Hot Springs weekly star. (Hot Springs, S.D.) 1892-1917, 1897-12-17
EckELs A p o
Reviews National Banks and Favors
Amending Note-Issuing Law.

Comptroller of the Currency, for the year
ended Oct. 81, 1891, opens with IL brief
review of the history of the legislation
which constitutes the present national
bank act, and invites the attention OF
Congress to amendments to the law rec
commended in former reports without spe'
officially repeating them.
On the subject of bank note circulation
the Comptroller says:
1t is noticeable that In all the changes
which lave been wrought In the natiohal
currency act from its inception TO the pres
ent time the feature subject to criticisms
but which was intended should constitute
the principal benefit to be conferred, has
remained comparatively. MISUNDERSTANDING
ly. the nOte-issuing function. Whatever JUS
tiflcation there was in the first instance for
restricting the issuing of notes against the
bonds Of the Government, deposited VIII
the Treasurer Of the United States. to W.
per cent. Of the par value thereof, has long
since ceased. In the report of every Comp.
troller Of the Currency during the Inst twen'
ty years the wisdom OF changing the exist.
Ing law so that the banks and through them
the communities In which they are located
might have the additional benefit OF IN add.
cd loanable capital has been urged. Des
spite all this the law stu remains mn hs witho ocs
be amended in this particular, but Con-
gress should seriously consider such a chaigS
in the method of bank note issues MS VIII
Atib tllS phlihS VI liz u1i AAAO '"N
Quatcly meet the demands of trade ana COM
merce in all sections Of the country.
1t Is considered by every great commercial
government, except the United States. to he
the sole province of the banks to issue the
paper Which circulates as currency. Tho
belief in a bank note currency as being
better and safer than n government paper
currency prevailed unQueStioned In this
country, until, under the apparent eSigcn-
cies of the war, the Government undertook
to issue paper currency: Even under such
1 mn a fvn rnv,t Ht.Oo Ol~nns1Ns (v{y.
ell. however, that it should be retired Mt tho
earliest practical moment, and the admis-
sion freely made that 1t was neither IL wise
measure nor a safe form of currency.
Between the competition of the Governs
ment note Issues on the one hand and tho
unnecessary restrictions imposed by law up
on the other; together will, the increasing
price of bonds required to be deposited as
security. the note Issuing function of tho
banks has been permitted to become merely
an Incident to the conduct Of the national
banking associations of the country. 1t has.
been seriously suggested more than once that.
the bnnk note issues he done away with. and
all paper, be issued by the Governmcnt in
lie ovcrestimated. The experience Of every
government has been that governmental cur
rency paper is a source of weakness and
danger. IL. the United States, where there
has been the nearest approach to success,
with the volume of the Federal paper COM
raratIvely limited in amount, the credit OF
the government has been moro than once
IuI III JeoHuIuS through IL, IIu Cile DuSllcSS
interests of the country subjected to unnec-
cssary loss and confusion.
The argument that the Government better
ti'an the banks can provide for the redemp-
tion of paper note issue will not stand the
test of n careful analysis. The Government
has no means for caring for its demand liabil-
tiles. except through borrowing and through
the levying of taxes. Upon the other hand,
the banks have assets which can be prompt-
ly converted into cash to meet their out
standing notes when presented.
The total number of national banks or.
ganiZed since the system was put into
operation, in 1863, is shown to have been
5,O95. On Oct. 81 last there were in act
i've operation 3.G17, having an authorized
capital of $G30,230,295. The total out
standing circulation of the banks Their in
operation was 1929, 199,sSO. of which
S2O2,994.o5o was secured by bonds of the
United States, and the balance by law
full money deposited with the Treasurer
of the United States. The total %circula-
ton outstanding of all national banks on
Oct. 81 last was $3.50 ,131,O O5. of which
amount $1,55S.S00 was secured by bonds
held for account of insolvent and liquida-
ting banks, and S2G.2O5,:32 2 by lawful
money deposited for their account and by
active banks reducing circulation. The
net decrease in the amount of circulation
secured by bonds during the year was
S13.5S4,334 and the gross decrease in the
total circulation was $4,S51,292
During the year f%orty-four banks We're
organized, with III aggregate capital stock
Of $G,42O,0OO. During the year seventy
one banks Went into voluntary liquida-
ton.
There was pnid to creditors of insolvent
banks during the year $13, 100, 7S1 in div
s1o,,1c H1,o ,,r ~ ~.
record, the report says, will be more forci-
bly, illustrated if considered in the light
of what has been accomplished heretofore
in the way of dividend payments to the
creditors Of insolvent institutions, In
1893 there was paid in dividends So ,43333.
GAG; in 1894, $ 5.124,5777; in 1895, $780,
552; in 1896. S2,451,9 and in 1897, S13,.
100, 7S1, making a total of dividends paid
within the five years from 1898 to 1897
of $27,5 0,515, or 1914 per cent. of all the
dividends that have ever been paid to
creditors of insolvent banks. From 1863
to 1897 there has been paid in dividends
$75,935,925 and in the year embraced in
this report S13, 100, ISL, or IL 1-3 per cent.
of all the dividends that nave been paid
during the period of thirty-four years Of
the existence of the system. Since Oct.
81. the end OF the report year. seventeen
additional dividends AVE been ordered.
amountinginthe aggregate to about $685.
GOO.
The report contains the latest compiled
statistics relating to the worlds monetary
systems, and the stock of gold, silver and
paper currency. a very interesting fca-
ture of this statement is the per capita
amount of each kind of money in the
countries named. The per capita aver.
ages i'll the principal countries of the
world are as follows:
United States. S23.70; United King.
dom, $2O.G5; France. $34Gs: Germany,
$1s.95; Austria-H Hungary, 1898, and Rus.
STA. $685..
The Comptroller renews his recommen.
dation of last year. urging that national
bank examiners be paid an annual salary
instead of fees as now.
Salvage Beiderback Of Duglestown
Nd, tied the members of his family tc
posts aud then tried to xii! them w::h Y