Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1895-12-05
ECKEL'S REPORT ON BANKS
Some New Laws Recommended by the
Comptroller.

Some New Laws Recommended by the
Comptroller.
Washington, Dec. 3.-The report of
James H. Eckels, comptroller of the
currency, gives information in detail
in regard to the organization, super
vision and liquidation of the national
banks for the year ended Oct 81, 1895.
The total number of national banks
organized since the date the first GER
tificate of authority was issued, June
20, 1868, to the close of the report
year has been 5,023, making a yearly
average of 1872. Of the number Or
gained there were in active operation
on Oct 81 last 3,715, with an author
lied capital stock of 1864, 1861 rep
resented by 2S5, 100 shareholders, or an
average capital stock of $17S,772
for each bank; average number of
shares to each, 2,136, and of share
holders, II. The total amount of their
circulation outstanding was $213, $751;,
$50, of which amount $780, $50, 961 was
secured by the United States bonds,
and $23, 706,669 by lawful money de-
posted with the treasurer of the Unit
ed States. During the report year for
ty-three banks were organized, located
in twenty different states, with an ag-
gregate capital stock of $4,S90,000 Of
these new banks twenty-eight, with a
capital stock of $3.50 900, are in the
northern and northwestern section of
the country, and fifteen, with cap
ital stock aggregating $2,360, 900, in
the south and southwest. The num-
Der of banks organized during the
year was less than 80 per cent. of
the yearly average. There was a net
increase during the year of $10,779,597
in the amount of circulation secured
by bonds and gross increase of S.
322 $40 in the total circulation Re-
ceivers from thirty-six banks have
been appointed during the year. The
aggregate capital stock of these banks
was 1925, 020, and their circulation
81 ,033, 402. Of these banks two, with
a capital stock of $450,000, were re-
ported last year as being in voluntary
liquidation, and nine, with a capital
stock of $2,750,O0O, were of the num-
beIS of banks which closed their doors
in 1898, and subsequently resumed
business, but through continued bust
ness depression and the slow charac-
ter of their assets were unable to meet
their obligations, and were thus COM
PEELED to go into insolvency. The fol-
lowing amendments to the law are
4
| 1. That the comptroller, with the
! approval of the secretary of the treas
ury, be empowered in all proper cases
to remove officers and directors of ma
tional banks for violations of law and
Embarrassment first according them
hearing on charges preferred.
| 2. That the loans of any bank to it's
executive officers and employees be re-
stricted and made only upon the ap-
prevail of the board of directors, a sep
arate written record thereof being
kept.
3. That the assistant cashier, in the
absence of the cashier, be authorized
to sign the circulating notes of the
bank and reports of condition.
4. That some class of public officers
be empowered to administer the gen
eral oaths required by the national
bank act
5. That bank examiners be required
to take an oath of office and execute
bond before entering upon the dis
charge of their duties.
6. That upon a day in each year, to
be designated by the comptroller, the
directors of national banks shall be re-
quired to make an examination of the
affairs of the banks and submit to the
comptroller, a report thereon upon
blanks to be furnished for such pur-
pose.
Z. That the comptroller be author
lied to issue to national banking as
sociations circulating notes to the par
value of the bonds deposited by them
with the treasurer of the United States
to secure such notes.
s. That the semi-annual tax levied
on account Of the circulating notes of
national banks be reduced so as to
equal but one-fourth of 1 per cent per
annum.
The sixth amendment is deemed adj
visable that the directors of national
banks may be compelled to know from
an examination required at their
hands of the condition of the banks in
whose management they participate
and for which they should bear a FULL
share of the responsibility. "Such a
law" in the opinion of the comptroller,
would lead to better banking
methods, less carelessness in extend
ing loans and make less liable the long