The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-12-07
Number of Institutions in United
States Increases From 1902
in 1882 to 1920 in 1903.
NEW LEGISLATION DESIRED.
Comptroller Ridgely Recommends
Laws in Regard to Liquidation
and Consolidation of Ma
tional Banks.

Washington. Dec 6.-Comptrollcr Of the
Currency William Is. Ridgely has pre-
pared his annual report for transmission
to Congress.
1t shows a phenomenal growth in bank
ing business in the United States and
makes recommendations for new legisla
ton regarding liquidation and colsolida-
ton of national banks. The old laws are
too cumbersome. it explains. and the Mi
nority stockholders are not sufficiently
protected
Appeal also is made for legislation per-
hitting banks to issue notes uncovered by
deposit bonds, in order to create a more
elastic currency.
In part, the report states:
GROWTH OF BANKING
In 1852 there were in operation 2,2S9 national
banking associations, with capital OF :i77 go 900,
and deposits Of 81, 13l, .oo,eo9: and also, as
shown by reports to this office. 6.06S incorporat-
ed State and private banks. with capital and
deposits of s2s4, 900 90 and ST. us, 100000 respec
lively. or an aggregate OF 1902 banks and bank
Ing institutions. with capital OF $1l2 l08. co. and
deposits of 2.sJ9h00. go.
From returns made to this office on or about
June -. 1909 it Is shown that the nuInbe. Of
national hanks has increased since 1852 1879,
with &C capital of SIS 5os.ols and deposits q
banks in existence in 1893 was 1921. with ca2!-
ssl Of 500 So 90 and deposits Of s. ~
xate banks is shown to be Is.23O, the capital
sl,s5. s2s5l2, and the deposits sio. 90 3iS,is.
from lsSs to 1908 was over 80 per cent. and
that Of banks other than national over 162 per
sssrsssie capital and DEPOSITS e All rsport ing
ms >ta .sgrNT-
banks shows a gradual reduction from that
respectively. Within the period in question the
capital Of national; state and private banks
Comparing the number of banks capita, and
deposits with the population OF the United
States. 1t appears thai in lsS there was one
bark for every slso inhabitants. the capital
pests s5 e: Ip Iss: there was one bank Tor
sx a ana s tnass sss the s SaP q
speStively: The greater increase in number of
sn n ea san f % s. Of in M
hs s the ss sap 10 e ea s , and des
lively. In 1903 there was in active operation,
as snown by reports filed In this offce. one
eapa fof esea Of ans n he Pts
IN ISLAND POSSESSIONS
Through the courtesy OF the Treasures OF
Porto Rico and the Philippine Archipelago, and
from private sources in the Hawaiian Islands,
sufficient data have been obtained TO Indicate
IN what proportion the island possessions have
contributed TO the figures representing the
A consolidation of the reports OF colonial and
national banks received shows the aggregate
about June 80. 1905. to have been siS, sl2,s7s
The loans, including overdrafts, aggregate $za.-
cash in bank sSl: capital stSek sss TO-
s vdppsi ae sna snd Y, profits SCISSORS id
NEUTRALITY-SUSPICIOUS.
Tho Comptroller renews the recommendations
contained in his report for 1892 for legislation
IN regard TO liquidation and consolidation of
national banks and extension of corporate ex
i ,,s The matter of consolidation of banks
Tine Inn 81 the passage Of the national act
ton under the law as it now Exists is incoa-
venient and cumbersome both to the banks
and and to the cemptroller's ONCE, and in the
amendment a. \, of the law advised in his
The NEWFOUNDLAND act does not sufficiently
the question Of extension of expiring charters,
as explained In detail in the report for 1907.
en,on Of the Congress to- this ANN ss
FULLY urge that action be. taken this i'm
minority or dissenting sfarehoideprs so'ee'''' Oh
The most notable fact in regard to the
In its volume, which reached slsl ~ is9 on
September Sep g. 1893. the largest amount which
o the been ma in pS.Ds is
which Is higher than this percentage has been
the part Of the Treasury Depart i .'' Il
tha. when the demand came for euTreneT ro
move the crops this year 1t might produce
market. That this demand has been met with
less DISTURBANCE and less advance in rates of
due largely, among other causes to this in
crease in bank-note circulation. It is further
ton was reaching its maximum and the de-
mand for bonds had advanced their price. the
which for some months had been light sud.
denly increased. and during the latter half
up the maaima Of soSeoe per month for
the, months OF September. October November
and December.
ELASTIC CURRENCY.
This still further emphasizes the one serious
defect in our system that the variation in TIE
volume OF our currency. instead OF responding
to , the demand for currency depends on the
TO demand for CURRENCY for daily cash trans
actions without reference TO the price of bonds |
Client
In the comptroller's report for 1907 a, recon-
be allowed to issue a portion of their notes
uncovered by the deposit Of bonds. This seems
the most simple and practical as well the |
safest way TO Introduce some elasticity into |
our banlsnote circulation and the same recon- !
During the past year or more our banks have
successfully stood the very severe strain due |
to, a great decline in the market prices of
ton following period of great business actiri- |
ty and very general speculation. not only in
stocks and securities. hrt in many comniodi- |
ties and products. There have been. consider |
ing all the circumstances, fewer hank failures |
than might have been expected Those which |
have occurred have been due 70. special or local
causes or gross Acknowledgement, and. in some |
cases most fragrant dishonesty the part OF |
the bank officials
a a he Cf fI,a hari
show the national banks 10 very few |
stocks. and almost none Of very speculative |
character. The bank reports show total leans |
clas.es Of stocks and bonds well ma rgned and |
az far "a as they are concerned there Is less |
time for several years. The loans are read |
tusted on lower basis of prices than before, |
and are, as whole as amply or more amply |
1t is due to the banks TO say that the way |
tney have handled their business and met this |
decline is an evidence OF strength and careful |
That there has not been trouble with
the banks and disturbance of business gen.
orally during this period of declining prices is
a so a great evidence of the confidence of our
people in all our money and currency. II |
there had been the slightest doubt as to
most severe and far-reachns crisis That we
mas 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 sub
iected to serious strain Of this kind.
Killed His Companion.
Alliance, Neb., Dec 6.-Dennis Walker, |
a cowboy on the Spade ranch near Els |
WORTH to-day killed companion named |
(-umminS, inflfcting injuries with club |