Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1900-11-29
WANTS BANKS SAFE.
COMPTROLLER Dawes Suggests REFORMS
in Managing Them.

COMPTROLLER Dawes Suggests heIoT n1s
in Managing Them.
The annual report of Charles "
Dawes. Comptroller of the Currency, TOT
the year ended Oct. 81, 1900, starts VIII
a summary of the reports made during
the wear by national banks in response
to the call Of the Comptroller, Whlcn
shows the aggregate resources OF lug
S71 national banks reporting on sept.
s. 1900, to be $5,04S, 13S, 1922. Between
the September call of 1899 and I9OO loans
and discounts increased $17O,0OS,59l 40
The loans and discounts ON sept. -
1900, were $2,6S6, 759, 642.57, ana lnoi-
yidual deposits were $2,5OS, 24S, 90 90.
The capital stock of national banks re
porting on Sept. 5 was 5000, 299,03O be
tween March IA and Oct. 81, loUo, $40
banks were organized, 249 being OF less
than $4,000 capital The report says:
ss,The total increase in the circulation Sc
cured by government bonds of all nation
al banks in the system since Marcn ~,
1900, has been $50, ,27O. The todai
outstanding circulation on Oct. 81, l9Uo,
was 1881 ,613, 26S, Of which SoZ, lo4'zo4
is secured by lawful money and IS IN pro-
cess of retirement. The total bonuse-
cured circulation on Oct. 81, 1900, was
$29S, 1929, Co4. On Oct. 81, 1910, there
were 3,9o:, national banks In operation
with combined capital of $632, ooz,oSo.
The combined resources of the natlonal
banks, being over $1,000, 100000, is great
er than at any time heretofore.
The most important recommendation
made by the Comptroller, and that winch
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 OH
GERS, which amount to 81 failures, or IL
per cent Of the total failures Of national
banks, led him to careful investigation
as to all directors loans now outstanding
in the national banks of the country.
The investigation showed that on June
20, 1900, the date of the Comptroller's
call for a statement of condition from
the national banks, that of %, 100 direc-
tors of national banks in the country, 49,,
534 were directly or indirectly indebted
to national banks under their manage
ment, the aggregate Of these sums being
$500, 2S7, AL.
The Comptroller urges the passage of
the Brisius law to regulate these condi7
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
Comptroller says the, present need is a
provision which will enable large banks
to loan 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-.
ton of this section as to 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 time Of making said
loan.'