The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-12-06
A Speedy Return to Specie Pay
ments Required.
Compulsory Redemption Of the
Currency Recommended.
A Tax of Eight or Ten Per Cent on
Cotton Recommended.
Proposed Removal Of the Currency
Bureau to New York.
NC. &c. &c.

&c. &c. &c.
OFFIcE OF THE CoMPTRorIFR THE CURRENCY,
WASHINGTON, Dec 4, 1865
sR:--I have the honor TO transmit to the House Of
Representatives the annual report of the Comptroller o.
Currency required by the sixty first section Of the
National Currency act
have the honor to be, very respectfully, your obc
dent servant FREEMAN CLARKE,
Comptroller Of the Currency
Hon. SCHUYLER COLLAR, Speaker Of the House OF Re-
prescr1A yes.
ORGANIZATION NATIONAL BANKS.
Since the last annual report from this Office two hun
dred and eighy-three banks have been organized
and hundred and thirty State banks converted
into national associations making the total number
organized TO November sixteen hundred and one Of
which six hundred and seventy nine were new banks,
and nine hundred and twenty-five conversions from
State banks.
statement Of respective States Territories
which each bank is located the paid in capital the
rency delivered TO EACH and the bonds deposited with
the Treasurer to their notes Is herewith sub
med; also detailed statement of the affairs of each
bank the first Monday of October last with alb
of their condition that day, abstract OF the
condition Of all the banks the first days of January
April and July, 1885, together with the names and
pensaton Of the clerks and other employees, and the
June 80, 1865.
BANKS CLOSED AND FAILxp.
One bank has voluntarily gone into liquidation and ha
been closed under tho provisions of the law viz -
First National Bank Columbia, Mo. -
Circulat on outstanding. ............... 81, 800
Lawful money has been deposited with the treasurer
for the redemption u the outstanding of the above
named bank, and the bonds withdrawn.
The First National ank of Africa. N. Y, has failed,
and receiver has been appointed TO close up its affairs
Its outstanding circulation OF which has been pre-
! Cl.1U
six per cent and ~, 500 Of five per cent bonds.
CHANGE or THE STATE TO NATIONAL BANKS.
BY section forty Of National Currency any
bank incorporated by special law, or banking institution
organized under general law of any State, is permitted
be converted into national association with the same
powers and privileges and subject to the duties,
responsibilities and rules as prescribed for the asso
ciations originally organized under that law.
BY the seventh section of the act amending the "Act
mont" approved March D. 1865 the privilege of CONVEX
sion the part OF State banks extended 10
give preference to hose which should apply prior to the
LIST day Of july 1865 over new associations applying for
the priv ilcges Of the MAJ onal Currency act
The result has been that nearly all OF the ate banks
have voluntarily changed into national associations, and
it is gratifying fact that this transformation has been
accomplished without dcranging the business Of these
nstitutors or affecting essentially the volume Of bank
note circulation Since the amendment Of the act,
national currency has been delivered to n converted
State bank until the circulation issued by II under State
laws had been reduced below the amount 10 which its
capital national bank would have entitled 1t under
the law; and, as many OF the converted banks bad
entitled to under the national act the result has
been to diminish rather than increase the volume Of bank
note circulation.
This restrictive In reference TO State bank cir
cuation has been the of great complaint the
part OF many OF the banks-more perhaps, Tor the
that in several States the enabling acts giving
the conversion Of the State banks to national
associations, contain provisions nominally giving the
right converted banks TO continue the of their
State circulation for limited time after the conversion
Ia completed.
II is however very clear that It Is no. the spirit
intent Of the law TO allow any national bank to have
greater circulation than the amount prescribed In the
act and that after bank becomes national association
H. provided in the fortyf section OF the law,
subject to and bound to observe all its provisions.
converted State bank Is unquestonaby bound TO rcdctm
its state circulation aud discharge all the obligations Of
the State institution while any State enactmcnts grant
ing privileges imposing restrictions IN conflict with or
repugnan the United States laws necessarily void
The national currency act permits the conversion OF
State into national institutions without reference to state
laws and be conceded that the laws Of the United
States paramount to State ennc,ments. The twenty
third section Of the act prohibits national banks from
issuing or circulating ~ money any notes other than
such authorized by the pro sision Of the national
currency act If national bank converted from State
institution paws out and crcuatcs the notes of the State
bank which IL is bound 10 redeem II certainly issues
totes prohibited by the act.
II the ght OF converted banks reissue the of
the Bank and also national notes TO the
that their capital entitled them TO were recognized
shey would have Ind double circulation, and the aggrc
gate this time would probably have been wofold tho
amounts OF their present issues.
NATIONAL RANK CIRCULATION.
tual circulation on the LIST day of October
last, was. $liozi,sVo
The amount Of state bank notes in circua-
ton al the same date, as appears by re-
Revenue. was ......................... 7s,s67,575
Of October last. ..................... 25o1s9,47s
The amount Of legal tender notes and frac-
uonai currency issued and outstanding on
the lst Of October 1865 704, 5s4, SIS
not We, issued. 1885 l52
National currency yet be issued 10 banks 109, 945
Making the aggregate amount OF legal ten.
der and bank notes in circu lation as au.
thorized 70 be Issued TO and by the
From which sum should he d..
Quoted, 3 ate hank circulation
outstanding that will be
retired about "a fast
uonai currency Ia Issued 10
converted banks. SCI, SIS
Also tho an.,nnt Of "compound
interest nofcs'' converted into
$40 bonds since the LIST u Oc-
toDef last. ............... f,aiI,dzs
Tho amount then lcft as the available cur
rcncy of tho country is.............. &96ol67 326
In order to ascertain thu
amount OF actual active circula-
ton the LIST dav OF October
last there should be deducted
from tho last mentioned gum
The amount Of national curren-
tsen min in circulation -. .sIs. sas, Isa
cd to banks. ..'0' - loo. isa,s4s
Amount Of legal tender notes
held by banks, including s7l,-
notes ..... .. lsaoslsv
Compound interest notes, other
than those held by banks,
mostly held Investments
by insurance and trust CON-
psnics and savings banks less
say $40, 900 900 in actual cir
cslsiion ....................l s1, sl4,1ss
Currency In the Treasury Of the
United States. .............. 81, 2as, 40
Total s.oe, s2a, OCT
which show the actual circulation 10 be- $500 sll GAG
This favorable exhibit the amount OF paper in actual
circulation IL owing IN degree 70 the accumuia.
ton OF currency 10 the hands OF tho banks in the alb
OF the great demands OF the government for
rcpcy since the close OF the war
n,...u