Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-12-08
GROWTH IN WEALTH
Bank Statements Make a
Marvellous Showing.
THE RICHEST PEOPLE
ALMOST EVERY YEAR OUR REC
oRDS ARE BROKEN.
The Controller of the Currency Favors
Establishment of System Of
International Banks.

Establishment of System Of
International Banks.
The controller of the currency If
his annual report favors Legislation
authorizing banks of ST. 100000 CAPT.
tai to engage in foreign banking.
The annual report of the controller of the
currency gives a detailed statement Of the
| resources and liabilities of the nationa
banks, as shown by the five reports of con-
dition made in response to the call of the
| controller. In commenting on this state
| ment, the controller says:
| 1.-The number of reporting banks has in
| creased from 5,11S on November II, 1903, to
| SAP on September 6, 1904 and there has
| been gradual increase during the year in
| the aggregate resources of these associa-
| tons from $3.50 429. 966.37 on September Q.
1903 to $6,975, 0S6 5O405, the increase being
| $664. 656 537 .6S. With the exception of the
United States and other bonds on deposit
| in the Treasury Department to secure pub
| tic deposits, and the holdings of silver and
| of legal tenders, there has been an increase
! in every item of resources the principal
| increase being in loans and discounts,
| amounting to 1914 ,7O4, CHA or from So 4S1
446, I12.04 to 8. 1876 151 ,419.4S. The increase
| In bonds on deposit to secure circulation
was $36, $50, $50; other United States and
! miscellaneous bonds, etc. $40, 295 100 SO; and
| in holdings of specie including coin GER
| tificates, $1O7, 1872 1879. The banks hold
| lngs of specie and legal tender notes on
| September g. 1903. were 1854 ,3O6, O26. "a, and
| on September 6, 1904, they were 1851 456,
| 500
| THE paid-in capital stock has gradually
| increased since September, 1903 from $685.
| I22,65S to $40 III ,S54. or an increase of
s1I0oo, 1876. The surplus and undivided
profits aggregate $685. 1877, O47.9 "a, an increase
of SIG, 165, 59S.O2 during the past year The
deposits of the banks-individual. govern
| ment and bank-amountfng to nearly IS per
cent of the total liabilities, aggregated S.
l5o2So,940.31 a net increase during the
year of $685., s04, 393.''
In Insular Possessions.
A summary of the returns of the 10 banks
| in the Philippines as of date March 81,
1904, shows the principal items of resources
and liabilities of these banks to be: Loans
and discounts including ouerdrafts, 49,
| 693,5 69; bullion, specie and other currency,
$4,913. 10; due from other banks and
agencies, s5,s47,376; aggregate resources,
Porto Rico.-Reports have been received
from 10 banks in Porto Rico with aggre-
gate capital of s1,729,064, operating under
teFTltOT1dl laws, ana from one natlO0al
banking association with capital of 100000
The combined resources of the IL banks are
S,416,s37, a gain of sl,216,935 over the re-
turns of 1903.
alton in the territory of Hawaii, as shown
by reports dated June 9, 1904, have COM
bined capital of S52oOO0, circulation of
$245, 200, surplus and undivided profits $751;,
224. Individual deposits are 1854 1856, and
United States deposits and disbursing Of
ficers' accounts s226,744. The loans and dis
counts amount to $1,2OO,O52, and the aggre-
gate resources to $20259l1.
International Banking.
The controller says:
1.-The figures given elsewhere in this re-
port show the most marvellous growth in
the wealth and commercial importance of
the United States. Almost every year all
previous records are broken in the volume
of our internal trade, our exports, and i'm
ports. The people of the United states
have become the richest in the world, and
the natural resources of the country are so
great that this Is sure to continue and in
crease for many years to come. The
amount of bank clearings and deposits ana
the money on hand in the banks increases
in every portion of the United States at
most remarkable rate.
I'm spite of all this, however, we do not
seem to be taking our proper rank and posi-
tion in foreign and international banking.
One of the chief difficulties encountered by
all merchants and manufacturers In eX-
tending their trade with foreign countries,
and esnecially those of South America and
Of the orient is the lack of American bank
ing facilities and the necessity of doing this
business very largely through European
houses This ranks next IN importance ,. 10
marine as 1t is one that has very great
influence on the volume and character OF
our foreign trade.
e.There have been suggestions made that
,fza of national CORPORATIONS
should be authorized for the purpose of
conducting the business OF foreign ana IN
ternational banking alone, but these DO not
seem to have met with much favor, and II
would apnear to be a wiser policy to util-
;ze the well-organized and strong national
banks which are already largely engaged
in this business. The controller pelieVes
that 1t would be a wise policy and entirely
iust to the banks to restrict these powers
to banks of large capital located in the re-
serve Giles. Many of them now have we'll
organized foreign departments and omciais
familiar with this business, and the con-
troller believes that they are the best agen-
cies now at hand to extend and increase
this very important business.
Foreign Banking Authorized.
.aThe controller would therefore recon-
mend. in pursuance of this policy, that ma
tional banks having a capital of 100000
or more and located in the reserve cities or
central reserve cities be specifically au-
thorized to buy and sell foreign exchange;
to accept bills drawn on themselves, pay
able not to exceed four months after sight
and to issue letters of credit; and also to
open and maintain such offices. agencies, or
branches as may be necessary to conduct
this business in foreign countries, Porto
Rico, the Philippine Islands, the Hawaiian
Islands, and the Panama canal zone.
at is believed that this measure will tend
to make closer the relations of the United
States with each of its possessions. and
would be obviously to the advantage of
both. The increased sphere of our national
life imposes new duties which, in so far as
they relate to the great questions of bank
ing and exchange, call for additional legis-
lation; and the recommendations contained
in the foregoing are intended to meet the
necessities Of our manifest obligations and
duties in this respect.
1.-THE controller respectfully recon-
mends that an act be passed repeating the
limitation on the proportion of the circuIa-
stiOn of any bank which may be issued In
notes of the denomination of S.
10 Add Elasticity to Circulation.
sarhe controller would again renew tho