The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1895-12-07

csppsro,lsr Eekels l6akss nis Annual

&0Np<Fou8F Ar4<M MAKES m9 Auu~@4
washington. Dec a--The annual report
Of Comptroller OF the Currency Eckcls bo--
rows interest from the uncertainty regard
ms the financial AFFAIRS OF the country. of
tho Sos national banks organized from the
beginning OF the system. ANS were In or
GRAFTON October II. 1896. The total capitaIi-
xatior At that time aggregated <c5t. 1SG.sIh
divided among ~, 1875 stockholders. The to-
tai amount OF circulation outstanding on
the date named was s2is. $50. OF which
tiso. fsDs6l 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 - banks. located IN 20 different
capital stock OF $t.s90.0oo or these. -. rep
resenstng 81. 900. are In the north. ard Is.
with a capital OF $2.SC0.0c0. I'm the south
Tho circulation was Increased u7.lo2.lN.
Thirty-six banks were put In the hands OF
receivers during the year. the aggregate
capital OF which amounted TO IS. .02o and
the circulation TO 81. 003. 400. or these. two.
with n capital OF $3.50. 900. were reported laat
year az IN voluntary liquidation, and nine.
representing ,2.750.vvo. were or tine number
or banks which closed their doors In 1885.
subsequently resumed business. but were
unable 20 maintain their standing
On September Is. 1895. the date of the last
report OF the condition OF the 3.7f2 banks
then reporting. their total resources were
81. 423 G29. 3i263 OF which S2.0J9. 400. n rep
resented their loans and discounts and
$3.50. ST. sos 81 money OF all kinds In bank.
or their liabilities. x.70i. 81. b2i q repre-
scented individual deposits. 1885,, sSS.S 5o.ss
surplus and net undivided profits and $751;
4sl.ei0.50 outstanding circulation secured
by bonds.
The comptroller recommends several
amendments TO the banking laws. among
them being the following:
THAT upon day In each year. TO be des-
ignated by the comptroller the directors
OF national banks shall be required 10 make
an examination OF the AFFAIRS OF the bank
and submit 70 the comptroller q report
thereon upon blanks 20 be furnished for
such purpose.
''That tho comptroller be authorized TO
culating notes 10 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 levied on ac-
count OF the circulating 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 time when the desire Is so frequent
ly expressed that there be larger Issue OF
bank notes and complaint is made that "a
tional banks are Indifferent to the note
issuing function vested In them. II may
well be considered by congress whether II
would not be wise 10 do that which w'll
make Il OF sufficient interest TO the national
banks 10 pay greater attention 10 note Is
sues. The profit or banking In the United
States Is now largely In the deposit feature
OF II, and thus Il is OF greater concern under
existing circumstances 10 the banks TO se-
cure deposits than IL 10 TO issue notes upon
"A return 80 small as 10 scarcely Justify the
expense and trouble entailed thereby.
Banks are not eleemosyuary institu-
tions and therefore engage only In that
which promises a margin OF Profit. While
on the one hand entitled TO no more favors
enterprises carried on by associated indi-
viduals. 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. IL IL unques-
tionabiy true that national banks would
largely increase their note circulation IL
tho embarrassment arising from the need
less locking up OF "A large part OF their cap
Ital. available for other purposes. and the
lsssened profit through excessive taxation
now imposed did not confront them. They
certainly would do so II the legal tender
issues OF the government were paid and
Cancelled and the channel now clogGcd by
them freed for bank note circulation.
''The experience OF this and other coun-
tries conclusively demonstrates that the
those put forth by banks. IL likewise
demonstrates that issues made direct by
governments are always expensive. and
under every circumstance source OF
danfcr 10 such governments and loss to
their peoples business interests No clear
er proof OF this could be had than that fur
nished by the difficulties which we have
Witnessed on the part OF this government
I'm ifs efforts to maintain the fun credit
OF it's practically lImitIess amount or de-
mand obligations"
Continuing. the comptroller states that
the substitution OF bank notes for treasury
notes would obyiate the necessity OF MAIN
tanning a gold reserve. and the treasury
department could then return TO It's lcgiti-
mate function OF collecting and disbursIng
the revenues OF the government. Relief
would also come 10 the business interests
OF the people. whose operations would no
longer be harassed by uncertainty. IL
would afford better guarantee OF meeting
the varying wants Of trade.
The comptroller further suggests that as
necessary element 10 the security OF
proper elasticity OF issue In our bank note
currency section nine Of the act OF July ~
iSS2 regulating the retirement and issli-
Ing OF circulation TO banks within fixed
period OF time. should be repealed. and also
that such amendment should be made 10
the law as will necossitate the banks keep
lng In the office OF the comptroller OF the
currency sufficient amount OF bank
notes as Will enable them 10 secure cir
culation ~ once instead OF after period
OF delay. frequently OF sufficient duration
10 make the issue unavailable 10 relieve
the pressure existing at the time or order
ing the same.
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