New-York tribune., 1896-12-09
REPORT or CONTROLLER ECh Els
SUGGESTIONS FOR RELIEVING FINANCIAL
STRINGENCY AND CONGESTION.


Washington Dec s-James IL Eckels. Control
Ter of the Currency. has considerable 10 say IN
his annual report about financial stringency ana
congestion. and he makes remedial suggestions OF
,ntarest Amendments TO the National Bank act
looking TO relief arc proposed by the Controller as
follows
That in places having population Of less man
. 90 inhabitants National banks shan pc per
mitted under regulations TO be made Py ne ne on OH
troler of the Currency and appfoyca 1s ' w,,h
capital stock of not less than s&"o, and win "a II
corresponding reduction In the amount or 81 M
required TO be oepoSi'- WIZ" "
TN, Rational banks be permitted under such
regmis,ions and restrictions as shall be mad, by
the Controller OF the Currency ana aPptottrn ~
the Secretary OF the Treasury 70 eras nn Naiiona
hank is established and where the populatio', uo.s
not exceed 1000 inhabitants; sucn Dro oh h loans
and discounts and buy and sell exch3hIe, pu. , ia ~
case to be perm',sn per 10 bank nu0 1t shall in ali
spects be considered as part or the p'''n- % %uh'n
sained % the Controlle. shall receive in the reports
Of the central bank a statement Prop"T ,yarrbns
Io shall also have the right of separate :.'iu oe M
pendent examinations and he may wnnt, wn"tnNr' ,he he
Trsht T "a any bank 10 maintain branches tha' lhc
paid-up capital stock OF snch ,h Datf i,b n The an
uro~nl ~ va' of the Secretary OF the Treasury :,
THAT the semi-annual tax on cTc"d''' "' 'e
dnced 10 'bc ,' issue o Of crcuaas to 'hc par
value Of the bonds deposited be pcfnii'''o'
In supnort Of his recommendation for ;he "stap-
usbr,en, of branch banks the Controller says III
part ,, 10 tho
/ The perm,ttng Of branch banks would De iie ane
forming of agencies through which a Pc pe','' M n
MS ,nncv Of country congcsts at the great
dnenciaI centres to remain idle and proh,less OF
TO Sr~ pe seem to be no arteries through when
it can flow. It is not matter sh 'n re,c m
eer';v Of money in section Of ,he country
and plethora Of In anoiher ior snfn m a mc com D
cnndmct could have but one resui'-ioss 10 Il" 'o''
cerncd. ,,o,,s r,btcb confront Con-
Inc harross rJ the administrative officers or the
ki.s,,memt harass the business world ana BRING
'oa,,o non American politics must ultimately IN mhu
plaguioc "pO IN reo,red banking improvements The
,;me must come when the banks shaii pc suc, i,
aselo' s, nrcdlt everywhere equally available to the
xtcnt 10 which those seeking IT are justly ehutnu
80 To- s,,e all OF the credit currency of the country
sna' sna stand wholly responsible instead OF the Gov
crnment for It's redemption IN gon com whenever
| ord in whatever quantities presented
After arguing that the issuing OF notes 10 the par
value of the bonds deposited makes the payment OF
such notes perfectly secure, ana saying 'ha' 'he
,.r, q gainst the National banks is that they
do not avail themselves Of the note-issung junction
| M ,hev should and giving as a reason therefor the
| lack of profit in banknote issues, the Con'rolle'
writes on the subject Of bankno'c and legal-tendei
issues In part as foilows'
The monetary difficulties OF the Treasury affect
OF the affairs Of the Treasury Department
and can no longer continue without entailins stil
@reater loss and more widespread financial disaster
| They do not fnd their origin In any mere SURFACE
and temporary weakness. nor are they due to recen
and passing conditions They are inheren' en- IN h ,hs
tinted States and constitute an integral part OF i
Instead Of iessenng in illenccts with time they vii
| Accumulate more strength for harm at each re-
! curing season Of financial and business disturb
ance 49, " ,,., i,
| II is respectfully submitted that legislation by
| Congress- based upon safe and prudent lines hav'
ing in view the gradual payment and eancellatior
| OF the credit currency now maintained by the Gov
crnment and the issuance hereafter of all OF such
| therefor placed upon them. should be had at ihs
| earliest practicable moment. The results which
| would follow such enactments would be beneficial
| and neither would monopoly be created favor
| shown thereby.
| An exhaustive and interesting analysis is pre-
sented Of returns received from banks TO the ex