Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1899-11-30

Chas. q. Dawes comptroller OF the
currency, says the number of banks in
operation Sept, :. 1899, was $685., with
a paid-in capital of S605,172,970, The
individual deposits on that date
amounted To 2,450, 795, 595,Sl. and the
aggregate resources To St6S0, S55, lSS,44
\ comparison of the Sept, returns
with those made September 20,
1925, Indicates an Increase during
the year in individual deposits of
Sp9,2IL05S,0s; in loans and discounts
of $40, 1S9 6gS 70; in amounts due from
other banks and bankers, Sl60S9l.-
S96,GS; in specie, Si4,691 ,22S.l4, and in
aggregate resources S6i6,Sti. 0SS,67,
Sept, the net deposit liabilities Of the
national banks of the country aggro-
gated S3,0Sl 1853. 0l66S on which u
reserve OF $500, 56S, $3.50 or seas per
cent, was held. The composition of
this reserve was MS follows; Specie,
S35S, al SS3,SS; legal tenders aud
| United States certificates Of deposits
for legal tenders Slg1, ,o4,6Sl; due from
reserve agents, Sill,126 66o,A; re-
NNAANINA'At AhhNN W iNH WV iAthShiNi w
the United States S0,ll6,l S06S,
| The comptroller repeats his recon-
mendatiun OF one year ago for law
| providing for an unsecured emergency
circulation to lessen the destructive
power of financial panics, and taxed
SO heavily that under normal condi-
tons it must he retired and can neither
provide profits for the banks nor
serve rs a basis for the expansion OF
commercial credits He emphasizes
the necessity OF such circulation, de-
signed, like clearing house certificates,
simply rs n remedy for n rare emer-
gcncy, and not rs an instrument OF
current business. The comptroller
says that II such law he not passed
n marked degree OF elasticity Is pos
sible of attainment In connection with
our present system OF bond-secured
national bank notes and should be pro-
vided for by law whether the former
law is passed or not He believes that
in accordance with the presidents
recommendation, national banks
should be allowed to Issue circulation
to the par of the United States bonds
deposited by them for circulation, and
that, In connection with the law
authorizing this, provision can be
made for secured emergency crcula-
ton.
The comptroller believes that the
levying of tax OF onesixth Of one
per cent, upon circulation to 30 per
cent, Of the par OF the bonds and al
lowing the banks to issue currency to
the par Of the bonds by paying a tax
ut the rate Of or 3 per cont, per an
mum on the excess up to the par when
outstanding, viii result In the desired
increase In our general bank note Ia
sues, and provide marked degree of
elasticity In our circulation. He be-
IeVes that from the passage of laws
Offering, as suggested, the rate and
method OF taxation OF national bank
notes, an Increase of at least 800, 900, :
900 may be reasonably expected. Based
upon our present bondsecured bank
note circulation. which amounts to
about 1907 600, 600, and this added
HIl'uht' w "bhih luN'p hhh'l buNl
laws, an available bond-secured emor-
gency circulation OF at least $50 900, 900,
Among other recommendations, the
comptroller strongly urges laws
authorizing the incorporation OF banks
for the purpose Of carrying on inter.
national and intercolonial banking as
distinguished from domestic banking.
He also recommends laws authorizing
the establishment In small communl-
ties OF national banks with a capital
OF $4,000 He repeats his recommen-
dalton OF one year ago relative to a
modification OF the law restricting
loans to any one individual to 10 per
cent. Of the capital Of national bank,
and advises the attaching Of a penalty
for making excessive loans after the
present section Is modified.
The object, he says OF allowing the
banks to take out circulation to the
oar 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 circulation is not sufficient
to justify them In issuing a larger
amount, but any method OF increasing
the profit on circulation Will result In
an increase. II is true that the
authorization Of an issLe ofcurrency To
the par Of the deposited bonds. subject
to the present rate OF tax, is one
method Of inducing larger cir
culation, but 1t Ia not the
only method. by modification OF the
present rate Of taxation on bank
notes, coupled with the authorization
Of issues To the par u the bonds, the
same Inducements can be offered for n
larger circulation and yet provision
be made for secured emergency circu-
latiUn
The comptroller. therefore. recon-
mends legislation authorizing the Is
suance OF national bank note circula-
ton TO the par OF the deposited United
. States bonds and that the additional
10 per cent. circulation thus allowed
the banks be subjected to tax at the
rate OF or per cent. per annum for