Hot Springs weekly star. (Hot Springs, S.D.) 1892-1917, 1900-12-07
WANTS BANKS SAFE.
comptroller Dawes Suggests Reforms
Ia Managing Them.

Comptroller Dawes euggests Refor,na
Ia Managing Them.
The annual report Of Charles g.
Dawes, Comptroller Of the Currency, for
the year ended Oct. 81, 1900, starts with
. summary OF the reports made during
the year by national banks in response
to the call Of the Comptroller, which
shows the aggregate resources Of the
3.S71 national banks reporting on Sept.
8, 1900. to be $5,04S, ,13s, 1920. Between
the September call Of 1899 and 1900 loans
and discounts increased $17O, O,0O8, ,391. .48.
The loans and discounts on Sept. s.,
1900. were $2,6S6, ,759, ,842.57, and indi-
vidual deposits were $2,508,24S, ,557.53.
The capital stock of national banks re-
porting on Sept. was $3.50, ,299, ,O30. Be-
tween March IA and Oct. 81, 1900. 348
banks were organized, 249 being Of less
than $4,000 capital. The report says:
'"Ihe total increase in the circulation Sc
cured by government bonds Of all nation
al banks in the system since March IA,
1900, has been $S2, ,27O. The total
outstanding circulation on Oct. 81, 1900,
was 1881, ,613,26S, Of which $32, ,7S4, ,2A
Is secured by lawful money and is in pro-
cess Of retirement. The total bond-se-
cured circulation on Oct. 81, 1900, was
sos. .S29,O64. On Oct. 81, 1900, there
were $685. national banks in operation,
with combined capital of $832, ,5O2 ,395.
The combined resources Of the national
banks. being over s., 600, ,OOO, 600, 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
directors and executive officers of banks.
The Comptroller states that the large
percentage of bank failures attributable
to excessive loans to directors and off,
GERS, which amount to 62 failures, or IL
per cent of the total failures Of national
oanks, led him to careful investigation
as to all directors loans now outstanding
In the national banks of the country.
The investigation showed that on June
70. 1900, the date Of the Comptroller's
call for statement of condition from
the national banks, that of $3.50 direc-
tors of national banks in the country, 49,.
b34 were directly or indirectly indebted
to national banks under their manage
ment, the aggregate of these sums being
$2O2,2S7,441.
The Comptroller urges the passage Of
Tue brlsllls law to regulate these condi'
ttons. This bill provides that no na.
tional bank shall loan to its officers OF
employees until the proposition shall have
been submitted in writing to the directors
OF 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 n 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
1nau ~