Crawfordsville Weekly Journal, Crawfordsville, Montgomery County, 8 December 1893 — Page 7
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ECKELS REPORTS.
The Comptroller Tells the Story ol the National Banks.
THEIR CONDITION COMMENTED UPON.
Xurintc
the Year 110 Were Organized,
"Willie 158 Suspended—Cuune of tlie Depression Shrinkage in Resources and LlablllUes.
THE COMPTKOLLKR'8 REPORT. WASHINGTON, Deo. 1. —Tlio annual report ol the comptroller of tho ourrency will bo submitted to cougress moro briefly than tho report usually made by that officer, ItdifTers from former reports in that no tables appear in tho body of the text. Ii shows 8,706 national banks to havo been In operation at the close of the report year, with a capital stock of li695,558,120, represented by 7,450,000 shares, held by 30J.000 shareholders.
At the last report of condition the total resources of the banks then in operation was $3,109,563,284. The total amount of circulation was on October 31 S209.311,993. a net increase during the year of 830,880,972. During tho year 119 banks were organized In thirtytwo states and territories with a capital stock of $11,280,000, distributed as follows: For-ty-four with a capital stock of 85,135,000 In the eastern states, 41 with a capital stook of 12,840,000 west of the Mississippi river and 34 with a capital stock of S3,755,000 in the oentral and southern states.
Many Banks Suspended.
Within the same period 158 banks suspended, with a capital stock of $30,800,000. Of this number 86, with a capital stock of S18,2u5,00J, resumed and 65 passed into the hands of reolvers, with a capital stook of 810,885,000. At the close of the year 7 remained In the charge of ezamiu ers pending resumption
Shrinkage in the Figures.
The aggregate resources and liabilities on October, 8, 1893, the date of the last report of condition, compared with those of September 80, 1892, were t400.58l.618 less. The shrinkage In liabilities is acoounted for by a decrease between the dates mentioned in the following Items:
Capital stock, $8,032,677 Individual deposits, 1314,298,653, ami bank and bankers' deposits, (181,8^8,125. The decrease In resources Is as follows: Loans and discounts, (327,400,926 stocks, eta, 16,965,564, and due from banks and hankers, (132,054,654. Cash of all kinds Increased {30,968,606, Including 88,410,815 In gold. United States bonds held for all purposes increased J40,60l,250.
Cause of the Depression.
The comptroller reasons from the changes In these conditions that the business depression of the last months was occasioned by the action of depositors withdrawing so much money from the banks, which caused a sudden contraction in the volume of money needed or employed for business wants, and by the banks being compelled to call In loans and discounts to meet demands of depositors, which prevented the making of new loans and rendered It hazardous on the part of banks to grant renewals of credit or extensions.
His Resumption Policy.
The suspension of national banks during the year Is discussed, and also that of resumption Upon the question of resumption the comptroller says: "With a full knowledge of the general solvency of these instutlons and the causes which brought about their suspension, the policy was Inaugurated of giving all banks which under ordinary circumstances would not have closed, and whose management had been honest, an opportunity to resume business. This policy was one whloh seemed to commend Itself to the comptroller as proper to pursue under the ciroumstances, and It is believed the results have justified the experiment of Its adoption.
Favors Clearlug-House Certificate*. The matter of clearing-house loan certificates is briefly dlsoussed. Upon this subject the comptroller says: "Briefly stated, they were temporary loans made by the banks In each olty Issuing them, associated together as a clearing-house association, to the members of suoh association, and were available to such hanks only for tho purpose of set tllng balances due from and to each other, these balanoes under normal conditions of business being always denied In ooin or ourrency. Their issuance at so early a date in the flnanoial derangement of the country was most opportune. In not only preventing an acute panic but In tending to restore public confidence, such action demonstrating that by mu tual agreement of all the weak banks of the association would he—so far as depositors and other creditors are concerned—as strong as the Strongest."
I .awful Money Reserve.
Bearing upon the question of what constitutes lawful money reserve the comptroller says, after an analysis of the provisions Of the law: "In any view of the matter, however, the Intent of the law Is to compel a bank to retain always on band a very moderate proportion of the money deposited with It for safe keeping by the depositor, who praotlcally makes a loan to the hank payable on demand, for the use of whioh he ordinarily receives no Interest. The entire effect is to exercise a wholesome restraint upon too Imprudent an extension of business by a bank, and that this intent is reoognized as an underlying principle of safe and conservative commercial banking is evl. denoed by the faot that those banks whioh are compelled by law to maintain but 15 per oent. reservo have voluntarily for years past held an average of over 25 per cent, the proportion required for banks located in reserve cities.
