Crawford avalanche. (Grayling, Mich.) 1879-19??, 1897-12-16
ECKELS MAKES REPORT.
Reviews National Banks and Favors
Amending Note-Issuing Law.

| Reviews National Banks and Favors
Amending Note-Issuing Law.
The annual report of James III. Eckels,
Comptroller of the Currency, for the year
ended Oct. 81, 1897, opens with "A 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-
cifically repeating them.
On the subject Of bank note circulation
the Comptroller says:
1t Is noticeable that In all the changes
| which have been wrought in the national
currency act from its inception TO the pres
| ent time the feature subject to criticism,
| but which was intended should constitute
| fhe principal benefit to be conferred mas
remained comparatively unchanged-name-
| ly. the note-issuing function. Whatever JUS
| tfcation there was In the first instance for
| restricting the Issuing of notes against the
| bonds Of the Government, deposited with
| 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
| tToller of the Currency during the last TWEEN
| " 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 an add
cd loanable capital has been urged; De
| spite all this the law still remains without
| amendment. Not only should the bank act
be amended In this particular, but Con-
| gress should seriously consider such change
| In the method of bank note issues as Will
enable the banks of the country to more ade-
| quatey meet the demands of trade and COM
merce In all sections of the country.
| 1t Is considered by every great commercial
| government, except the United States. TO be
| the sole province Of the banks TO issue the
| paper which circulates rs currency. The
| belief In bank note currency as being
| better and safer than n government paper
| Currpncy unOuQSttOneu
| country, until, under the apparent exigen-
| cies of the war, the Government undertook
| TO issue paper currency. Even under such
circumstances the promise was already CIV
en-, however, that 1t should be retired at the
earliest practical moment and the admis-
sion freely made that 1t was neither wise
| measure nor n safe form OF currency.
Between the competition OF the Govern
ment note issues on the one hand and the
| unnecessary restrictions imposed by law up
| on the other together with the increasing
| price Of bonds required TO be deposited as
| security, the note Issuing function OF the
banks has been permitted to become merely
| nm incident to the conduct OF the national
| banking associations OF the country. II has
! been seriously suggested more than once that
| the bank note issues be done away with, and
| all paper be issued by the Government in
| stead. The danger of such course Is not to
be overestimated. The experience of every
| government has been that governmental cur
| rency paper is source OF weakness and
| danger. In the United States. where there
has been the nearest approach to success,
| with the volume of the Federal paper COM
| paratively limited in amount the credit OF
| the Government has been more than once
| put In jeopardy through II. and the business
| interests of the country subjected to unnec-
| csSary loss and confusion.
The argument that the Government better
| than the banks can provide for the redemp-
| tlon of paper note issue will not stand the
| test OF a careful analysis. The Government
| has no means for caring for Its demand liabil-
tiles. except through borrowing and through
| ~ IN tha 9TH hox
| 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
5,095. On Oct. 81 last there were in act
i've operation 3,617. having an authorized
capital of $630,230, ,295. The total out
standing circulation OF the banks then in
operation was 5000, ,109,SSO of which
02,904.J55 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 S230, 131 ,0O5 of which
amount 81 ,55S, 500 was secured by bonds
held for account Of insolvent and liquida-
ting banks, and $26.205,325 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
$1?,5S4, 1884 and the gross decrease in the
total circulation was 81 1851 ,292.
During the year fortyfour banks were
organized. with an aggregate capital stock
Of $6,420,0O0. During the year seventy
one banks went into voluntary liquida-
ton.
There was paid to creditors of insolvent
banks during the year $13. 100, ,1S1 in div
| idends. The magnitude of this unequaled
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, ,433,-
GAG; in 1894, $5,124. .577; in 1895. SO, $780,
552; in 1896, 81, ,451 $50, and in 1897, $13,-
169, ,1S1, making total of dividends paid
within the FIVE years from 1893 to 1897
Of $2T 500, ,515, or 36A 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 $13, 1863, ,7S1, or II 1-3 per cent.
Of all the dividends that have 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 have been ordered,
amounting in the aggregate to about $685.
600.
The report contains the latest compiled
| statistics relating to the worlds monetary
systems, and the stock of gold, silver and
| uoper currency very interesting fea-
ture Of this statement Is the per capita
amount Of each kind of money. in the
countries named. The per capita aver
ages In the principal countries of the
world are as follows:
United States, $23.T0; United King
dom. $20.G5; France, $34.6S; Germany,
$1S.05; = ustria- Hungary, $0.33, and Rus
sia, $500.
The Comptroller renews his recommen-
datioD OF last year, urging that nationsl
bank examiners be paid an annual salary
| instead of fees as now.