The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-01-24

or the banks predominated. Then thu
tonds increased in price, and, under the
law which permits but 80 per cent Of
tn" par value Of the bonds to be issued
to the banks in circulating notes, the
profits of the circulation feature van
1shed. The most Of tie money made
by the banks now comes from deposits
and discounts. This is the feature of
profit in banking in England, Scotland.
ireland and the United States. No. the
prohts of the national banks do not
come from the government
Does Uncle Sam lose anything by
the national banks?"
NO, indeed" replied Mr. Eckels, as
ne picked up q paper of figures and
locked it over. 80 far from losing
by the national banks the government
haS made a great deal out of them
~ careful estimate Of the amount of
proht to the government shows that
from the organization Of the first ma
tonal bank up to the end of the report
year OF 1896 Uncle Sam has Melted
$l57, 439, 24S.98. This amount stands off
in startling contrast to the greenback
issue, which, instead of having been
source of profit has been source OF
direct loss Of hundreds of millions t0
the people,"
DO the national banks make as much
now as they did in the past?''
NO., was the reply. For some time
after their organization the percentages
or profit was large. During recent
years the profit has steadily fallen. sn
that' taken throughout the period Of
lWenty-SeVen years, for which the
hgures are to be obtained, the average
dividend on capital and surplus in
vested IN national banks has been only
"a per cent. considerable number
OF the banks continue to add their diyi-
nAndC
been compelled to charge off losses
sustained to their surplus. so thai
many banks during the past few wears
nave either paid small dividends or
none at ALL
ARE NATIONAL BANKS SAFE?
How about the safety of national
banks, Mr.. Eckels. Is ones money
safe In them?"
AS to the safety Of the national
banking SYSTEM was the reply. the
best test is the statistics. These show
mat OF the 5,O55 banks organized since
the beginning Of the system only .313
have passed into the hands of receivers
as 1nsolvent and that these on the
average taking the closed and not
closed, have paid in the neighborhood
of 75-per cent to their depesiters. When
the banks now being iquidated have
been closed this percentage will be
holders in national banks is. as you
know, such that no note holder has
ever lost anything"
BANK OFFICIALS AND EXAM
INERS.
"How are the banks examined?"
'"The banks have to send reports of
their condition to the controller five
times every year, and these reports are
published. They are also examined by
examiners appointed by the controller
The examiners report to the controller
and it is their business to ascertain
whether the capital stock of the bank
is impaired. If it is impaired the con-
trcller has to levy an assessment upon
the shareholders to make such impair
ment good. The duty of the controller
is wholly supervisory, however, and it
does not in any way relieve the officers
and directors of the bank from the
duties placed upon them. The control
Ter can suggest methods of safety,
but it rests with the officers of the
bank and the directors to accept these
suggestions or not. He can suggest
methods of bookkeeping and the duties
which directors should discharge. If
the directors and officers do their duty
there is little danger that a bank will
fail, but unless they give attention to
such duties 365 days in every year it
IS unfair to expect the supervising Off
GERS to accomplish the complete safety
Of such banks in two or three exant-
nations q year. 1 believe that the su-
pervisiOn Of the controller has prevent
ed the failure of many banks, though
1t may be that there are here and there
cases where facts have been overlooked
which might have prevented fail
ures. Ethink that such instances, how
ever areH much less In, number than
In i0h cd
through the supervision of, the control
rs52 oVRIaGovERE MIN DEBT.
but will not the national banks stop with