Important Amendments Suggested. "The following amendments are re com mendod: "1. That every association may Issue circulating notes equal to the par value of the bonds deposited. "2. That the seml-annnal duty on circulation be so reduced as to equal one-fourth of 1 per cent, per annum. "3. That the comptroller of the currenoy, with the approval of the secretary of the treasury, be empowered to remove officers and directors of a bank for violations of law, first giving such officers and directors an opportunity to be heard, leaving the vacancy so created to be filled in the usual way.
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That no executive officer of the bank or employe thereof be permitted to borrow funds of such bank in any manner, except upon application to and approval by the board of direction. "5. The assistant cashier in tho absence of the cashier, or Inability of the cashier or authorized and empowered official, to sign the circulating notes of Buch hank. "6. That the law may be amended by appropriate legislation so as to empower some class ol public officers to administer the general oaths required by the provisions of the national hank act. '7. That bank examiners be required to take an oath of oftloe before entering upon the discharge of their duties and to give a bond in suoh amount and with such securities as the comptroller of the currency may require. "8. That the comptroller of the currenoy, with the approval of the secretary of the treasury, be empowered to appoint two general examiners of conspicuous ability and-experience, to be' paid out of the reimbursable funds, whose duty it shall be to visit, assist and supervise the various examiners in their several districts, in order to secure uniformity in method and greater efficiency In work. "9. That the law be so amended as to provide that the compensation of all bank examiners be tlxed by the comptroller of the currency, with the approval of the secretary of the treasury."
The question of loans to directors is discussed and a distinction drawn betweeu directors who are merely directors and those who are constituted the executive officers of the bank and are paid by the bank for their services.
No Need of More Money.
Upon tho subject of currenoy legislation la the following: •'The comptroller has been urged to make some specific recommendations with jspeot to I a revision of the law so far as it pertains to the issuing of currency. After a careful considera
tion of tho question the comptroller is of the opinion that, aside from the amendments here, toforo suggested allowing banks to issue circulating notes to an amount equal to tho par value of tho bonds held to securo o'.rculutloil and abolishing a portion of tho tax on national bank circulation, the public good will be best subserved at this time by making uo radical change in tho provisions of the law us it now stands. "The financial situation of the last few months was not the result of either a lack In tho volume of currency, of which there Is now a plethora, nor a want of elasticity In tho present system of Issuing It, but arose from a loss of confidence on the part of tho people in the solvency of the distinctively monetary institutions of the country. In view of the fact that there is now a very great abundance of unemployed currency in the country, as Is shown by the dally money returns from the commercial centers, It would seem that whatever needs appeared some months since for enlarging to any marked extent the circulating medium has now ceased to exist, and therefore congress Is afforded an opportunity of giving to the whole subject that careful research and investigation that Its Importance In all of its hearings demands. It will not do to place upon the statute books any experimental legislation upon this subjeot, but whenever a new law governing bank issues is enacted it must be one that immediately upon going into operation commands in every respect the confidence of the whole people, and insures to them a Bystem of currency issue as safe in every respect as the present one, but with none of its defects. "In the meantime it is respectfully suggested that congress, either through a monetary commission created for such purpose, or through the appropriate committees, obtain detailed Information of the various systems of banks of issue now In operation, and also such lnforma tlon as is to be ascertained from skilled students of finance and practical financiers, that it may be able to formulate a system complete and harmonious."
HELD UP A DOZEN.
Twelve Men Robbed by Bandits at Lazerne. la. CEDAR RAPIDS, la., Dec. 4.—When passenger train No. 8, eastbound on the Chicago & Northwestern road, arrived at Bell Plaine, near here. Saturday night nothing could be heard from Luzerne. After waiting half an hour Conductor Ward toolc an operator from the office and started on a slow run for Luzerne. When the train pulled in he jumped off and ran into the depot. As he did so three men emerged, the tallest of the three stepping in front of him and closely peering into his face. Mr. Ward passed on into the depot but finding no one about called out and wanted to know what was the matter. An answer came from the freight room, and breaking down the door he found a dozen men huddled up in a corner shivering from cold and fear. "We've all been robbed!" gasped one, and then quickly followed a narration of what had transpired. Conductor Ward rushed back to the train, and throwing1 open the door of the smoking car he shouted: "Every man who has a gun get it ready. I think the train is going to be held up." Immediately fifteen revolvers were drawn, and as the conductor went on through the train the armed force was increased, and everybody was preparing for the assault which was momentarily expected. But the bandits had been frightened away, and after a few minutes the train pulled out.
