The Saint Paul globe., 1896-12-09

tuTOuSnOuL the country lea TO the
sending out of circular addressed to
national and other banks, and trust
companies, requesting them to furnish
him with a correct classification Of
the amount and kinds of money held
by them on the 1st Of July last. There
were 1882 of these circulers sent out,
and answers were received from 5,723
banking institutions in response to
them. The information obtained upon
this subject is set forth in three tables
showing respectively the deposits Of
retail dealers returned by the national
banks in each state and territory, those
OF wholesale traders returned by the
same banks, the deposits of all other
depoSitors returned by the same source.
and the total deposits Of all three
classes of customers as returned by
the same banks. The second set of
tables contains data similarly arrang-
ed, returned by banks other than ma
tlonal and the third presents the total
deposits Of each class of dealers, as
returned by all the banks that made
replies.
The conclusion drawn from these re
turns is that 67.4 per cent of the retail
trade of the country is transacted by
means of credit paper; that 95,3 per
cent of the wholesale trade is so carried
on; So.l per cent of business other than
mercantile, and 925 per cent Of all
business. In retail trade the national
banks have sc per cent of the deposits.
The percentage of credit instruments
in these deposits varies from SO in
Rhode Island to 87.3 in Nevada, but the
returns from Nevada are SO small in
the aggregate that they are not regard
ed as a safe basis for inference. The
percentage Of business done by checks.
all classes being included, is 925. New
York leads the list with 964 per cent.
Massachusetts, and Maryland come
next with 1872 and 1913, respectively,
and Nevada and Minnesota next with
92.3 and 92.5 Missouri has 9O7 and
New Mexico 90.8. The lowest percent
age shown is that Of California, being
69.4.
VALUE TO THE PUBLIC.
On the subject of the value Of banks
to the public and their growth in num-
be1 and deposits, the comptroller saws
that attention has heretofore been
called to the advantages gained to
the general public through the instru-
mentality of the banks, but In more
tnan one instance and from more than
one section general and sweeping de-
nuncaat1on is made of the whole sys-
tenn. The great body of people, how
ever, the comptroller says, can not
but know that since the Inauguration
OF the national banking system it has
been great benefit to all classes. as
is evidenced by the saving in heavy
discounts on the bank currency preya-
lent before 1868; the saving in the rates
OF interest, and the saving to customers
In charges for making collections.
The results are given of investiga-
tlons made by the comptroller relative
70 1nsolvent state banks from 1863 to
1896. The total number of failures re-
ported during that period was 1924,
With reported capital stock of S51
VoS, LIZ ~ assets, 1856, 6,136, ,903.1 Is; liabili-
1leS, SZOO, 955, ,9o7.Ol, and total dividends
paid, $93, 833, .03. In 1896. I'D to the
date Of the close of this Investigation
e1ghty-one failures of state banks were
reported. with a total capital stock of
S3,l2l ,540; assets amounting to S1O.131.
OV179; liabilities, $7,17S,6 ,618.07, and divi-
dends paid, $271, ,559.74. The reports of
insoiVent state banks show that 1853
banks paid dividends to creditors of 100
per cent; 128 paid 70 per cent and over
ana less than 100 per cent; 1874 paid SO
per cent and over, and less than *
per cent; 203 paid 25 per cent and over
ana less than 80 per cent, and 1872 made
payment OF less than 25 per cent.
Inc comptroller suggests the follow
Ing amendments to the national bank
act:
F1rst-Ihat the loans and discounts
Oh banks to their executive officers and
employees be restricted in amount and
secured by proper collateral
Second-That no loan be made to a
uulleotor, not an executive officer of the
bank, except upon collateral security
or a satisfactorily indorsed note.
Ihlrd-Tnat directors be required to
make an examination of their bank
once each year, upon a day to be
designated by the comptroller.
Fourtn-Ihat assistant cashiers I1n-
oer certain conditions be authorized 10
sign circulating notes and reports of
condition.
F'ifth-That provision be made for
administering general oaths taken u1i-
der the national bank act.
oiXph-Ihat in places having a popu-
latlon OF less than 1000 inhabitants
national banks shall be permitted. un
der regulations to be made by the
comptroller Of the currency and an
proved by the secretary of the treas
ury, to be organized with a capital
stock OF not less than $25.000 and with
corresponding reduction in the
amount OF bonds required to be de-
posted with the treasurer of the IJnit-
ed States
Seventh-That national banks he
permitted under such regulations and
restrictions as shall be made by the
coInptroller OF the currency and ap,
proved by the secretary of the treasury
to establish branch banks in towns
ana villages where no national hank
is established and where the popula-
flon does not exceed 1,00u inhabitants:
such branch banks to have the right
70 receive deposits. make loans and
discounts, and buy and sell exchange
but in no case to be permitted to issue
c1rcufating notes other than of the
parent bank. 1t shall in all respects
be considered as part Of the parent
bank, and in each case where sIcn
branches are maintained the comp,
tfoIler shall receive in the reports or
the central bank a q r.
erly sworn to and attested, of the CON
d1t1on of it's branches He shall also
nave the right to separate and indie
pendent examinations, and he NAV
whenever he deems 1t necessary. re.
quire, before granting the right to anv
bank to maintain branches, that the
paid-up capital stock of such bank be
increased to an amount to be. by him
nxed. With the approval of the secre-
tary of the treasury.
Eighth-That the semi-annual tax
on circulation be reduced to one-fourth
of one per cent.
Ninth-That the issue of circulating
notes to the par value of the bonds
deposited be permitted.
In support of his recommends ton
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 and maintaining of branch banks
under it. The very smallest Of agri-
cultural communities, even though de-
prived Of transportation facilities, un-
der a branch bank system could stin
be given the advantage Of available
capital lower interest, and lessened
cost Of exchange, privileges they can
not enjoy when dependent upon the
banking method employed by the Will
age or entirely isolated storekeepers.
Ty 10 h 0fa1 20 I~gs-
OF branch banks that they would tend
to create q mnnnnnlv The ohiootior, L.