New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-12-01
CURRENCY SUGGESTIONS.
CONTROLLER RIDGELY's IDEAS OF THE
WAY TO MEET BANKING NEEDS.
HIS ANNUAL REPORT RECOMMENDS THAT
BANKS BE ALLOWED TO ISSUE UNCoF-
FRED NOTES, ON WHICH THERE
SHALL BE a GRADUATED TAX.

SHALL. BE 4 GRADUATED TAX.
Washington Nov 3o-The annual report of Will
lam p Ridgely Controller of the Currency, starts
with a table of the resources and naoihues
of all the national banks of the United states as
shown by the five reports of condition made IN re-
snonse to the call of the Controller. From this
table ii appears that September 10, lSoZ' the
date of last call, 4.6ol associations reporte"
with aggregate resources of $bIl5,5Zs,siz d. Inc
loans and discounts amounted to SS,20s2f4So d. OF
ro tbap 5A ner cent of the total resources of the
banks The items of surplus and undiVided piuiI'7
amounted respectively to 3soS 30 ana sip,
21s5l2e3 The individual deposits reacheo the ms"
est no;nt in the existence of the national banking
4 co 9oa o72 sa3 os There was due to approved
reserve agents other national banks, state BANKS
and bankers trust companies ana SAVINGS oo"h''
the sum of 81 Zoo, al 233 30 . mn,
trrn, sentember 30 1901 to September Is. 1907
,here WINS an Increase of si1S5s6l7 "a In the agsre-
+a resources of the reporting banks, the principai
items of interest being loans and discounts $-'i'
Eli 5a %: United States bonds, sl25o5Ze due rom
national and other banks, $3o.2ii.ot IS lneie 20
an increase in pital stock of s5olsS5S' III suipu
and other pre- fits OF sooofo'"o' ~ dh" III 49,
deposits of s27l $50, $50 90. 49,
Comparing conditions on September 49, lo'@' WIN
those shown in the last report 1t VIII De seen ta
the number of active associations mas lhcleanen
from 3773 to 1901. net increase OF Co i
aggregate resources of the associations increased
during the decade $500 s34oi5 loans ana discounts
Il 100 0s6 1913; bonds deposit as security ior Cur
inN
potes s57tt974i and 81. 49, SIS, respectively "i
tho canital Of ,he associations increased only %
the extent of s1s 962. 402 the surplus ana uhois So
prodts are now greater than In hs- d! Si'' 80,
Tbe volume of individual deposits increase" -
e tx 100 9s4 10 50 ss 275sei nearly - per cent
while the outstanding circulation mas tholed
e., zss an mr. over i22 per cent. there was no ma
s;o, i,creas, until subsequent TO March H. NV
the date of the act authorizing the issue Oh va
ton 70 the mar value of bonds on deposit
t,srh
o,,rtad m e. S44 5s 3S 81. The bank he!d III cdsn
with reserve agents and in redemption iu''a go
is3 ga5 2s but the available reserNf~'"o' 10
nroportion of deposits with reserve agents h''
ceeding the percentage Of reserve reauireo atts'
..,,.t;,- the redenpton fund and cash on hand
amounted 10 sso4 1913 e0i o9. which was Sl'''o"i "
II, excess of the legal requirement oelhs an az
age reserve OF c0.a2 per cent Inc oanAs toe"'7t
in the central reserve cities, Ne"-hork, .h'eds"
and St Louis held reserve of s20sSile - OH ae
si,s amounting 90 81 $40, 5S7 SIS u. an average OF
., % per cent The average reserve OF New o'n
CITY banks was a470. of Chicago oahhs @i'o'' "
ST Louis "a The banks located III o'he' 80,
cities held s25s O45 $50 a. against deposits OF Ni'o'
-, o-s a tho average reserve being 2SS per cent
ranks located outside the reserve cities held re-
serve funds to the amount OF a,iis -. % ~
nsr cent on deposits agsreSating sl.'a"-oo'oeSt "a
while there has been change IN the fbes"oe
n, M. the reserve of any individual bank.
