Griggs courier., 1895-12-06
MONEY OF THE BANKS.


MONEY OF THE BANKS.
Comptroller Eckels Makes His Annual
Report.
Washington, Dec. 2-The annual report
OF Comptroller Of the Currency Eckels boz
rows interest from the uncertainty regard
ing the financial affairs Of the country. OF
the 5.023 national banks organized from the
beginning OF the system, 3,715 were in or
GRAFTON October 81. 1896. The total capitali-
cation at that time aggregated $664, 1885, .915.
divided among 2S5. 1876 stockholders. The to-
tai amount of circulation outstanding OF
the date named was $213. .SS7. $50. Of which
$780, lS0.96l was secured by United States
bonds. and the balance by lawful money
deposited with the treasurer of the United
States. During the year covered by the
report 43 banks. located in 20 different
states were organized, with an aggregate
capital stock of 4.S90.000. OF these. 2S, rep
resenting s.. $50. 900. are in the north. and Is.
with a capital Of 81. $500 in the south
The circulation was increased $17,102,1N.
Thirty-six banks were put in the hands of
receivers during the year. the aggregate
capital Of which amounted to IS, ,2a5, ,020, and
Vhe circulation to 81. .003. .402. OF these. twJ,
with a capital of $780, 900. were reported last
year as in voluntary liquidation, and nine.
representing $2,7 900, were of the number
Of banks which closed their doors in 1888.
subsequently resumed business. but were
unable to maintain their standing.
On September g. 1895. the date Of the last
report Of the condition of the s,712 banks
then reporting. their total resources were
423 629, 1885, Of which $2.05e. .40S. 40227 rep
resented their loans and discounts and
ss56, 81, ,5OS.61 money Of all kinds in bank.
OF their liabilities, $1.7Ol. SIS. .51.2S repre-
sented individual deposits. 1856. .s8S, 50.t6
surplus and net undivided profits and $751;
4S1 16l0.50 outstanding circulation secured
by bonds.
The comptroller recommends several
amendments to the banking laws. among
them being the following:
THAT upon a day in each year. to be des-
ignated by the comptroller. the directors
Of national banks shall be required to make
an examination Of the affairs of the bank
and submit to the comptroller a report
thereon upon blanks to be furnished for
such purpose.
THAT the comptroller be authorized to
issue to national banking associations cir
culating notes to the par value Of the bonds
deposited by them with the treasurer of
the United States to secure such notes.
THAT the semi-annual tax levied on ac-
count of the circulating notes of national
banks be reduced SO as to equal but one
fourth of one per cent. per annum.
With reference to the increase of circu
lating bank notes. the comptroller says:
AT a tuue WEcH tIle UeSlTe lS so ITetlueut-
ly expressed that there be a larger issue of
bank notes and complaint is made that LA
tional banks are Indifferent to the note
| issuing function vested in them. 1t may
| well be considered by congress whether it
| would not be wise to do that which viii
make 1t of sufficient interest to the national
banks to pay greater attention to note is
! sues. The profit OF banking in the United
States is now largely in the deposit feature
| Of 1t, and thus 1t Is OF greater concern under
| existing circumstances to the banks to So
cure deposits than 1t Is to issue notes upon
return so small as to scarcely justify the
expense and trouble entailed thereby.
Banks are not eleemosynary institu-
rions. and therefore engage only in that
| which promises margin Of profit. While
| on the one hand entitled to no more favors
than are granted to other corporations Or
| enterprises carried on by associated indl-
viduals, on the other they should not be de-
MED any privileges which they may justly
claim and for the denial of which no pos
sible excuse can be given. 1t is unques-
| tionably true that national banks would
largely increase their note circulation If
| the embarrassment arising from the need
| less locking up of large part of their cap
| ital, available for other purposes, and the
lessened profit through excessive taxation
now imposed did not confront them. They
! certainly would do SO II the legal tender
| issues of the government were paid and
| Cancelled and the channel now cloSged by
them freed for bank note circulation.
1.-THE experience Of this and other coun-
| tries conclusively demonstrates that the
best and most rational note issues are
| those put forth by banks. 1t likewise
! demonstrates that issues made direct by
| governments are always expensive, and
| under every circumstance a source of
| danger to such governments and loss to
| their peoples business interests. No clear
| nf n ho bc1 fba,, 4 II f,,v
nished by the difficulties which we have
| witnessed on the part of this government
! in its efforts to maintain the full credit
of it's practically limitless amount of de-
mand obligations"
Continuing. the comptroller states that
| the substitution of bank notes for treasury
notes would obviate the necessity of main
| tanning a gold reserve, and the treasury
| department could then return to its legiti-
| mate function Of collecting and disbursing
the revenues Of the government. Relief
would also come to the business interests
longer be harassed by uncertainty. 1t
would afford a better guarantee of meeting
the varying wants Of trade.
| the comptroller further suggests that as
! necessary element to the security of
proper elasticity of issue In our bank note
| currency section nine Of the act of July II.
| 1852, regulating the retirement and issu-
ing Of circulation to banks within q fixed
period Of time. should be repealed. and also
that such amendment should be made to
| the law as will Eecessitate the banks keep
Ing in the Office of the comptroller of the
| currency q sufficient amount OF bank
notes as will enable them to secure cir
culation at once instead Of after period
| of delay, frequently OF sufficient duration
to make the issue unavailable to relieve
the pressure existing at the time of order
| ing the same.
VETERAN FROZEN TO DEATH.
| Caught In the Recent Storm and Periahed