The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-11-26
34S new BANKS
Have Been Established Uuder
New Currency Law.
A Total capitalization Of SO,
100000 Represented.
REPORT OF C. G. DAWES
Total Circulation Has Increased
So, 454,27O in Same Period.
Important Changes in Banking
Laws Recommended.

Washington, Nov z6.-The annual report
of Charles G. Dawes, comptroller of the
currency for the year ended October 81,
1899, has been prepared for Transmission
to congress.
The report starts with a summary of the
reports made during the year by the ma
tfonal banks in response to the call of the
comptroller which shows the aggregate
resources of the 1871 national banks re-
porting on September 5, 1900 to be s5,04s,-
I3s, 499 %. Between the September call of 1889
and 1900 loans and discounts increased
$40 COS, Ss1. 46. The loans and discounts on
individual deposits were 81, oOS. z4S. 557 5S
The capital stock of national banks re-
porting on September was $500. 299 03o.
In the review of the operations of ma
tional banks under the currency. act of
March IA 1900 the report shows that out
Of approximately one thousand informal
applications for authority to organize ma
tional banks FLED IN aannd5itSlpauen OF aaa
formal and have been approved by the
comptroller between March a and OctoDer
came 34S actual organizations of banks
between March IA and October 81 OI
were banks of less than $4,000 capital,
representing a total capitalization of
S. 575, 600, and SO were banks which could
with an individual capital of $4,000 or
Of $40 600. The bonds deposited to Sc
cure circulation by these new institutions
between March IA and October 81 was
* 34s go. or only about 80 per cent of the
maxinum, which might have been de-
The total increase in the circulation Sc
cured by government bonds of all ma
tional banks in the system since d MaT rS
standing circulation on October 81. 1900,
was 1881, 613, 268, of which So, ,2o4 is Sc
retirement. The total bond-secured circu-
lation on October 81, 1900, was $298, 1923 064.
on October 81, 1900, there were 1895 ma
tionaI banks in operation, with a COM
bined capital of $632. 502,3 92- me combined
resources of the national banks being over
s., 600 100000 is greater than at any time
In complying with the re quirements of sec
ton $685. providing that the comptroller shall
suggest amendments for the improvement
of the banking law, he flrst calls attsntlon
of July II. 1882, under which extensions of
national bank charters may be granted
by the comptroller, ne IS limited by the
act to one extension of twenty years du-
ration.
national banks were extended for term
of twenty years from the date of expira-
ton of their first charter
The first of the extended charters win
expire on July H. 1902 and the others will
follow in due course The comptroller
without additional legislation authoriz-
ing a further extension, q bank desiring
to continue in business under the national
system whose corporate existence has
been once extended will be compelled to
go into LIQUIDATION at the expiration of the
period of its extension and reorganlzed as
a new association
complete winding up of the affairs of the
expiring bank, the retirement of its circu-
lation, the withdrawal of its bonds, and
the issuing of a new certificates of author
ity by the comptroller, with a distinctive
" new title and charter number, as is at
present the case with an entirely new
ORGANIZATION. While the reorganized as
ISOLATION might continue to be in all re-
spectS the same bank, with practically
the same stockholders, directors, and Off
GERS. the legislation hereinafter recon-
mended would render unnecessary these
steps, which would be attended with in
convenience both to the business public
and the banks.
1 therefore respectfully recommend an
amendment of section / of the act of July
r. 1882 authorizing the comptroller of
currency to extend for a further period
of twenty years, under the conditions and
limitations imposed by said act, the char
ter of such expiring association as may
desire to continue in the national banking
system.
RESTRICTIONS UPON LOANS.
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 per-
centage of bank failures attributable to
excessive loans to directors and officers,
which amounted to g. failures, or IT per
banks, led him to q. careful investigation
as to all directors loans now outstanding
in the national banks of the country.
This 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, 709 directors of
national banks in the country 1854 were