Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1900-12-05
WANTS BANKS SAFE.
Comptroller Dawes Suggests Reform
In Managing Them.

Scmptrolier Dawes suggests kcforUs
In Managing Them.
The annual report of Charles G.
Dawes, Comptroller Of the Currency, for
the year ended Oct. 81, 1900, starts with
summary of the reports made during
the year by national banks in response
to the call of the Comptroller, which
shows the aggregate resources of the
1871 national banks reporting on Sept.
.. 1900, to be $5,04S, 13S, 1929. Between
the September call of 1899 and 1900 loans
and discounts increased S1To,0oS, 39l. 46.
The loans and discounts on Sept 3.
1900, were S2,6S6, T59, 642.57, and indi-
vidual deposits were 2,50S, PAS, 557.53.
The capital stock Of national banks re-
porting on Sept. was $3.50. 299 .030. Be
tween March Ia and Oct. 81. 1900. 84S
banks Were organized. 249 being of less
than $4,000 capital, The report says:
The total increase in the circulation Sc
cured by government bonds Of all nation
a. banks in the system since March IA,
1900, has been $50, 454. 270 The total
outstanding circulation on Oct. 81, 1900,
was 1891 ,G13, PCS, OF which $50, 9S4, 204
is secured by lawful none, and is in pro-
cess Of retirement. The total bond-se-
cured circulation on Oct. 81, 1900, was
$29S, 1923, 064. On Oct. 81, 1900. there
were 1895 national banks in operation
with a combined capital of $500, 502, 49,
The combined resources Of the ~adonal
banks, being over $5,000, 100000, 40 great
er than at any time heretofore"
The most important recommendation
made by the Comptroller, and that which
is the chief feature Of the report is one
for additional restrictions upon loans to
directors and executive officers of banks.
The. Comptroller states that the large
percentage of bank failures attributable
to excessive loans to directors and Off
GERS, which amount to 62 failures, or II
per cent of the total failures of national
banks, led him TO a careful investigation
as to all directors loans now outstanding
in the national banks Of the country.
The investigation showed that on June
%, 1900, the date of the Comptroller's
call for a statement of condition from
the national banks, that of 2S, 900 direc
tors of national banks in the country, 49,
534 were directly or indirectly indebted
to national banks under their manage
ment, the agg- rate of these sums being
$500, 297, AL.
The Comptroller urges the passage Of
the Bris4us law to regulate these condi-
tons. This bill provides that no ma
tional bank shall loan to Its officers or
employees until the proposition shall have
been submitted in writing to the directors
or executive committee and approved by
a majority of the members.
In dealing with the subject of loans the
Comptrolle~ says the present need is
provision which will enable large banks
to l0an more nearly the same per cent of
their total assets which the present pro-
vision allows to smaller banks.
The Comptroller suggests the follow
ing change in the law; THAT the restric-
tion of this section as 10 the amount OF
total liabilities to any association of any
person, or of any company, corporation,
or firm, for money borrowed shall not
apply where loan in excess of one-tenth
part of the capital stock shall be less
than 2 per cent of the total assets of
said bank at the line of making said
loan"