Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1897-12-09
CURRENCY REPORT.
Comptroller Eckels Makes His Re-
port for the Year.
HE EAvORS A BANK NOTE ISSUE.
Thinks 1t VIII BE Always Commemorate
with and Responsive to Trade Demands
Governmental Currency a Source
of Weakness.

WASHINGTON, Dec. 6.-The annual re-
port of James II. EclSels, comptroller
of the currency, for the year ended oc-
tober 81, 1897, opens with with 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
recommended in former reports with
out specifically repeating them. On
the subject of bank note circulation,
the comptroller says:
In thereport OF every comptroller Of the cur
rency during the past 20 years the wisdom OF
changing the existing law so that the banks,
and through them the communities In which
they are located, might have the additional
benefit OF an added loanable capital has been
urged Despite all this the law still remains
without amendment Not only should the
bank act be amended in this particular, but
congress should seriously consider such
change in the method of bank note issues as
Will enable the banks Of the country to more
adequately meet the demands of trade and
commerce in all sections OF the country.
Between the competition OF the government
note issues on the one hand and the unneces-
sary restrictions imposed by law on the other,
together with the increasing price OF bonds re-
CURED to be deposited as security the note
issuing function Of the banks has been permit
ted to become merely an incident TO the con-
duct OF the national banking associations Of
the country 1t 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 n
course is not to be over-estmated The expert
ence of every government has been that gov
ornamental currency paper is a source of weak
ness and danger. In the United States, where
there mas been the nearest approach to success,
with the volume OF the federal paper compare
lively limited In amount, the credit of the gov
eminent has been more than once put in
jeopardy through it, and the business interests
OF the country subjected to unnecessary loss
and confusion.
The argument that the government better
than the banks, can provide for the redemp-
ton of paper note issues will not stand the
test of n careful analysis The government has
no means of caring for its demand liabilities
except through borrowing and through the
levying of taxes, Upon the other hand the
banks have assets which can be promptly con-
verified into cash to meet their outstanding
notes when presented Their ability to COM
mand gold has always been beyond that of the
government, for in each financial exigency
which has confronted the government the
banks have furnished to it the amounts neces-
sary to maintain its solvency. It is impossible
to believe that with system of bank note
issues, based in part upon securities and in part
upon bank assets, the country cannot be pro-
vided with sound, safe and elastic bank note
issue, always commensurate with and respon-
sive to the demands of trade.
The total number of national banks organ
lied since the system was put into operation. in
1863 is shown to have been 5000 On October
81 last there were in active operation 3,6i7,
having an authorized capital of $500, $50, 295.
The total outstanding circulation Of the banks
then outstanding was 5000 199 $50 Of which S202,-
99i, 555 was secured by bonds of the United
States and the balance by lawful money de-
posted with the treasurer of the United
States. The circulation outstanding Of all ma
tional banks on October 81 last was 1880 1871, 0O5
of which amount Sl,55sS0O was secured by
bonds held for account of insolvent and lqui-
dating banks and $40, POS, 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 1854, 1874 and the gross decrease
in the total circulation was A s51 202
During the year ID banks were organized,
with an aggregate capital stock of 50, 420 900
During the year II banks went into voluntary |
liquidation
The report contains the latest COM
piled statistics relative to the worlds |
monetary systems and the stock of |
gold, silver and paper currency. A
very interesting feature of this state.
ment is the per capita amount of each
kind of money in the countries named.
The per capita averages in the princi-
pal countries of the world are as fol-
lows: United States, $23.7O; United
$2O.65; France, $S46S; Ger
many, 1885; Austria-Hungary, SO. SO,
and Russia, 1885,