American citizen. [volume] (Canton, Miss.) 1864-1890, 1878-12-07

The Comptroller of the Currency in his an
nual report shows the t"t". ntmber Of banks
and private bankers in the country to he
6,5i'. 9Th aggregate capital of 1913, &c. 900,
and aggregate deposits OF 81 Sl5,.54, COO. Dur
been organized with an authorized capital of
- ,2.5, 600. to which Sl59s,sOO in circulating
notes have been issued Fifteen banks feiIed
within this period, having TN asgr, ate cap
ital of q, liz, o.. and torty-one banks with a
total capital OF $4,000 voluntarily uiseontin.
ued business, The total amonnt OF United
states taxes collected f;"orl the confluence
ihent OF the system to the present time is as
follows. TN circulation, S.,9.775, sl1; on depos
It's aG3ss 256; on capital, s. go 4s0 total, $50
03 1854. OF United states bonds held by Ma
tional banks on November !, 1885, and depos-
tied with the Treasurer security tor
their circulating notes, nearly three -fourths
bore interest at the rate of 6 per cent
The amount of this class of bonds has since
been gradually reduced, until it is now less
than e-iourth OF al bonds held, while
interest. One NTH OF the entire issucs OF the
latter class of bonds is not held by National
banks.
The Comptroller defends the National bank
ing system at length; argues for its contin-
ulnce, ana says the iunu hg OF per ceht;
bonds into per cent. bonds mas made rapid
progress during the past year. and National
banks have been OF great service to the Gov
eminent IN the process of refunding, by ne
rottating and absorbing very considerable
part OF new issues. Should the national sys-
TEN continue there is no doubt that the pres
ent rapid reduction in the burden OF interest
will continue also. IL the Naiionel bank bust
ness is to he abolished, and an additional
amount of United States notes is to be issued,
all hopeof reducing the rate of interest on
the public debt must be abandoned. Twenty
one millions of dollars yearly may be saved to
the Government by funding and per cent.
bonds into per cents. While the amount
which it is claimed may be annually saved by
the repeal of the National bank act and issue
OF $50 ,OOu ,O0l of inconvertible Treasury notes
is SIS, 10000 only, with the issue OF this large
amount of notes, the funding of the public
debt will be rendered impossible, Tor the
pledge of the Government Will then be vi9-
lated and its credit permanently injured.
Which is the wisest course, to continue the
work of funding the debt, which has SO sue
cessfully progressed during the present year,
thus saving the greater amount of interest
named while adding to the credit of the coun
try, or to the attempt, by the repeal OF the
National bank act, to save the less amount,
and at n loss well OF reputation and creditr
Is there not danger that attempts to rem@ve
any imaginary evil may be followed by the
introduction of a real and much greater evilr
Success in funding the national debt through
monetary institutions OF the country may be
assured, but the effect of the issue OF u large
amount OF irredeemable government cur
rency can not be foretold.
1t is not probable that additional legal
tender notes can be constit utionally issued
II, therefore, Treasury notes shall be subSti-
tuted for the present National bank notes it
is doubtful if they can be made legal ten
der in payment of all debts. Two kinds of
Treasury notes viii then be in circulation,
one of which will be full legal tender and
the other not Even between National banks,
rs is now the case with their own notes, the
full legal tender notes will be of greater val
ne than other class, unless they are both
tiers. 1t is believed by the Comptroller that
the proposed substitution is imprac-
ticable. and that the repeal of
the National bank act will result
not in additional issue OF Treasury notes,
but in the restoration OF state systems s1ml
lar to those which were previously in opera
tion. In regard TO resumption, the Comp
troller says that Congress has fixed a day Tor
the restoration of the specie standard, and
the Legislation needed is that which will not
overthrow, but cooperate with the present
well managed monetary institutions OF the
country in accomplishing this result. When
this is done the present leasing system, IL
that might be desirable, may be modified
without danger to the credit or business and
commercial interests of this great nation.
Then follows table, showing that the
amount of reserve held on the lst OF October
last was greater than that required by law.
The Treasury Department owns SIG, 5000 in
coin, which is equal to more than 40 per cent
OF the entire issue OF legal tender notes, and
is rs available for their redemption, while the
banks hold nearly one-third OF the legal ten
country cooperate with the Treasury, 1t is
impossible that resumption shall fail, but
even If the co operation should not
be universal it could not affect tine
ultimate result, for if any considcra-
BILE portion of legal tender notes be
exchanged for coin mt the Treasury and with
drawn from use, the notes will become scarce
and can be forced into circulation to supply
the requirements of business and fill the gap.
The coin will soon thereafter be returned to
the Treasury in payment OF customs duties
and internal revenue taxes, and offered in
exchange for grecnback coin certificates,
which will he more generally acceptable to
Bank of England and Bank of France are
preferred coin