Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1900-11-26
OUR CURRENCY.
Annual Report''of Comptroller
Charles G. Dawes.
ADVISES Restrictions on Loans to or
fcers Of National Banks.
ALSO FINED SALARIES FOR Ma
TIONAL BANK EXAMINERS.

Washington. Nov. .5.-The annual
report OF Charles G. Dawes comptroli-
cr of the currency for The year ended
October, 81. 1860, has been prepared for
transmission to Congress.
The report starts with summary
of the reports made during the year
by the national banks in response to
the call of the comptroller. which
shows the aggregate resources Of the
3s7t national banks reporting on Sep
iember Z, 1900. to bc S5,0fs, 1876 49,. 30
Between the September call of 1899 and
1900 loans and discounts Increased
Sli0oos. S.l.AG. The loans and discounts
on September >. 1900. were s., Gs6 1Ja =
G42..,. and individual deposits were
g, -oS, 2iS. 551.53. TIE capital stock OF
national banks reporting on Scptem-
Der ) was 5000. 299 go.
In the review Of the operations Of
national banks under the currency act
Of March II. 1900. the report shows
that out of approximately 1000 informal
applications for authority TO organize
na tionai banks. filed in anticipation of
and Us q result of the law. 800 formal
applications came 34s actual organiza :
tons Of banks between March II and
October 81. OF thcse 34S banks actual
~ organized. 2i9 were banks OF Jess
than 10000 capital. representing 4
total capitalization Of $40. 800 600. The
bonds deposited 10 Sccurc circulation
by these new institutions between.
March IA and October 81 was s5,3is. zoo,
or only about 80 per cent. of the maxi
mum which might have been deposited.
The total increase in the circulation
secured BY government bonds of al.
national banks in the system since
March ~. 1900. has been Ss2. i5i. 21a.
The total outstanding circulation on
october II. 1900. vas 1891 .si3. 2sS. Of
which So. Isi.ei is secured by lawful
money and is in process Of retirement.
The total bond circulation on
October 81, 1900. was s29S. s2aoSt.
on October 81. 1900. there were 1885
national banks in operation with Il
combined capital OF s532 ;0l 5a5. Tie
combined resources OF the national
banks being over s5ce9. 900 .oee - great
er than AT any time heretofore.
In complying With the requirements
III section a-5;:3;. providing that the comp
trolier shall suggest amendments FOR
the Improvement Of the banking law.
he first calls attention to the fact tho.
under section 81 the act Of July T..
49,. under which extensions Of nation
al bank charters may Dc granted by
the comptroller. he ~ limited BY the
act to one extension Of 20 years dura
ton. Under this section the charters
Of 1851 national banks were extended
for a term of 80 years from the date of
expiration OF their first charter. Tbs.
FIRST of the extended charters Will ok
pire on July II. 1892. and the others
will follow in due course. The comp
troller says:
without additional legislation au-
tEorizing 4 further extension. bank
desiring 10 continue in business under
the national system whose corporate
existence has been once extended VIII
l.. compelled to 90 into liquidation at
the expiration Of the period Of its OK
tension and reorGanize rs u now assO-
citation.
This COURSE Will render necessary the
complete winding up Of the affairs %
the expiring bank. the retirement 81
its cfrt uiarion. the withdrawal " its
bonds. ana the issuing 81 a new certIfi-
cate If authority by the comptroller.
with a distinctly new title and charter
number. AS Is at present the case vita
an entirely new organization, While
the reor-an!zed association might con-
tinuc TO b. in ell respects the same
bank. with practically the same stock
holders. directors and officers. the leg
...F- Ina Ffssf
world render unnecessary these steps.
which would be attended with incon-
veuicnce both to TIE business public
and the banks.
therefor. respectfully recommend
an amendment Of section 1 Of ihe act
OF July l. isSs. authorizing the comp
trolier Of the currency TO extend for 4
further period Of - years. under the
conditions and limitations imposed BIZ
said act the charter of such expiring
association AZ may desire ID continue
III the national banking system
Ths. most important recommends rioH
made by the comptroller. and thar
which IS the chief feature OF the report
IS ono foT additional restrictions upon
loans to directors and executive eff
GERS Of banks The Comptroller states
that the large percentage OF bank fail
urna Attributable to excessive loans to
directors ard officers. which amounted
10 S. failures Or II ger cent. Of the
total failures OF national banks, led
him to j careful investigation ~ TO All
directors loans now outsta ndins in the
national banks Of the country
This Investigation showed that on
troIler's call for statement OF condi-
tContinuetI On page 81