The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1898-12-05

WASHINGTON, Dec. 1.-The follow
ingIs synopsis of the annual report Of
Comptroller OF the Currency Dawes,
which VIII be submitted to Congress to-
morrow: With respect to the condition OF
national banks during the year, as
shown BY the Ave reports required from
the banks, the comptroller says;
MISUNDERSTANDING that the number OF
banks In operation on September 90,
1888, is less than at any date OF report
slnca December 10. 1890. the amount of
Individual deposits, loans and discounts,
and total resources Is greater than ut
anytime during the existence Of the ma
tional banking system. on September
4 90, TOR the first time, the aggregate re-
sources reached and exceeded the four
hlilIon-dollar mark. the lnerease since
october s, 1897, being S2OsS77,3a7 IS. A
comparison Of the last returns with
those OF October 8, 1887. indicates an In
crease during the year OF $104,952,lS9 "a
in loans and discounts; S19,l94, $50 In gov
eminent securities on deposit with the
treasurer Of the United StnteB to secure
circulating notes and public deposits and
the amount held by the banks; $6l,SO4,-
z S27 81 in specie and legal tenders. The
reduction Of SIS. 1885, 900 In the amount OF
United States certificates OF deposit for
legal tenders results In net Increase OF
lawful money OF $3i ,s3s.S27 "a. On Octo-
her 6. 1897. the deposits aggregated
1883, S49, l2S 80. and on September 20,
1893, S2,O3l, 1880 20, the increase being
Sl7S10S,4ll 79 The balance due other
banks and bankers shows an increase of
S52,627, 1888 % and United States deposits
Of SIS, 023,Ol9 q"
The comptroller states that he does
not review In their details the plans for
the modification OF the currency and
banking syetens, which are now the
subject OF economic and general discus
( sion throughout the country. but con-
fines his discussion to general principles
underlying all of them, because they
seem to ignore the interests Of bank de-
poSltors. with whose protection the
comptroller Is peculiarly charged. He
states that those plans which are now
most generally discussed may be con-
sldered as based upon the following
propositions:
First That the dispropOrtion between
outstanding currency liabilities OF the
government payable In gold and the gold
held for their redemption should be less
ened by a contraction in the amount of
these dernand-Currency liabilities.
Second. That the void In circulation
caused by such contraction should be
filled by an extension OF the circulation
OF national banks, which circulation rec
deemable in gold, Is ultimately to de-
pend for Its chief security upon tiTst
lien upon the commercial! assets OF the
Issuing banks"
He states that the assumptions which
seem 10 underlie these plans are these ::
First. That unless we are to have a
currency contraction, some radical ex-
tension OF bank note issues is absolutely
necessary to the securing OF the proper
adjustment OF government currency la
biiitle6 to It's gold reserve. by which adj
justment the greater safety OF the gold
standard ls subserved; and.
Z Second. That through this radical eS-
tension and change in the present form
OF bank note issues alone Is elasticity TO
be secured In our currency.
As opposed TO these propositions. and
in connection with the data given and
views expressed hereinafter relative to
changes In the present banking laws, the
comptroller states that his suggestions
are based upon the following assump-
tons:
"First. That there is existing no such
condition Of the United States finances.
revenues, or credit as to justly the
proposition that the shifting Of the bur-
den of gold redemption of outstanding
currency from the government to the
banks Is so important as TO necessltate
OF Itself radlcal changes and concessions
IA national banking laws relative 10 the
issue of notes, which changes and con-
ceasion6 would not be considered wise II
the interests Of the community. lrTe5pec-
tive OF government finances, were alone
considered
"second. That II. from considerations
OF general public policy, irrespective OF
+. governmental finances. bank note issues
secured only by commercial assets OF
Ranks eeem unwise. that the resources.
credit. and financial condition OF the
United States are such that by means OF
revenue laws and other amendments tu
law suggested by the President in his
last annual message, a safer ratio be-
tween its outstanding circulation and
gold reserve can be attained. the etablll-
~ Of the present gold standard Insured,
and the currency maintained upon a
sound basis without contraction"
The comptroller fully discusses the
claim that there IL an inherent moral
right, irrespective of public policy. to
prefer note holder over deposi;
holder In the distribution Of the assets
OF IN insolvent bank, and denies that
such right exists.
After reaching this conclusion the
comptroller then asks:
IF. then there Is no inherent moral
right to establish a preference OF the
notG holding creditors OF an insolyent
hank n8 against she deDOsit holding
creditors In the Distribution Of the assets
of an insolvent bank, the question
arises. docs public policy demand. In the
Interest OF the common good, that such
n preference should be given In order
10 establish a bank note system which
VIII give banks such a profit that TO Sc
cure 1t they Will relieve the United
States treasury Of the burden OF gold
redemption and afford the country 4 cir
culatlnR medium having alleged adyan-
fages over that now in use?'
The comptroller then presents a series
OF tables which Indicate more exactly
upon what class Of deposltors the real
burden OF this preference will fall with
almost crushing weight.
These tables give approximately the
loss which under the proposed plans
would result to deposltors from the pre-
ference Of note holders over deposit
holders In case OF insolvency based
upon the showing made by the 1876 In
Holven; national banks whose affnlrr
have been finally closed during the eX.
istence OF the system.
For tho purpose OF these tables Il Is
assumed In the case Of each class OF In
solvent banks that their officers woult
have made the same Droporilonnte LOSSES