The Washington times., 1901-12-02
LEGISLATION ON CURRENCY.
Comptroller RidGeIy, in Annual Re-
port, Urges Congress 10 Act.

| with a detailed statement of the re-
| sources and liabilities of the national
banks. Commenting on this statement, the
COMPTROLLER says:
''The authorized capital stock of the
4,279 national banking associations in ex-
istence on October 81. 1901, was 1868. .224.
1876. which is 4 net increase during the
! year OF $S0 72I 500. There was an increase
in capital stock of s21,674,50O by banks
| organized during the year, including $780,
0O0 of newly organized associations which
| increased their capital stock 20 that
amount subsequent to the date Of organi-
zation. The associations which we're in
existence on October 81, 1900. increased
their capital stock during the year 10 the
extent of Isis 600. There was a de-
crease of capital stock of 500, 900 by
voluntary liquldations This amount in
cludes the capital stock of banks which
have not yet deposited lawful money to
retire their circulation and withdraw
their bonds, the accounts being still car
ried on the books Of this office. During
the year 13 associations, with capital stock
OF 1856. 600. were placed in charge Of re-
ceiyers, of which, however, with ccm-
bined capital stock of $500 600, were
proved to be solvent and permitted TO re-
sumo business, leaving the number and
capital stock OF insolvent banks FOR the
year IL and Sl.7iO. coo. respectively There
was a further loss of capital stock of 3d.
752, 700 by the reduction OF capital stock
of active associations. OF the 80 associa-
tiOns placed in voluntary IiqGlda tiOn, %
were succeeded by, or amalgamated with.
other national banks; were absorbed by
State banks or trust companies, and II
liqudated for the purpose of winding up
their affairs.
The number of reporting associations
increased from 3942 or December 13,
1900 to 4,22I on September 30, 1901 The
aggregate resources of the banks on the
latter date reached a higher point than
ever before in the history OF the national
banking systeIa.l namely, s.. 3i7. .294.96,
an increase since September ). 1900. of
$641 ,2GS, ,I95-6f.-l Each successive report
during the year shows an increase in vol
ume of loans and discounts. On December
13, 1900. the amount of assets of this
character aggregated 81, ,7G6 .534, ,643.55. and
on September 80 1901, $3.01S. SIS .91S.40. an
increase since the report on September .,
1900 OF 1891. .S56 255.S3
The failure by Congress to take timely
action authorizing the extension of the
charters of banks organized under the act
OF February %. 1863. necessitated the
liquidatit and subsequent reorganization
of seventy associations desiring to
continue in the system under different
charter numbers. but with the same or
similar titles.
During the last session Of Congress the
following bill to provide for the extension
OF the charters of national banks passed
the House of Representa- tives, but failed
TO receive consideration in the Senate:
Be it enacted by the Senate aud House
OF Representatives Of the United States
OF America in Congress assembled. that
the Comptroller of the Currency is hereby
authorized in the manner provided by,
and under the conditions and limitations
of, the act OF July u. 1882, to extend for
further period of twenty years the
charter of any national banking associ-
alton extended under said act which shall
desire to continue its existence after the
expiration OF its charter.
Passed the House of Representatives
February T. 1901
1T is urgently recommended that this
bill. or similar measure. be enacted into
law. AS heretofore stated. inasmuch as
the first charter viii expire in July, 1909,
prompt action on the part of Congress is
necessary in order that this association
and others whose corporate existence will
terminate early in the coming year, may
avoid the expense and Inconvenience in
cident to enforced liquidation and reor-
ganiZation as new associations. and be
afforded ample time to take the prelim-
mary steps necessary to an extension be-
fore expiration of their charters.
In order 10 facilitate the redemption
of old note issues of banks extending
their corporate existence, il is respect
fully recommended that provision be
added to the foregoing extension bill. ap-
plicable alike to banks whose charters
are extended or re-extended. requiring a
deposit OF lawful money within six months
from the date of extension instead of
three years, as provided in the act of
July 10, 1889.
Comparing the volume of business OF
the savings banks of the United States
with those Of the European countries, the
report shows that in the matter of de-
posits the United States. as for years past,
stands at the head. with II, ,553, 900. .O00
francs (S2.210. $50. 000). The country with
the next largest amount of savings de-
posits Is Germany with 81 800 0C0 600 Aus
tria- Hungary follows, with 81, POI ,240 0OO.
The savings deposits in the banks of
France and the United Kingdom are SS54.-
100000 and SS29. .020, coo respectively The
only other countries with savings deposits
OF S2G0 .0o0 900 or over are Russia. Bel
gium, and Switzerland.
The average amount TO the credit of
depositors in savings banks is greatest in
the United States. namely $l06.23. The
average in Canada Is $34024; in Austria
Hungary. s22L59: Denmark, slsSs0: in
Switzerland and Australia, SI53.S4, and
S153.S4, respectively; Servia and Greece,
$l1O.6i, and Sl5O-32, respectively; Spain,
xlf2, 13: Norway. s124.g6 and Russia,
$lg0.S4. In no other country does the av-
erage deposit exceed S100
The greatest average deposit per inhabi-
tant is shown IN Denmark the amount be-
ing s7LSS In Switzerland the average is
S63.06: Germany, S37.64. Norway, S371G:
Australia. $3.50; Belgium. S3176: United
states. S31.22: Austria Hungary. S27.OS:
Sweden, S25.36. France, S221S; Great
britain. $50 60
The Comptroller recommends the repeal
OF the second proviso of section 12 of the
act of March Il, 1890. which limits the is
sue Of s. national hank notes In this con-
nection he calls attention to the fact that
not once since the year 1874 has the aggre-
gate issues by the banks of 50 notes ex-
cceded one-th;rd of the total outstanding
which is the object Of that
clause in the act. The operation of the
proviso. however. is such as to seriously
hamper those banks which. by their loca-
tion. can not use to advantage notes of a |
greater denomination than So. The ratio
which the aggregate of So notes outstand-
ing on October 81 1901 bore to the total
issue Of national bank circulation was |
about IS per cent. having decreased from |
3L2 per cent on March l3. 1900, the day |
before the passage OF the act.
AmCYg other reComnpenda tions the |
renews those of his predeces- |
sors relating to the questions of loans to |
officers and directors. excessive loans. and |