The San Francisco call., 1895-12-02
Methods Employed to Facilitate
Commercial Exchanges and
Sustain a Circulation.
AS TO THE CAUSE OF FAILURES.
Recommendation That Only Banking
Institutions Be Allowed to
Issue Notes.


| troller of the Currency, submitted to
| Congress, gives information in detail in
regard TO the organization, supervision
and liquidation of the National banks for
the year ended October 81, 1895, and
similar information as is obtalnable
|. relative to banks, banking companies and
savings institutions organized and dong
business under the laws OF the several
States and Territories.
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 affording information as to
the different methods employed to facii-
tate commercial exchanges and sustain a
bank note circulation.
The total number of National banks Or
ganiz ed since the date the first certificate
of authority was issued, June 20, 1868, to
the close of the report year has been 1923.
making a yearly average of 152 Of the
number organized there were in active
operation on October 81 last 3715 with an
authorized capital stock of 1864, 1876, ,915,
represented by 2S5, 100 shareholders, or an
average capital stock of $179,772 for each
bank; average number of shares to each,
2136, and of shareholders II. The total
amount of their circulation outstanding
was $2l3 1887 $50, of which amount $780,
1S0,961 was secured by United States
bonds. and $23.7O6.669 by lawful money
deposited with the Treasurer of the
United States.
During the year 43 banks were organ
lied, located in 20 different States, with an
aggregate capital stock of 81 400, 900. OF
these new banks 28 with capital stock of
| 50, $50 900. are in the Northern and North
western sections of the country, and Is,
with q capital stock aggregating So, 800 900,
in the South and Southwest. The num-
Der of banks organized during the year
was less than 80 per cent of the yearly av-
erage. There was a net decrease during
the year of $40, 779 ,597 in the amount of
| circulation secured by bonds, and a gross
increase of Sc, ,322, $40 in the total circula-
! ton.
On September %, 1885, the date of the
| last report of the condition of the 3712
banks then operating, their total resources
was $3, 3,423, ,629, ,343 63. of which $2,059, ,408E
| 402 81 represented their loans and dis
| counts and 1886, SIT $50 81 money of all
| kinds in bank. Of their liabilities 81, 701,-
653, ,52I % represented individual deposits,
| 1886. SS8, $50 Sc surplus and net undivided
profits, and 1882, ,4S1, $40 so outstanding cir
culation secured by bonds.
OF the 3715 banks in active operation,
2901, with capital stock of $536, 725, S32,
are in the northern and northeastern half
of the country, and 814, with a capital
stock OF $l26, S48 $780, in the South and
Southwest. There are 2611 National banks
located east of the Mississippi River. with
capital stock of $527, ,612, 1872, and 11O4 west
of the Mississippi, with capital stock of
$135, ,961 800. The corporate existence of
seventy-one National banks in sixteen
States, with capital stock of $40 662, 900
and total circulation of So, 226 ,275, has
been extended during the year.
The number of banks leaving the system
by reason of the expiration of their COR
porate existence was four, having a capital
stock of 100000 and circulation of
S123, 700 OF these, two were located in
New York and one each in Maine and
Pennsylvania. a new association, with a
capital stock of $4,000 and circulation of
500, 800, succeeded to one of the two in New
York. During the year ending October 81,
1896, the corporate existence of twenty
eight banks, with a capital stock aggre-
eating So, 453, 800 and circulation OF $1,3l0,-
400, will expire. In the succeeding ten
years, from 1896 to 1905, the corporate ex-
istence of S89 banks, having capital stock
of $129, ,694 $50 and a circulation of $34,0l6,-
887 Will expire.
The number of banks leaving the system
during the year through voluntary liqui-
dation was tifty-one, having capital
stock of $6,093, 100, and circulation of ST.
| $4,000. Receivers for thirty-six banks
| have been appointed during the year. The
| aggregate capital stock of these banks was
S., ,235 020, and their circulation 81, DOB ,402.
| OF the banks two, with a capital stock of
$780, were reported last year as being
| in voluntary liquidation, and nine, with a
capital stock Of 81, 750, 900, were of the num-
Der OF banks which closed their doors in.
1893, and subsequently, resumed business,
but through continued business depression
and the slow character of their assets were
unable to meet their obligations, and were
thus compelled to go into insolvency.
| Abstracts of the reports of 1898 and 1894
are given for the purposes OF comparison,
those OF 1893 showing the extreme condl-
ton and serious banking loss. In reference
to receiverships, the Comptroller says:
"ln the majority of instances no bank
closes its doors while it Is possessed Of
quickly convertible paper, and therefore
there comes into the possession OF the
COMPTROLLER only that which is slow,
doubtful, bad or absolutely worthless. 1t
thus follows that with little or no cash
received, but debts which are slow of pay
ment and much involved in or necessitat-
ing litigation, the closing OF trusts is pro-
ionged and the expense attendant therein
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 101 dividends were paid,
amounting to 81 $3.50 552 65. The following
amendments to the law are recommended 1:
First-That the Comptroller, with the ap-
proval OF the Secretary of the Treasury, be en-
powered in all proper cases to remove officers
and directors of National banks for violation
/ mi ant q