The daily morning journal and courier., 1896-12-09
CURE FOR FINANCIAL ILLS
COMPrROLLER ECXLES dDVOCATES
 4 MOTEL PLAN.

ton of the Proposition.
 Washington, Dec S.-Hon. James H. Eckels, comptroller of the currency, has considerable to say in his annual report about financial stringency and conges- ton and he makes remedial sugges- tions of interest. Amendments to the national bank act looking to giving re- lief are proposed by the comptroller as follows:
 That in places having population of less than 200O inhabitants national banks shall be permitted, under regula- tions made by the comptroller of the currency and approved by the secretary of the treasury, to be organized with a capital stock of not less than $2500O and with corresponding reduction in the amount of bonds required to be de- posted with the treasurer Of the Unit ed States.
 The national banks shall be permit ted, under regulations and restrictions made by the comptroller of the curren- cy and approved by the secretary of the treasury, to establish branch banks in towns and villages where no nation al bank is established and where the population does not exceed LOGO inhab- itants; such branch banks to have the right to receive deposits, make loans and discounts and buy and sell eX- change, but in no case to be permitted to issue circulating notes other than of the parent bank.
 hoJ ;,, oil T., considered a part of the parent bank. and where such branches are maintain cd the comptroller shall receive in the reports of the central bank tt state ment properly sworn to, of the condi- tion of the branches. He shall have the right of separate and independent ex- aminations and he may, whenever he daems it necessary, require, before granting the right to any bank to maintain branches, that the paid up capital stock of such bank be in creased to an amount to be by him fix ed, with the approval of the secretary of the treasury.
 That the semi-annual tax on circula- tion be reduced to 4 of per cent, and that the issue of circulating notes to the par value of the bonds deposited be per- mitted.
 In support of his recommendation for the establishment of branch banks the comptroller says:
 The construction placed upon the na- tional bank act as now in force by the supreme court precludes the establish ing of branch banks under it. In the agitation for the increased volume of oiro ,1a+ in oi+ ;,, I,p of silver or irredeemable greenbacks, it has been many times suggested by those who have argued against both that with the majority of the cornmuni- ties where the honest demand for more money was made it was a lack for them of credit and not lack of volume in the country's circulating medium from which they suffered. The statement is undoubtedly true. This state of affairs is due to not having at hand such means of banking as will enable them to show those in control Of ioanaljie capital which credit should be eXten. i,sd and to whom.
 The very smallest of agricultural aOm- munities under branch hank i.ystem could still be given the advantr ges Of available capital, lower intereSt and lessened cost of exchange, p lvilegas they cannot enjoy Whec depenlent Up- on the banking metE0ds emr r!Oyed by the village or entirely isOla ted store keepers. The branches woul'. introduce capital into places unable to support independent banks, which could .,dc- cessfully compete with thal of the local loaner of money at exorb tant rates of tp+ of ,s] np local deposit and within a brief period the local capita! heret ,fore idle and useless would become available loan able capital. The use of a bank as place of deposit of fun.:s means the use of the check, the dra' |, the Dill of ex- change and other crr dit devices which reduce to a minimum the passing from hand to hand of actual money or the currency represent ttives of money in the payment of obligations.
 The permitting of branch banks would be the forming fof agencies through which a better trade distribution of currency could s4nd would be made.
 The monetary problems which con front congress, embarrass the admin istratige offers of the government, harrass the business HOrld and bring plague upon American politics, must ultima tely fird solution in required banking improvements. The time must come when the hanks 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 point be finally reached uban hanks shall iSSI1a all of the credit currency of the country and shall stand wholly responsible, instead of the government, for its redemption in gold coin.
 After arguing that the issuing of notes to the par value of bonds deposit ed makes the payment of such notes perfectly secure, stating that the argu- perfectly secure, the comptroller in part says:
 The monetary difficulties of the treasury can no longer continue with out entailing still greater loss and more widespread financial disaster They are inherent in the financial policy which has been built up in the United States. Instead of lessening in i'll ef- fects with time they will accumulate more strength for harm at each re- curing season of financial and busi- ness disturbance.
 ''The policy of having the treasury