Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1878-11-21
THE C0MPTROLLER OF CURRENCY
Makes his Annual Report, and q yes a
Great Deal OF Very Valuable In
formation as to the Banks
and the Finances Of
the Country.

WASHINGTON, November 20.-The comp.
troler of Tie currency In his annual report shows
the total number of banks and private bankers the
1916 600 and sI,9I9, 200 Of aggregate
deposits During the year % banks have been or
which 81 $685. 500 in circulating notes have been
Issued Fifteen banks have failed within this period,
having an aggregate capital Of So 712,500, and Al
banks, with an aggregate capital of 100000 have
voluntarily discontinued business.
The total amount of United States taxes collected
from the commencement of the system 10 the pres
ent time is follows: On circulation, S,977, S17;
Total So 500, 1854. OF the United States bonds held
by the national banks on November /, 1868, and
deposited with the treasurer security for their cir
culaing notes. nearly threefouIths bore interest at
the rate of per cent The amount of this class of
bonds has since been gradually reduced until It is
now less than one fourth of all bonds held While
fourth OF the whole amount bears interest, one
fifth OF the entire issues of the latter class of bonds
Is not held by the national banks.
The comptroller defends the national banking
system at length, argues for its continuance, and
says the funding OF per cent bonds into per cents
has maze RAPID progress during the last year, and
that the national banks have been of great service
the government in this process of rcfundlng by nego
taing and absorbing very considerable part of the
new Issues. Should the national bank system con-
tinue. there is cOubt that the present rapid re-
duction in the burden of Interest will continue also
II the natI0na bank system is to be abol shed. and
Issued, all hopes Of reducing the rate of interest on
the public debt must be abandoned. Twentyone mil
lion dollars Yearly may be saved TO the government
by funding the D and q per cent bonds into per
cents, while the amount which, 1t Is claimed may be
annually saved by the repeal or the national bank
act, and the issue of 1920 600 900 of unconvertlble
treasury-nOte;, is S13,000,000 only. With an issue
Of this large amount of notes, the funding of the
public debt will be rendered impossible, for the
pledges OF the government Will then have been VIC
lated and lis credit permanently Injured The wiser
course is 10 continue the woik of funding the debt
which has so successfully progressed during the
present year, thus saving the greater amount of In
terest named while adding to the credit of the coun-
try Than to ate opt by the repeal of the national
banking act to save the less amount at the loss as
well of The national reputation and credit Is there
not CANCER that the dtt6mItS to remove imagiO-
airy evil may be followed by the Introduction of a
real and much greater? The profit and success of
the funding of the national debt, through the CO.
operation of two thousand of the principal none
the effect of the issue of large amount of rredeem
able government currency cannot be foreiold;
notes be constitutonally issued. IT. therefore,
treasuTynOteS shall be substituted for the present
a tull legal tender in payment of all debts. Two
kinds OF treasury notes VIII then be in circulation,
one OF which VIII be full legal,tendef and the
with their own notes, and full legal-lender notes
Will be of greater value than this class unless both
are alike Tedeemable in gold at commercial centers.
1t Is believed by the comptroller that this proposed
substitution IS impTacticabe and the repeal of the
national bank act Will result not in additional
Issue OF treasury notes, but in the restoration OF
State system similar to that which previously in
operation In regard to resumption the comptroller
says congress has fixed day for tue restoration OF
the specie standard, and the legislation needed is
that which VIII not overthrow but cooperate with
the present we'll managed monetary Institutions OF
the country in accomplishing this result When
thought desirable, may be modified without danger
to tire creditor or the business and commercial rea-
tons Of this great nation. Then 70 lows a table
showing that the amount held Oh the first of Octo-
Der last greater than that required by law. The
treasury department owns one hundred and forty
million dollars in coin which IS equal to more than
forty per cent. of the entire issue of legatender
notes, and is avail able for their redemption, while
the banks hold nearly onethird of the legal tender
notes. II, therefore, the banks of the country CO.
operate with the treasury it is impossible that re-
sumption shall fall But even If their cooperation
should be universally withheld IL could not effect
the ult1mat3 result for If any considerable portion
OF lessalt6nd5r notes be exchanged for coin at the
treasury and Withdrawn from use the notes will be-
come scarce and can be forced into circulation to
supply the requirements of business and fill the
gap The coin will soon, therefore, be returned TO
the treasury In payment OF customs duties and In
ternal revenue taxes and offered In exchange for
greenback coin certificates, which will be more
generally acceptable TO the people, for the same
reason that the notes of the Bank of England and
Bank of EIance are preferred TO coin.