Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1895-12-07
NATIONAL BANKS.
Report Of the Comptroller Of the Currency
Number of National Banks-SuggestiOn

Hon. James III. Eckels, comptroller OF
the currency, gives information in de-
tail in regard to the organization, SUI
| pervision and liquidation of the ma
tional banks for the year ended Octo-
| 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
| tifcate of authority was issued, June
90 1863, to the close of the report year,
has been 5,O23, making yearly aver
age of 152. Of the number organized,
there were in active operation on Oc-
| tober 81 last 3, us, with an authorized
capital stock of 1864, 1876, 915, represented
| by 285, 100 shareholders, or an average
capital stock of $178, 772 for each bank;
average number of shares to each,
2,136, and of shareholders, ". The
total amount of their circulation out
standing was $213, 887, $50, of which
amount 500, $50, 961 was secured by
| United States bonds and $23, 7o6, 500 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 81, $50, 900. OF
these new banks, twenty-eight, with
capital stock of So, $50, 900. are in the
northern and northwestern section of
the country, and fifteen, with capt.
tai stock aggregating So $50, 600, in the
| Hha 81
banks organized during the year was
| less than 80 per cent. of the yearly av-
erage.
The, comptroller recommends a 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 includ-
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 time when the desire is so frequently
| expressed that there be a larger issue of bank
| notes and complaint is made that national
| banks are Indifferent to the note issuing func-
| ton vested in them, it may we'll be considered
| by congress whether it would not be wise to
! do that which will make it of sufficient inter-
| est to the national banks to pay greater at
tention to note issues. The profit of banking
| in the United States is now largely in the de-
post feature of it, and thus 1t is of greater
concern under existing circumstances to the
banks to secure deposits than it is to issue
notes upon return SO small as TO scarcely
justify the expense and trouble entailed
thereby.
Banks are not eleemosynary institutions,
and therefore engage only in that which prom
ises margin of profit. While the
hand entitled to more favorS 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-
NAL of which possible excuse can be given.
It is unquestionably 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 capital,
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 govern
ment were paid and cancelled and the channel
now clogged by them freed for bank-note cir
culation.
The experience of this and other countries
most rational note issues are those put forth
by banks. It likewise demonstrates that is
sues made direct by government are always
expensive, and under every circumstance a
source of danger to such governmentssand loss
to their peoples business lntereS is. No clearer
proof of this could be had than that furnished
by the difficulties which we have witnessed on
the part of this government in its efforts to
maintain the full credit of its practically linn
itleSs amount of demand obligations.
n
by the substitution of bank note for a 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 its legitimate
function of collecting the revenues of the gov
eminent needful to meet governmental ex-
penses and disbursing the same.
With the relief gained to it through the re-
moval of this burden would come a greater one
to the business interests of the individual citi-
zen, whose every operation would no longer be
haraSSed by the uncertainty Springing from a
fear that either in the present or the future
the currency obligations now forced by his
government through the provisions of in
flexible law into the avenues OF trade and COM
merce may be diScred1ted and diShOnOred.
The RELOCATING of note issue entirely to the
banks would give better guarantee Of meet
ing the varying wants Of trade which is i'm
possible with a legal mandate decreeing an
| amount of treasury issues of no greater and nj
less volume at one season of the year than
other whether no there be a CORES ponding
increase or lesSening Of the demand for cur
rency to transact the business in hand
1t is suggested in connection with
| the above that as a necessary element
to the security of proper elasticity of
issue in our bank-note currency Sec
ton of the act of July IL, 1882, regu-
lating the retirement and issuing of
circulation to banks within fixed
period of time, should be repealed and
also that such amendment should be
made to the law as will necessitate the
banks keeping in the office of the
comptroller of the currency a sufficient
amount of bank notes as will eDab BILE
them to secure circulation at once, in
stead of after a period of delay, fre.