Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1898-12-08
CURRENCY REPORT.
Comptroller Dawes Makes his An
nual Report on Banking Matters.
ELASTICITY IN BANK note ISSUES.
The COmptr0ller Wants Power to Enforce
= Penalty for Excessive Loans by
Bankers- Banks ORGANISED
anu Liquldated.

Washington, Dec. 5-The annual re
port Of Charles G. Dawes, comptroller
Of the currency, for the year ended
October 81, 1895. 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 com ptroler says:
Notwithstanding that the number OF banks
In operation on September q, iSs8 /, less Than
at any date OF report since December 10, 1880
the amount OF individual deposits, loans and
discounts and total resources Is greater than OF
any time during the existence OF the
national banking system. On September
~, for the first time, the aggregate
resources reached and exceeded the
four billion dollar mark. the In
crease since October 3. 1897 being 2ps.377. :
8TH A comparison OF the last returns with
tiose Of October 5, 1871, indicates On increase
auring the year OF lO4. W.. ls9 II In loans and
discounts. go. l0L3sO in government securities
on deposit with the treasurer OF the United
States to secure circulating notes and public
deposits and the amount held BIZ the banks
S734s2I3i In specie and legal tenders. The
reduction Of 25,48i,0N In the amount OF United
States certificates Of deposit for legal tenders
results In net increase OF lawful money OF
t31, $780, 827 "a On October :. 1881 the deposits
aggregated n, 3 s. $40 l2S 10, and on September
~. 1875 2Oil.4jt5il!0 the increase being
sl78, 1O5, ill7l The balance due other banks
and bankers shows an increase OF s52, o u, 388 on
and United States deposits OF 5a023, 0l92Z
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 recon-
mendations on this branch Of his re-
port. he says:
Tho general principles and regulations under
| which such elncticlt; might be obtained are
not In any way inconsistent with the principles
and arguments we have endeayOred TO set
forth. As covering these general principles.
and as conclusion from the Views herelnbe-
fore expressed tho COMPTROLLER would make
the following recommendations In regard to
the present laws governing the issue OF national
bank notes:
|. The existing bank note system, based upon
ueposlIol government s oonas ~ SECURITY snou'o
Nv I Eor the tn n"rnose a., MI ownu ea.ttctv tn
bank note issues to protect the banks and the
community in time Of panic, small amount Of
uncovered notes IN addition 70 the secured
T,os saouu ~ nou shors a"Se'
iected To- SO heavy Tux that thew could not be
issued In normal times for the purpose Of profit,
but would be available In times Of emergency.
lne lux snoua 0e ~ ,arse "pV Sne s,s ~
convection with the nro rata share Of the assets
Of an insolvent bank, would be suficent to
redeem the notes in full without necessltatins
any preference Of note noaers I we aeposso,s
bs 90 In rss as tn torco tbis currency into retirs-
ment as soon as the emergency passes
The comptroller, under the head of
Elimination of Loans" urges an amend.
ment to section $500 OF the national
banking law by which he will be given
power to enforce personal penalty
for infractions OF the law prohibiting
excessive loans, something which the
law does not at present give.
During the year the comptroller has
extended over the cities OF New York,
Boston, Philadelphia and Baltimore
The sysem Of semi-annual visitations
by examiners, in force in all other sec.
tions of the country. He has utilized,
with some benefit, the examiners in
Investigations into the credit OF heavy
debtors Of banks, where such indebted.
ness constituted q menace to the safety
of the banks, and where despite the
criticisms of the comptroller and the
efforts Of the bank officials, no material
reductions in the amount OF the in
debtedness could be had.
The comptroller, while recommend
ing that domestic branch banking
should be legalized in communities OF
less than 1000 inhabitants, many OF
which are now unable to support In.
dependent banks, opposes the grant
ing of any more liberal privileges of
branch banking than these on
grounds Of public policy.
The comptroller states that up to
and including October 81, 1893, there
have been organized 5l5l national
banks, IS 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 3,5s5
associations, with authorized capital
circulating notes OF the banks on that