Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1895-12-12
NATIONAL BANKS.
The Comptroller Of the Currency
Makes His Report
HERBER1'S REPORT on The NAVY.


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tail in regard to the organization. SUI
pervision and liquidation of the ma
tional banks for the year ended 0cto-
Der 81, 1895, and similar information
rs far rs obtainable relative to banks,
banking companies and savings insti'
buttons organized and doing business
under the laws of the several states
and territories.
The total number Of national banks
organized since the date the first GER
tificate Of authority was issued, June
20. 1868, to the close Of the report year,
has been 5,Oa3, making n yearly aver
age of l52. OF the number organized.
there were in active operation on Oc-
tober 81 last S,7l5, with an authorized
capital stock Of SGG4, 1876, 0l5, represented
by 9S5, 100 shareholders, Or an average
capital stock of Sl7S,77a for each bank;
average number Of shaes to each,
2,l3G, and of shareholders, n. The
total amount OF their circulation out
standing was Sal3, Ss7. $50, Of which
amount 800, lSL0Gl was secured by
United States bonds and Ss3, 7O6, $50 by
lawful money deposited with the treas
urer OF the United States.
During the report year forty-three
banks were organized, located IN
twenty different states, with an az
grcgate capital stock Of $4,s90, 900. OF
these new banks, iwenty-eight, with a
capital stock Of $s,530,00 are In the
northern and northwestern section OF
the country, and fifteen, with capi-
tai stock agyre rating $s, 800, 600, in the
south and southwest. The number Of
banks organized during the year was
less than 80 per cent. Of the yearly av-
erage.
The comptroller recommends num-
or OF amendments to the national
banking law.
In making suggestions relative to
the increase Of note issues, the comp
troller uses the following language;
The issuing Of circulating notes to the par
value Of bonds deposited to secure the same
md the reducing OF the per cent Of 'm-an-
nual tux leyiel upon such notes has been urg ID
BY all the secret lres OF the treasury who
have touched upon the subject at I'LL and BY
every comptroller from the time Of and includ-
Comptroller Knox. The provision Of the Inv
prohibiting the former and the provision OF
the law governing the amount Of the latter,
however, are still unchanged upon the statute
book.
At q time whom the desire Is so frequently
expressed that there be n larger issue of bank
notes ind complaint ia made that national
banks are indifferent to the not ,suin fanc-
tlOn vtste in them, 1t may well be considered
by congress whether 1t would not be wise to
do that which will make It Of sufficient inter-
est to The national banks to pnv greater AZ
tentlon to note issues, The profit Of banking
in the United States is now largely in the de-
post feature Of It. and thus II Is Of greater
concern under existing circumstances to the
banks to secure deposits than 1t is to issue
uUtGS upUu u lctuill 81 silNll uS v otdltNlJ
justify the expense and trouble cntaied
thereby.
Banks are not clecm0synary institutions,
and therefore engage only In that which prom
Uses q margin Of profit While on tho one
hand entitled TO no more fayors than are
granted to other corporations or enterprises
carried on by associated individuals, on the
other they should not be denied any privileges
which they may Justly claim and for the de-
nial OF which no possible excuse can be given
1t Is unQuestionably true that national banks
would largely increase their note circulation
II the embarrassment arising from the need
less locking up Of u large part OF their capital,
available for other purposes, and the lessened
profit through excessive taxation now impose |
did not confront them. They certainly would
do so II the legal tender issues OF the govern
mcnt were paid and cancelled and tho channel
now cloggcd by them freel for bank-note cir
culation.
The experience Of this and other countries
conclusiyely demonstrates that the b st and
most rational not issues are those put forth
by banks II likewise demonstrates that Is
sues made direct by government are always
expensive, and under every circumstance
source OF danger to such governments and loss
to their peoples business interests. No clearer
proof of this could be had than TINT furn shed
by the difficulties which we have witnessed on
the part Of this government in It's efforts to
maintain the full credit Of It's pr ctcally lin
itless amount Of demand obligations
The advantage accruing to the government
by the substitution Of bank note for treas
ury note currency would be immeasurably
great. The need OF maintaining gold reserve
to meet the recurring demand obligations,
now never retired would, within reasonable
time, be obviated, and delivered from this
vexatious and expensive difficulty the treas.
ury department could return to It's legitimate
function Of collecting the revenues Of the gov
eminent needful to meet governmental ex-
penses and discussing the same
With the relief gained to it through the re-
movai OF this burden would come II greater one
to the business interests Of the individual citi-
zen, whose every operation would no longer be
harassed by the uncertainty sprnging from d
fear that either In the present or the future
the currency obligations now forced by his
government through the provisions OF an In
flexible law into the avenues Of trade and COM
merce may be diseredited and dlshonored
The RELOCATING Of note issue entirely to the
banks would give better guarantee Of meet
ing tho varying wants Of trade, which is i'm
possible with u legal mandate decreeing an
amount Of treasury issues Of no greater and no
less volume at one season OF the year than an
other. whether or no there be n CORES pondlng
increase Or lessenIng Of the demand for cur