The morning times., 1895-12-02
BANK NOTES THE SAFEST
Comptroller EckeIs' Report Fa-
Vors an Increased Issue.
CONDITION OF CIRCULATION
Exhaustive Statement ofthe Resources
and Status of National Banks and
Suggested Cha angesin Z ExistingLa ws.
Would Have More Safeguards-De-
crease in Charters Granted.

crease in Charters Granted.
The report of Hon. James II. Eckels.
Comptroller of the Currency. to be sub
| nitted to Congress today. gives fnfor-
nation in detail in regard to the organ
| izatton. supervision and liquidation OF the
national banks Tor the year ended October
| 81. 1895. and similar information as far
as obtainable relative TO banks. banking
companies and savings Institutions organ
lied and doing business under the laws
| or 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 10 facil-
| itatc commercial exchanges and sustain
| a bank note circulation.
| The total number OF national banks in
active operation on October 81 last was
| 3,Tl5, with an authorized capital stock
| of S66i, 36 ,91o, represented by 2S5.-
| lSO shareholders. or an average capital
| number or shares 10 eacb, 2,l36, and OF
| shareholders. II. The total amount OF
theIr circulation outstanding VA Vas d., ~,
was secured by United States bonds, and
/ $23, ,IOG .G69 by lawful money deposited
| win the Treasurer OF the United States
!
| organized, located in twenty different
| States. with an aggregate capital stock or
i.s9p.OO0. or THESE new banks twenty
eight. with a capital stock or 81 .0So,OOo.
are in the northern and northwestern sec
| ton of the country. and fifteen. with q
| capital stock aggreaatlng $3.50 200 IN
! the South aud Southwest. The number of
banks organized during the year was less
| thau so per cent of the yearly average.
RESOURCES OF BANKS.
There was a net increase during the
! year of Sl0.7T9, ,597 in the amount OF cir
| cualtiou secured by bonds and a gross
| increase Of S6.322,54G in the total cir
] culatIon.
on September IS, 1895. the date o; the
| last report OF condition OF the 3.7l2 banks
| then reporting. their total resources was
| s3,423. .629. .343.G3. OF which S2.059,i0s.-
| 1927 represented their loans and dis
| counts. and S31O,5 "a ,oso6l money OF aIl
OF their liabilities. 81. 7O1 COS. sci rs rep
resented iniiyidual deposils, 1886. oSS.-
! $50. - -surplus aud net undivided prot1ts-
/ ana SIs2 2JSI,6Io.5 so outstanding circJIla-
zion secured bv bonds.
OF the 3,1i5 banks IN active operation.
! 290I with a capital stock of S536, I25. .e32
{ arr. in the northern and northeastern half OF
! the country. aud 81 4. with a can't al stock or
| 81 20. .s3S.95D in the south and southwest;
| There are 2.61l national banks located
east of the MississipDi river. with 4 capital
stock OF S52T,Gl2..32, and .1o4 west Of
the Mississinpl. with IL capital stock OF
] -
AMEND MENTs SUGGESTED.
The following amendments to the law
are recommended:
! F!rst-Tha; the comptroller. with the ap-
proyaI OF the Secretary of the Trea be
empowered In all proper cases 20 remove
officers and directors OF national banks FOR
Violations of law and Inismana ge;nent, first
according them hearing ON charges PIE
fcrrrl.
1 ey q
and made 0illy upon the approval of the
board cf directors, a separate written record
thereof being kept
ThirG-Tnat me assistant cashier. in the
absence OF lie cashier. he authorized To sign
The circulating notes of the bank ana reports
Fourth. That some class OF public Of
fcers he empowered To administer the
general oaths required by the national
Fifth. That bank examiners he required
to take an oath OF office and execute "a
bond before entering upon the discharge
| OF their duties
Sixth. That upon day IN each year.
10 be designated by the Comptroller, the
directors or national banks shall he re-
duircd To- make an examination OF the al
fairs or the bank and submit To the Comp
troiier "A rcn1rt thereon upon banhs TO De
furnished for such purpose.
Seventh. That the Compiroller be author
| lied To issue 10 national banking associa- :
tions circulating notes 10 the par value OF
| the bonds deposited by them with the
I
! such notes.
Eighth. That the semI-aBnual tax levied
i on account OF the circulating notes of ma
tional banks be reduced :" as to equal
but one-fnurth OF enc per cent per sDnum-
INCREASED NOTE ISSUES.
In making suggestions relative To the
Increase of note issues. the Comptroller
lses the following language
The experience OF this and other com
tr.es cpnclusively demonstrates that the best
and most ratk,nal note issues are those put
forth b. banks 1t likewise demonstrates
that issues made direct by governments are
always expensive, and under every circilfn-
Staucea sourceur rGanger osuCh governments
| P.Ia loss tu their peoples business interests
Nc clearer proof Of this could be had than
that furnished by the difficulties which
we have witnessed on the part nf this gov
crrnicnt in its efforts to MAINTAIN the fG!l
I credit OF It's practically hmlticss amount
of demand obligations.
''The advantage arcuinE To the gov
erHmcnt b. the substitution OF bank
I Eutc for a Treasury note currency would
| b,. immeasura bly great. The need of main
/ taining n gold reserve TO meet tie recur-
/ ring demand obligations. now never re-
tired. would. within reasonable time.
be obviated. and. delivered from this veN-
atiOus and expensive difficulty. the Treas
ury Department could return TO It's leyit-
innate junction OF collecting the revenues
of the government needful to meet gov
ernmcltal expenses aud dlsburSiig tue
same.
with the relief gained to it through the
greater one To the business interests Of the
individual citizen. whose every opera ton
would no longer be hIrasscd by the uncer-
tainty spriDEmg from fear that either in
the present or the future the currency
obligations now forced by his government
through the provisions or an infexible
law into the avenues or trade and commerce
may be discredited and dishonored. The
relegating OF note issue entirely To the
banks would give a better guarantee OF
meeting the varying wants OF trade. which
is impossible with n legal mandate decree
ing an amount of Treasury issue of no
greater and no less volume at one season
of the year than another. whether or no
there be IL corresponding increase or les
sening of the demand for currency 10 trans
act the business in hand
1t is suggested in connection with the
above that as o necessary element to the
security of proper elasticity of issue in our
bank note currency, section 3. of the act
OF July IL, 1882, regulating the retirement
and issuing OF circulation TO banks within
q fixed period of time. should be repeal led
and also that such amendment should be
made to the law as will Decessiiate the
banks keepingin the office of the Comptroller
Of the Currency sufficient amount OF
bank notes as will enable them to secure
circulation at once. instead of after u
period of delay. frequently of sufficient
duration as to make the issue unavailable
to relieve the pressure existing at the time
Of ordering the same.
-
Whore Kee1y Money Went