The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-12-10
CONDITION OF THE BANKS.
Mr.. EekeIs Submits His Report
THenty-eight New Banks, and
Tueuty-seyen Receivers.

port Of James II Eckeis. comptroller OF
the currency, contains information, IN de-
tail. In regard TO the organization. super
vision and liquidation OF national banks
for the year ending October 81, 1876. Dur
ing the year twenty-slgnl new banks
were organized. with a capital stock ag-
gregating S. 245 90. There were 3ess ma
tionas banks In operation on October 81,
fgsS. with an authorized capital aggregat-
ing $3.50, Ola SIS, represented by zss.sZz share
holders, or an average capital stock CT
Sis. 6S2. or shares OF stock 2.zyo ana OF
shareholders IS.
The total amount OF circulating notes
outstanding on October 81, las~. was S~o4,-
SIS, S07, OF which amount $1,osl 30 were
Issued by bonds still held for account, and
SIS T4T 40 by lawful money deposited Tor
account of the same ana by active banks
reducing circulation.
The net increase in circulation issued by
bonds during the year was SZo.32s,o5S. and
the gross increase IN the total circulation
was slices, 423. The total resources OF the
8g75 banks reporting on October 5, 1880,
was S. as SIS Sl3. Of which SisSS. 2os,s lg rep
resented loans and discounts and SSs9. lSo.-
1888 ~rnoney OF all kinds in bank. OF their
liabilities 81. 5g7 So. 05s represented indiyid-
ual deposits, 1886 SO. s34 surplus and net
undivided profits, and oe.s44.ols outstana-
ing circulating notes secured oy ponds.
untary Liquidation during the year was
thirty-seven, with a capital stock of 3d.
T45 coo and circulation amounting to N,2b2.-
SIS
Receivers wers appointed during the
year for twenry-seven banks, the aggre-
gate capital stock was s.. Soooco. and the
circulation S76.5o0.9eo. OF these four closed
their doors In 1888, and subsequently re-
surned business. but through continued
IA nd 10 character
assets. were unable to meet their obiiga-
tions, and were compelled 10 go into insol-
vency.
comparison OF the data prescribed for
the past wear with the year 1870 SHOWS a
decrease OF thirty-six In the number or
active banks and OF A,Soo.uo In eapitai
stock.
The average rate of dividends paid for
the current year was Sc per cent, the
per cent OF dividend based on capital and
surplus, 8, and the per cent. OF net earn
ings OF capital and surplus 5.i.
An exhaustive and interesting analysis
is presented OF the returns received from
banks as 70 the extent to which the use
of instruments of credit enter into the set
Element OF wholesale and retail transact
lions in daily life. The conclusion drawn
from these returns is that GA per cent or
the retail trade Of the country Ia trans
acted with paper: that 9S3 per cent. or the
wholesale trade IS thus carried on; 81 per
cent, OF the business other than mercan-
tile. and 925 per cent. OF all business. In
retail trade the national banks have Sc per
cent. of the deposits. The percentages Of
credit institutions in these deposits vary
from e per cent. in Rhode Island TO sI.s
per cent. in Nevada and the returns from
Nevada are go small in the aggregate that
they are not regarded as a safe basis for
Inference.
According 10 these returns the percent
age OF business done by checks. all classes
being Included. Is e2.5 New York leads
the list with ss.4 per cent. Massachusetts
and Maryland come next with a3.2 and ss.s
per cent. respectively, and Nevada and
Minnesota next with s2.3 and $50 per
cent. Missouri has soT per cent. and New
Mexico 20. g. The lowest percentage shown
In that OF California. ga per cent.
The comptroller also deals with the
question OF the duty OF directors with re-
spect TO the causes OF the failures Of ma
tional banks. and says:
1.-THE inevitable conclusion 10 De drawn
from a study OF the causes resulting In
these failures IS that IN the great ma
fority OF instances those directly respon-
sfble for the management Of banks involv-
ed. both directors and executive officers.
have been negligent in their duties. and
wanting In insisting upon the employ
nent OF methods OK ordinary safety and
prudence"
In Is9s. Nd to the date OF the close Of the
Investigation, ninety-one failures OF state
banks were reported, with a total capital
stock of - 1850: assets. sl0.1al.o97: LA
hlllties. s. IFS 6ls: dividends paid. ST.. SO.
The comptroller suggests as amend
rserts 20 the national bank act that the
loans and discounts OF banks to the exec
utfve officers and employees be restricted
In amount. ard secured by proper coilat-
eral: that no loan b made 70 a director
not an executive officer 81 the bank ex-
cent upon thu collateral security OF a
satisfactory Endorsement note. that the
directors be required % make Al exsmi-
nation OF shefr bark once each year upan
a day TO be designated by enc comptroller.
re advises that assistant cashiers under
certain conditions be authorizes 10 siEn
circulating notes ana reports Of coalition;
that provisions be- made for afrninlstersre-
general oaths taken under the national
bank act: that iu places having a popuaa-
tion al less than = 90 Inhabitants national
banks shall Re Derru'ste8. under -egYlla-
z5ons . De inside BY che comptroller OF the
currency ard approved hv the secretary
az che treasury. 90 % Organized with a
capital stock Of not iess than So coo with
a CORES ncnafag regulation as 70 ire
au-oent a. bonds required - D. deuaslted
with tNe treasurer ~ ghe EatteH states.
ard t1At BAfhonAk tAftAE - iifrnn .ted az
I ser such regulations emf restrictions -
SHAH 6e made BY the Comptroller q TIE
currency ard approved by tha secretary
~ ere treasury 20 establish branch banks
ia towns ard villages where ~ NATIONAL
hank e ereEssE, she's srss where fr,e rs.spn-
3a-i5a dees not exceed Ioea {nhahzfants.
saeA N-anch banks IN no case 70 BE- Per
mttea - issue circulating notes other
/ ghsu O. sae parent bark
BE also suggests Sass the one ss-ni-
o3cisl TAX ga she circulation Ne reduced
- ore fourth o. per ceat.c thar the issue
Of c.reaiassew nDses 90 t6e rar value 80
fhe deeds deposited Pc permitted Fs~sres
are sive1 saowiuE he cost 20 fhe T7ngte1
States % maintaining TIE legal tenders
and Tae d,iereuce In sscA c1st Z the notes
rad >sen converted - per cent bond g..
Rhfch 65Tercace * shrwr 20 ~. ssea 81 -
VITA t&1s Ccss - cozapa -ed ire uroEt az
fhe govern aaent o. sccovas - ~ nation
"a banks. whsch has bean So ssa rs