Rensselaer Republican, Volume 28, Number 14, Rensselaer, Jasper County, 5 December 1895 — FINANCIAL AFFAIRS. [ARTICLE]

FINANCIAL AFFAIRS.

Comptroller Eckels Reviews Bank * Operations for the Year: Op Offers Some Important Recommendation-, ami Presents His Reasons for. Favorlrfij Increase in National Hank Circulation, i Washington, I>ee. 2.—The annual report" of Comptrollenof the Currency Eckels borrows interest from the uncertainty regard4ng tlie financial affairs.of th.eeoumrw H the 5,023 national banks organized from the beginning of the system, 3,715 were-in-ep-eratiort October 31, 1895. The totpl capitalization at that time aggregated’s664.ls6.9la, divided among 285,195 stockholders. The to'.al amount of circulation outstanding on the date named “was $213,887,630, of which secured by United —Stares" bor.-ds, and the balance bv lawflll monev deposited- with the treasurer of the United States. During the year covered bv the report 43 banks, located In 20 different states, were organized, with an aggregate capital stock of $4,390,009. Of these, 28. rep resenting $2,530,000, are in the north, and 15 with a capital of $2,360,000, In the south The circulation was increased $17,102,137 -Thirty-six banks were put in the hands of receivers during the year, the aggregate capital of which amounted to $5,235,020, and the circulation to $1,003,402. ,Of these, two, ..with a. capital of $150,000, were reported Last year as in voluntary liquidation, and nine, representing $2,750,000, were of (he number of banks Which closed their doors in 1893. subsequently resumed business, but wero unable to maintain their standing. Ivt:o<-arcts epd Liabilities, On September 28, 1895, the date pf the lastreport of the condition of the 3,712 banks then reporting, their total resources w.ero fS ; 4->4*2934? «3 of which $2,059,408,4021" rep- ;& 1 ■ their .loans ahd Accounts and $356,577,508.61 money of all kinds In bark. Of their liabilities, $.1,701,653,521.-8 represented individual deposits, $336,558.350.86 surplus and net undivided profits and $182,481,610.50 outstanding circulation recured by bonds. Amendments to the Hanking Laws —, Tho—comptroller—roeommonds—seoeraAamendments to the banking laws, among them being the following: "That upon a day in. each year, to be designated by the comptroller, the directors of national banks shall be required to make and submit to the comptroller a report thereon upon blanka~4o ; be-fum4shed for such purpose. "That the comptroller be authorized to issue to national banking associations circulating notes to the par value of the bonds deposited by thOm with the treasurer of the United States to secure suen notes. "That the semi-annual tax levied on account of the circulating nates.of natienal .banKsho reduced so as to equal but onefourth of one per cent, per annum. Question of Increasing Circulation. With reference to the increase of ctrcu • iating bank notes, the comptroller says: "At a time when the desire is so frequently expressed that there be a larger issue of bank notes and complaint is made that :.x----tional banks are indifferent to the noteissuing function vested In them, It may well be considered by.congress whether ft would not. be wise to do that which wTt make it of sufficient interest to the national banks to pay greater attention to note issues. The profit of banking In the United States Is now largely in the deposit feature of it, and thus it is of greater concern unde existing circumstances to the banks to secure deposits than it is to issue notes, upon 'a return so small as to scarcely justify the expense and trouble entailed thereby. "The experience of this and other countries conclusively demonstrates that the best and most rational note issues are those put forth by banks. It likewise demonstrates that-issues made direct by governiiients are always expensive, and under every circumstance a source of danger to such governments and loss to their people’s business interests. No clearer proof of this could be had than that furnished by the difficulties which "we"have witnessed on-the part of this government in its efforts to maintain the full credit _ot..its practically limitless amount of-de--. mancl obligations.'' 7 . „ Advantages to the Government. Con:muing. the comptroller states that the substitution of bank notes for treasury notes would obviate tlie necessity of maintaining a gold reserve, and the treasury department could then return to its legitimate function of collecting and disbursing the revenues of the government. Relief would also come to the business Interests of the people, whose operations would, no longer be harassed by uncertainty. It would afford a better guarantee of meeting the varying wants of trade.