The Coconino weekly sun. [volume] (Flagstaff, Ariz.) 1891-1896, 1895-12-05
NATIONAL BANKS.

Report Of the Comptroller Of this currenc,
-Number Of National Banks-Saggesti0n
Relative to the Increase OF Note Issues.
WASHINGTON, Dec. 2.-The report Of
Hon. James H. Eckels, comptroller o.
the currency, gives information in de
tail in regard to the organization. su'
pervision and liquidation of the ma
tional banks for the year ended Octp'
Der 81, 1895. and similar information
as far as 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
90. 1863. to the close of the report year,
has been 5,023, making yearly aver
age of 152. OF the number organized,
there were in active operation on Oc-
tober 81 last 3, 7l5, with an authorized
capital stock of 1864, 1876, 9l5, represented
by 2s5, 100 shareholders, or an average
capital stock Of sl7s,7 72 for each bank;
average number of shares to each,
2,138, and of shareholders, n. The
total amount Of their circulation out
standing was $685. $50, of which
amount 800, isO,9sl was secured by
United States bonds and 500, FOG, 600 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 ag-
gregate capital stock of "a, $50, 00O OF
these new banks, twenty-eight, with q
capital stock of $3.50, 900. are in the
northern and northwestern section of
the country, and fifteen, with CAPT.
tai stock aggregating 81. $50. 900, in the
south and southwest. The number of
banks organized during the year was
less than 30 per cent of the yearly av-
crage.
The comptroller recommends num-
Der 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
and the reducing OF the per cent. OF semi-an-
nual tax levied upon such notes has been urged
by all the secretaries Of the treasury who
have touched upon the subject at all and by
every comptroller from the time OF and inciud-
Comptroller Knox. The provision of the law
prohibiting the former and the provision of
the law governing the amount of the latter,
however, are still unchanged upon the statute
book.
At a time when the desire is SO frequently
that there be q larger issue of bank
notes and complaint is made that national
banks are indifferent to the note issuing func-
ion vested in them. it may well be considered
by congress whether it would not be wise to
do that which will make It of sufficient inter-
st to the national banks to pay greater at
ention to note issues The profit OF banking
n the United States is now largely in the de-
,osit feature Of it, and thus IL is OF greater
oncern under existing circumstances to the
ranks to secure deposits than 1t Is to issue
totes upon return SO small as 10 scarcely
Justify the expense and trouble entailed |
hereby.
Banks are not eleemosynary institutions,
nd therefore engage only in that which prom |
ses margin Of profit While on the one |
and entitled to no more favors than are |
ranted to other corporations or enterprises |
arried on by associated individuals. on the
Their they should not be denied any privileges
'hich they may justly claim. and for the de-
ial OF which no possible excuse can be given
Is unquestionably true that national banks
'ould largely increase their note circulation
the embarrassment arising from the need
'ss locking up Of large part of their capital,
valiabie Tor other purposes, and the lessened |
roht through excessive taxation now imposed
Id not confront them. They certainly would
o so II the legal tender issues of the govern
tent were paid and cancelled and the channel
ow clogged by them freed for bank-note cir
ulation.
The experience OF this and other countries
,nclusively demonstrates that the b st and
lost rational not. issues are those put forth
y banks. 1t likewise demonstrates that is
les made direct by government are always |
xpensive, and under every Circumstance q
'urce OF danger to such governments and loss
} their peoples business interests. No clearer
roof OF this could be had than that furnished
Y the difficulties which we have witnessed on
lie part OF this government in its Efforts to
aintaln the full credit OF its pr ictically lin
less amount Of demand obligations.
The advantage accruing to the government |
' the substitution Of a bank note for treas
y note currency would be immeasurabl |
eat The need Of maintaining gold reserve
meet the recurring demand obligations
wv never retired. would, within reasonable
me, De opVlaled, ana. delivered from this |
'xatious and expensive difficulty, the treas
y department could return to its legitimate
motion Of collecting the revenues Of the gov.
nment needful to meet governmental ex-
,nses and discussing the same.
With the relief gained to It through the re-
oval OF this burden would come q greater one
the business interests Of the individual citi-
m, whose every operation would no longer be r
'rassed by the uncertainty springing from q
ar that either in the present or the future
e currency obligations now forced by his
'vernment through the provisions of an in
'xiblc law into the avenues OF trade and COM {
cree may be discredited and dish onored. I
ae RELOCATING OF note issue entirely to the | Z
INKS would give better guarantee OF meet Ii
the varying wants Of trade which is i'm
'ssible with legal mandate decreeing an
mount OF treasury issues OF no greater and no | Z
IS volume at one season Of the year than an
her, whether or no there be q cores bonding v
crease or lessening Of the demand for cur
ncy to transact the business in hand S
1t is suggested in connection with {
lie above that as q necessary element
the security Of proper elasticity of
sue in our bank-note currency sec.
on Q OF the act of July IL, 1882, regu-