The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-12-09
ECKELS' BANK REPORT.
He Recommends Some Changes in
the National Bank Laws.


Washington. Dec. s.-The annual re-
port of James H Eckels, comptroller
Of the treasury, has been submitted to
congress. Tt contains details in regard
20 the organization, supervision and
liquidation of national banks for the
year ended October 81 1896. During
the year IS new banks We're organized.
with a capital stock aggregating So
z49,OOO- There were 3.679 national banks
IN active operation October 3, 1896 with
an authorized capital stock aggregat-
ing $3.50 014,S95, represented by 2S8 9O2
shares, or an average capital stock of
Slt66a2, Of shares Of stock 1926, and of
shareholders IS.
The amount of circulating notes out
standing October 3, 1886, was 1924, 553, Z
The net increase in circulation issued
by bonds during the year was $50, 329,-
O53 and the gross increase in the total
circulation was 81. 099, 423. The total
resources of the 1915 banks reporting
which Sl,S83, 26S, SO represented loans
and discounts, and 1882, 1865. 1873 money Of
all kinds in bank. OF their liabilities
$l,579, S91 ,05S represented individual de-
posits, 1896. 342, S34 surplus and net undi-
vided profits and SOS. ga. 019 outstand-
ing circulating notes issued by bonds.
The number of banks that went into
voluntary liquidation during the year
was 81, with a capital stock Of $3745,-
600 and circulation amounting to $l,262,
SO.
Receivers We're appointed for G.
banks. The aggregate capital stock
was So. sos 600 and the circulation ST61,-
500
A comparison of the data prescribed
for the past year with the year 1893
shows a decrease of SO in the number
of active banks and of S4,305, 900 in cap
ital stock.
The average rate Of dividend paid for
the current year was g. the per cent
Of dividends based on capital and sur
plus and the percent of net earnings
OF capital and surplus "a.
The conclusion drawn from certain
returns is that ga per cent of the re-
tail trade of the country is transacted
by means of credit paper; that 95-3 per
cent of the wholesale trade is carried
on. 951 per cent of the business other
than mercantile, and 92.5 per cent Cf
all business.
In retail trade. the national banks
have Sc per cent Of the deposits
The percentage Of business done by
checks all classes included, is 92.5-
In 1896. up to the date OF the close
of Investigation 81 failures of state
banks were reported, with total cap
ital stock of s3.12f,54O; assets, SlO,io1s-
COZ: liabilities, $7,17S816, and dividends
paid, $271. 559
The comptrolIer suggests as amend
ments to the national bank act:
That the loans and discounts of the
banks to the executive officers and en-
pl0yes be restricted in amount and Sc
cured by proper collateral; that no loan
be made to a director not an executive
officer of the bank except upon collat-
eral security or a satisfactory indorse-
ment note: that directors be required
to make an examination of their bank
once each year upon a day to be deslg-
mated by the comptroller
That assistant cashiers under certain
conditions be authorized to sign clrcu-
lating notes and reports of condition.
that provisions be made for admins
terina general oaths taken under the
national bank act; that in places haY-
ing q population Of less than 1000 in
babitants national banks shall be per
nitted. under regulations to be made
nv the comptroller of the currency and
approved by the secretary of the treas
l1l-v. to be organized with capital
stock of not less than $4,000 and a cor
responding reduction in the amount OF
bonds to be deposited with the United
States treasurer.
That national banks be permitted,
77ndar such regulations and restrictions
~ shall be made by the comptroller OF
the currency and approved by the sec
retarv Of the treasury, to estaDllsh
branch banks in towns and villages
where no national bank is established
and where the population does not eA-
coed 10000. such branch banks IN no
case to be permitted to issue circulating
notes other than of the parent bank
THAT the semi-ofTicial tax on clrcula-
tion be reduced to one-fourth of one
nercent. that the issue of circulating
notes to the par value of the bonds de-
posted be permitted