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

force in all other sections OF the country lie
hes utilized with some benefit the exam,
liners IN investigations INTO the Sreuu 81
eduus constituted n menace to the salnlN OF
the hanks and who're dpspite the criisisms
Of tho comptroller and thu efforts OF re
bnuk officials, no material reductions n tho
amount OF the Indebtedness could be had
DOMESTIC BRANCH BANKING.
Under this head the comptroller, while re
ccmriending that domestic branch banking
should bo icgall4ed In communities OF 'ess
than eooo inhabitants, many OF whlch are
| now unable to support independent banks OPP
| leLes of branch bHuklng than these, on
! grounds OF public policy.
| Sucl privileges would place the larger banks
! OF the great cities in competition Win ne
hfrkg of smaller communities, and would
probably result in n rapid Capitalization OF we
barking business OF the couptry Ia the hands
of constantly leesening number OF insttu
tons. Theoretical advantages are cialinee
f0r such results, but in our judgment tAIy
would be injurious TO the best interests OF our
courtry. 49,.
ties Ia the way OF tho small borrower, though
lessening them for tho larger borrower. II
would tend to separate tho borrower from me
lender, ~ II wond of necessity remove tue
central lending power from the small Dor
rowers of small communities.
1t may be claimed that the agents IN charge
OF tho branch banks would possess the same
powers OF loanng the officers OF tht
smaller banks now posscBs; but such argu.
mcnts ignore the prevailing tendencies OF
uouern corporate management winch mag.
nlfy of necessity central responsibility. ana
constantly tend to subordinate TO rigid sys-
tens. tho activities ana Responsiveness VI
agents upon detached duty.
FOREIGN AND COLONIAL BRANCH
BANKING.
in connection with this branch OF his report
the comptroller discusses mt length the neces'
slty for the establishment of International
4 l.. gla.ta ,ra
the disadvantages, as compared with foreign
trade, under which American export and Inn
poet trade now labors rs result OF inferior
banking facilities, and shows that these same
Disadvantages are a serious hmdrnnce to the
adjustment OF our trade relations to the new
advantages afforded by territorial expansion
In this connection he discusses the Hawaiian
and Porto Rcan banking ana trade situh'
The foundation for the greater growth OF
trade between the United States aud her col
ones must be speedily ana ii , daia ~
enabling her merchants TO 90 business WIN
ihs people OF the colonies without the dlsad-
ypntngos existing At present
our present National banking laws do no
authorize the establishment OF American IN
terrGiional or American inter9oiohiai i, nhhhs
branch 10 a territory or colony such as Porte
Rico or Hawaii, even u our present laws uh
changed were extended over H.
While It. ~ questionable whether congress
should legalizc the establishing OF foreign OF
colonial branches by National banks trans.
actnp business under tho present law, thai
II should Mt least pass lnws authorizing
under proper restrictions. the general incor'
poration OF banks organized 10 carry on in
ternationaI and interc0louial banking. as dis.
tinguished from domestic banking, admits OF
no reasonable doubt;
81 the American exporter aud importer IN his
trade with Americas own colonies, VIII DC
4 seS TO- N sns all so S
| and IN many othor markets OF the world, he
now lObors IN bis composition MIN foreigners
| enjoying superior banking facilities.
| HIS Recommendations n connection with
I this branch Of his report are made rs follows;
1 The determination Of ths relation q any
| usw banking system TO the existing banks
/ aud domestic credits OF Porto Rico. differing
| as they do from those OF this country, IN.
pro ;siops for the appointment OF com
! mission especially charged with INC eSaminn-
lion Of ths conditions o. son as w psaht Ing
[ Recommendation OF tbs proper form OF laws
| ia connection herewith, is respectfully urged
In view OF tho conditions and necessities Of
! our trade with our new territories OF Porto
| Rico aud Hawaii and with other South Ameri-
! car countries as we'll as with those other ter
| rltories over which our country must eNer-
| DIS. more or icss extended measure OF con-
| ths rlssaRe Of laws authorizing the incorpora-
i tien OF banks organized for the purpose OF
I carrying on international and intercoonal
The Comptroller states that
! Up TO and Including October 81. 1893. there
| I,aye been organized 5l5i National banks. 23
7 psr cent OF which have been placed in vol
,ntary liql idatton and less than per co
In the charge OF receivers. AZ the close OF
The wear there were IN active operation 1898
! asgociationg With authorized capita stock OF
,sgs 81. rs The outstanding circulating notes
OF the banks on that date amounted u go
fts2si OF which s2i0e45 as were secured by
tonds. aud tho remainder es. tQc, s25--oy Law
fui mcney on deposit with the treasurer Of
The Upitei States for the account OF iquldat,
ing ard II solvent banks and those reducing
circulation. The circulating notes outstand-
ing ARC s9,ss2,11 IN excess OF the amount on
/ October 81. 1897
! During the year there were organized fifty
fjx banks with total capital stock Of se.cs5.-
! Coo
I during the year by voluntary liquidation was
| gixty-pine one OF which was subsequently,
placed In tho charge OF receiver. The cap