The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-12-06
MIUM REPORT OF ECKELS.
eEnOH0LY RECOMMENDS An I've
OaEAsE n BANK CIRCULATION.
- Ce0DtrolIer, ~ Inplicatis.-
Aleo Advocates the Retireaest of
Al OutsaanAing Greenbacks and
othe9 Hote Issues Of Government.

WA0HIN0TON, Noe. 5.-The annual
eeoott u James II. Eckels. comptroller
- t0e currency. for the year ended octo-
oer ., III, opens with a brief review or
ne history OF the legislation which con-
etttutes the present national bank act,
ana Invites the attention OF congress TO
e@e00msnts TO the Law recommended ia
4oemer reports. without specifically re-
Ueatdng them
On the subject OF bank note circulation.
the Comptroller says.
~ = noticeable that In oil the changes
W01cn nave been wrought in the national
currency act, from It's inception 10 the
present time. the feature subject 10 eriti-
GSeny out which was intended should con-
eutute the principal benefit TO be coz
4esSeos mas remained comparatively uEa-
en4Q4eo--nameiy, the nols-issuing func-
tio0. Whatever justification there was
- tho nrsi instance for restricting the
Issuing Of notes against the bonds OF the
of the United states TO 50 per cent. OF the
RNE Be1ue thereof, long since ceased.
AZ the reports Of every comptroller Of the
Ge5Iency during the past twenty years,
- that the banks. and through them the
communities In which located, might have
the additional benefit of an added loan
able capital. has been urged.
Despite all this the Law stiil remains
yitnout amendment. Not only should
the bank act be amended In this particu-
~ out congress should seriously con-
etoe9 such change in the method OF
bank note issues as Will enable the banks
- the country TO more adequately meet
the demands of trade and commerce IN
~ sections Of the country. The husl-
neas Of banking. like every other form
q Investment. must be made attractive
81 capital. II 1t is placed upon foot
tng different from other undertakings.
embarrassed through unnecessary restric-e
xf0nn nf al
prOntt the result cannot be otherwise
than that investlble capital Will seek other
means Of employment, and 10 this extent
regulate to commercial activity. /, Is
considered by every great commercial
government, except the United States.
20 b. the sole province of the banks To-
1neue paper which circulates as currency.
The belief in a bank-noie currency as
oeinT better and safer than a govern
pant paper currency, proved unauestloned
~ this country until. after the apparent
exiS0ncies Of the war. the government I'M
Gertook TO issue paper currency. Even
under such circumstances the promise was
always given. however. that IL should be
retired at the earliest practicable mo-
ment. and the admission made that IL
laa neither wise measure nor safe
form OF currency.
Hetwcen the competition Of the govern
ment issues on the one hand. and the un-
necessary restrictions imposed by law on
the other. together with the increasing
prices OF bonds required to be deposited
. security, the note-issuing function OF
tho hanka had been permitted TO become
merely an incident to the conduct Of Iia-
t1Qnal banking associations OF the coun-
Try. 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 instead. The danger of
such course Is not to be- overestimated.
Tho experience OF every government has
been that government currency paper IL
source Of weakness and danger. In
tbs United States. where there has been
the nearest approach 10 success with the
volume OF the paper issues comparatively
limited In amount, the credit OF the gov
eminent has been more than once put In
jeopardy through II. and the business In
terests OF. the country subtesed to un-
necessary loss and confusion. The argu-
ment that the government. better than the
banks. can provide for tn, the redemption OF
o. careful analysis. The government
has no means for caring for Its demand
liens except through borrowing and
other hand. the banks have assets which
can be promptly converted into cash and
meet the outstanding notes when pre-
aTheir ability to command gold has al
ways been beyond that OF the govern
ment. for In each financial exigency
which has confronted the government the
banks have furnished the amounts neces-
eaYy 10 maintain Its solveney. II is Inn
possible not to believe that with a sys-
tenn OF bank note Issues, based In part
upon securities and IN part upon bank as
sets. the country can be provided with
the sound. safe and elastic bank note Is
sues. always commensurate with and re-
tponsive 10 the demands of trade, The
Hank OF England, the Bark Of Scotland
and the Bank OF Ireland have been found
80 be ample In their resources To provide
the INTO issues for Use IN the trade %
the United Kingdom. The same IS true
Of the Bank Of France, The Deutsche
Reichs bank. or German Imperial bank
has for more than twenty years issued
bank note paper against assets. which
have maintained the value and been so
controlled az 10 successfully meet the
commercial needs.
The comptroller calls attention "a the
method of organization Of this bank and
publishes some interesting statistics In
connection Herewith.
The total number OF national banks ses~
kanixed since the system was put into ope~
ration In 1854 Is shown 10 have been COS
On October 81 last there were TN active opa-
ration a,siT, having an authorized capital
Of eg.fN go ssss. The total outstanding. circu-
tation of the banks then outstanding was
t.se iso $50. of which seos esi. $50 was secured
by honda of the United States and tho bal
ance by lawful money deposited with the
treasurer, Tae circulation outstanding on
October ! last was SOS. lsl noS Of which
amount 81. SIS. $40 was secured Ivy bonds held
for account OF insoivent and iiaudatiag
banks and sec -. ~ by lawful money do.
posted for their amount and by banks re
nucing circulation. The ne, decrease IN the
amount of circulation secured by bonds
during the year was sie. ast asa and the
gross decrease In the total circulation was
N.MI .2as. The ASH hanks IN operation sre
divided geographically follows: Five
hundred and eiehty-eigki with an author.
ICED capital stock of sI6a sgi 90 in the New
England states; a6g with capital stock %
biaS issss5 In the Eastern states: st6 with 8
rapitai stock OF $sS. sei s9 IN the Southeast
ern states; f,eis with capital stock ef slice s.
no aGt IN the middle states g. with 8 cart
tai stock Of 81. e5t iec I'm the Western states
and lss with capital stock Of 81. Es,l osee in
the Pacific states,
During the year fcrty-fou= banks were
organized. With an aggregate capital stock
Of s. 60 600.
During the year seventy~ens banks went
into voluntary liquidation. There was paid