Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1900-12-04
WANTS BANKS SAFE.
Comptroller Dawes Suggests Reforms
in Manayinr Them

80 -tAaA0s~Ah6 AANAAs
The annual report of Charles G..
Dawes, Comptroller of the Currency, for
the year ended Oct. 81, 1900. starts with
a summary of the reports made during
the year by national banks III response
10 the call of the Comptroller, which
shows the aggregate resources of the
1871 national banks reporting on Sept.
., 1909, TO be 81, 04S, 13S, 1929. Between
the September call of 1899 and 1909 loans
and discounts increased $170,00S, 1871 AZ.
The loans and discounts on Sept. ),
1900, We're $2,6S6,759, 642.57, aud ildi-
vidual deposits were $2,50S. 24S, 557.53.
The capital stock of national banks re-
porting on Sept. was $3.50. 299, o30. Be
tween March II and Oct. 81, 1900, 34S
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 ali nation
al banks in the system since March IA,
1900, has been So, 454,270. The total
outstanding circulation on Oct. 81, 1900,
was 1881 ,613, 26S, Of which $50, TS4. 204
is secured by lawful money and is in pro-
cess of retirement The total boRd-se-
cured circulation on Oct 81, 1900, was
SOS, S29.064. On Oct. 81, 1900, there
were 1895 national banks in operation,
with combined capital of S632, 502, S95.
The combined resources of the national
banks, being over $1,000, 100000, is 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
10 excessive loans TO directors and Off
GERS, which amount to g. failures, or IL
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
, 30 1890, the date of the Comproller's
! call for a statement of condition from
the national banks, that of %. 700 direc-
tors of national banks in the country Is,
'534 were directly or indirectly indebted
to national banks under their manage
ment the aggregate of these sums being
$202, 2S7 AL
The Comptroller urges the passage of
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
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 a 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"