The times. [volume] (Washington [D.C.]) 1897-1901, 1900-11-26
ACKNOWLEDGEMENTS
Comptroller Dawes Annual State
ment Ready for Congress.
Urges the Passage by Congress of
the BrOstus Bill. Which Provides
UpOn Loans by Banks 10 Their Of
Accrs-The General Cash Reserve.


The annual report of Charles G. Dawes.
c.,.r,,,,r ~ III. CURRENCY for the year
eoinp'io''ei VI Wv ,,o,,,
ended OCTOBER o. i'oo' HAS ''en ~
for TRANSMISSION TO congress- ne iepot'
starts with summary oil the reports
made during the year by the national
,,.n,,. in r.enonse tn tho call of the Comm
-, -. A., o,a,,., 70
foi'e'
sources Oh tne o.o'l hatiohai pahhs re
porting on September 8. 1900, to be S5,O4S,-
1es 400 % Retween the sentcmber call of
600 ,,a ,ooo -, ,a d;.o,,,r,s tn
49, 80 W., oo, .. a.
creaseo Si'o'oo''''i.4o- Inc ioanS anu uis-
counts on september o, l900, were S2.eso,
75s.64257. and individual deposits were
50 5os oss 5a7 "a
So, ,..,, .. .;,,,, ,,n,.s re-
pa 80 600 ooo
porting on september was $osv'-'''Vo'.
In the review OF the operations oil ma
tional banks under the currency act oil
March IA, 1900. the report shows that out
OF approximately l,ooo iniormai aPpica
tions for authority to organize nationai
banks, filed in anticipation oil and as a
result of the law, 500 have been made
formal and have been approved by the
Comptroller between March IA and octo-
Der 81, 1900. From the soy formal applica-
lions came S4S actual organizations OF
banks between March II and October 81.
Of these 34S banks actually organized. J2i9
were banks of less than $4,000 capital,
representing a total capitalization OF
$6.515, coo, and SO were banks which could
have been organized under the old law
with an individual capital of $50, GOO or
over, representing a total capitalization of
10000 coo. The bonds deposited to secure
circulation by these new institutions be-
tween March IA and October 81 was
s534S. goo or only about 20 per cent of
the maximum which might have been de-
posted.
The total increase in the circulation Sc
cured nv Government bonds of all ma
fional hanks in the system since March
IA 1900 has been $50 3542.0. The total
outstanding circulation on October 81
1900 was s331 6I3. 96S of which $40 ia 2ot
is secured nv lawful money and is in
nrocess of retireuent Tha total bond-
secured circulation ON October A 1900
was soeS 500 0s4
On October Fl 1900 there were 2 e35 ma
tional hanks in onerat;on with a conn
hined cani,al of ssso 50e 9a5 Tho com
bined resources of the national hanks he
ing over 81 600 GOO afO is greater than at
nny time here,ofore
In cornnlvinp with tho raou;remantr NJ
Sect;on e9s nroyidin. that tic Cnmn,roI-
Ter sbaII suggest amen5ments for the i'm
nroven,ert IF tho hanLing Law ba srst
ca1ir attention ~ tho 70 Of tb.t ,,rdar CO
,;nn ~ ~ 80 - IuI,, 20 1000 -,
-, ...ans;,, 70 .,,,, -, -
,ars 49, h. ara1,,o d h1 ~ co,,rtro,Iar
he &c limited Inv tho act "a ono artensfor
90 ,.an,y ,.oa, .., a,ro,;on
rrdar ,h;s so,t;or, a. .,,.r,r .. -o-
rationa, hantS We axtendad TO- 49,,
~ ,nan,y go. fro,,, ~ It, ~ 80
tion ~ tbeir f;rSt cbartar
Tho 6re, Of the ax,a,dad ob,r,ars nil,
.xn;ra ~, LII, =. 1000 "a ~. o,han
III, fo,inn, IN a,,a course T,a Co,,n,ro,
L. ,han sars
without sdd;,,ono, ,eo;s,a,;o, or,hor-
izing a further extension a bank desiring
to continue in business under the ma
sionai system whose corporate eA- Silence
70 vo into iion;dation AT tho e~nirat;o,,
of the period of It's extension and reor-
ganize as new association
This course will render necessary the
complete winding up Of the affairs of the
expiring pank, the retirement OF Its cir
cuia.ion, the "lthora"ai OF us ponos, ana
.ne issuing Vi ne" eer'ihcste OF autnor-
ny y! the comptroller, Win distinc-
s'e.s new ..Ie anu cnal'er NUMBER, as Is
r;..,,, .n He,u VIZ" .La an en.neis he"
e.a..A -, .ns 90
So. r,' " VIC AZ al
..e .ne oaae lam, WIN % aetiea ~,
cor. tn tss;sIo,;on hara;oaf,o an a. o,n-
mended would render nnnacessar,, ,hoso
stens which would no attended ,r;,b IN
conycnianro bo,b 70 ,ha h,,sinass ,,,,h,i,
and Tho han,s F'
II therefore resnectfu,,v recommend nm
amendment of sectinp of the ACT of JnIv
u 1852. authorizing the COMPTROLLER of
the Currency 20 extend for further
period of twenty wears under tho ccndi-
tions and limitations imposed by said act.
the charter of such expiring association
as may desire to continue in the national
banking system
uonux to Rank omc.rx
IT,, ,s. ,-,ror..,. -o.,u,,..,.-
haue ps the eohip'roiier' ana tnat winch
is the chief feature OF the report, is one
for additional restrictions upon loans to
directors and executive officers of hanks
The ComptrolIer states thai the large
nercentaye of hank failures .ttrihu, ahIa
70 eycessiye loans IN directors ana or
ce,e which amounted IN s;Y,y-tuo fai1-
ures or ~ nor cont of tho tot., fa;1nra.
of na,,opal hanks 1ed him m n careful In
res,iga,ion &c 10 all directors, Inans ro,,-
outstanding in tho pationa1 honts ~ ,ha
country
This Investigation showed that nm June
%. 1900. the date of the ComntroIJer,s
call for n statement of copdjtion from The
national hanks that of 2S zoo directors RI
national banks in the country is. 534 were
directly or Indirectly indebted to national
banks under their management.
The aggregate sum owed by these Is. 534
borrowing directors and 2.279 officers and
employees who were not directors was