The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1877-12-03
WASHINGTON.
Report of the Comptroller OF s,he Cur
rency.

national banks oa June %, 1877. was S4S1, O44.-
III, and the average capital OF 1878 state banks,
private banks and savings banks having CAPT.
tai stock was, for six months ending May 81
1877, less than half that amount, being 1929
5O3,172 The net deposits of the national
banks were $76S, 245,746, and the average :
posts of the other banks above designated
were S508, 702, S45 46. The deposits of SIG saw
ings banks having no capital stock was, for the
same period, 1913 154, 1903 SO. If the humber.
capital and deposits of the national banks on
June % 1877, be combined with the number.
average capital and average deposits of the
state banks, private banks savings banks and
trust and loan companies, for the six months
ending May 81, 1877, it will give a total num-
Der of 6579, a total banking capital of S7O4.-
SAT 943, and total deposits of $2,12O liz, 1876.
On the subject of reserve the comptroller gives
the following interesting facts, and makes inn
portant recommendations. 1t is estimated by
the best authorities that the Scotch banks
which have long enjoyed the reputation of be-
log we'll managed, and the joint stock and 9TH
er incorporated banks of England, not ibclud-
ing the Bank of England, hold not exceeding
8 per cent. of their liabilities in ready money
The remainder of their reserves are largely in
vested in the English cOusols, bearing interest
at the rate OF 3 per cent. per annum, the aver
age price OF which, since 1850, has been about
go cents to the dollar. The French govern
ment issues small coupon bonds, or rentes, in
denominations as low as 100 francs. or 500, for
the convenience of those who desire to invest
their savings iD the public fund The recent fail
ures of savings banks throughout this country,
having on deposit large amounts of the peo-
ple's earnings has suggested the propriety and
policy of the issue by the government of per
cent. bonds of denomination less than $50.
There is but little doubt that the savings OF
the people would be largely invested in such
bonds. provided they could be readily negotiat-
ed by the holders when desired, without ma
terial loss. The national banks in the reserve
cities are required to keep reserve of 25 per
cent. upon deposits, one-half of which may be
on deposit with their reserve agents in the city
of New York. The country banks are required
to hold a reserve OF Is per cent. upon deposits,
| three-ffths of which may consist of balances
with their correspondents in the reserve cities.
An amount equal to more than one-sixth of
the capital OF the national banks, or about $87,
100000, is thus continually kept on deposit
with banks in the reserve cities.
A considerable portion probably one-half of
this amount, is sent by the banks to their cor
respondents. not for the purpose of legitimate
business, but in order to obtain interests upon
| Idle funds which cannot be invested in availa-
| BILE loans. If authority were given to the ma
| tional banks to hold, in four per cent bonds of
| denomination less than $50, such portion of
their reserve on deposit with their agents as
| they might think proper. in would result in a
| large investment by them in these securities,
| and the savings bank depositor, if he should
| so desire, would then find no difficulty in dis
| posing of these small bonds among tue 210O ma
GlOual DdukS, Ou6 al l6dSG VI WHICH IL located IN
| almost every village in the country. This
policy would also have the effect of strengthen
ing the available resources of the banks, and of
| retaining in their hands considerable portion
| of those idle funds which are now sent to their
correspondents in the central cities, and are
| loaned by the latter upon call to dealers in
| speculative securities. 1t is estimated that an
| amount varying from 200 to 600 millions of dol
| lars in English consols is held by the banks of
the United Kingdom as reserve fund, and
there does not seem to be any good reasons why
| the four per cent consols of the United States
| should not be employed for similar purpose
| in this country, and the comptroller recon-
mepds that the banks outside of the city of
New York be allowed to hold that portion of
| their reserves, not required to be kept on hand
| in cash, in the small tour per cent bonds which
may be issued for the use of that class of per-
sons now depositing in savings banks.
| Annual Report of the Secretary Of the
| Navy.
