The Saint Paul globe., 1896-12-09

money and currency held by the banks
throughout the country led to the
scnding out Of circular addressed to
national and other banks, and trust
companies, requesting them to furnish
him with a correct classification Of
the amount and kinds of money held
by them on the 1st Of July last There
were 1882 Of these circulers sent out,
and answers were received from 5,723
banking institutions in response to
them. The, information obtained upon
this subject Is set forth in three tables
showing respectively the deposits OF
retail dealers returned by the national
banks in each state and territory, those
OF wholesale traders returned by the
same banks, the deposits of all other
depositors returned by the same source,
and the total deposits of all three
classes of customers as returned by
the same banks. The second set OF
tables contains data similarly arrang-
ed, returned by banks other than ma
tional. and the third, presents the total
deposits of each class of dealers, as
returned by all the banks that made
replies.
The conclusion drawn from these re-
turns is that 67.4 per cent Of the retail
trade of the country is transacted by
means Of credit paper; that 95,3 per
cent of the wholesale trade is so carried
on; 951 per cent of business other than
mercantile, and 92.5 per cent Of all
business. In retail trade the national
banks have SO per cent of the deposits.
The percentage Of credit instruments
in these deposits varies from 50 in
Rhode Island to S7.3 in Nevada, but the
returns from Nevada are so small in
the aggregate that they are not regard
ed as q safe basis for inference Tha
a orc Of h11cH =
all classes being included, is 92.5. New
York leads the list with 96.4 per cent.
Massachusetts and Maryland come
next with 1872 and 93.3, respectively,
and Nevada and Minnesota next with
1913 and 925. Missouri has 90.7 and
New Mexico 90.8 The lowest percent
age shown is that of California, being
69.4.
VALUE TO THE PUBLIC.
On the subject Of the value of banks
to the public and their growth in num-
be1' and deposits, the comptroller says
that attention has heretofore been
called TO the advantages gained to
the general public through the instru-
mentality of the banks, but in more
than one instance and from more than
one section general and sweeping de-
nuncdation is made Of the whole sys-
tenn. The great body Of people, how
ever, the comptroller says, can not
but know that since the inauguration
OF the national banking system it has
been great benefit to all classes. as
is evidenced by the saving in heavy
dlscounts on the bank currency preva-
lent before 1853; the saving in the rates
of interest, and the saving to customers
IN charges for making collections.
Ihe results are given Of investiga-
t1ons made by the comptroller relative
10 1nsolvent state banks from 1863 to
1896 The total number Of failures re-
ported during that period was 1924,
with reported capital stock Of S51.-
O69, ,114.44; assets, $780, 1876, ,903 10: liabiIi
ties. $500, ,955, ,957.O1, and total dividends
paid, $9S, ,S33 ,552.O3. In 1895, up to the
date Of the close of this investigation
eighty-one failures of state banks were
reported, with total capital stock of
$c,lzI ,54O; assets amounting to $10,131,-
0VIf9; liabilities, $7,178,61S.07, and divi-
oends PAID, $2n ,559.74. The reports of
lnSolVent state banks show that 158
banks paid dividends to creditors of 1OO
per cent; 128 paid rs per cent and over.
and less than 100 per cent; 1874 paid 30
per cent and over, and less than ~
per cent; 2O3 paid 25 per cent and over.
and less than so per cent, and 1872 made
payment of less than % per cent.
The comptroller suggests the follow
ing amendments to the national bank
act: "e'-in
f1rst-That the loans and discounts
Oh banks to their executive officers and
employees be restricted in amount and
secured by proper collateral.
.SecondIThat no loan be made to a
qlrector, not an executive officer of the
or a, satisfactorily indorsed note.
Inlrd-Ihat directors be required to
make an examination of their bank
once each year, upon a day to be
designated by the comptroller
Fourth-That assistant cashiers un-
oer certain conditions be authorized 20
sign circulating notes and reports of
condition -
tltth2That provision be made for
administering general oaths taken un-
der the national bank act.
Sixth-That in places having a popu-
lation Of less than 1000 inhabitants
national banks shall be permitted mr.
der regulations to be made by the
comptroller of the currency and an
proved by the secretary of the treas
ury, to be organized with a capitaJ
stock Of not less than $25,O0 and with
corresponding reduction in the
amount of bonds required to be de-
ed States
Seventh-That national banks be
permitted under such regulations and
restrictions as shall be made by the
comptroller of the currency and an,
proved by the secretary of-the treasury
TO establish branch banks in towns
and villages where no national ha nIx
is established and where the nonI1Ia :
uon does not exceed 1,00U inhabitants:
Such branch banks to have the rie-hf
10 receive deposits, make loans and
discounts, and buy and sell exchange
but IN no case to be permitted to issue
clrcuIating notes other than of the
q
De considered as part of the parent
bank, and IN each case where such
branches are maintained the comp>
troller shall receive in the reports Of
the central bank statement, prop
erly sworn to and attested, of the con-
ddtion of its. branches. He shall also
have the right to separate and inIe-
pendent examinations, and he NAV.
whenever he deems it necessary re.
qu1re, before granting the right to any
bank to maintain branches, that the
paid-up capital stock of such bank be
increased to an amount to be by him
fixed. with the approval Of the secre-
tary- of the treasury.
Eighth-That the semi-annual tax
on circulation be reduced to one-fourth
of one per cent.
Ninth-That the issue of circulating
notes to the par value of the bonds
deposited be permitted.
In support OF MS recommendation
for the establishment of branch banks,
the comptroller says:
The construction placed upon the ma
tiOnal bank act as now in force by the
supreme court precludes the establish
ing and maintaining of branch banks
under it. The very smallest of agri-
cultural communities, even though de-
prived of transportation facilities, un-
der a branch-bank system could stin
be given the advantage of available
capital, lower interest, and lessened