New-York tribune., 1906-12-07

500 600
$4,000 600 600
The Controller says It is interesting to note
changes which have occurred in the relation of cap
ital 10 individual deposits The ratio of capital to
Individual deposits 1895 81 to Sc &c: in 1905
81 10 81 7S; IN 1906 81 to s. 03, and, including
capital, surplus and other undivided profits, the
ratios WERE in 1895 81 to 81; 1895, 81 TO 81 G6 1906
81 to 81 IT. The proportion Of capital 70 aggregate
resources has gradually decreased from 81 10 S 03
in 1926 10 81 50 80 IN 1905 The relation of specie
and legal tender notes to Individual deposits varied
from 81 s5 13 in 1895 10 81 TO 50 x in 1905 and TO 81
IS Il IN 1906 The variations in the ratios relating
10 banks in New York City have not been so
marked as the ratio of capital to individual deposits
OF banks in that city In 1885 as 81 TO s. Is and
IN 1905 S. o. The ratio Of capital 70 aggregate re-
sources in 1895 was 81 TO 81 Sc and in 1905 81 70 Sl3 g.
The proportion Of capital. surplus and other un-
divided profits 10 individual deposits as 81 to
8 49 in 1886 and rs 81 TO 50 II IN 1905 The ratio
which shows the least change IS in respect TO
specie and legal tenders as compared with indiyd-
deposits tho banks held 81 in lawful money, and IN
1895 81 was held against each s. 81 Of individual
In the year ended October 81 1906, there was a
gross Increase OF S15sa0VJ IN the arth9Iaed capta
stock of national banks. OF which SZs.5l1OJ0 was
old banks increasing their capital and S2l as
iaI was SIS 48 SEQ which includes s82530o0 by as
sociations placed in voluntary liquidation and as
cafi+sj ana $50 0ri bv ins0lvent national banks
$3l5Z57o0
Including two associations whose charters expired
by limitation, eighJy-one national banks with cap
ital Of $l5225on were p%aeeq PIE IN V2n43ary hgllqa g
TWENTY-FIVE With capital OF $56l2o5, ~ we're closed
ital OF the latter prior 10 consolidation being s527
OO5 and subsequent thereto $7,l93e01. TWO associa
authorized capital OF Sl.eDOH: foTJy-fve banks
with capital OF SS7@5o2 We're reorsanized as state
That character twelve associations with capital Of
$4,000 reported have been liquidated to close
business. The capita! ana outstanding circulation
OF the twelve assoc2ons when were cl2sea Were
$4,000 and S2536o. respectively The Liabilities OF
the banks 10 deposltors and other creators aggTe
with capital or $loYy'" haFlns "stl Isstoied 20
sOlvency, We're permitted % resume business ana
biIlHs ~ ci'9 ~ or n nar cent one "a ner
cent and one 100 per cent. together with 90 per
cent Of interest In ADDITION 70 the % per cent
October 81 n final dividend was subsequently, de-
clared IN fun peymept Of al cIalm5 e f. Mlthin me
banks heretofore placed in the charge Of receivers
were fully settled BY the payment Of final dividends
10 creditors, leaving seventy-one pending trusts.
The ContColer calls attention TO the necessity Of
renews his recomnendadon that the bank exam
ners receive salaries by the day, instead OF Tees
as at present. This. he is a matter or great
Importance IN the interest Of good administration
mo examination and supervision of national banks
VIII never lie what it should be until this recon-
The Controller again earnestly calls the attention
Of Congress 10 the necessity oI 2 changs IA Ine
tions made IN his report OF December l. 1862, that
of their circulation uncovered notes as the best
means Of adding this circulation the greatly
needed quality Of elasticity.
II is recommended that the laws be AMENDED SO
as to allow the following changes:
All national banks which have been In operation
for not less than years, and which have an
Ilnnpaired surplus of not less than 70 per cent or
their capital stock. to be permitted 10 issue not TO
exceed 70 per Of the amount Of their bona
covered notes in notes uncovered by bond deposits
To protect these notes tho banks 10 carry the
same reserve against deposits, IN gold or It's
equivalent. In reserve banks this would be Is per
cent and I'm all others 10 per cent OF the outstanding
notes
These notes TO be further protected by q guar
autes fund of per cent, TO be deposited by the
issuing bank with the Treasurer OF the United
states before any issued,
ON of this guarantee fund ell such gold reserve
notes o ~ redeemed on demand
The guarantee fund 10 be kept good by a grad
mated tax on the gold notes, beginning at
n rate of not more than 2lk per cent per annuIn-
IZyery bank issuing gold reserve notes 20 be re-
orired 10 provide means Of redemption for such
notes in every and central reserve city and
sls1 such other points may be designated.
These points 10 be 50 numerous and Convenient as
to nut every national bank within twenty-fOur
hours Of redemption centre.
The provision limiting the retirement of the pres
emf bond secured notes TO 5000 O00 month not 10
sDplv 70 gold notes, and this limit TO be
repealed or greatly extended. OF the discretion OF
tbe Gecretary Of the Treasury, IN its application 10
hond secured notes