The Dalles times-mountaineer. [volume] (The Dalles, Or.) 1882-1904, 1897-12-04

| Totals. als..................12939 $50 15 1.O
The percentage of failures of national
banks, which for the most part are for
the exclusive use of the larger de.
| positors, is seen to be considerably
smaller than for any other class. The
percentage of failures is highest for
sayings and private banks, the class of
institutions with which persons OF
small means are most likely to come in
contact. These figures, therefore, give
| direct force to the statement COM
monty heard that the government does
more for the rich than it does for the
poor.
The figures as to percentage of fail
ures, however, do not tell the whole
story. Since 1868, $50 national banks,
or about 81 per cent of all created,
have failed. The average percentage
Of dividends paid to creditors of
national banks whose affairs are en-.
tirely closed is about Is per cent. The
reports of state banks failed since 1863,
so far as information concerning them
could be secured by the comptroller,
show that 1872 such insolvent banks
paid dividends to creditors of less tEan
25 per cent and over, but less than so
per cent; 1874 paid so per cent and
over. but less than Is per cent; 128
paid Is per cent and over, but less
than 100 per cent, and 15S banks paid
100 per cent. While the average divi-
dend payment of insolvent national
banks, therefore, was 10 per cent,
nearly as many insolvent state banks
paid less than so per cent dividends as
paid that amount or over. The divi-
dend payment of insolvent private
banking institutions are smaller yet.
but the figures cannot be given with
accuracy. In many such cases the
creditors have received nothing what.
ever. Not only, therefore, are there
fewer failures of national banks than
of other banking institutions, but the
percentage OF loss to creditors is
smaller in the case of insolvency of
state or private banks.
Workingmen ought to be provided
with some safer place of deposit for
their small savings than banks of
which more than one in the hundred,
on the average is likely to fail every
year, especially when the class of
banks with which workingmen have
dealings are won't to fail so disastrous.
ly when they do succcumb. By estab-
fishing postal savings banks the gov
ernment could provide for all persons
of small means an absolutely safe place
of depo sits, so that hereafter bank
failures need not be source of terror
to small depositors.
OF the $50 national banks that have
failed since the beginning of the sys-
tenn the accounts of 142 had been
closed on October 81, 1896, for which
the comptroller of the currency gives |
the following figures:
Total claims proved. s41, 500, $3.50;
total dividends paid, $50, ,933, 1854; total !
losses, SIC, 1859, 1859. At the same ratio |
the total losses for the entire $50 |
national banks failed between 1863 ard |
1896 probably would approximate $685.
OO0, 600.
1t is difficult to estimate what may
have been the losses from failures of
other than national banks for the same
period. but the amount very greatly
exceeds the losses by national bank
failures. For the year closed Aug. 81,
1896. there were failures of ITO state
banks and trust companies, sayings
,anks and private banks, with the as.
'ets of S7,447, $40 and liabilities of
-, ia ,102. On the face Of the figures
his statement shows a loss for the
ingle year of nearly $4,000, 600, which
n reality will be greater, as the assets
probably will shrink before final settle
nent is made. For the panic year of
893 the number of failures reported to
he comptroller was 26l banks with
lominal assets of S54, 1926, 500, and
liabilities of S46, 1855, ,s1S, upon which
ividends had been paid in 1896 to the
of S17 .912. .29O. The most at
ractive feature of the postal savings
ank system is that panic years, like
theirs, would psss without loss to de.
ositors.
In his report for 1896 Comptroller
,ckels publishes figures giving failures ,,
8 reported to him for the years 1S64-96,
which the totals are as follows:
lumber of failures, 1924; nominal as.
cts s2l4, ,312, 100; liabilities, 1920. $780,
3S; dividends paid at time of making
eports, 800, loss, ,726.
1t is inevitable that there should be
ome bank failures. But every con.
Iteration of prudence and statesman
nip demands the strictest government
lpervision in order to make the losses
'om such failures as small as possible.
,r the savings of the poor the govern !.
lent should make provision for abso-
lte safety by establishing postal banks. !.
he small depositor is entitled to
etter protection than the record of
Iilures shows he has received during
,e last thirty years.
Should there be any attempt to re- t
re the gpeenbacks at the coming ses. e
II a. T. Il