The record-union., 1896-12-10
THE FINANCIAL STRINGENCY
Comptroller ECkIes Has Something to
Saw About IT,

| WASHINGTON, Dec. S.-Comptroller
| of the Currency Eckels has considerable
| to say in his annual report about finan-
| cial stringency and congestion, and he
| makes remedial suggestions of interest.
| Various amendments to the National
| Bank Act looking to giving relief are
proposed by the Comptroller, among
| them the following:
| That in places having a population
| of less than 1000 inha bitants national
| banks shall be permitted, under regu-
| lations to be made by the Comptroller
of the Currency and approved by the
| Secretary of the Treasury, to be or
| ganiZed, with a capital stock of not
| less than $4,000, and with a CORE
| spending 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 Sec
| retary of the Treasury, to establish
| branch banks in towns and villages
where 10 national banks are estab-
| lished, and where the population does
| not exceed 1000 inha bitants; such
! branch banks to have the right to re-
| ceive deposits, make loans and dis
counts, and buy and sell exchange but
| in no case to be permitted to issue cir
culating notes other than 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 in force by the Supreme Court pre-
cludes the establishing and maintain
ing of branch banks under it. and he
continues: THE permitting of branch
banks would be the forming of agen-
cieS through which a better trade dis
trbution of currency could and would
be made" And further on in his report
he remarks that the time must come
when the banks shall be such agencies
of distribution of loanable capital as
will make credit everywhere equally
available to the extent to which those
seeking It are justly entitled So, too,
must a point be finally reached when
banks shall issue all the credit cur
rency of the country, and stand wholly
responsible, instead of the Government,
for its redemption in gold coin when
ever and in whatever quantities pre-
sented."
Further on in his report the Comp
trol1er says: "a policy in finance wrong
in principle never becomes right in
practice. The truth of the statement
is fully illustrated by the course of the
legal tender treasury issues of the
United States. They have been always
disturbing element in business, and
their current redemption a continuing
weakness and anxiety to the treas
ury.'
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 all
of such currency through the banks,
with full responsibility therefor placed
upon them, should be had at the very
earliest practicable moment. The re-
suits which would follow such enact
ments would be beneficial, and neither
would monopoly be created nor favor
shown thereby"