New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-11-26
cities as is TO I; while in the $500 country banks

cities as is to I; while in the $500 country banks
The law limiting loans to 10 per cent of the CANT
TAI when applied TO the 400 banks " the smaller
low the ioanns Of 6 per ee as "a , TnGe would al
TO one individual As compared with this the banks
loan over fy-seNen one-hundredths Of e 0e eot
% az 96i o the 0Ieng9dredths pei
III per cent al their total assets the ha T,ke
other cities not Ll0 per cent Of her
whch he country hans topTr44n OF their
States loan, IN strict compliance with Section
OF / per cent greater than in 266 reserve cities
than In 81 Louis over twice az great as in CRi7soo
and nearly three times as great in the city of
The Controller states that in his Judgment The
present provision when properly altered, should al
neary thf pTes OF one on nHaag given per cent OF
longs under strict compliance with the present
provision to the banks of the smaller communities
From this privilege they are now debarred by law.
He suggests that after the words, in Section $50
amount Of capital stock OF such association ectl-
ally paid in. the following words:
20 the amount Of liabilities TO any associatioa
ct any PeT ,@sv sh not appiy Where OF
loan in excess of oneteuth pert OF the capital stock
sna he less s ' h e Of makng said leans ad
loan shall be at al! times Projected by collateral
cess in the amount of said loan over one-tenth of
striSt penalty enforceable by the Controller
should then be provided for n IN, Of the
hn nntroer 10 successfully enforce general ana
strict compliance with its terms.
THE GENERAL CASH RESERVE
The question Of those laws which affect the right
% one National bank to consider cash resource
a deposit in another National bank, called its re-
eerv4 agent : az great Importance and involves
the mo. snmsr Of 1899 there occurred MARKED
administration of the evil effects Of this practice
{haI 1fnf s- none in the interior of the COUNTRY
a--G+ ha section dlfnrult
safely loan their funds a a result the interest
paid by Eastern reserve agents upon deposit bal
ances at:racte1 immense surplus 10 New York
and other Eastern cities This redundancy Of
money in New-Yofk and the East and the ease
with which loans upon speculative coiiatersls were
movement in stocks. which was carried on with a
constantly rising range OF prices until the fail of
@ tine he srqp s m2y s in int the Wes and nd
lIrrarcv ae against these ha iances II is 70 be
noted that the time these demands took place
The business Of the country in a prosperous
general prices and in the wages of labor. There
was lack Of confidence in the country and moth
demand by the hanks OF the West for the ship
resulted in panic upon the Stock Exchange Of
New-York VIII b instantly became grave menace
The Controller believes thar under the present
law regarding reserve cities too great latitude IS
now given the banks IN connection with the use
Of the reserve the primary object OF which Is the
protection Of the depostors Of the banks, and he
rrecoume7ds that amendments to the laws be
passed requiring that larger proportion OF the
reserve should be kept in cash in the vaults of the
bank
!. is therefore recommended that Section 5I92 Of
the Revised Statutes OF the United States he
amended that under its provisions but one-hfth
instead OF threefths OF the of 10 per cent
required by law to be kept by banks not reserve,
agents may consist Of balances due 10 reserve
banks. and that Section 51b OF the Revised Stat
utes ot the United States. which authorizes banks
in smaller reserve cities 10 keep one-half OF their
lawful money reserve in balances in central reserve
cities be repealed.
Among other recommendations the Controller
strongly urges laws regulating International and
interCoonial banking distinguished from do
nestle banking and prints in an appendix the re-
suit Of investiEa tions into banking conditions in
Porto Rico Hawaii and the Philippines