About 7 o'clock three men entered the depot and told Agent Thompson to hand over his money. He did so and was pushed into the freight-room and locked up and told if he made any noise he would be killed. In a few minutes the night operator came down and the bandits robbed him and pushed him into the freight room. They were followed by others who were treated in a similar manner until the little freight room contained a dozen inen. The amount secured is estimated at from |2U0 to $700. Telegrams have been sent all over the country and it iB not believed the fellows can escape.
MRS. FOY'S STORY.
Sensational Evidence to Be Given In the Coughlin TrlaL CHICAGO, Dec. 4.—The Post prints in detail the testimony which will be given by Mrs. Andrew Foy, who will be the first witness presented by the state in the Ooughlin trial. The facts, Mrs. Foy avers, were told her by her husband at times when remorse for his part in the crime would overcome him. The evidence, while not admis si Die against Foy, is competent against either of the other men mentioned in her story. In substance, according to the Post, Mrs. Foy'a evidence will be as follows:
Dr. P. H. Cronin was killed in the Carlson cottage by repeated blows on the head with a heavy carpenter's chisel in the hands of Patrick Cooney, while Martin Burke hold the struggling victim, helpless in his strong grasp, and Michael now a member of Chicago's police force, stood guard at the door. No one but Cooney struck the doctor, and only Burke, Cooney and Michael were in the cottage.
Patrick O'Sullivan stood outside at the rear of the cottage watching and guarding against possible interference. Dan Coughlin did uot reach the cottage till after the murder when he came accompanied by Andrew Foy. The man who called at the Conklin residence with Dinan's white horse for Dr. Cronin was Martin Dawn, of Hancock, Mich. "J. B. Simonds," who bought at Revell's the furniture found in the cottage and who rented the flat at 117 Clark street, was James Cunnea, then a clerk in Gillespie's grocery store on Twenty-second street and Indiana avenue, and now a fugitive. Burke and Cooney were the persons who rented the Carlson cottage. Dan Coughlin was the head and front of the conspiracy. ftsi
Stole *«0,000 lt Stock*.
BROOKLYN, N. Y., Dec. 4. —Burglars paid a visit to the hardware store of S. O. Burnett, in Fulton street As a result Mr. Burnett is out 160,729 in stocks and mortgages, a lady's gold watch worth $40 and 820 in cash. The safe is all battered and broken about the lock and handles where the burglars worked to get it open.
County Treasurer Short 840,000. BEDFORD, Va., Dec. 4.—Seven indictments have been returned againBt County Treasurer Lewis C. Arthur, charging him with misappropriation of public money, including school funds. The shortage is estimated at $40,000.
SECRETARY S1IITIL
He Reviews the Work of the Interior Department.
HE EXPLAINS HIS PENSION POLICY.
Satisfied with Its Ilegultg lie Will Continue It—Protection for the Forest* Fr^ed Care of the Indians Statehood for Territories.
SMITH ON PENSIONS.
WASHINGTON, Dec. 2.—In discussing the subject of pensions in his annual report Secretary Hoke Smith calls attention to tho frauds discovered by tho special examiners in Norfolk, Va., and in New Mexico and Iowa, llo says the pensions in tho first two instances havo been allowed upon testimony manufactured and forged by the claim agents, lti Iowa examining boards had 1 eeu systematically tampered with by tho claim agents. The report shows that the stoppage of theso illegal pensions in the threo places had saved to the government an amount equal to the oxpenso of tho entire force of special examiners. When it is remembered that this work of the examiners has been in progress but six months, and that, payments of pensions would have continued for an average of nearly twenty years, the enormous saving to tho government can bo realized. Where it was thought that tho pensions could not bo sustained and another medical examination was necessary, payment of the pensions was suspended pending tho Investigation. "This," he says, "was dono by the commissioner of pensions in pursuance of a uniform practice of the bureau existing almost from its early organization. It was found that many thus suspended were able to supply tho proof when notico to that effeot was given. Payment of these was at once resumed."
The report denies that the purpose has ever existed of an extreme and unreasonable manner of suspending pensioners, and It also denies that any abandonment has taken place of the polioy of removing from tho pension rolls those who are not legally thereon.
To Close Up Census Work.
