Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1897-12-09
ECKELS MAKES RFpopr
Reviews National Banks ons

ended oct. 81, 1897, opens with H..
review of the history of the lno;srs Uaf
which constitutes the present noti ,oo
bank act, and invites the attontion 'D'
Congress to- amendments to the law =,
commended in former reports witbout , ,N
cifically repeating them.
On the subject Of bank note crcno,;,
the Comptroller says:
1t is noticeable that in all tho oA,..
which have been wrought in the nn 'a'st
currency act from its inception TO III" ns4a
ent time the feature subject to critir f,s
but which was intended should conS,;,S.
the principal benefit to be conferraI ta
remained comparatively unchanged no+
ly, the note-issuing function. Whatevnr i.
tification there was in the first instance y
restricting the issuing of notes against III
bonds of the Government. depositnd VII,
the Treasurer of the United States IA y
per cent. of the par value thereof has J1,
since ceased. In the report of every CnmS
troller of the Currency during the last twap
ty years the wisdom of changing thn oyiss
ing law so that the banks and through 6eJ
the communities in which they are loraai
might have the additional benefit of an o1d
ed loanable capital has been urged M
spite all this the law still remains withr1
amendment Not only should the bank al
be amended in this particular but CAM
gress should seriously consider such cbsnnI
in the method of bank note issues rs MI
enable the banks of the country to more adj
quately meet the demands of trade and cm1
merce in all sections Of the country
1t is considered by every great cOmmprid
government, except the United States tod
the sole province of the banks to Issue M
paper which circulates as currency, NIL
belief in a bank note currency as berI
better and safer than government psnl
currency prevailed unquestioned in III
country, until, under the apparent eyspi
cies of the war, the Government underoj
to issue paper currency. Even under grI
circumstances the promise was already dd
Ell, however, that it should be retired at III
earliest practical moment, and the admiy
sion freely made that it was neither Wd
measure nor a safe form of currency
Between the competition of the GOyqrl
ment note issues on the one hand and III
unnecessary restrictions imposed by law Il
on the other, together with the incread
price of bonds required to be deposited |
security, the note issuing function Of n
banks has been permitted to become mere
an incident to the conduct Of the nation s
banking associations of the country It
been seriously suggested more than once III
the bank note issues be done away with a
all paper be issued by the Government
stead. The danger of such a course is not {
I've overestimated. The experience of eVeS
government has been that governmental
rency paper is a source Of weakness al
danger. In the United States. where the
has been the nearest approach to SuC@
with the volume Of the Federal paper co
paratively limited in amount, the credit
the Government has been more than on
put in jeopardy through it. and the basin6
interests Of the country subjected to unn
cssary loss and confusion.
The argument that the Government bett
than the banks can provide for the REDEEM
ton of paper note issue will not stand
test of a careful analysis. The Goyernmq
has no means for caring for its demand Ia1
tiles, except through borrowing and thm
the levying of taxes. Upon the other G1
the banks have assets which can be prem
ly converted into cash to meet their
standing notes when presented
The total number of national banks
ganized since the system was Put
peration, in 1863, is shown to haveb
5,095. On Oct. 81 last there Were ma
i've operation 3,617, having an authd1
capital of $500, 230, 295. The total
standing circula tion of the banks tnea
operation was 5000, 199,SS0, OF WI
5000, 1884, $50 was secured by bonds Of
United States, and the balance BY
full money deposited with the lre'Sl
of the United States. The total clc
ton outstanding of all national DAMS
Oct. 81 last was $3.50, III, O0o' OF W.
amount $1,55S,S0 was secured Oy ~
held for account of insoIvent ana 'ilu
ting banks, and $26,205,325 by law
money deposited for their account 'D
active banks reducing circulation
net decrease in the amount OF cllcu~'
secured by bonds during the yea!
$12, 3334 and the gross decrease III
total circulation was S4,Sol,-9
During the year forty-four PANS
organized, with an aggregate capt."
of $6,42O, 900. During the year sew ea
one banks went into voluntary i4'
ton. lid
There was paid to creditors OF In l1ls VI
banks during the year Sl3' lo9''ol
idends. The magnitude of tins uns4 =,
record. the report says, will be more +
bly illustrated if considered III TIC
of what has been accomplished n ,a ~
in the way of dividend paylne.S s,s
creditors of insolvent lllst''u"'s,9 Co.
1893 there was paid IN dl'iu ,oo, ssS
GAG: in 1894, s5,124,577; in loS ,So ~
$50: in 1896, 50, 451 $50, and m l loDn
169,7 S1, making total OF c ,ooe ~
within the five years from lo'| - ii
of $27 $50, 515, or 1914 per ce enon VI nd
dividends that have ever been pa
creditors Of insolvent banks. FROM
to 1897 there has been pald III ,S m
S75. 935. 925, and in the year en,, ne
this report $13, 169, 7S1, or Il 70 S p,r
Of al The dividends that have Ots o.,
during the period of thlrty-lo"ss Since
the existence of the system sore1
81 the end of the report vt"l ,n ouls
additional dividends have pe shonts
amounting in the aggregate to aO"'''
600. 49,, tost conf
statistics tsp relating to the world ID . pcs
s.at ton,s and the stock of gold sl .,e
paper currency. A very l4 4be pr d
t bap Of this statement is the ,e, p,' b
amount of each kind Of no ona;ta
anr ,nt,ies - named. The per eapr i
ages in the principal coU'l'''
world are as follows, ~. Tinted
United States, $25.7o o., IS. GGd
dom, S2O.G5; France @'E 60 33s aad
Go OK. Austria-HunSaTs'