The San Francisco call., 1901-12-02
MIDDLE STATES
LEAD IN BANKS
Report Of Comptroller
of the Currency
on Finances.
More Than Twelve Thousand
Institutions With a Capt.
tai of Over a Billion.


WASHINGTON, Dec. 1.-The annual re-
port of William Il. Ridgeley, Comptroller
of the Currency, has been prepared for
transmission to Congress. The report
starts with a detailed statement of the
resources and liabilities of the national
banks, as shown by the five reports of
condition made in response to the call of
the Comptroller. In commenting on this
statement the Comptroller says:
The authorized capital stock OF the 1879
national banking associations in existence on
October 81, 1901, $663, 224 1856, which is net
INCREASE during the year OF $40, 721, 500 There
by banks organized during the year. including
$l20, 900 of newly organized associations, which
increased their capital stock to that amount
subsequent to the date of organization The
associations which were in existence on Octo-
ber al 1900 increased their capital stock dur
ing the year to the extent of S21 $1,000 There
voluntary liquida tiens. On october 81 1901 the
outstanding circulation of, national banks
amounted to 1853, S52, rs, an increase for the
year of 447, and since the passage d
the act of March IA, 1900, of $lO5, SO6, 4S5.
The Comptroller has prepared tables
showing the aggregate resources OF ma
tiOnal, State savings banks, private banks
and loan and trust companies from re-
ports made to him or obtained from other
sources. The result of this investigation
shows the existence of 1892 banks of all
kinds in the country, with an aggregate
capital of $113S O42 1874; surplus and un-
253 respectively; deposits, $S,619, ,2S5, ITO, and
loans and discounts, $6,49l, ,63O,743.
Banks in New Possessions.
Statistics obtained from one national
three other Incorporated and two private
banks in Hawaii; three Incorporated
banks in Porto Rico and seven incorpo-
rated banks including branches, in the
Philippine Islands, making an aggregate
of sixteen institutions in these new terri
torial possessions show an aggregate cap
ital of "a 313 q7S. SDrnllS and undivided
profits. $1,627 ,25O; deposits, $2S,01S6O2 and
loans, $l3 .9OS ,262.
Under the various acts of Congress 6OO6
banks with an authorized capital of $685.
467, $50 have been organized. of which 4279
were in active operation at the close Of
the report year, 1340 in voluntary liquida-
tion 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 Hawaii
fourteen banks of the smaller class We're
organized, with aggregate capital of $780,
600, and twelve of the larger class, with
Sl.S0O,000 capital
During the last session Of Congress a
bill 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 recon-
mends that this bill or a similar measure
be enacted into law.
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. The banking
power of the United States since 1890
gregating 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 of e0
Money Needlessly Locked Up.
In commenting on the present system of
sub treaSuries the Comptroller calls at
tention to the disadvantages and derange-
ments its operatiOnse cause in our finan-
cial matters, and says:
There could be better illustration of this
than its operations in the last few months.
This has been to needlessly lock up and take
out of circulation vast sums of money Just at
a time when il will be badly needed for NOV
ing crops and transacting the regular business
of the country. If the Secretary of the Treas
ury is given authority so that he arrange
to have more of the money collected by the
Government deposited with the national banks
and kept there until needed, it can be done
under such regulations, restrictions and super
vision as to insure the Government against loss
and give relief from the present system
Referring to the criticism which has
been made of the act of March IA, 1900
to the effect that it does not properly
safeguard the gold standard, but leaves
it possible for the Secretary of the Treas
ury to practically undo the effect of the
act by departmental action and regula-
tion without further legislation, the
Comptroller says:
If the act can be made stronger by amend
ments and the gold standard of value rendered
more secure from any future uncertainty it
should be done without any delay.
Since the passage of the act of March A.
1900 the total amount of circulation which all
the national banks have outstanding has been
increased from s254 026 230 to $859 1882 75 an in
crease of S105, S06, ,23O, or over Al per cent
The provisions of the act have also added
somewhat to the elasticity of the national bank
currency. It, however leaves much to be de-
sired in the way of elasticity, the lack of which
is the greatest fault Of our national bank is
sues.
Congress has already had under discussion
and consideration various measures for the
modification of the national bank currency.
There is much discussion on the subject by
bankers and fpanciers and many plans are
urged for adoption. Somewhere between the
views of the ardent advocates of asset cur
rency and those who oppose it with vehemence
unsafe and unsound in every respect, there
should be found safe middle ground.