WASHINGTON, Dec. 2.--The Secretary of the
/ Navy in his annual report gives the number of
/ % sailing vessels, % ir0nclads, 2 torpedo, l
ferry and 26 tug boats. The report contains a
statement of the different squadrons, by whom
commanded and full account of the condi-
ton and strength of the navy, which is con-
| sidered necessary to enable Congress to adjust
the appropriations to the necessities of the ser
vice and condition of the Treasury. There are
IL ironclads at convenient places in fresh water
in readiness for active employment when need
ed. The active list of the navy is composed of
1923 officers of the line, 594 officers of staff and
249 warrant officers The retired list is COM
posed of 1876 officers of the line, 103 officers of
the staff, u warrant officers and professors of
mathmatics There were in the service on the
oath of November, 1877, 7011 enlisted men and
boys
The Secretary abiding to the future strength
of the navy, says it is reasonable to expect
that, occupied as European nations are and
l likely to be for many years to come with ques-
| lions which seem inseparabie from their rela-
tions with each other, they will not find it to
i their interest to adopt an aggressive policy TO-
ward the United Statet. We may safely adopt
| course therefore with reference to our navy
as dictated by our own domestic relations.
The Secretary continues: Everything con-
| tinues to show that we possess rapidly grow
| ing internal commerce, which only needs the
fostering care of the government to secure to it
an ultimate development which cannot be sur
passed by that of any nation. As our internal
| commerce increases beyond our own power of
| consumption, the excess must either find for
eign market or the loss falls upon the producer.
/ All commercial nations understand this and
therefore there are efforts to secure foreign mar
kets for their exports Even at the present
| time, when our trade is slowly recovering from
its paralysis and demanding additional means
| of supplying the wants of thousands of meri-
| torious artizans and workmen out of work,
the merchants and capitalists of Great Britain
are actively engaged in making our commerce
tributary to their own by forcing us into de-
pendence upon British vessels for the transpor.
| tation of our surplus productions. They snatch
the trade of South America, China, Japan and
Australia from our hands. The superiority
which both England France have obtained over
us in this vast trade may be attributed in a
large degree to the fact that each of the govern
| ments pays annually to its steam lines between
| $4,000,000 and $5,000,000 in subsidies.
Since the war our foreign trade has been car
ried on 100 per cent. more in foreign than IN
| American vessels. Until this condition of
| things is changed our commercial independence
cannot be established upon such basis as it
| deserves. While our navy is not engaged in
| commerce it is an important and necessary al
ly. 1t should be at all times ready to furnish
| its protection in whatsoever sea it may be re-
quired, that all nations should understand that
| we are as ready to afford our commerce this
protection as We are to avenge an insult to our
flag.
Is our navy in its present condition sufficient
to furnish the necessary amount of protection
| OF our commerce. If we are cantent to leave 1t
to be transported abroad in foreign ships and
thus deprive the American producer of the
profits of his labor, it may be sufficient, but if
| we are to take the position among the CONNER.
cial nations to which we are justly entitled, if
| we are to secure to cur own people the right to
transport the products of their industry ipto
whatsoever part of the world they may be de-
| manded SO that profits may be returned to in
/ SIodSc buo dSRIcSdUo VI W0d1G0, JU6D, III nv
| opinion, it is not in such condition There
may be ships enough if they were all in proper
| repair to increase our squadron to sufficient
size for this purpose. To put them all in re-
| pair. however, would require larger expendi-
ture than is practicable in the present condition
of the treasury, and probably larger than would
| be justifiabls at any time until orr own reve-
nue. from customs shall be sufficiently incrsas-
| ed. AS we may expect this from the gradual
| development of commerce so as this occurs we
may gradually carry the navy up to the point
| of the necessary improvement point to be
| decided by existing wants of trade. 1t is mani
| testify duty to keep the navy in such condition
as to make it available in the future for all
purposes for which it may be designed
Further on the Secretary says: The present
| condition OF the navy relatively with other
powers has less aggressive force than at any
time during the past third of a century except
during the war, or less power to inflict serious
| injury upon the commerce of an enemy.
The Secretary is not inclined to favor the
building OF heavy armor plated gun bearing
vessels. They are suited for little else than
harbor defence and may be likened to movable
Notifications, and if it shall result that tbs use
of them be dispensed with to make place for
improved SHIPS rams and torpedo vessels, then
| the navy can become sufficiently effective. 1t
is supplied with fast sailing and fast steaming
vessels of different classes built as they are
now built elsewhere to serve in time of nAaca