Referring to the work of the census office the secretary states: "I now feel all confidence that every effort is being conscientiously made to bring the census to a close and to render it as useful as possible when finished." It is intimated that the appropriation now available will be sufficient to meet the expenses up to the 1st of February, but that additional appropriations to the amount of 5500,000 will be necessary to continue the work from that time.
Protection of the Forests.
Upon the question of public timber and forest the report shows that an utter inadequacy of legislation has been provided for the legitimate procurement of public timber to supply th'j actual necessities of the people dependent thereon and at the same time develop the national reserves of the public lands and to protect and preserve the forests. The report reoommeuds legislation for a comprehensive forestry system and the selection of a forest commission to choose inspectors in connection with the land office.
How the Outlet Was Opened. The report gives tho history of the opening of the Cherokee outlet and describes the booth system adopted. It says the rush of applicants for certificates was unprecedented and greatly in excess of the number expected. As soon as it was found that the force at work conld not supply all the applicants with booth certificates, additional help was employed and ali that offered obtained certificates before the hour for opening. In reference to tho hardships that were Incurred by applicants. the report says that these were unavoidable on account of the fact that the crowd was so large, far In excess of land to be obtained. The soarclty of water was due to an extended drought, and It was impossible to place all the booths at locations suitable for entry. The report says the plan adopted was carrlcd to a successful conclusion, and that It prevented, to a large extent, the wrongful occupancy of land by people who were not entitled to settle thereon.
Would Change the Method.
Referring to the Cherokee Indian allotment, the secretary states that he sought unsuccessfully to dissuado those representing ihe Indians from seeking to select town sites for speculative purposes. In order to defeat the plans of the Indian speculators he approved the allotments made, btit fixed town sites in such a way as to thwart their chances. The secretary recommends the passage ot legislation to protect the people not settled in these towns from this discrimination. He also recommends as a substitute for the present system of settlement the adoption by congress of some plan which, by auction, lottery or otherwise, may determine in advance the ownership of each particular section.
Work of the Indian Bureau. The work of the Indian bureau shows that they are steadily advancing in civilization. It is a mistake, ho says, to suppose that their number is rapidly decreasing. On the contrary, tribal wars and wars with ihe whiles having ceased, ilicy are increasing and there are now over 250,000. Much good is being accomplished by allotments in severalty and the schools. During the last fiscal year over 21,000 children have been tralnod in the schools. It says that civil service examinations do not furnish proper information for the selection of local superintendents of Indian schools, and urges that these officers should be selected without regard to politics by the general superintendent. It is suggested that the teaohers in the Indian schools should be selected on a plan perfected by the civil service commission and the general superintendent of schools, and that experience as well as mere technical knowledge should be considered
In connection with tho recent Chontaw trouble the report urges the passage of the bill extending the jurisdiction of the UniU'd Stales court in the Indian territory so as to incindo the right of removal of all cases when* local prejudice is shown
In regard to Indian depredation c-lalms the report says that unless tho law Ir changed the treasury of the United Mules is liable to be siralued to the extent or many millions of dollars and intimates strongly that legislaiion should free the treasury from this htmien.
In the Leiuer Bureau*.
Referring to tho condition of the patent office building the report shows Unit additional buildings must be constructed for the use of tho interior .'ipartmem.
The report culls special attention to the legal work of the department,.showing a large number of important decisions.
The national parks and forest reservations receive careful attention. Legislation is urged which will require the seckstary of war to detail troops to guard and protect these reservations, and the fact Is mentioned that the acting secretary of war declined to make details upon the opinion of the acting judge advocate that the employment of troops in such :ase« was not expressly authorized by the constitution or by any act of congress.
Would hike to See Tlieiu Admitted. The condition of the territories. New Mexico, Arizona, Utah, Oklahoma and Alaska, is carefully reviewed. It commends Arizona and New Mexico for statehood. Referring to Utah it says: "From a careful study of the conditions in this territory I can see no reason why the privilege of statehood should be longer witheld, and I cordially support the application of Utah for admission to the union." Referring to Oklahoma It nays: "The soil u! Oklahoma is rich and the resources grsat and the development marvelous It is to be hoped that at an early date this territory may assume the responsibilities or state hood."
eorgla
Treacher Hanged.
ATI.A.NTA. (ia., Dec. 2. Kev. Charles Johnston was hanged at Swainsboro, Emanuel county, for the murder of Kev. William Shields. They were negro exhortct-8. and the murder grew out of jealousy over a girl who thought more of Shields than of Johnston. Johnston preached his own funeral term an.
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