The Mena star., 1898-12-07
BANKS AND CURRENCY.
CemptroIier Dawes Makes.Hls Annual Re- pcrt-Elasticity In Bank Note issues
 Touched Upon.

Touched Upon.
 Washington, Dec. 5--The annual re- port of Charles G. Dawes, comptroller of the currency, for the year ended October 31, 1898. has been sent to con. gress. With respect to the condition of national banks during the year, as shown by the five reports required from the banks, the comptroller says:
 Notwithstanding that the number Of banks in operation on September 2), 1898 is less than At any date of report since December 10. 1890 the amount Of individual deposits. loans and discounts and total resources is greater than at any time during the existence of the national banking system. On September 70. for the first time. the aggregate resources reached and exceeded the four billion dollar mark, the iu- crease since October 5. 1897. being s29s. .377.- Ss7 fd A comparison of the last returns with those cf October 5, ls97 indicates m increase during the year of s104 9J2 l89, q in loans and discountsi S59. s80 in government securities on deposit with the treasurer of the United States to secure circulating notes and public deposits and the amount held by the banks S57. .304 S21.34 in specie and legal tenders The reduction of T25 465, ,0J0 in the amount of United States certificates of deposit for legal tenders results in anet increase of lawful money of s3f. .s39. 7s4 On October 5, 1891, the deposits
 
 20 1898 s2,0n. n.4545a0, go the increase being E17a i05, 4l1.7a The balance due other banks and bankers shows an increase Of S52 627, sSS. % and United States deposits of s59,023, ,0l927.
 The comptroller discusses the ques- ton of the elasticity needed in bank currency. commenting upon the great elasticity of the check and draft cir culation of the country. In this con- nection, and as embodying his recom- mendations on this branch of his re- port, he says:
 The general principles and regulations under which such elactcity might be obtained not in any way inconsistent with the principles and arguments we have endeavored to set forth. As covering these general principles, and as a conclusion from the views hereinDe- fore expressed. the comptroller would make the following recommendations in regard. to she present laws governing the issue of national bank notes:
 1. The existing bank note system. based upon deposit of government bonds as security, should not now be abandoned.
 2 For the purpose of all owing elasticity to bank note issues to protect the banks and the community in time of panic, small amount of uncovered notes. in addition to the secured notes. should be authorized by law under the following limitations: They should be sub jected to so heavy tax that they could not be
 
 but would be available in times of emergency. The tax should be large upon the solvent issuing banks to provide q fund which, in connection with the pro rata share of the assets of an insolvent bank, would be sufficient to redeem the notes in full without necessitating any preference of note holders over depositors of any insolvent issuing bank The tax should be so large as to force this currency into retire. tneut as soon as the emergency passes
 The comptroller. while recommend ing that domestic branch banking should be legalized in communities of less than 2,O00 inhabitants, many of which are now unable to support in- dependent banks, opposes. the grant branch banking than these on grounds of public policy.
 The comptroller states that up to and including October 31, 1898, there have been organized 5,151 national banks, 23 per cent. of which have been placed in voluntary liquidation and less than seven per cent. in the charge of receivers. At the close of the year there were in active operation 3,59S associations with authorized capital stock of S624, 552, l95. The outstanding circulating notes of the banks on that date amounted to $239, 546, 2St, of which &210, ,045. 456 were secured by bonds, and the remainder--S29, 800. sa5- by lawful money on deposit with the treasurer of the United States for the account of liquidating and insolvent banks and those reducing circulation. The circulating notes outstanding are S9. 5S2, I'll in excess of the amount on October Sl, 1897.
 During the year there were organ ized 56 banks, with a total capital stock of So, 965, GOO. The number of banks leaving the system during the year by voluntary liquidation was S9. one of which was subsequently, placed in the charge of receiver. The capi- tai of the 6s banks which liquidated amounted to SIP, 5O9, 900 and the circu- 1ation to s. 1S4. 59S.