The New York herald., 1874-11-28
Report of Comptroller Knox on the
Financial Management.
RESULTS OF THE NEW LAW.
Amount Of Paper Money in
Circulation.
GREENBACKS RETIRED AND REISSUED.
Resumption Far, Far
AWAY.

WASHINGTON, Nov. n, 1874.
The Comptroller OF the Currency mas completed
his report TWENTY-FIVE hundred national banks
have been organized since the establishment OF
the system. Thirty-fve OF these banks have failed
and 137 have gone into voluntary liquidation by
vote Of two-thirds OF the shereholders leaving
202s banks in existence on the Isl OF November,
1874. Tables are given exhibiting
THE RESOURCES AND LIABILITIES
at corresponding periods for the last i've years.
table is also given exhibiting similar data on
the I'd OF October the date OF the last report Re-
turns from New York, Boston, Philadelphia and
Baltimore, from the redemption cities aud the re-
naming banks, are arranged separately. Two bills
passed the last Congress relative to the national
banking system. The 1rst bill, which provided for
an increase Of both the national bank circulation
and OF the legal tender notes to s40O 900 O00 failed
TO receive the signature OF the PRESIDENT ana did
not become law. The principal points OF the
second act are given, which act went into opera
tion June 20, 1874
THE AMOUNT OF CURRENCY DISTRIBUTED
under the operation OF this act and the effect OF
the act upon the reserves OF the national banks
are briefly discussed by the Comptroller. The sub
ject OF redemption Is discussed at greater length.
and the hope Is expressed that the present system
of exchanging mutilaten notes for new paper
issues Will not long hence be superseded by true
system OF redemption-namely, payment
on demand OF national bank notes in coin or in its
representative payable in coin. During the year
endlnR November l. 1874 national banks have
been organized with an authorized capital or
CIRCULATION
has been issued amounting to IS, 1918, and dur
ing the same year there mas been withdrawn and
destroyed g. 24l, ,019 showing an actual increase
OF national bank circulation during the year OF
$3.57o,297. the total circulation outstanding at
be issued Of the whole amount authorized.
Since the passage OF the act OF June 20 1874 for
capital OF $4019,OOO, to which circulation has been
issued amounting to $1,s42o5o, and the total
amount Issued to all national banks since June 90
1874, is So, $780, 1870. The amount authorized to be
issued to banks already organized Is $3 600 aud
the amount authorized to be issued to proposed
organizations Is 50, 5O9.90O, making total or
81, 1o0 Since the passage Of the act OF June
90 1874 81, 1850 OF circulation has been finally
surrenoered by the deposit Of gal tender notes
with the Treasurer. The amount or
NATIONAL BANK NOTES OUTSTANDING
Of tnsolyent banks and of banks In voluntary
liquidation which are now redeemabie at the
Treasury Is So, 492, 285. The amount OF circulation,
therefore, at the disposal OF the Comptroller, or
hereafter TO be placed at hts disposal for dlstrbu-
tion from these different sources is as 1ollows-
The portion OF the $3.50 000 000 authorized remain
Ing unissued, sSo72,754; notes o. banks which
out OF circulation. 7l4515; notes in circulation
OF banks in liquidation S6,492. 2s5, amounting to
opinion that sufficient amount OF this circulation
WIN pc redeemed TO supply all applications that
may be received for some months TO come. When
THE AMOUNTS WITHDRAWN AND DESTROYED
from these sources shall have been relssued It
VIII be the duty OF the Comptroller to make re-
more tnan their proportion. This circulation
Will be Withdrawn chieny from the States OF Rhode
Island, Connecticut and Massachusetts, and the
aggregate amount OF circulation hereafter TO be
placed at the disposal OF tue Comptroller, from
The whole amount OF legal tender money re-
CURED TO be held IN the vaults OF the banks under
ber 2, $l24S7s, 75l and the amounI required to be
Kept on hand and in the Treasury under the law
now in iorce is $l04 52S, 0O0 The amount OF legal
serves OF the banks under the operation OF the
new act at that date was $40, $4,000
THE AMOUNT OF CASH RESERVE
held in the vaults Of the banks at the date Of their
last report, october 2 was $55,OOO, ,O0O and the
total reserve ss4 in excess Of the require.
distribution OF the reserves held by the national
banks had Deen In precise accordance with law,
banks by the act OF June 20 would have been
$34, 86S, 900. A table is given, showing the kinds
and amounts Of reserve held by the banks in New
the remaining banks on OCTOBER 2, and the amount
which these banks would have been required to
hold II the reserve laws. had renamed un.
changed The amount Of taxes paid into the
Treasury Of the United States BY the national banks
OF which So 404, 900 was derived from circulation.
THE RATIO OF TAXATION
under State laws during the last year was, in New
cent; Ia chicago, 34-l00 per cent; in Cincinnati
571Oo per cent; in st. Louis. 44loo per cents IN
taxation assessed upon the capital of the na. ;.
JOnal banks Is estimated at from to 81 per cent.
Real estate and personal property generally are
not assessed at more than one-third OF their
actual value, but bank shares are usually assessed
at their full value and there Is no doubt that the
ratio OF taxation OF national banks Is greater than
that OF any other species or property. The
amount OF
INTERNAL REVENUE TAX
"a Vnrno
axed to sight drafts and checks for the year end
ing July !, 1874, was $1,5o2,549.
The Comptroller recommends the repeal OF the
two-cent stamp tax, and, II not repealed. that the
act shall be SO amended and sucn penalty pro-
vlded as shall tend TO prevent evasons OF the
present law. A table IS given exhibiting the
aggregate capital and surplus total dividends and
total earnings OF the national banks with the ratio
OF dividends TO capital dividends to capital and
surplus, and earnings to capital anu surplus Tor
each half year commencing March !, 1862 and
ending September l, 1874 From this table 1t ap-
AVERAGE DIVIDENDS UPON CAPITAL
during the past year have been at the rate OF
surplus. 87-10O per cent ana the earnings to
capital and surplus 6S-l00 per cent.
s, me amount IN Of ta5es collected BY the commis-
State banks and private banks and bankers, dur
ing the last year, was $3,3 900, $1,000 OF which
upon unauthorlzed circulation. The Comp
troller gives statistics Of The resources and
me pas @ o ses haxe aw
requiring regular reports to be made TO state au-
thorities, and still less number or states COM
pile such reports when received. The returns
given are chiefly from The banks In New England
and the Middle States, and the Comptroller has
addressed circular letter to the Governors OF the
states, suggesting that recommendations be made
to the dinerent State Legislatures urging the pas
sage OF acts which Will secure Information In REL
erence 10 the money institutions OF the different
states, ana asks the attention Of memoers Of Con-
gress to the subject and the exercise OF their In
nuence for the same purpose
PAPER MONEY OUTSTANDING.
Tne report also contains q table showing the
amount OF national oanK notes OF each denomna-
ton outstanding, from which IL appears that the
amour OF notes less than the denomination OF 50
now outstanding is $S,972841, and the amount OF
national 0ank notes less than the denomination OF
$40, $780, $780, AGO. the amount OF legal tender notes
outstanding less than the denomination OF 80 Is
$50, 223. 525 and the amount OF legal tender notes
less than the denomination OF SlO $1O7, ,4O3, ,s65.
j the whole issue OF legal tender notes and ma.
tonal bank notes under the denomination OF 50
should be Withdrawn 1t would require SOS, l9e 600
OF specie TO take lfs place; and II all the paper
money. including fractional currency, under the
denomination or $40 should he Withdrawn IL would