River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1895-12-05
MONEY OF THE BANKS.
Comptroller Eckeis Makes His Anrua
Report.


Report.
Washington. Dec. 2-The annual Report
OF Comptroller of the Currency Eckels ha--
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. ans were in op-
GRAFTON October 81, 1895 The total capitali-
zation at that time aggregated 1864 I36. ai5
divided among 2S5.195 stockholders. The to-
tai amount of circulation outstanding on
the date named was $213. SS7. $50. of which
$3.50, $50 961 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 81, 500. 600. OF these. 2s. rep
resenting s., $50 600. are in the north. and Is
with a capital of 81. 360.0 in the south
The circulation was increased Sl7,i02. 1S7
Thirty-six banks were put in the hands Of
receivers during the year, the aggregate
capital of which amounted TO IS. 23S. 020 and
the circulation to 81, 003, 402. OF these. two.
with a capital of s450. 600. were reported last
year as in voluntary liquidation, and nine.
representing S2,750,000. were of the number
OF banks which closed their doors I'm 1888.
subsequently resumed business. but were
unable to maintain their standing.
on September Is 1895, the date of the last
report of the condition of the SIP banks
then reporting, their total resources were
s., 423 62s GO. of which 81 05s 4Os 402 q rep
resented their loans and discounts and
SS56. 577. 5Os.6l money of all kinds in bank.
OF their liabilities. sl.7Ol. 653. 52l.-s repre-
scented individual deposits. 1896, SIS. 350.s6
surplus and net undivided profits and S1S2,-
4Sl, 6l0.59 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 yesr, Z o 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.
so nat the comptroller be authorized to
issue 10 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 levie : on ac-
count of the circula ting 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 time when the desire is so frequent
ly expressed that there be a larger issue of
bank notes and complaint is made that Ia
tional banks are Indifferent to the note
issuing function vested in them, II may
well be considered by congress whether 1t
would not be wise to do that which VIII
make II 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 il, and thus il rs of greater concern under
existing circumstances to the banks to So
cure deposits than it is to issue notes upon
return so small as to scarcely Justify the
expense and trouble entailed thereby.
Banks are not eleemosyliary lnstitu-
lions, 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 indI-
vduals, 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 a large part of their cap
itaI, available for other purposes, and the
lessened profit through excessive taxation
now imposed did not confront them. They
certainly would do so if 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 conclusvely 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
er proof of this could be had than that fur
nisred by the difficulties which we have
witnessed on the part of this government
In its efforts to maintain the full credit
of its practically limftless 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
of the people, whose operations would no
longer be harassed by uncertainty. 1t
would afford better guarantee of meeting
the varying wants of trade.
The comptroller further suggests that as
a necessary element to the security of
proper elasticity of issue in our bank note
1882, regulating the retirement and issu-
ing of circulation to banks within fixed
period of time, should be repealed. and also
that such amendment should be made 20
the law as will EeceSsitate the banks keep
ing in the office of the comptroller of the
currency a sufficient amount Of bank
notes as will enable them TO secure cir
culation at once instead of after period
of delay, frequel thy of a sufficient duration
to make the issue unavailable to relieve
the pressure existing at the time of order
ing the same.