The news-democrat. (Providence, R.I.) 1906-1909, 1906-12-07


troller OF the currency which was yester-
day transmitted 10 congress, appears con-
siderable information OF interest to New
England in general aud Rhode Island in
particular
The report states that Rhode Island
comes third In the list OF commonwealths
as 10 the relative per capita OF bank re-
sources, the amount in this state being
S49i.9l. New York leads with $639S0 and
California comes second with $5l570. The
average per capita OF bank resources for
the United states rs s2li69, Geographi-
Cally the Eastern states are first with
Si21,S6. The New England states comes
next with s393.25; the Pacific states are
third, $Sl9a; Middle Western states
fourth, $l64H and the Western and
gSouthern states NTH and sixth, with $751;
Al and % respectively.
II Is interesting to note that excluding
the Southern states and four OF the terri
tories. the per capita tax In every other
state ranges from $il0 TO $685. while In the
Southern section only one state has a per
capita of over 800, that being West Vir-
Sginia, with per capita of sl05i6. The
total resources OF all banks. including Is
1and possessions, on or about June 20, 1906,
was slSli7, ,57S, $50 and the estimated popu-
.1ation OF the United States on june !, as
computed by the government actuary'
was S4,3lsO0O and of the island possessions
p197,000.
Nor is Rhode Island the poorer state
BY any means I'm respect TO the amount
OF cash holdings I'm it's banks these insti-
ttutions having total deposit OF $5,O0OV0O.
The New England states hold Sol, '6s'O22
IN their bank vaults, over two-thirds or
this sum being In Bay state banks. Con-
tnecticut banks have S30,0oo. Reports
from New England banks show loss OF
s., 100. coo. compared with the figures of 1898,
although throughout the country AT large
there has been "A net increase of 5000
o00. The per capita OF bank holdings IN
sthe New England states Is Si0.l5.
FOR CURRENCY REFORM.
The comptroller secs the necessity of a
change in the national currency system,
and makes a number of recommendations,
calculated i'm his opinion, to improve oN-
listing conditions. He advocates that the
national banks be authorized 10 issue a
portion of their circulation as uncovered
notes as the best means OF adding TO the
circulation that quality, which Mr.. Ridg-
ley believes to be greatly needed, namely,
elasticity
IIe recommends that the laws be amend
ed To admit OF tho following changes:
IAN national banks which have been IN
operation for not less than two years and
which have an unimpaired surplus OF not
less than 70 per cent, of their capltal
stock 10 be permitted to issue not TO eX-
coed 80 per cent Of the amount of their
bond-covered notes In notes uncovered by
bond deposits
'ro protect these notes the banks 10
carry the same reserves as against depos-
Its i'm gold or its equivalent In reserve
banks this would be 25 per cent. and in all
others 10 per cent. OF the outstanding
notes
"Thesc notes TO be further protected
by a guarantee fund OF per cent, to
be deposited by tho issuing bank with
the treasurer OF the United States be-
fore any are issued.
"Out OF this guarantee fund all such
gold-reserve notes to be redeemed on de-
msnd.
by a graduated tax on the gold-reserve
notes. beginning at rate of not over "a
per cent. per annum.
every bank issuing gold-rescrve notes
10 be required TO provide means or re-
demption for such notes I'm every re- |
serve and central reserve city, and also
such other points may be designated
These points TO be so numerous. and
8 convenient as TO put every national bank
within q hours of redemption centre
The provision limiting the retirement |
OF the present bond-secured notes 10
81 100000 per month not TO apply TO gold |
reserve notes. and this limit 10 be re- |
pe aled or greatly extended at tho discre-
lion Of the secretary of the treasury. in |
its application to bond-secured notes
BANKS INCREASE.
A IIe saws that the number OF banks i'm the |
Union materially Increased from Nov. p |
1905 10 Sept. T. 1906. This increase was /
from 1898 To 6l31. and loans and discounts, |
representing over 50 per cent OF the |
banks aggregate resources, steadily in |
creased from $iOl6.755, 1879 on Nov. Q, |
, 1905 to A,29s, ,9SS 3l6.ll, on Sept. 4, 1906. |
= The aggregate resources were S,ol6Gl86 |
on Sept 4. over three fourths of the |
resources Of the banks arc in loans, |
bonds securities. etc, and lawful money, |
tho loans amounting to a. 29s, 1888 316; |
United States bonds on deposit to secure |
circulation, 1924 ,0369 $50; government loans, |
s91,171,5s0 and held I'm bank, NSSS, 100; /
other bonds and securities, $1ol,24o 755, |
specie, $i6i, ,i31 200; legal tender notes, $751;
675,t20.
The paid-in capital stock Is shown to
DC SSS5, ,O66 796, surplus, $902i5,lA; other |
undivided profits. $3.50. $50 S57; circulating |
notes outstanding. $517.96i,51l; Individual |
deposits. Sil99 93S,310; United States de-
posits and deposits of United states dis
bursting officers Sl07.S3lslS.
Historically considered the First ma
tional bank of Philadelphia, which was
chartered June 20. 1853. was the first
national banking association authorized
TO do business under authority Of the act
OF Feb 25 1853 FROM that date TO the
close of the year ended Oct. n, 1905. S4ll !
associations were chartered, of which 6225
or e per cent, are In active operation;
1tJl. or II per cent, tloScu ny voluntary
liquidation or expiration of charter the
number Of the latter being l61
The number of failures represents but
per cent OF the total number OF banks |
chartered. n significant showing In the
face OF tho notoriety which arises when
ever bank closes IFS doors Four hun
dred and forty-SiX banks, exclusive OF 26
temporarily in charge OF receivers bat
subsequently authorized to resume busi-
ness were liquldated through or are stlll
in charge Of receivers
FIFTY-TWo CONVERSIONS.
Approximately one-half Of the converted
banks and representing over two-thlrds
of tho capital. were institutions In exist
encc In the states OF New York, Massa-
chusetts. Pennsylvania. Connecticut and
Rhode Island. The number OF conversions
in the state Of New York was Ni; Massa-
chusetts 1S2: Pennsylvania ZOE; ConncCti-