The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1897-12-06
ECKELS ANNUAL REPORT
COMPTROLLER OF CURRENCY RE-
VIEWS SEYERAE MATTERS.

FlEWS SEF EhAL MAIIEhSs
Devotes Much Space to the Subject OF
Bank Note Circulation-The Returns
from Savings Banks-Postal Savings
Banks Large Increase in Depositors-
Loan and Trust Companies.
Washington, Dec. 5.-The annual re-
port of James H. Eckels, comptroller of
the currency for the year ended Octo-
ber 81, 1897, opens with review of the
history Of the legislation which consti-
tutes the present national bank act, and
invites the attention Of congress to
amendments to the law recommended
in former reports without specifically
repeating them. On the subject Of
bank note circulation the comptroller
says:
TT Is notable that in all the changes
which have been wrought in the nation
al currency act from its inception to the
present time the feature subject to
criticism, but which was intended should
constitute the principal benefit to be
conferred, has remained comparatively
unchanged, namely, the note issuing
function. Whatever justification there
was in the first instance for restricting
the issuing OF notes against the bonds
OF the government deposited with the
treasurer of the United States to 80
per cent. Of the par value thereof long
since ceased. In the report Of every
r,t1 oF
past twenty years the wisdom Of chang
ing the existing law so that the banks.
and through them the communities in
which located, might have the addition
al benefit of an added loanable capital
has been urged. Despite all this the
law still remains without amendments.
Not only should the bank act be amend
ed 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.
The total number Of national banks
organized since the date the first certi-
f1cate Of authority was issued on June
80, 1858, to the close Of the year lust
ended, was 5,059, making an average for
each year Of $50. On October 81 last
there were In active operation 3617
banks, having an authorized capital
stock Of 0,230, 295. The total out
standing circulation Of the banks then
operating was $229,999, $50, Of which
$2O2, ,994, ,555 was secured by bonds of the
United States and the balance by law
full money deposited with the treasurer
Of the United States. The total circu-
lation outstanding Of national banks on
October 81 was $3.50, 1890 of which
amount 81, SIS, 800 was secured by bonds
held for account Of insolver1t and Iiuui-
dating banks and $25,2O 1926 by lawful
money deposited for their account and
by active banks reducing circulation.
The net decrease in the amount of cir
culation secured by bonds during the
year was s12, ,5S4,33 and the gross de-
crease in the total circulation was $4,-
S51, 1872.
The 3,817 banks in operation are di-
vided geographically as follows: 5ss
with an authorized capital stock Of
$159, ,291, ,620 in the New England states;
956, with an aggregate capital stock Of
$195,124,275 in the eastern states; 546
with a capital stock Of $66, 761 300 in the
southern states: 1,O46, with capital
stock of $16O, O,163,S67 in the middle states;
375, with a capital stock Of $685. ,160
in the western states, and 124, with a
capital stock Of $17. .465o 900 in the Pacific
states.
Pennsylvania, New York, Massachu-
setts, Ohio. Illinois and Texas lead in
point Of number Of active banks. Ar
ranged according to capital stock, Mas
sachusetts is first with $94 1921, 800; New
York second, with $83, ,169, $40; Pennsyl-
vania third, with $75, ,193,390, followed
by Ohio with $45, ,235,967.
During the year just close forty-four
banks were organized, located in eigh-
teen states and two territories with an
aggregate capital stock of $4,420.0O0.
During the coming year the corporate
existence of twenty-three banks viii
expire, having a capital stock aggre-
eating s2,679,O0O and circulation
amounting to S1,032,975.
The number Of banks which went In
to voluntary liquidation during the year
was seventy-one, having capital stock
Of $9,659,000 and circulation Of 81, 729,040
A comparison with the report Of last
year shows the number Of banks to
have decreased sixty-two with a de-
| crease of capital stock of $11, 900, 500
There was an increase of sixteen in the
number of banks organized and thirty
three banks went into voluntary liqui-
dation. There has been an increase Of
ten in the number of receivers appoint
ed and decrease of nine in the number
of extensions Of corporate existence.
The loss through expiration Of charters
increased one, and the number organiz-
ed to succeed expiring associations IN
creased one.
OF the $685., ia shares issued on july
5, 1897, 5,464, ,037 are held by residents Of
the states in which the banks are To-
Gated, S73.037 by non-residents. of
which 21,729 are held by residents Of
foreign countries. The number owned
by women is q, ,418,542
During the year thirty-eight banks
were placed in the hands of receivers.
OF this number one has resumed busi-
ness. OF the total number of insoIvent
banks twenty-six were finally closed
during the year, leaving 127 still in pro-
cess of liquidation. The affairs of for
L