The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-12-02
SUBTREASURY FOLLY
COMPTROLLER w. ID. RIDGELY CON-
DENNIS SYSTEM AS 1T EXISTS
AT PRESENT
LOCKS UP MONEY NEEDLEssLY
Recent Operations ForcibIy Illus
trate Its Weakness-Bus1ness
of the Country Has
Outgroyvn 1t.

WASHINGTON, Dec. lin his annual
report Comptroller of the Currency VIII
liam B. Ridgely, commenting on the pres
ent system of subtreasuries, the comp
troller calls attention to the disadvan-
tages and arrangements it's operations
cause In our financial matters, and says:
There could be no better illustration
of this than it's operation in the last TWO
months, the result has been so neediessiy
lock up and take out Of circulation vast
sums of money just at time when II
was badly needed for moving crops ana
transacting the reeular business ot the
country. Inc relief at.Jided by the ilr-
chase of bonds by the secretary OF the
treasury onay partially and temporarily
meets the difficulty and repairs the DAM
age done The mistake of maintaining
this system after the business OF the gov
eminent and country has long outgroWh
it should be corrected and the business
community be given relief from its opera
tin in talsirg moEcy cut OF circulation
when most needed"
Referring to the criticism which mas
been made of the act of March IA, l9Oo,
to the effect that it does not properly
safeguard the gold standard, but leaves
it pcssible for the secretary of the treas
ury to practically undo the effect Of the
act by departmental action and regula-
ton without further legislation, the
comptroller says:
IF the act can be made stronger by
amendments and the gold standard Of
value rendered more secure from 3py
future uncertainty, it should be done WITH
out delay, while the question Is sui
uppermost, and before it gets showed to
one side by the great number of new
questions being urged as subjects Tor
action by congress
act
of March H. 1900 the total
amount of circulation which all
the national banks have outstanding
has been increased from $z54, 0262 go
to $3.50, $50, us, an increase of S105, SOC, 230,
or over Al per cent. The provisions OF
the act have also added somewhat to
the elasticity of the national bank curren-
cy. 1t, however, leaves much to be de-
sired in the way of elasticity, the lack
of which is the greatest fault of our
national bank issues"
National Bank Business.
Starting with detailed statement of
the resources and liabilities of the ma
tlcnal banks as shown by the five re-
ports Of condition made in response to
call, the comptroller says:
The authorized capital stock of the
4.279 national banking associations in ex-
istence on Oct. 81, 1901 was 1868, 224, 1S5,
y
of $50, 721, 800. There was an increase in
capital stock of 81, 674,500 by banks or
gained during the year, including $lz0,-
coo of newly organized associations
to that amount subsequent to
the date of organization. The
sequent to the date of organization. The
associations which were in existence on
Oct. 81 $780, increased their capital stock
during the year to the extent of $2l ,Sl5,t0o.
National banks held the greater
amount of individual deposits during the
existence of the system on July Is, 1901,
| namely, $2,S41, SS7, 42S.T. Liabilities to de-
positors on Dec. 49, 1860, aggregated
81, 623, 997, 521. SS and at date of last report
$2,937, 753, 233. SO, a decrease since July Is,
1901, Of $40S4, 1851 A. but an increase since
Sept. 1900, of $429, 504, cc75SO.
The net amount of liabilities of nation
al banking associations on Sept. 80, 1901,
on which reserve was required, aggregat-
ed So, ga, 311.74, the reserve required
thereon being 1888, 743, sH.7, and amount
held 81, OH 299, 102.57. or Y IS per cent.
The composition of this reserve was as
follows: Specie, $685., 596, 81. 10; legal ten
der notes, $15l ,01S, 751; due from reserve
agents, $456, $685. 517.75; redemption fund
with the treasurer of the United States,
SIG 104, SO.
On Oct. 81, 1901, the outstanding circu-
latIon of national banks amounted to
1888, SS2 Us, an increase for the year of
| SIS, 219,4 AL, and since the passage of the
The report shows that during the year
ended March l. 1901, on average of $685.,
| go and surplus of $257, 948, 1856. the
earnings in gross amounted to sly1 9O3.-
| 623.24; net ca nings, 1874, 17464, from
| which dividends were paid at an average
rate of 81 per cent, the amount being
| $50,219, 115.A Combining capital and sur
| plus the rate of dividends paid thereon
and dividends filed do not show the cost
of operation or amount of state and local
| taxes.
We Lead in Savings.
Comparing the volume of business of the
| savings banks Of the United States with
| those of, the European countries, the re-
| port shows that in the matter of deposits
the United States. as for years past,
| stands at the head. with L. 553. 800 600
! francs ($2310, 000). The country with
| the next largest amount of savings de-
| posts is Germany, with $1,000, 900 900.
| Austria Hungary follows. with s1,201, 24O.-
| 900. The savings deposits in the banks
| of France and the United Kingdom are
1854, 100000 and sS29.0200o0, respectively.
/ The only other countries with savings
deposits of coo or over are Rus
STA, Belgium and Switzerland.
The. average amount to the credit of
depositors in savings is greatest in the
United States. namely. 06.23. The aver
age In Canada is "a; in Austria Hun
| gary, 1921. 80; Denmark. $50; in Switzer-
land and Australia, Sl53S4 and s153. 80, re-
| SpectlVeIy; SerV1a ana greece, $l5064 and
$780, 3d. respectively; Spain, $14219; Nor
way, s12496. and Russia, s100.S4. In no
other country does the average deposit
! exceed 500.
The greatest average deposit per in
habitant is shown in Denmark, the
amount being s77.SS. In Switzerland the
| average is $500: Germany, s376i; Nor
way, $S7.16; Australia. $3.50; Belgium,
$31.76 United States, %; Austria Hun
gary, $27.OS; Sweden, S25.36; France $22.1S;
Great Britain, $20.62.
The comptroller says the banking power
of the United States has been aug
mented since 1890 by e1249 00O,O09, an in
crease of 121 per cent. Aggregating the
banking power of the United Kingdom
/ and the United States with the estimated
| power of Continental Europe and other
! countries, an increase since 1890 is shown