The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-12-02
Makes Annual Report Regard.
ing Financial Matters
AMENDMENTS RECOMMENDED
To Laws Governing Management Of
National Banks
Increase Of Currency Favored by Retirement
Of the Legal Tenders and Issu.
ancc Of Bank Notes

Associated Press Special Wire.
WASHINGTON, Dec. 1.-The report of
James II. Eckels, comptroller OF the
currency. to be submitted to congress
tomorrow, gives information IN detail in
regard to the organization, supervision
and liquidation of the national banks for
the year ended October 81. 1895, and sim
liar information as far as obtainable rel.
ative to banks, banking companies an
savings banks organized and doing busi-
ness under the laws OF the several states
and territories.
In addition to the foregoing the Aeport
shows briefly the various systems of
banking in operation in foreign coun-
tries and in the states and territories COM
prising the Union, as affording informa-
tion as to the different methods employed
to facilitate com meroIal exchanges and
SUBSTANTIAL bank note circulation.
The total number of national banks or
ganized since the date the first certificate
of authority was issued Jan. 20, 1868, to
the close of the repor year has been 5023,
making. q yearly average of 1s2. OF tile
mum ber organized there were in active
operation on October last 37l5, with an
authorized capital stock of 1904, 1856, 9l5.
The total amount of their circulation
outstanding was $213, ss7, $780, of which
amount $190. $50, ,96l was secured byUnited
States bonds and $23. 10 6,669 by lawful
money deposited with the treasurer of
the United States.
/ During the report year 43 banks were
organized, being less than 81 psr cent Of
the yearly average, with an aggregate
capital stock of "a, 100000. Of those new
banks 2s, with capital stock Of ~, $780,
0OO are in the northern and northwest
ern section of the country, and Is, With
a capital stock aggregating 81, 36O, 900, in
the south and southwest.
There was . net increase during the
year OF $40. 779, 597 In the amount of cir
culation secured by bonds and a gross
increase of Sc, 332, $40 in the total circula-
tion.
On September %, 1895, the date of the
last report of the condition of 3717 banks
then reporting, their total resources wers
So, 423, ,b29, 343. IS, of which 81, 050, 4os, =
40227 represented their loans and DIS
counts aud $356, 577, 5s0.61 money Of all
kinds in bank.
Or their liabilities 81. 701 1858, 521.2s rep
resented individual deposits. 1886, $685.
35Os6 surplus and net undivided profits
and $1s2. 4sl, 6l05O outstanding cirouls-
tion secured by bonds. AE7
Of the 3715 banks in active operation
29O1. with capital stock of $3.50. 725, s3o,
are in the north and northwestern half
of the country, and Sl4, with capital
stock OF $126. s4s,95 in the south and
sonth west. There are 26ll national banks
located east of the Mississippi river. with
a capital stock OF $527, ,612 1872, and 11O4
west of the Mississippi, with a capital
stock of sl35, ,98l, 900.
The corporate existence of Il national
banks in sixteen states, with a capital
stock OF O662, 900, and toatl oircula-
tion of 50, 226,2 ,275, has been extended dur
Ing the year.
tenn by reason Of the expiration OF their
corporato existence was four, having
capital stock of $1,000 and circulation
of S123, 700.
and ons each in Maine and Pennsylvania.
During the year ending October 81,
1896 the corporate existence OF twenty
eight banks, with capital stock aggreSat-
Ing $3, 453. $40 and circulation OF 81, ,3l0,-
400 will expire. In the succeeding ten
years from 1896 to 1905 the corporate ex
istence of sS9 banks, having capital
stock of $l29, ,6Y4, $50 and = circulation OF
$34, Oil ,957, will expire.
The number of banks leaving the
system during the year through vol
untary liquidation was iity-one, having
a capital stock of $6,093, 100 and q circu
lation of 81, 152, 0OU.
Receivers for thIrtv-six banks have
been appinoetd during the year. The ng-
ctn oe tkocn han lyu
$5 235, ,O2U and their circulation 81, 0O3, 402.
OF these banks two, with capital stock
of $450, 600, were reported last year as be-
ing in voluntary liquidation and nine,
with capital stock o! 81, 750, 600, were OF
the mum ber of banks which closed their
doors in 1891 and subsequently resumed
|. business, but through continued busi-
ness depression and the slow character of
their assets. we're unable to meet their
obligations. and were thus compelled to
go into insolvency.
In reference to recsi7erships, the comp
trolier says:
I'm the majority of instances no bank
closes its doors while IL is possessed of
quickly convertible paper, aud therefore
comes into the possession OF the comp
troller only that which is slow. doubtful,
bad or absolutely worthless. 1t thus FOL
lows that with little or no cash received,
but debts which are slow of payment and
tion, the closing of trusts is prolonged
and the expense attendant tharson in
creased. The records Of the office, how
eevr, show that such expense, as COM
pared with any other class OF receiver
ships, is greatly less and the result at
tanned far more substantial
During the year 101 dividends were
paid, amounting to $S, 3sO, 552.
The following amendments to the law
are recon ended:
First- That the comptroller, with the
approval of the secretary OF the treasury,
By EN- mpowersd in all proper cases to re.
movs officers and directors OF national
banks for violations of law and nlisman-
agement. first according them hearing
on charges preferred. .
Second-That the loans OF any bank to
its executive officers and employees he
restricted and made only upon the ap.
proval OF the board Of directors, separ.
ate record thereof being kept.
Third-That the assistant cashier, in
the absence of the cashier, be authorized
to sign the circulating notes OF the bank
and reports of condition.
Fourth-That some class OF public
officers be empowered to administer the
general oaths required by the national
bank act.
Fifth-That bank examiners be requir-
cd to take an oatn OF office and execute ..