The Minneapolis journal., 1906-12-06
HAS
A CURRENCY. / / PLAN.
Annual. Report Of Controller Of
Currency Suggests Method
to Secure Elasticity.ofa
Special to The. journal.

| Special to The journal.
Washington, Dec. 6.-Currency. 6. re.
form receives a large share of atten'
tion in the annual report of the con.
Ridgley, issued today. He suggests The
following amendments to the present
banking laws:
All national banks which have been
In operation for not less than two
| years and which have an unimpaired
Isurplus of not less than 20 per cent Of
their capital stock to be permitted to
issue not to exceed so per cent OF the
amount of their bond-covered notes in
notes uncovered by bond deposits.
''To protect these notes the, banks to
carry the same reserves as against de-
| posits, in gold or it's equivalent. In re
serve banks this would be Is per cent
I and in all others Is per cent of the
outstanding notes. 6
! "These notes to be further protected
by guarantee fund Of 5 per cent, to
| be deposited by the issuing bank with
| the treasurer of the United States be-
! fore any are issued. & = s.s "a. .ls Z,
| Out of this guarantee fund all
such gold reserve notes to be redeemed
on demand. !. -.. st.st s... s
| The guarantee fund to be kept good
by a graduated tax on the gold reserve
| notes, beginning at a rate of not over
21a per cent per annum.
every bank issuing gold reserve
| notes to be required to provide means
of redemption for such notes in every
| reserve and central reserve city, and
| also such other points as may be desig-
! mated. E
"These points to be so numerous and
convenient as to put every. national
bank within twenty-four hours Of a
! redemption center. -"<...E f%
The provision limiting the retire
ment of the present bOnd-secured notes
| to $3,000,000 per month not to apply to
gold reserve notes, and this limit to be
discretion of the secretary of the treas
ury, in it's application to bond-secured
notes. y r.. " - =: : " = = e -&.s,-t.s Z, =
Following these recommended ons,
Mr.. Ridgley gives long argument. in
favor Of the plan. He also suggests d
change in the systems of bank examine
tions and the abolition of the fee, sys-
tenn for salary system ~ ssS-,ss ss.=ss.
Banking Power Of World. t..,
Mr.. Ridgley's report contains figures
showing that the United States is the
banking power of Che world and at the
present rate of increase will before
long overtop all other nations com
bined. He says:
"The banking power of the United
States in 1906. as represented by capi-
circulation of national and other. re-
porting banks, ttogether3 with estimated
amounts Of funds of this, character in
non-reporting banks, is shown to be
SIG, ,462, ,470, ,465. -.
-" From the LATEST and. most reliable
data obtainable, the banking power
! of the foreign countries is estimated at
$2l ,952, 100000. y;
Status Of the System.
The report begins with a table civ
| ing detailed statement of the re-
sources and liabilities of all the nation
al banks of the United States, as shown
by the five reports Of condition made in
response to the call of the controller.
/ j., 1t appears from these reports that
there has been an increase in banks
from Nov. 9. 1905, to Sept. 4. 1906, from
1888 to 6,137, and that loans and dis
counts, representing over so per cent OF
the banks aggregate resources. steadily
Increased from $4,016, 735, ,497 so on Nov
9, 1905, to $4,298,9S3, ,316.l1, on Sept
1 q, 1906. The aggregate resources were
$S,Ol6,O2l ,066 on Sept. 4. ! -. I.
The average reserve held by, all
|
cities was deficient, amo uniting to "a 81
and 24.52 per cent, respectively The
average reserve of the country banks
was 1911 per cent. ." ~
| Earnings Of Banks =
In the year ended March 1, 1906
shareholders of national banks were
paid dividends to the amount of $50,
S3l,56l on $779 ,544 PAT capital, the av
erage rate being l0.4. per cent, tht
highest since 1870. Based on capita
and surplus the ratio was 76.8 per cent
| The net earnings were $113,662, ,529, O.
9.5 per cent Of the combined capita
and surplus. The average rate Of div
ly from 1870 to 1906, thirty -sevo1
years, was S.42 per cent The aggre
gate net earnings of the banks durin.
the period in question were $2,313, 1896.
$50, from which dividends were paid t.
the amount Of $l,7SO,712,714, which i
over three times the average annua
capital.
Reliable authorities place the mum
Der of banks and bankers in the Unite,
States and island possessions, exclusiv
OF national banks; at ,343. Of thi
number, reports pertaining to 11,S5
banks have been received and tabu
!dVOu, UcIuS L,IIo 1tlOIe IudQ IN lSUc
The aggregate resources of these bank
amount to; 1o,363,35o, o,s46, being a.
increase Of approximately $773,000,0O
over the previous year. The return
include $500 commercial banks. IA
! loan and trust companies, and I,31
savings banks (of which 67S were O
the mutual class-that is, without capi
tai stock) and 929, private banks an,
bankers.
Savings Banks.
The principal items of resources an
liabilities Of savings banks, both mu
tual and stock, are as follows: &, Loans
i $l,676, ,929,0 ,015; bonds. etc, $l,6O9,775
: 5S2; deposits, $3,299 ,544, COL; aggregat
I. resources, $3,583,024,195. %. ]
MARRY AT THREE SCORE AND rE1 re;
Iowa, and South Dakota septuagena
; f.. rians Procure Marriage License.
WEBSTER CITY. =1owA.-Robert Garden 2
Freedom township, aged 70 years. and Mr.
! May Bunnell, late of South Dakota, aged
years. have been granted license to MARI,
and will make their home on the bridegroom
| farm in Freedom township =