~ +orr, ~ renortinE the reserve In the ABSTRACTS
issued subsequent 10 each call was chahge" %
ginning with the April % statement ftiot " '
go tb. percentage Of legal reserve held to de-
-ns,s was not shown. but merely the percehtdsV.
=, -.sb IN hank redemption fund. and amount que
from, approved correspondents. Corresponding III
formation is stili shown In the reserve 'ao'es, out
tho percentage Of legal reserve heid Is pdsso vh
the amount Of specie and legal tenders III 'aiin
,bo rederption fund and the amount on deposit
with reserve agents not in excess OF the iesa hh'
available As illustrating the difference resu'''iis
from, the change IL is shown that "hiie "a''h ia
fy1H
~, the ,crrper method OF computation held re-
serve Of Us. per cent their legal reserve was OUT
2435 per cent.
GROWTH of BANKING ~ THE UNITED
STATES.
Regarding The growth of banking In the United
States the report states that In 1872 returns were
received from o52s national and state banks and
private banks and bankers, with capital ana 90
noslts aggregatug 81 OIL 073 oiS and Aelai4SlS re-
spectfvely In July. 1902. reports Of conditions
were received from ABS national banks. and on
approximate dates statements relating also 10 'es9
State and private banks and bankers. Adding I"
these the humber of banks making returns only
Of capitaI and surplus for taxation, the deposits
OF the latter being estimated 1t is shown that there
are In active operation in the country l615' hanks
and bankers. with capital and deposits amounting
respertiyely to 81 $40 Goals and S9.1V1Sl.@i
National hank notes DO not appear 10 have formed
81, large a proportion of the circulating medium
Of the country anticipated, the primary
causes being:
First-Thc volume of ereeubacks degsI tendets)
issued. the extensive use ct instruments 11
and enormous coinage of gold and silver. Inc COIN
age bullion s snd to S oefnber s g. @
81 4 7aS iS7 a. OF which sl,777 73S eS7 so gold
S-ti 02i 75q 20 silver dollars and subsidiary SILVER,
and {ss CS5 $50 A. minor coins The recoinage from
iss9 70 is73 was very limited, but Information as to
,br evoct amount is not available. The records in
the office OF the Director Of the MINT snow hoN
ever that from 1873 10 1902 inclusive. reconage OF
gold am3uG o 10 q * sS III Is an aggregate Of sizes
1 75I nj -
the total coinage from 1865 to 1917 . -, ~, ID
Second Restriction of issues OF notes or the de-
mamma ton of 81 10 one-thrd of the amount issu-
able by any association subsequent TO March II,
1910 The evident intent OF Congress Ia ncorporat-
;ns This restriction of tho act of March H. 1862
20 limit the total of notes OF that denonifi-
~ 20 ONE third of the aggregate amount issued.
cxceoded since 1874. The year prior TO the passage
Of the act notes Of this denomina ton amounted to
hut n per OF the total declined IN f@oo I" 81
TO lSa IN 1901 and TO i6l in 1892 -
Third nelasticty. by reason or me monthy
limit OF the amount which may he withdra WI from
circulation bv depositing lawful money theretot;
Section o the approved July u. 1ss2, limits
the amount of lawful money which may be DE-
nosi, ed with Treasurer of the United states by
- nna, hawks reducing their circulation So 00
during any calendar month. /, ,,,e,,,,, ra.o-,
,uended az removal from the statute would. II
is believed add the elasticity OF national bank
circulation. 1t has served it's purpose. and there
does not appear to be any good reason why u
should continue any longer IN force.
FTourth-IDsuficieHt profit. as evidenced by the
comparatively limited amount OF clrcnlatien ISSUED
subsequent the removal OF restrictions by leeis-
lativ, enactments on July T. lss2, and March IT,
1900
The Controller recommends that Section 5.223 of
tho Revised Statutes of the United States be
amended to provide in effect, for consolidation of
national bank on the lines of the law OF the State
of York except that the corporate existence OF