The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-11-28
OF THE cMoPTR0lER
1T HAS BEEN PREPARED FOR
TRANSMISSION To CONGRESS.
Review of n Operations of Ma
tionaI Bsnks Under the Act of
March IL, 1Doo-Banktng Law
Amendments Are suggested.

annual report Of Charles @ Dawes. comp
frpiier Of the currency. for the year end
ed October 81. 1900. has been prepared for
transmission TO congress-
The report starts with a summary OF
the reports made during the year by the
national banks in response 10 the call OF
the comptroller. which shows the aggrc-
gate resources of the ash national banks
repairing on September :. 800. to be
S. ss. f1s. &C., Between the September
eaIl Of 1893 and Ee cans and discounts
increased tl70.cps .ssi. &C. The loans and
discounts on September s, 1900. were 81
O.. 1887. and individual deposits were
81. 90. PAS .557.53.
The capital stock Of national banks
reporting on September 5 was 800 .sa ,0so.
In the review OF the operations OF
national banks under the currency act of
March IL. 1900. the report shows that out
Of approximately 1000 Informal appiica-
lions for authority 70 organize national
banks. filed IN anticipation OF and az a
result OF the law, 80 have been made
formal and have been approved by the
comptroller between March IL and octo-
Der 81, 1900. From the Se formal appiica-
tons came 3S actual organizations OF
banks between March II and October n.
or these sss hanks actually organized, 80
were banks OF less than t53.eo capital.
representing a total capitalization OF 81
575.0o, and ninety mine were banks which
could lave been organized under the old
Law with an individual capital OF 5000 or
over. representing a total capitalization
Of s10.eo.e1. The bonds deposited to se-
between March ia and October u was
&.ats, DO. or only about 90 per cent. OF the
maximum which might have been depos-
tied.
The total Increase I'm the circulation Sc
cured by government honda OF all national
banks I'm the system since March IA. 1900.
has been *. s5t.g7D. The total outstanding
Ga. ss, OF which So. IA. as Is secured by
lawful nancy and is tn process OF retire.
ment. The total bond-secured circulation
on October 81, 1900. was t2gs. sz2 .oS4.
ON October n, 1900. there were s.sas ma
tionai banks In operation, with a COM
bined capital OF tss2so2sS The com
bined resources OF the national banks be-
ing over 100000 Is greater than at
any time heretofore.
Banking Law Amendments.
In complying with the requirements Of
section -. providing that the comptroller
b suggest amendments for the i'm
pruycurenf OF the banking law, he FIRST
calls attention 10 the fact that under sec
tion ! Of the act OF July II. isss. under
which extensions Of national bank char
tefs may be granted by the comptroller.
he Is limited By the act TO one extension
OF twenty years duration.
Under this section the charters of III
national banks were extended for a term
OF twenty years from the date Of expira-
ton OF their frst charter.
The FIRST Of the extended charters will
follow in due course. The comptroller
then says
Without additional legislation authorize
nv = ,nsansr sat.nsson, = eank desiring
system whose corporate existence has
been cnce extended will be compelled TO
80 into liquidation at the expiration OF the
period OF Its extension and reorganixe as
"A NEW A%Hf-ANNtNns
This course will render necessary the
complete winding up Of the affairs Of the
expiring hank. the retirement of Its ctr
cuiation, the withdrawal OF It's bonds. n
the issuing Of a new certificate Of au-
th0rity by the comptroller. will n dis
tinctively new tttie and charter number.
as ia at present the case with an en-
tirniy new organization. While the re-
organized association might continue to
practically the same stocsholders. al.
feetors and officers. the legislation here
matter recommended would render I'M
necessary these steps. which would hs
sttraded with Inconvenience both 10 the
business nubflc and the hanks.
! therefore respectfully recommend an
July . i~s, authorizing the eomptroner
Of currency to extend for a further period
Of twenty years under ths conditions
snd hsniia'ians imposed by said act. the
charter Of such expiring associations ~
may desire 90 continue In the national
banking system.
Hestrtction. rpea Leans.
The most important ommsnAa,i
made by The comptroller, and that which
~ the chief feature ~ the report, 4. one
Ter additional restrictions upon beans to
directors and executive ofhcarx ~ banks.
The comptroller states that the large per-
eenfaxp 81 bank failures attributable 10
excessive inans 70 directors and nffesr.
wh<h amounted II sfxty-two failures or
~ Ser esat q the total failures ~ ma
.sna, ean.s ~ nm 20 q careful lnvesti-
stanting 10 the national banks of THE
y tse, the aats ~ the eonaptronsrs cal
for a statement ~ condition from ire
national banks. that % Me- directors ~
nAtlenal tanss IN the country $3.50 were
tiaual banks under their management
The aggregate Fam gv I'd nv fhess
1884 h~nrrewtnE directors and ag-a arleers
and .Enpsoyes who we're rot directors was
sa& ~ 81 A. the eapltai stock a ths
nsttanAt nesss % the country on rsrs
= was tStA& ~ z fafinss That the direct
Acerr ~snaogmfsd 70 2& per eent. or about
enS-thsrh ~ ttH capital Thase fsrerf as
ln3irgei liabilities " directors ana afsSers
a-uoanlea 20 rs neF cent n ~ sessi
esn# ana ~dssepunt% q the rational Nya-
fNe Comptroller thsn sAya
Wnila these Tables 81 nat sseeasa.,v
s~ni.oNts that natlenNl eansing omssrs
AHsa directors a. 4 whats ahtsap tAefv
EFtvfivwsas sHa nsaHy - tS~Ae frnrs~s.
issme are snasng Ne safest a~nea ~ fh@
~eTs6tfNF banks. thE e1napt~altsr h@fssse.
tsa tables shaw ftsarfg fhe efeat stu.
rnFtasre - 8 pruxTFsx Framed law pfsc.
tM& AJtftteH&a FFstffE&sams &ns nafe-
guards MeSWnt these h8amA o. wnsrh tsm
ese&rf~ur~ ~ the bzHksnN system teaee@.
= taspsvs5 Ne g~rssssss tsngeT - tse i'm.
preTzf ana lax uNe - ksnkfue flns.
The ta9aFe - trR rrrss1f las Is rre-
wide i've n@ssr 60 AHaty = fMmagfr fm~
tAe asskin@ - excessive haAms Ngwsst sas4
esahB Tr4eaee tAH r-eFHRfrt3ee tn s~8ys4Ar
~ cNRsA tFN8FNst aa fnWkrt rrresexa.
fsas IN loAHfnN. snssh psas Is Fka asss.
nt8fA rNtN - q fna q tasgtsmtiau
TEN Pas limiting MzaMs 80 81 Ear mxmt
- t@s NtssfaA wtVu Nrg'ssss 10 fAn .sa
A3nka % fNn ensAf1ef e~swmuuttsax - ~.
eantrN a. = wArse wsff saaaw a..
t4aafaN ~ 10 Ter taaA. ~ tkaeF tesAt a.
sets So erN fssttNNFasl A. eeaaaarps ~th
sN@ M&mk@ ~ sMs estN % Nm@ vasA
7e tE& KNafagv. casHt pof hNaw HfaY !
ss1yas~rru Nrehartsu4fks ~ 1 ~ ~ers
- thvsf setsi 4seefs 90 aey css fn fYAf
gra hankN - EnNakN HnA ever aevensr
eeas hAMlS*ashs r@E neat ~ fheir tnaAf
tMe Aamks - Sc Emae aas nesr
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