New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-12-07

cont That element OF the currency when PAM ~
cree weeks TO the extent of 100000 In common t
parance. deposits were reduced 20 tnat ,he Interior
n the shortest form: In order to supply ,he @ for,
with the use OF medium Of exchange iop pc was
weeks 10 the amount OF ?23@VU, naanmmerciaI
wrought in the regular ongong OF our coi''"'
II is pertinent inquire whether tins is IN syer ns
Of which we are capable. Other countries oneit II
models which it may profit to study cer'a h,nS
is that perturbation in our anas to trade and
dustry Equally certain It is that In other
such pertubations do not result IN sni snstsms OF
disaster. | have said that foreign syS W. need
banking AFFORD objects OF profitable study WE para
moi co so far Forty years ago. before the purai
tive needs OF the Government repressed ,he hecome
deyelopmen. OF banking. there had aTeauy aIitno
established in several states banking scyrvces which
such Institutions should render to the public nn
iensiana and New Worthwhile differing from eaeh
other I'm many particulars and NOT equhny en- nuhItc
were all safe and substantially adequate w '
II js the general theory OF our Government Ina'
the largest liberty should oe os The welfare and
safety Of the whole may require; ana IN III n,rcnie
of banking 1t may be afhrFned tha' '"''
should be observed.
FAULTS OF THE PRESENT SYSTEM.
7 hog now to point out some OF the general liml-
tatlons and restrictions which Congress mas ,h l
posed in this department ana inquire "s ~
Justice wisdom and adequacy. ,,, rho iau,
l. As to conditions OF caPitalizatG9n' rne ur rew
requires minimum capital OF ,n ~ Tat,o aS bank
edent organization under tne N''io'iSS ,r and
Act While this would seem TO DE d i" r. 1 tho
moderate limit It Is undoubtedly 100 banking
facilities much needed ana ~ Is s,sEe ~ I'M ~,
for places OF population OF l"o Ut less ''' '''''
mum be reduced 10 $4,000. 49,
!? The National Bank Act clearly recognizes inc 10
mote issuing functiGn as sondons and limitations
imposed have under changing CONDITIONS oeu ,hI
sbsta ntlay prohibltive in their terms Inns ousnt
to be restuded. and as large liberty s ot,m ~
may be consistent with safety III the eNc'''se "
2 The law prescribes percentages which National
banks shall carry I'm cash against their pshaiI
and limits the amount OF RISK d wEn arm or
take I'm loans to any one Rulviu WIN saras seems
poration. The percentage or cash reserves - ,ho
10 have Justified in practice the provision OF tns NJ
to work with great inequality. The recommends
tlons Of the Comptroller of the currency on tns s
point TO be found in his report TO Congress laSt
wear merit careful consideration. II. l.,
soror w I directions no limitation has ever been
c,vcn as 10 the ultimate liability bank may carry
upon given VEN aUsn' capita stands legally as free
as ie does Does" the hank with 100000 capital Cash
bcase thrv AFFECT the immediate sovency OF the
hank The limitation of liability compared with
capitai and accumulated surplus affects the ability
81 the bank to bear It's own losses. Capital; loans
ana de dtSer "ed Everyhng else being equal the
measure Of risk is determined by the extent OF me ,
loans: and for the ultimate solvency or the pailh
as TO ITS deposits the capital OF the bank Is the
proper guaranty. The capital should, therefore
be relative and fairly adequate to the risks IN
It is mainly in the lack Of adequacy, TO public bile
repressve effect upon note issues destroys OF ~
iurlously limits OF its very important functohs
How in certain particulars this injury results
have tried truhfully to show. In view or the weak
ness and limitations which time ana experience
have brought under notice. efforts have been made
TO modify the National Banking act In the House
OF Representatives of the last Congress certain pls
were proposed embodying measures which beneve
would be effective toward needed REFORM. Ihese
measures in their general principles are approved
by the informed Judgment OF the most thoughttul
OF our people 1t s to be expected that they Will be
again offered for the consideration or the present
Congress Without indulgng in specific recon-
mendations at this time which II made could be but
mend the subject to the thoughtful attention OF the
legislative body.
The Secretary also reviews the work OF the
Bureau OF Engraving and Printing. the Internal
Revenue Bureau the Customs Marine Hospital
Secret Revenue Cutter Lighthouse, Life Saving
and Steamboat Inspection services the Coast and
Geodetic Survey, the Navigation Bureau and
other divisions OF the Treasury Department. The
report IS accompanied by elaborate tables.