Evening star., 1896-09-18
Controller Eokels Talks Of Their
Present Condition.
FACTS FROM THE PANIC OF 1893
Particular Localities That Were
Most Affected Then.
INTERES STING FIGURE S

stitutioLs. Ever since the New York clear
ing house committee announced two weeks
ago that in the event of an emergency
clearing house certificates would be issued
to relieve the money stringency in that
center, followed by the failure of the
largest national bank in Helena, Mont,
with liabilities aggregating $3.O0OOOO. and
followed Immediately thereafter by the fail
Ure Of three national banks in New Orleans
with deposits aggregating s1,5OO,OOO, as well
as smaller banks in Iowa, Kansas, Ne
braska and other states, there has been u
tendency on the part of the public to with
dI aw deposits and lock capital up. And
despite the fact that the situation has as
sumed rather alarming phase, Controller
Eckels believes that by judiciOuS manage
ment on the part of the bankers there is no
need for fear with regard to the national
banks of the country. In answer TO an IN
terrogatory from Star reporter with re-
lation to the condition of the national
banks he said:
Banks in Good Condition.
1.-The national banks of the country are
in a very good condition. The experience
of 1893 is still fresh in the minds of the
bankers, and as result the reserve is far
above the average. After the panic OF
1893 had spent it's force the national banks
cash than at any time in the history of
these institutions. And this reserve has
been maintained very largely from that
time to the present. This is forcibly illus
trated by the figures covering the period
from December 1892, to October ., 1894.
Immediately before the great panic of 1893,
the specie held by the national banks on
December 8, 1888. amounted to $2N9S96 .2'a',
which was gradually decreased to $780, 761.-
173 on July II, 1898. This was when the
n n hn OF nirh and
banks were failing all over the country.
But from that date there was a decided
change in the amount of the specie held l.y
the national banks. Instead Of a further
decrease there was a gradual increase until
May 4, 1884, it amounted to $3.50 .i1 ,92S,
decreasing thereafter to $2JO,67OG53 and
further to $237, 2sO. .6o4 on October 2. 1894.
The same condition existed with relation
to the legal tender notes and United States
certificates of deposit therefor, which, on
July 2, 1S93--whe1 the panic of that year
was at its height-had decreased to $1O2-
1857, increased thereafter until the sum
OF these items amounted on May T. 1892?
and further to s165,6H.02s on October 2,
1894.
1T is interesting to note that the law
ful money reserve in bank, which had
reached its lowest point, $S9244S5O on
July IL. 1893. steadily increased thereafter
until May 4, 1894, the amount of it was
s4o2. 1G3.214. 1t then decreased to s43s,-
1l. 80 on July 1s. 1894. and further to
crease in cash resources between May l.
1894. and October 2, 1894, being account ed
for by the marked increase in the item of
loan and discount, during the same period
tween the two dates named but more
particularly between July IS, 1894, and Oc-
tober 2, 1894.
Specie and Legal Tender Notes.
In the year 1895 there was a decided de-
crease in the specie and legal tender notes
held by national banks, owing to loans and
discounts The specie held by the banks
on October q 1894 which amounted to
$2'I,2oo,6o4. decreased until September
1898. when it amounted to only $196, ,237,311,
the smallest amount held at any reported
dat since July II, 1893, when the amount
was s1S6, 761 .173 Since that time it has
gradually increased, until it now amounts
to about $23O.ON.OOO.
"A like decrease also occurred in the
amount OF legal tender notes and United
States certificates of deposit held by ma
tional banks during the same period On
October II. 1894. the legal tender and
United States certificates of deposit aggre-
gated Sl65, 5,644,O23 but by September 1895,
they had decreased to s14S 1896 6s5. In other
words. the lawful money reserve held by
the national banks, composed Of specie,
legal tender notes and United States GER
which on October 2. 1894. was s4O2, ,s94, ,6S2
decreased until on September %, 1894, it
amounted TO only $40, 10S 996, the smallest
amount of lawful money reserve held since
July II, 1893, when 1t amounted to $685.
$3.50. Since September, 1895, the banks
have been calling in their loans, until the
reserve today is approximately $4OO, 600.
Thus it will be seen that the national
banks of the country are carrying more
than the usual amount of cash.
Effect in Particular Localities.
In the event of a panic, are the banks
e rtf
most seriously affected?' asked the re-
porter.
Yes. Experience has taught us that in
the more newly settled sections of the
country. where speculation in undeveloped
Industries is freely indulged in, there is
more cause for apprehension as to the SOL
vency of the banks. An examination of
the suspensions for 1893 shows that of the
15S national bank associations suspending,
only three were in the middle Atlantic
states. two in New York and one in Penn
sylvaEia- In the southern states there
were thirty-eight suspensions. the capital
stock involved aggregating sS,Slo,OOO. OF
these thirty-eight suspensions. however,
nineteen banks, with a total capital stock
of $5.6so.OO0, resumed business OF the
thirty-eignt suspensions in the southern
states, twelve occurred in Texas. six in
Kentucky and the same number in Ten
nessee. The total capital stock of those III
Kentucky was $3,2OO,OOO, and Of those In
Tennessee 81, 10000. In Kentucky all the
banks that suspended. except one. with a
capital stock of $4,000, were permitted to
resume business. Two Of the banks in
Tennessee. with a total capital stock of
$2,0OOOO. resumed business. and four were
placed in the hands Of receivers. -Four
banks in Georgia suspended and the same
number in Alabama, with a total qapital
stock of $615,0OO and $3.50, 600, respectively.
OF these. one bank in Georgia, with a
capital stock of 800 600, resumed business
Two banks In North Carolina suspended,
with a total capital stock of $500, ,OOO both
Of which were able to resume business: but
the two which suspended in Florida, with
a total capital stock Of 100000, required
the appointment of receivers, as did also
the one in Mississippi, which had a capital
stock of 100000. and the one in Arkansas,
with a capital stock Of $500. .OOO."
In the Western States.
"The western states furnished 40 suspen-
sions, with an aggregate capital stock of
s1O125,OOO. OF these 81 resumed business,
II failed, and ore was placed in charge Of
an examiner pending resumption or the ap-
pointment of receiver. The capital stock
Of the banks which resumed, aggregated
$6,275.OOO. and of those which failed, 49,
10000. The greatest number Of suspen-
sions which occurred In this section was in
Kansas, namely s. although the capital
stock involved, $3.50, 900, was less than tina t
of the banks in four other states. Four. of