Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1899-12-04
ENORMOUS INCREASE
IN BANKING ACTIVITIES OF THE
COUNTRY.
REPORT BY COMPTROLLER
Old Recommendations for Means Of
Greater Elasticity Renewed Inter
colonial Banks Now Declared to be
DISQUALIFICATION of the per Cent.
Tax on Circulation Advised.

washington NOV. ZS-1n MS annual
report for the year ended Oct. 81, 1899,
Chas. G.. Dawes. comptroller of the
currency, says the number of banks in
operation Sept. Z, 1899, was 1886, with
a paid-in capital of $605, 772,970. The
individual deposits on that date
amounted to $2,450, 1851, and the
aggregate resources to $4,650, 355, 1873. A.
A comparison of the Sept. returns
with those made September 90,
1898, indicates an increase during
the year in individual deposits of
SAILS, 271, 055.02; in loans and discounts
of $340, 789 ,62320; in amounts due from
other banks and bankers, $160,391,-
S96.68; in specie, $44, 697, 225.44, and in
aggregate resources 646,844 088.57.
Sept. 7 the net deposit liabilities Of the
national banks of the country aggre-
gated $3,031 1858, 01668, on which a
reserve of $500, ,825. 80 or $29.38 per
cent. was held. The composition of
this reserve was as follows: Specie,
$685., 571, 1888. S3a legal tenders and
fr.,iteu states c3rtrscates of deposits
for legal tenders $127, io4, 651; due fron
reserve agents, $414, ,660.44; rel
demption funds with the treasurer of
the United States $40, 116,130.63.
The comptroller repeats his recon-
mendation 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-
tions it must be retired and can neither
provide profits for the banks nor
serve as a basis for the expansion of
commercial credits. He emphasizes
the necessity of such a circulation, de-
signed, like clearing house certificates,
simply as a remedy for rare emer-
gency, and not as an instrument OF
current business. The comptroller
says that if such a law be not passed
a marked degree Of elasticity is pos
sib1e 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 a secured emergency circula-
ton.
The comptroller believes that the
levying of a tax of one-sixth of one
per cent. upon circulation to 80 per
cent Of the par of the bonds and al
lowing the banks to issue currency to
the par of the bonds by paying tax
at the rate of 2 or per cent per an
mum on the excess up to the par When
outstanding, will result in the desired
increase in our general bank note is
sues, and provide marked degree OF
elasticity in our circulation. He be-
lieves that from the passage OF laws
offering, as suggested, the rate and
method of taxation Of national bank
notes, an increase of at least $1O0,O0O,-
900 may be reasonably expected. Based
upon our present bond-secured bank
note circulation, which amounts to
about $207 100000, and this added
amount, we would have, under such
laws an available bond-secured emer-
gency circulation of at least 3O,O0O,0OO.
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 communi-
ties of national banks with capital
of $25, 900. He repeats his recommen-
dation of one year ago relative to
modification of the law restricting
loans to any one individual to TO per
cent. of the capital of a national bank.
and advises the attaching of 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
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