The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-12-09
Comptroller Eckels Makes
Recommendations in
His Report.
Proposed Relief in Amendments
to the National Banking
Act.
Branch Banks Said to Be a Good
NJ dunn of Securing Better
Distribution.

WASHINGTON, D. c., Dec. S.-Comp-
troller of the Currency Eckels has consid
cradle to say in his annual report about
financial stringency and congestion. and
he makes remedial suggestions OF inter-
est. Various amendments to the ma
tonal banking act, looking TO giving re-
lief are proposed by the Comptroller,
among them the following:
That in places having population of
less than 1000 in habitants national banks
shall be permitted, under regulations TO
be made by the COMPTROLLER OF the Cur
rency and approved by the Secretary of
the Treasury, to be- organized, with capi-
tai stock OF not less than $25 600. and with
corresponding reduction in the amount
of bonds required TO be deposited with the
Treasurer of the United States.
THAT national banks be permitted, un-
der such regulations and restrictions as
shall be made by the Comptroller of the
Currency and approved by the Secretary
of the Treasury, to establish branch banks
in towns and villages where no national
banks are established and where the
population does not exceed 1000 inhabit-
ants, such branch banks to have the right
to receive deposits. make loans and dis
counts and buy and sell exchange, but in
no case to be permitted to issue circulat-
ing notes other than that of the parent
bank"
In support of his recommendation for
the establishment of branch banks the
Comptroller says: THE construction
placed upon the national bank act as now
III force by the Supreme Court precludes
the establishing and maintaining of branch
banks under it,; and he continues: 1.-THE
permitting of branch banks would be the
forming of agencies through which bet
ter distribution of currency could and
would be made" Further on in his report
he remarks that ''the time must come
when the banks should be such agencies of
distribution of Ioanable capital as will
make credit everywhere equally available
to the extent that those seeking it are
| Justly entitled. So, too, must a point
| be finally reached when banks shall issue
all the credit currency of the country and
stand wholly responsible, instead of the
| Government. for its redemption in gold
coin whenever and IN Whatever quantities
presented"
Further on in his report the Comptrol-
| Ter remarks: "a policy in finance wrong
in principle never becomes right in prac-
t.ce. The truth OF the statement is fully
illustrated by the course of the legal ten
der treasury issues OF the United States.
They have been always disturbing ele-
| ment in business and their current re-
demptlon a continuing weakness and
anxiety 10 the treasury"
He recommends "that legislation by
Congress, based upon safe and prudent
lines. having in view the gradual pay
ment and cancellation of the credit cur.
rency now maintained by the Govern
ment and the issuance hereafter of ali OF
such currency through the banks, with
full responsibility therefor placed upon
them, should be had at the very earliest
practicable moment. The results which
would follow such enactments would be
beneficial and neither would monopoly b G
created nor favor shown thereby"