The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1900-11-30
REPORT ON THE CURRENCY
BY COMPTROLLER C. G. DAWES,
For the Year Ending October ~ 4,
1DOO-Review of the Ban<s-in-
crease of CfrcuIation-Conpt
Suggested Amendments ON Bank
ing Laws.

Washington.-T annual report of
Charles g. Dawes, comptroller OF the
currency, for the year ended October 81,
1900, has been reported for transmission
to congress.
The report starts with a summary of the
reports made during the year by the ma
tional 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 $5,O4S,-
l3S. 400 20. Between the September call
of 1899 and 1900 loans and discounts in
creased $l70,O0S, 39l .46. The loans and
discounts on September 5, 1900, were
s.. $50. 750. 642 81, and individual deposits
were s.. sos, PAS, 557 50.
The capital stock of national banks re-
porting on September was $63O,299,O30.
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 1000 informal aPplica-
tons for authority to organize national
banks, filed in anticipation of and as a
result of the law, 800 have been made
formal and have been approved by the
comptroller between March IA and October
81. 1900. From the 500 formal appica
tions came 34S actual organizations of
banks between March II and October 81.
OF these 34S banks actually organized, 249
were banks of less than $4,000 capital,
representing total capitalization of
$685.. 900. and 90 were banks which
could have been organized under the old
law with an individual capital of $4,000
or over. representing a total capitaliza-
ton of $l0.90O,0OO. The bonds deposited
to secure circulation by these new institu-
tons b tween March IA and October 81 was
$5,34S 200, or only about 30 per cent of
the maximum which might have been de-
posted
Increase in Circulation.
The total increase of the circulation Sc
cured by government bonds of all national
banks in the system since March IA, 1900,
has been $S2. 454 .270. The total outstand-
ing circulation on October 81, 1900, was
1891 .6l3, PCS, of which $32,7S4 ,204 is Sc
cured by lawful money and is in process of
retirement The total bond secured circu-
lation on October 81, 1900, was $29S ,S29,-
O64.
On October 81. 1900, there We're 3935
national banks in operation with a COM
bined capital of 1852, SOP ,395. The COM
bined resources of the national banks be-
ing over 5000 100000, is greater than at
any time heretofore.
In complying with the requirements of
section 1888, providing that the comptroller
shall suggest amendments for the inn
provement of the banking law, he first
calls attention to the fact that under sec
ton l of the act of July II, 1882, under
which extensions of national bank char
tiers may be granted by the comptroller,
he is limited by the act to one extension
of 20 years duration.
Under this section the charters of 1877
national banks were extended for term
OF 20 years from the date of expiration
of their first charter.
The first of the extended charters will
expire on July IA, 1902, and the others
will follow in due course. The comptrol-
Ter then says:
without additional legislation author
izing a further extension, a bank desir-
ing to continue in business under the ma
tional 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 reor-
ganize as a new association.
"I'his course will render necessary the
complete winding up of the affairs of the
expiring bank, the retirement of its cir
culation, the withdrawal of its bonds,
and sthe issuing of new certificate of
authority by the comptroller, with dis
tinctively new title and charter number,
as is at present the case with an entirely
new organization. While the recognized
association might continue to be in all
respects 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.
II therefore respectfully recommend an
amendment of section l of the act of July
u, 1882, authorizing the comptroller OF
the currency to extend for a further
period of 20 years, under the conditions
and limitations imposed by said act, the
charter of such expiring association as
may desire to continue in the national
banking system"
c. l.. RS New Branch.
Vancouver. b. c., Nov. 25.-The Cana