The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-12-02
C0MPTR0LLER'S
PLEA FOR BANKS
Mr.. RidgeIey's Report Includes
Recommendations to Congress.
CONDEMNS SUBTREASURlES
ARGUES BANKS SHOULD HOLD
THE PUBLIC FUNDS.

! The report starts with a detailed state
ment Of the resources and liabilities of
the national banks as shown by the
/ five reports Of condition made in re-
Spouse to the call of the comptroller.
In commenting on this statement, the
comptroller says;
The authorized capital stock of the
4,279 national banking associations in
existence on Oct. 1, 1901, was 1858. 224. -
1875, which is a net increase during the
year of $50, 721, 500. There was an in
crease in capital STOCK of s21, 674,500 by
banks organized during the year, in
GLIDING $4,000 of newly organized as
sociatiOns, which increased their capt.
tai stock to that amount subsequent
to the date of organization. The as
SOCiations which were in existence on
Oct. 81, 1900, increased their capital
stock during the year to the extent Of
S2LS15, 600. There was a decrease of
capital stock of $S,O40,0OO by voluntary
liqUidations.
ION Oct. 81, 1901, the outstanding
circulation Of national banks amounted
to S350, S32, 715, an increase for the year
of SIS, 219, Az, and since the passage
of the act of March 5, 1900 of sos, $685.,
49,"
The comptroller has prepared tables
showing the aggregate resources Of
national, state savings banks, private
banks and loan and trust companies
from reports made to him or obtained
from other sources. The result of this
investigation shows the existence of
1872 banks of all kinds in the coun-
try, with an aggregate capital Of ST.
l3S, 042, I34; surplus and undivided
profits Of $693. assess and $270. S55. 25S.
respectively; deposits. $S,619. 2S5,110, and
loans and discounts. $6,4S1, 680,74S.
Banks Of Insular Possessions.
Statistics obtained from one national,
three other Incorporated and two pri-
vate banks in Hawaii three incor-
porated banks in Porto Rico and seven
incorporated banks, including branches,
in the Philippine islands, making an
aggregate of sixteen institutions in
these new territorial possessions, show
an aggregate capital of $4,313,97S; sur
plus and undivided profits, 1887, 250;
deposits, S25,01S,602, and loans, $1S,90S,-
262
Under the various acts Of congress
6O06 banks with an authorized capital
of $T95. 49,, $50. have been organized, of
which 4379 were in active operation at
the close of the report year, 1,340 in
voluntary liquidation and 3S7 in charge
Of receivers or finally closed.
Geographically, the largest number
of banks chartered during the report
year were organized in the middle
states.
In the Pacific states, including Ha-
waii. fourteen banks Of the smaller
class were organized. with aggregate
capital OF $360,000, and twelve Of the
larger class, with 81, 100000 capital.
During the last session o. congress !
a bin to provide for the extension of
the charters of national banks passed
the house of representatives, but failed
to receive consideration in the senate.
Comptroller Ridgeley urgently rec
that this bill or a similar
measure be enacted into the law.
Comparing the volume of business of !
the savings banks of the United
States with those of the European /
the report shows that in the
matter of deposits the United States, /
as for years past, stands at the head. /.
The banking power of the United .
States since 1890 shows an increase Of /
L21 per cent. aggregating the banking 4
power of the United Kingdom and the {
United States with the estimated pow /
pr of continental Europe and other
shown of so per cent.
In commenting on the present sys- 4
EN- of sub-tTeasuries. the comptroller (
,alls attention to the disadvantages /
and arrangements its operations cause !
n our financial matters, and says:
Plea for Banks.
= There could be no better illus =
; tration Of this than its operations =
2 in the last few months. The re- =
: suit has been to needlessly lock =
, up and take out Of circulation =
, vast sums of money just at =
, time when it was badly needed for =
moving crops and transacting the =
regular business of the country. =
, II the secretary Of the treasury is y
!, given authority so he can arrange =
; 70 have more of the money col =
? lected by the government depos- =
? tied with the national banks and =
kept there until needed, it can be =
done under such regulations, re- =
, strictions and supervision as to in >
, sure the government against loss =
and give relief from the present =
? system"
Referring TO the criticism which has
'een made of the act of March IA, 1900,
o the effect that it does not properly
afeguard the gold standard, but
caves it possible for the secretary of
he treasury to practically undo the
fleet Of the act by departmental ac-
ion and regulation without further
egislatiOn, the comptroller says:
If the act can be made stronger by
mendments and the gold standard of
alues rendered more secure from any
uture uncertainty it should be done
Without any delay.
Since the passage of the act of
larch IA, 1900, the total amount of cir
ulatiOn which the national banks
ave outstanding had increased from
554.O26,230 to 1855. 1872, us, an increase
f sos. SOC, 2S0 or over Al per cent.
The provisions of the act have also
dded somewhat to the elasticity of !
ne national bank currency. 1t. how
yer, leaves much to be desired in the
ray Of elasticity, the lack of which is
ne greatest fault of our national bank ]
ssues.
Congress has already had under
iscussi0n and consideration various
ational bank currency. There is much
iseussion on the subject by bankers
nd flnanciers, and many plans are
rged for adoption. Somewhere be-
veen the views of the ardent advo-
ates OF asset currency and those who /,
ppOse 1t with vehemence as unsafe
nd unsound in every respect there /.
mould be found safe middle ground.
A Matrimonial "Ad" in Japan.
fTOkiO NiDDou)