New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1865-12-06
Report Of the Controller of tho Currency

OFFICE or Tux COMPTROLLER oF III"
CuRpkNCy, " AsuiNoroS,,
H. a.. ,..,,. -, ,r.osm,t to the House
| or Rsnrn.,n,o,lv,s tho annual report ~ ,'o
| Comptrollrr of the Currency, ~ requ,,,'" "
6lst section Of ia" National CufIcno, ,,,iiy vour
| have the honor TO be-, VERY III ARKE.
ooeo'cn' S'''"''' C,mptrouer Of the Currency
! Hon ScuI,yirR COLFAX. ,,,
NV" ,i''nt me House Of Representatives,
Ill. ~, annual report from this ONCE TWO
hundred aud eighty-'hree Nv AMI t,Jrtv-one
ornnizcd. and seven hunuivu a"" s ;ions
80 inverted into national ASSOCIATIONS,
o'",' o' ,' ,,,'I number organized 10 November
, , hunJred and one OF when Six nun
n ,, AMI sr,cny nine were new banks, ana nine
h,,rd"eJ ana twenty two were conversions from
state banks. 81, .,,.,,. c,.,a. ond Tor
.it',i,. in which each bank Is located the PAID.
-, c,n,tal the currency delivered TO each, ana
,he hands deposited with the Treasurer TO secure
their notes Is herewith submitted also detailed
statement Of the affairs OF each bank on the iirsI
MONDAY OF October last. with an abstract OF thelr
condition on that day an abstract OF the c0ndl-
lion of all the banks the first days OF January,
Apri and July, 1865 together with the names
and comn,n,ations of the clerks and other EN-
poyes. and the total expenses OF the bureau, ior
the fiscal year ending June 80, 1868.
One bank has voluntarily gone into llquilatioh,
law, viz:
First National Bank Columbia, Mo.
Circulation outstanding .......' 'sll'sso
Circulation redeemed. ..".:.: o,ViV
Lawful money has been deposited win the
Treasurer for the redemption OF the outstanding
notes of thu aboye-named bank, and the bonds
withdrawn.
The First National Bank OF Attica, n. T.. has
failed. and u receiver has been appointed TO close
10 It's Affairs. It's outstanding circulation, none
of which has been presented Tor redemption, Is
81. OOO secured by S3l 500 OF six per cent. ana
| ST.. 800 of five per cent. bonds.
| By section a Of the National Currency rct any
| b nix incorporated by special law, or banking in-
sttution organized under general law OIL any
state Is permitted, on the performance or certain
specified requirements. TO be converted into q
nail nal ASSOCIATION. with the same pOser and
privileges ami subject 10 the same duties Ie-
spOnsbilites. and rules as are prescribed TOT the
associations originally organized under that law.
| BY the seventh section OF the act amending the
/" Act 10 provide internal revenue 10 support the
government" approved March 8, 1865, the priv
! ilege OF conversion on the part OF safe banks
was extended, so as to give preference 10 those
which should apply prior to the FIRST day OF July,
1865, over new associations applying Tor The PRIV
| ileges OF The National Currency act.
The result has been that nearly all OF the state
banks have voluntarily changed into national as
soclatlons and II Is q gratifying fact that this
transformation has been accomplished without
deranging the business OF these Institutions, or
affecting essentially the volume OF bank note cir
cuiation Since the amendment OF the act, no
national currency has been delivered 10 con-
veried State bank, until the circulation issued by
| L under State laws had been reduced below the
amount 10 which It's capital az national bank
would have entitledit under the law and as many
! Of the converted banks had greater amount oil
State no, rs IN circulation than they were entitled
10 under the national act, the Result has been "
diminish rather than increase the volume oil bank
note circulation.
! This restrictive course In reference TO State
bank circulation has been the cause OF great
complaint on the part OF many OF the banks, more
so, perhaps for the reason that In several states
the enabling acts giving consent TO the CONVEX
sion OF the State banks 10 national associations
contain provisions nominally giving the right u
, converted banks 10 continue the issue OF theii
state circulation for limited time, after the con
: version Is completed.
I. 1t is, however, very clear that 1t is not TIT
|. spirit or intent OF the law to allow any nationa
q bank TO have greater circulation than IN
n amount prescribed In the act. aad that after
Is bank becomes national association II Is, as pre-
G vidrd in Ike 4ih section OF the law, subject
c and bound TO observe all Its provisions. A con
c verted State bank IL unquestionably bound TO r.
deem It's State circulation and discharge oil tn
l. obligations OF the state Institution while an
State enactments granting privileges or imposing
y restrictions In conflict with or repngnant TO tn
:. United States laws are necessarily void
< The National Currency act permits the CONVEX
sion of State into national institutions without re
n ference 10 State laws, and II must be concede
that the laws Of the United States are paramount
n 10 State enactments. The Esd section OF The &C
l. prohibits national banks from Issuing or crcula
lr ing as money any NOES other than such as ar
Is authorized by the provisions OF the National Cul
N rency act. IL q national bank converted from
d State institution pays out and circulateb the note
of the State bank which 1t Ia bound 10 redeem,
certainly Issues notes prohibited by the act.
~, II the rights of converted banks TO reissue III
~ notes Of the State bank, and also to recely
- national notes TO the amount that their capt
80 entitled them TO were recognized they would hay
~ had double circulation, and the aggregate
~ this time would probably have been twO-fold u
a. amount OF their present issues.
-, The amount Of national bank notes
40 In actual circulation on the LIST
~ day Of October last, was. Sill, 81, %
a The amount of stale bank notes In
-, circulation al the same date, as
49, appears by returns 10 the Com
go missioner Of Internal Revenue,
re was. .........-................. 1887
.v Making the bank circulation on the
" ist day Of October iast.......... 2sOlSs,4
The amount of legal-tender notes
and fractional currency issued
,cI and outstanding on the lst OF
te October 1866, was. ............. 70i e
e banks not yet Issued ........ 1881
~ !, -' banks .....:.... ............. lOs,l52s
IT Making the aggregate amount OF
IN legal-tender and bank notes In
,el cirulatiOn as authorized TO be
el issued TO and by the banks. u, 0o3 ,&S?, 2
l. From which sum
Is should be deducted,
=. State bank cirua.
IS latiOn now OutSand-
n ing that will be re-
10 tired about az fast