444 WILLIAM BARRET RIDGELY 



per cent; the percentage of liquidating banks is 21.2; the per- 

 centage of active banks is 73.1. 



From an estimate based on 330 insolvent national banks 

 whose affairs have been finally closed, dividends amounting to 

 71.31 per cent have been paid on claims proved, amounting to 

 $101,724,840. Including in this estimate, however, offsets al- 

 lowed, loans paid, etc., the creditors received on an average 

 78.55 per cent on their claims. This would make a loss of 21 .45 

 per cent to the creditors. The total loss to depositors in forty 

 one years on deposits, now amounting to almost three and one 

 half billion dollars, has been less than thirty million dollars. 

 The cost of liquidation, based on the total amount collected 

 from assets and from assessment on shareholders was $8,579,- 

 822, or 8.3 per cent. The causes of failure have been classified 

 as follows : 



Excessive loans 22.81% 



Fraudulent management and defalcation 36.34% 



Injudicious banking 25.06% 



General stringency and panic 15.79% 



Comparing the result of failures and liquidations among 

 the national banks with the figures in regard to the failures of 

 state banks from 1863 to 1896, as given in the report of the 

 comptroller of the currency for 1896, the last date to which 

 complete figures are available, it will be seen that while only 6.5 

 per cent of the number of national banks in existence failed 

 during this time, 17.6 per cent of the other banks in existence 

 failed. And while the national banks which had failed up to 

 1896 paid to their creditors 75 per cent in dividends, the state 

 and other banks paid only about 45 per cent. The cost of liq- 

 uidation of state and other banks which failed is also very 

 much higher than the cost of liquidation of national banks. 



The present law authorizes the comptroller to order an 

 examination of a bank at any time he may see fit. For sever- 

 al years after the establishment of the system but one exam- 

 ination was made each year. After a short time the banks 

 in the reserve cities were examined twice in each year. During 

 the administration of Mr. Eckels after the panic of 1893, this 

 system was extended until each bank is now examined regu- 



