Union County courier. [volume] (Elk Point, Union County, D.T. [S.D.]) 187?-1913, 1897-12-09
ECkELS MAKES p O

Reviews National Banks Favors
Amending Note-Issuing Law.
The annual report of James HI. Ecket-,
Comptroller of the Currency, for the year
ended Oct. 81. 1897, opens with q 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 have been wrought In the national
currency act from its inception to the pres
ent time the feature subject to criticisnnv
but which was intended should constitute
the principal benefit to be conferred, has
remained comparatively NEUTRALITY-SUSPICIOUS.
y. the note-issuing function. Whatever JUS
tilca alton there was In the hrst instance for
restricting the issuing Of notes against the
bonds Of the Government, deposited with
the Treasurer Of the United States to ~,
per cent. OF the par value thereof. mas 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 then!
s m,ss communities nsn. It'll .d IL wslsh n they ar. re !. loc: :ss.
ed loanabie 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 q change
In the method of bank note issues a. VILE
enable the banks OF the country to more ade-
quately meet the demands Of trade and COM,
merce In all sections OF the country.
It 10 considered BY every great comrnerciar
government, except the United States. to bs
the sole province Of the banks to issue the
paper which circulates 40 currency. The
nvNA a. n AA-l -A> ..~.~~~- nn At0~
better and safer than a government paper
currency prevailed nEquestioned In this
country, until. under the apparent exigen-,
eies OF the war, the Government undertook
circumata noes the promise was already CIV
EN-, however. that 1t should be retired At the
earliest practical moment. and the
freely made that 1t was neither . WISE
measure nor q safe form of currency.
Between the competition Of the Govern
ment note issues on the one hand and tho
unnecessary restrictions imposed BY law MP
price : Of bonds 'r rseuirea ton to be .D depoeited 81
security. the note issuing function Of the
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 hank note issues be hone away with. and
ell paper he Issued by the Government In,
stead. The danger Of such q course Ia not to
I've OvereStimated The experience Of every,
government has been that governmental cur
rency paper II a source Of weakness and
danger. In the United States, where there
has been zen the ne. ~ approach to success.
naratively limited In amount. the credit Of
the Government has been more than once;
put In 5eopardy through It. and the business
cssary loss and confusion.
The argument that the Government better
than the banks can provide for the redemp-
ton OF paper note issue will not stand the
fn0t ~ n ~ a RoHvuv N1vr>4 NA
has no means for caring for its demand labil-
titles. except through borrowing and through
the levying OF taxes. Upon the other hand,
the banks have assets which can be prompt
~ 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
$685.. On Oct. 81 Inst there were in act
i've operation 3,617, having an authorized
capital Of $500, 23O,295. The total out
standing circulation OF the banks then in
operation was 500, 100, 1880. OF which
500, G94 81 wal 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 nll national banks ON
Oct. 81 last was $3.50, 131 ,OO5, OF which
liIIVuIL T4tONbo,COV WIS 6CCufGU ny UVuu8
held for account Of ins0lvent 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 CALCULATIONS
secured by bonds during the year was
$12,5S4,33 3 and the gross decrease in the
total circulation was $4,S51,292.
During the year forty-four banks were
organized. with an aggregate capital stock
Of $ ,420,O0O. During the year seventy
one banks went into voluntary Iiquida-
ton. a
There was paid to creditors Of insolvent
banks during the year $13, 169, 7S1 in div
idends. The magnitude Of this unequale6
record, the report says, will be more forci-
bly, illustrated il 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 $3,4333,-
GAG; in 1854. $5,124,5777; in 1895, $780,
552; in 1896, So ,451 1853, and in 1897, $13,-
1863, 7S1, making a total Of dividends paid
within the five years from 1893 to 1897
of $277 ,3G0.515, or 3GA 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. 025, and in the year embraced in
this report $I3, 169. 7S1, or II 1-3 per cent.
OF NIL 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 $626,-
Geo.
The report contains the latest compiled
statistics relating to the worlds monetary
systems, md the stock OF gold, silver and
paper currency. A very interesting fea-
tule 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
word are as follows:
United States. $28.70; United King,
dom, $20.65: France, $34.G8: Germany.
$1S.05; Austria Hungary, $0.3sa. and Rua-F
sia. $500.
The Comptroller renews his recomuen>
datioi. Of Iast year. urging that natalaI
bank examiners be paid An nnnu9a mla61
instead o4 tees - noW.