Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-12-15
TIE CoMPIRoL,.sR.s REPORT.

ago
! THE CoMPTRoLiER'S REPORT.
| In his aurGai report Comptroller Of
Currency Wiilinm B. sidg!ey reviews
the recommendations contained in his
| report for 1909 far legislation in regard
to liquidation 1Ati consolidation of ns-
| t!onal banks and extension of corporate
existence. The matter of consolidat ion
/ of banks was apparently very little
considered a. The time of the passage
| of the national bank act. The neces-
sary methods of etfect!ng 4 consol!da-
dation under the law as 1t now exists
| is inconvenient ard cumbersome. both
/! to the banks and to the comptroller's
office. and in the interest of better and
| more efficient administration the comp
troller recommends such an amend
mert OF the law as was advised In his
! last report.
The national bank act does not suf-
| ficiently protect the rights of minority
stockholders on the question of extern
| sion of expiring charters, as explained
comptroller wishes to again call the at
| tention of congress to this, and respect
fully urge that action be taken on this
important matter for the better pro-
lection of minority or dissenting share
holders.
In the comptroller's report for 1902
a recommendation was made that the
national banks be allowed to issue a
portion of their notes uncovered by the
deposit of bonds. This seems to be
the most simple and practical, as we'll
as the safest way. to introduce some
| elacticity into our bank note circula-
ton, and the same recommendation is
renewed.
During the past year or more our
banks have successfully stood the very
severe strain due to great decline in
NssA.-s'eS
curities and the natural reaction fol-
lowing period of great business ac-
tivity ana very general speculation.
not only in stocks and securities. but
in many commodities and products.
Mr.. Ridgley considers there have been.
considering all the circumstances, few
er bank failures than might have been
expected Those which have occurred
have been due 10 special or local causes
| or gross inisnana cement. and. in some
cos5s, alcss ilagrant dishonesty, on the
part OF the bank officials.
AS rule the reports of the bank
examiners SHOW the national banks to
own very few stocks, and almost none
of ] Very speculative character. The
bank reports show total loans by all
the oanas OF sl.s1269I75l on collateral
security. These loans are mostly on
good classes of stocks and bonds well
margined, and as far az they are con-
eerned there is less cause for concern
than there las been at any time for
several years. The loans are readjust-
ed on lower basis of prices than be-
fore. and are. as whole, as ample or
mare amply margined than they were
on the higher prices. 1t Is due to the
banks to say that the way they have
handled their business and met this
decline is an evidence of strength and
careful management.
That there has not been more trou-
BILE with the banks and disturbance of
business generally during this period
of declining prices is also considered by
Comptroller Redgley great evil
dence of the confidence OF our people
in all our money and currency. II there
had been the slightest doubt as to our
monetory standard or as to any OF our
currency In circulation, we might have
had q most severe and far reaching
crisis. That we have not only escaped
this but that there has not been
greater disturbance of general business
shows what progress and improvement
there have been in all our banking.
financial, and monetary affairs since
they were last subjected to serious
strain Of this kind.