7l2 banks
then reporting. their total resources was
s., 423. $685. of which $.05s. 4oS 4o2.27 rep
resented their loans and discounts. and
! s356577 ,5S0.61 money OF alb kinds i'm bank
OF their liabilities $k70l, 653, 81 % repre-
sented individual deposits, $3.50, 8SS, 350S6 sur
/ plus and net undivided profits, and $le2, 49,
5000 outstanding circulation secured by
! bonds - asr
! OF the 3,7l5 banks, in active operation,
| 2,9d. with capital stock of $3.50, rs SS2, are
| in the northern and northeastern half of
| the country. and sl4 with capital stock
| of SIG. S4S.950 in thesfSouti and Southwest
| There are 2.6ll national banks located east
of the Mississippi river. with capital
stock of s527.6l2.7s2. and 1.1O4 west of the
| Mississippi. with a capital stock of
The corporate existence of IL national
| banks in sixteen States. with capital
stock of $lO.662.0Oo and total circulation
! of s3.226.275, has been extendec during the
| year - ~ fxAtuxf
| The number of banks leaving the system
! by reason OF the expiration of their COR
! porate existence was 4, having capital
stock of 100000 and a. circulation of s123 700.
| OF these. 2 were located in New York, and
l each In Maine and Pennsylvania. a new
| and circulation of s2s, 100, succeeded to one
| of the two in New Work e-fr,sl
During the year ending Oct 81. 1896,
| the corporate existence of % banks, with
! capital stock aggregating S. 800 and
ten Years. from 1856 To lo5 the tine
| corporate existence OF $50 banks having
a capital stock of sl2s,s94. $50 and c!rcua-
| ton of, $340ll, $751;. will expire.
| The number of banks leaving the sys-
| tenn during the year through voluntary
qsdssHH o s SaS r. nay og sani5s stock
| Receivers for &C. banks have been ap-
| pointed during the year. The aggregate
capital stock. of these banks was N.2s5.o2o
! and their circulation $l.O03, 402. OF these
| banks 2. with capital stock of $4,000.
were reported last year as being in volun-
ia dary 7, LIQUIDATION I'D, and With capital stock
! which closed their doors i'm 1895, and SUBJ
! sequently resumed business. but through
! character of their assets were unable to
meet their obligations. and were thus COM
PEELED TO go into insolvency.
| Abstracts OF the reports of 1893 and 1894
| are given for the purposes of comparison,
| those of 1893 showing the extreme cond-
tons of the year Of greatest financial de-
/ preston and serious banking loss.
| In reference TO receiverships the con-
| troller says: I'm the majority of instances
sessed of quickly convertible paper. and
/ therefore there comes into the possession
| Of the Controller only that which is slow.
! doubtful. bad. or absolutely worthless. II
! thus follows that with little or no cash
received, but debts which are slow of pay
| ment and much involved in or necessitat-
| longed and the expense attendant thereon
| Increased. The records of the Office. how
| ever, show that such expense as compared
| with any other class of receiverships, is
| greatly less and the result attained far
more substantial" During the year 1Ja div
idends were paid. amounting TO s3.sSO.55265
PROPOSED CHANCES IN THE LAW
The following amendments to the law
| are recommended:
First-That the Controller with the ap-
prevail of the Secretary. OF the Treasury
| be empowered in all proper cases to remove
officers and directors of national banks for
| violations of law and mismanagement. first
according them hearing On charges pre-
Terred. t.s-,
! Second-That the loans of any bank to
! its executive officers and employees be re-
s,ricted and made only upon the approval
of the board of directors a separate writ
/ ten record thereof being kept.
Thir,I--That the assistant cashier. in the
| absence of the cashier, be authorized TO
sign the circulating notes of the bank and
renorts of condition.
! rFourth-That some class OF public officers
oaths REQUIRED by the national bank act
| Fifth-That bank examiners be required
| TO take an oath of office and execute
| bond before entering upon the discharge
| OF their duties.
| Siyth-That upon day in each year.
| to be designated BY the Controller. the
| directors of national banks. shall he re-
! ouired 70 make an examination OF the af-
! fairs of the banks and submit to the Con-
1 troller report thereon upon blanks TO
| h.. furnished for such purpose.
! Scventh-That the Controller be author
| lied to issue to national banking assocfa-
| tions circulating notes TO the par value of
! the bonds deposited nv them with the
Treasurer of the United States 20 secure
!. such notes. sIfts.trs
Eighth-That the serni-annuaI tax levied
| on account of the circulating notes of ma
! tionaI banks be reduced so to equal but
I ope-fourth Of per cent. per annum.