The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1899-11-29
oomntroller paRas, Report

The annual report Of Comptroller OF
the Currency Dawes contains some In
terestIng financial Information, cspec-
tally so are the features referring to the
condition of the national banks:
The number OF banks in operation on
September Z. 1899. was $685.. with paid
In capital OF $6O5. 772,91O. The Individual
deposits on that date amounted 10 R,4bO,-
I25, 6sS 81, and the aggregate resources to
1890 65 lS3 a. comparison Of the Sep-
TENDER returns with those made on Sep
TENDER 20, 1895, indicates an increase dur
ing the year IN individual deposits Of Al9,"
ri, O65 o.; in loans and discounts Of $780,
SO623 20: in amounts due from other banks
and bankers, Sl60, G0l ,Ss6 s.; In specie, 81
66, Us 4, and In aggregate resources, t645, :
SA.0SS 81. on September the net deposit
liabilities Of the national banks Of the
country aggregated 1901 .463,0l6 GS, oil
which a reserve Of $780, SIS %. or 29.Ss per
cent was held.
In recommending to Congress Inn
provements to banking laws, the comp
troller before making his chief and new
recommendation for a bond-secured
elastic circulation, repeats his recon-
mendation Of one year ago for law
providing for an unsecured emergency
circulation to lessen the destructive
power Of financial panlcs, and taxed so
heavily that under normal conditions
it must be retired and can neither pro-
vide profits for the banks nor serve as
a basis for the expansion of CONNER
ciai credits. He emphasizes the neces-
sity Of such circulation. designed, like
clearing house certificates. simply as a
remedy for a rare emergency and not
as an instrument Of current business,
repeating the words of his former re-
commentator as follows:
For the purpose OF allowing elasticity to
bRnk-note issues to protect the banks ana
the community in times Of panic, q smaH
amount OF uncovered notes IN addluon 10
the secured notes. should be authorized by
law under the following limitations: They
should be subjected to so heavy tax that
they would not be issued In normal times
for the purpose of profit, but would be
available In times OF emergency. The tax
should be so large upon the solvent Issuing
banks US to provide fund, which, In con-
nection with the pro rata share OF the
assets OF an Insolvent bank would be Sut-
ffcient to redeem the notes IN tull. with
out neceslstaung any preference OF note
holders over depositors Of any tnsotvent
as to force this currency into retirement
as soon as the emergency passes. Such
q currency could be used only 10 lessen
the evil effects Of the too rapid LIQUIDATION
OF credits which are collapsing under a
financial panic. but could not be ,prottably
used as a basis Of business speculation and
imitation.
In introducing his new recommends
ton, the comptroller then says that II
such law be not passed, a marked de-
gree Of elasticity is possible Of attain
nent in Connection with our present sys-
tenn Of bond-secured national bank
notes and should be provided for by
law whether the former law is passed
or not.
The comptroller believes that, in ac-
cordance with the Presidents recon-
mendatIon, national banks should be
allowed to issue circulation to the par
OF the United States bonds deposited by
them for circulation, and that. in con
nectlon with the law authorizing this,
provision can be made for secured
emergency circulation.
The object Of allowing the banks to
take out circulation to the par Of the
bonds is to induce them to furnish for
the use Of the public a larger amount
Of circulation than is In existence at
present. The present rate of profit to
be derived by the banks from their cir
culatlon is not suficIent to Justify them
In isulng larger amount. but any
method of increasing the profits on cir
culation will result In an increase.