Rensselaer Semi-Weekly Republican, Volume 19, Number 30, Rensselaer, Jasper County, 17 December 1897 — ECKELS MAKES REPORT. [ARTICLE]

ECKELS MAKES REPORT.

Reviews National Banks and Favors Amending Note-Issuing Law. The annual report of James H. Eckels, Comptroller of the Currency, for the year ended Oct 31, 1897,' opens with a brief review of the history of the legislation which constitutes the present national bank act, and invites the attention of Congress to amendments to the law recommended in former reports without specifically repeating them. On the subject of bank note circulation the Comptroller says; It Is noticeable that In all the changes which have been wrought In the national currency act from lta Inception to the present time the feature subject to criticism, but which was Intended should constitute the principal benefit to he conferred, has reuffilned comparatively unchanged—namely, the note-issuing function. Whatever Justification there was In the first instance for restricting of notes against the bonds of the Government, deposited with the Treasurer of the United States, to 00 per cent, of the par value thereof, has long since ceased. In the report of every Comptroller of the Currency during the last twenty years the wisdom of changing the existing law so that the banks and through them the communities In which they are located might have the additional benefit of an added loanable capital has been urged. Despite all this the law still remains without amendment. Not only should the bank act he amended In this particular, but Congress should seriously consider such a change In the method of bank note Issues as will enable the banks of the country to more adequately meet the demands of trade and commerce In all sections of the country.

It Is considered by every great commercial government, except the United States, to be the sole province of the banks to Issue the paper which circulates as currency. The belief In a bank note currency as being better and safer than a government paper currency prevailed unquestioned in this country, until, under the apparent exigencies of the war, the Government undertook to issue paper currency. Even under such circumstances the promise was already given, however, that It should be retired at the earliest practical moment, and the admission freely made that lt„was neither a wise measure nor a safe form of currency. Between the competition of the Government note issues on the one hand and the unnecessary restrictions Imposed by law upon the other,’together with the Increasing price of bonds required to be deposited as security, the note Issuing function of the banks has been permitted to become merely an Incident to the conduct of the national banking associations of the country. It hus been seriously suggested more than once that the bank note issues be done away with, and all paper be Issued by the Government Instead. The danger of such a course Is not to be overestimated. The experience of every government has been that governmental currency paper is a source of weakness and danger. In the United States, where there has been the nearest approach to success, with the volume of the Federal paper comparatively limited In amount, the credit of the Government has been more than once put In jeopardy through It, and the business Interests of the country subjected to unnecessary loss and confusion. The argument that the Government better than the banks can provide for the redemption of paper note issue will not stand the test of a careful analysis. The Government lias no means for caring for Its demand liabilities, except through borrowing and through the levying of, taxes. Upon the other hand, the banks have assets which can be promptly converted Into cash to meet their outstanding notes when presented. The total number of national banks organized since the system was put into '"operation, in 1863, is shown to have been 5,095. On Oct. 31 last there were in active operation 3,617, having an authorized capital of $630,230,295. The total outstanding circulation banks then in operation was of which $202,994,555 was securely bonds of the United States, and the balance by lawful money deposited with the Treasurer of the United States. The total circulation outstanding Of all national banks on Oct. 31 last was $230,131,005, of which amount $1,558,800 was secured by bonds held for account of insolvent and liquidating banks, and $26,205,325 by lawful money deposited for their account and by active banks reducing circulation. The net decrease in the amount of circulation secured by bonds during the year was $12,584,334 and the gross decrease in the total circulation was $4,851,292. During the year forty-four banks were organized, with an aggregate capital stock of $6,420,000. During the year seventyone banks went into voluntary liquidation.

There was paid to creditors of insolvent banks during the year $13,169,781 in dividends. The magnitude of this unequaled record, the report says, will be more forcibly illustrated if considered in the light of what has been accomplished heretofore in the way of dividend payments to the creditors of insolvent institutions. In 1893 there was paid in dividends $3,433,646; in 1894, $5,124,577; in 1895, $3,380,552 ; in 1896, $2,451,959, and in 1897, $13,169,781, making a total of dividends paid within the five years from 1893 to 1897 of $27,560,515, or 36*4 per cent, of all th« dividends that have ever been paid to creditors of insolvent banks. From 1863 to 1897 there' has been paid in dividends $75,935,925, and in the year embraced in this report $13,169,781, or 17 1-3 per cent, of all the dividends that have been paid during the period of thirty-four years of the existence of the system. Since Oct. 31. the end of the report year, seventeen additional’ dividends have been ordered, amoqnting in the aggregate to abouts62s,000. The report contains the latest compiled statistics relating to the world’s monetary systems, and the stock of gold, silver and paper currency. A very interesting feature of this statement is the per capita amount of each kind of money in the countries named. The per capita averages in the principal countries of the world are as follows: United States, $23.70; United Kingdom, $20.65; France, $34.68; Germany, $18.95; Austria-Hungary, $9.33, and Russia, $8.95. The Comptroller renews his recommendation of last year, urging that national bank examiners be paid an annual salary instead of fees as now.

Salvage Belderback of Duglestown, Md., tied the members of his family to posts and then tried to kill them with a ■word.