The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-12-05


Northwest has only just COM nay a.
menced shipping south as yet. siaiys eur ~
Before this harbor can be "a ~ the c oas,
fully available even after thisz the burcoi OF
priat.on is made this ,rada .nihs 'he H'ea-' 81
Northwest and the new tpcussos the question
our Southern neshbos ant t oe S' IF ba
water viii bring a blocklidn of the country,
amount to almost prohibit 6 as v@oo e bis p rs
fic.
OF late the estimates OF wi'h s Of
ing days receipts of co.te,stem, some degree Of
daily by the Houston Gu sbosd + be m smoun
are promptly wireaae necessary for It's security
cities of the Unlto1'on the deposition ana thus,
and come Into ne OF its own prime objects.
price be o pnepies c ana be- res obsDod apa
Houston fway inconsistent with the nplnc +
ton in the As eoy cends fSae r seasf tic Views
IT., - ore expressed. the comptroller would
any otherie following recommendstlons in re.
sthe present laws governing the Issue
aging beional bank potes; .v.,o, base,
l,Iae ldeposit of government bonds as security
p"'eS I'd not now be abandoned
For the purpose of allowing eiasuelV !, 70
cottOnk- note Issues to protect the banks hnu
community in time OF panic, ,I 4 sii'g ~
' q secured notes. should by authorized ny
e nm under the Following limitations: They
OF tEould be subjected to 50 heavy tax ina "a,
mithe purpose OF profit, but would be asaiaplS
II in,g.. upon the solvent Issuing banks as e
piclido n fund which, in connection VIII, WIN an'
banl would be sufficient to redeem the note:
m. Ia full without necossiiNiing any preierega'
CO npe ,ssning bank rhe lax should ho 81
ANY large as TO .orce this currency into rcifemen
,aae Us s sGGa nS currency couIa be used only t;
sndy q ff credits s With zee casns
n ia fInanclai panic but could lot DO proiitael,
used ms a basis Of business speculation ant
r the nuIiitv what the clearing house oertificate
ssets nfe To- our cities in times OF panic-a remeo.
for mn emergency, not an Instrument OF cur
: W, we 'e The Comptroller under the head Of Iimta
p' II t ti q 6 IF the u' Satoaa SaSRns law
ar in which he VIII be given power to enforce h e. =
ssae rrohibiting excessive loans, something wnci
iona thc law does not at present eye. lie NE
- he harks Of larssr communities 10 have NOR
inder nearly the privilege of loaning q given pc
r se now belonEs under strict compliance VIII
and the present law. to the banks OF tho smaiie
fsII Referring TO the violations OF the presen
when Law, The comptroller says; ,da, mo rorer,
In re proyision OF the law providing for the for
I an felure OF the franchises OF nank ios , mr
PAM I'M caIe tie question OF tact as to such VIOLATIONS
4 he BIZ. could apply no other remedy than forfeit
share ure of franchise. ,,.,a, ,,,
me inr system the violation OF this PROVISION ma
80 heei common; and the comptroller, though
sS"'' ailoyiug no known violation 10 escape ~
the written protest, finds great ailnen,ty IN NJ
I'm .ndeayors 10 enforce this requirement.
mn on September 10 1885, the date or the las
ntIer call by the comptroller for statements " -
entIe condition OF National banks ia banks, con
er II stutlng nearly -thlra OF ane enie nsr'
uses excess of the limit allowed by section o-Vo
au ,S reylsed statutes Of the United states.
oder The comptroller then says;
and THE greater ratio borne by banking 70
sources 10 banking capital In the larger com
an ruunitfes as compared with the Ike ratio u
stire smaller communities, IL responsible lot th'
lied defective aud unequal working OF the pres
be n ent provision. s .. ,h. a,
40 ara 90 canital OF the forty-ssyen Nationa
,esti- banks Ia the City of New York Is as u y .
1; of the seventeen National banks ~ Chi
=, of cago as loa Is TO /; OF the six National oank
,nder in 81 Louis as rs Is to Il OF the 25I Ma
izcd tional banks In other reserve cities as ~ y
b By 10 /; while IN 1875 country banks the ratio
xten but as ~ is 70 1. 49,, =, -,
only The law limiting loans 10 ~ per cent OF IN
,osit, Genital when applied 10 the S25 banks o
any lie smaller communities Of the country, as
whole, would allow the loaning OF ~ Pc
s as cent OF their total assets 20 one indlyinaa 9
,e of AS compared with this the banks q the W.
spud OF New York, on the aseraSe eV",S ~ rs, Ia
rtant over fny-sIx ore-hubfredths OF pM ,csn
The Of their total assets 10 any one inoNiuusll
sub the bsnts Of Chicago no. over ninslyIeis !, a
and sets: the banks in st. Louie not over ~ Pc
cont OF their total assets: the banks Of otn
bern. reserve cities not over il per cent OF thei
total assets. -. :, 49, ..
es IL In other words. the PROPORTION Q, NIL M,ss
It's Gets which tho country banks OF me onlts
it 10 states can loan, In strict compliance VIZ
j by section $500. to one individual. Is sxsy-tnfe