The L'Anse sentinel. (L'Anse, L.S., Mich.) 18??-current, 1897-12-11
ECKELS' REPORT MADE.
Interesting Information Concern
ing National Ban ks.
ComptroIIcr of the Currency Tells OF
the Growth of the system. ana
Argues NJ Length In Favor of
hank Note Circulation.

/ the pre- sent national bank act ard invites
! the attsntion OF congress TO amerdmt nts
to the law recommended in former reports
without specifically repeating them.
on the subject OF bank note circulation
the comptroller says: at Is noticeable that
in all the changes which have been wrought
in the rational currency act from Us incep-
tion 10 the present time the feature sucleet
10 criticism. but which was interded should
constitute the principal benefit 10 be con-
ferred. has remained comparatively un-
changed. namely. the note-issuing func-
tion. Whatever justification there was In
the first instance for restricting Inc sssu-
Ing OF notes against the bonds or the gov
eminent, deposited with the treasurer or
the United States 10 20 per cent OF the
par value thereof. long since ceased In
the report OF every comptroller or the cur
rency during the past ~ years the wisdom
of changing the existing law so that the
banks ,and through them the commune
ties In which located. might have the ad-
ditional benefit OF an added loarable capt.
tai has been urged Despite ali this the
law still remains without amendment. Not
only should the bank act be amended In
this particular, but congr SIS should Sc
rously consider such change In the meth
cd of bank note issues as will enable the
banks of the country TO more adequately
meet the demands OF trade ard commerce
In all sections of the country The busi-
ness OF banking. like every other fern OF
capital II II is placed upon a footing
different sp-other undertakings, embar-
raised through unnecessary restrictions
and deprived-of proper sources OF oft,
the result cannot be otherwise han that
investable capital Will seek other means Of
employment. and 10 such an extent deprive
the people OF the benefits Of the agency
most requisite 10 commercial activity.
1T is considered by every great CONNER
cial government except the United States
10 be the sole province OF banks TO issue
the paper which circulates as currency.
The belief in bank note currency as being
better and safer than a government paper
currency prevailed urquestioned In this
country until, under the apparent ext
gehcies OF the war, the government under
took 10 issue paper currency. Even der
such circumstances the promise was al
ways given. however, that ii should be re-
tired at the earliest practicable moment
and the admission freely made that IL was
neither a wise measure nor safe form OF
currency. Between the competition OF the
government note issues on the me hand
and the unnecessary restrictions imposed
by law upon the DINER, together Win the
increasing price OF bonds required 10 be
deposited as security. the note-issuing
junction OF the banks has been permitted
TO become merely an incident TO The con-
Duct oil the national banking associations
OF the country.
1T has been seriously suggested more
than once that the bank note issues be done
away with and all paper be issued by the
government instead. The Danger OF such
a course Is not 10 be overestlnated. 4ne
experience OF every government has Leen
that governmental currency paper is a
source OF weahness and danger. IL the
United States, where there has been the
nearest approach TO success. with me VOL
ume Of the federal paper comparatively
limited in amount. the credit OF the gov
eminent has been more than once put in
jeopardy through IL and the business in
terests OF the country subjected TO unnec-
essary loss and confusion.
THE argument that the government, bet
ter than the banks. can provide for the re-
demption Of paper note issues Will not
stand the test OF a careful analysis The
government has no means for caring for
Its demand liabilities except through bor-
rowing and through the ievying of taxes.
Upon the other hand. the banks have assets
which can be promptly converted into cash
to meet their outstanding notes when pre-
sented. Their ability 10 command gold has
always been beyond that OF the govern
ment. for in each financial exigency which
has confronted the government the banks
have furnished TO II the amounts neces-
sary 10 maintain its solvency II Is inn
possible to believe that with a system of
bank note issues based in part upon Sc
curities and In part upon bank assets the
country cannot be provided with a sound
safe and elastic bank note issue. always
commensurate with and responsive 70 the
demands Of trade. -
The total number Of national banks or
sanzed since the system was put into OPP
Grafton in 1864 is shown 10 have been 5.nai
On October 81 last there were in active or
Grafton 3.617 having an authorized capital
OF $3.50. 230. 295 The total outstanding cir
culation Of the banks then in operation was
1929. la9 $50. OF which 1902 99i. 555 was secured
by bonds OF the United States and the ball
ance by lawful money deposited with the
treasurer Of the United States. The total
circulation outstanding OF all national
banks on October 81 last was 1920. lSl n0j. Of
which amount HISS. 800 was secured by
bonds held for account OF insovent and
| liauidating banks and s26. 2D5. 1926 by lawful
money deposited for their account and by
active banks reducing circulation. The net
decrease In the amount OF circulation Sc
cured by bonds during the year was sl2-
5S4.334 and the gross decrease In the total
circulation was S4,s5l,2s2 During the year
a banks were organized with an agere-
! gate capital stock Of s6.420,o00. During the
year Il banks went into voluntary lfquida-
ton. There was paid TO creditors OF in
solvent banks during the year sl3 1863. ISL in
dividends.
THE magnitude OF this unequaled rec
! ord the, report says. Will more forci-
bly, illustrated II considered in the light OF
what hassbeen accomplished heretofore In
the way Of dividend payments to the cred
/ itors OF insolyent Institutions. In 1888 there
! Was pald III dividends s., +oo,o46 Ia Ia.-. -,
l2i577, in 1885, So 5SO 5j2. In 1896 So 45l yy nd
In 1897. Sl5.l6y.lA. making total OF dvi-
dends paid within The fNe years from 1885,
TO 1897 OF 81 ,56U. 5l5. or 36h per cent. vi ali
/ the divtdenus that have eseI been PAID to
creditors of insol.ent national banks
From 1903 10 1877 there has been PAID ir
dividends s75.y35.y25, aud III The year eIu'
braced in this report slSl6y. lsl. or II I-S per
cent OF all the dividends that nave been
paid during the period OF "a years of the
existence of the S. stem. Since october 81
the end OF the report year. IL additional INV
idends have beeI oruefed, amounting :. the
! aggregate to about s6zs.pVO.
The report contains The latest complied
statistics relative TO the worlds monetary
systems and the stock of gold. silver anc
paper currency. very interesting tea
lure OF this statement Is the per CAPITA
amount OF each kind of money In ths
countries named, The per capIta averages
In the principal countries OF the worid ar,
as follows: United States, 1870; United
Kingdom, $2U.b5, France. ,S4.ts. Germany
Sls.s5: Austria II ungary, 1888. and Russia
1856.
Burned to a Crisp.
Nickerson, Kan, Dec. G.-While tenn