Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-11-21
REPORT OF COMPTROLLER KNOX.

REPORT oE COMPTROLLER KNOX.
WAsHINeToN, Nov. 20--The comptroller O
the currency, in his annual report shows tn
total number of banks and private bankers i,
the country to be GAS, with an aggregate cap
1tal of S675, 10000 and aggregate deposits o
Si,9l9,9o1,000 During the past year twenty
eight banks have been organized, with an au
thorizsd capital of S2775 600, to which 81, 59S,
sOO In circulation notes have beer issued. Eff
teen banks failed within this period, having ar
aggregate capital of S2,7l2, 500, and IL banks
Wiz a total capital of 5000, QUO, have yolun
tari!y discontinued business. The total amount
OF United States taxes collected, from the com.
mencement of the system to the present time
IS as follows: On circulation, 1897, 759 III, on
deposits, $4O,3Z8,256, on capital, So, 929, 4eO:
total, $o6. O33, 554
OF the United States bonds held by national
banks on Nov. /, 1868, and deposited with the
treasurer as security for their circulating notes.
nearly three-fourths bear interest at u rate OF G
per cent. The amount OF this class of bonds
has since been gradually reduced. until it is
now less than one-fourth Of all the bonds held
while nearly one-fourth of the whole amount
bears interest at "a and 4 per cent. Only
about one-tifth OF the entire issue of the latter
class OF bonds is now held by the national
banks.
The comptroller defends the national system
at length, argues for its continuance, and SAYS
cents. has made rapid progress during the last
year, and national BANKS have been of great
service to the government in this process of
refunding, by negotiating and absorbing very
considerable part OF the issues. Should
the national ystem continue, there is no doubt
that the present rapid reduction In the burden
0 Interest will continue. Also, il the national
bank system is to be abolished, and an addi-
tional amount of United States notes
is to be issued, all hope of reducing the rate
,f ,y,fp -. rzt>k
doned. Twenty-one million dollars yearly may
be saved TO the government by funding and
6per cent. bonds into per cents, while the
amounts which it Is claimed may be annually
saved by the repeal of the national bank act,
and the issue OF three hundred and twenty mil
lions of unconvertible treasury notes is ST.
O,O0O only. With the issue of this large
amount of government notes the funding of
the public debt will be rendered impossible
for the pledge of the government will then be
violated, ana It's credit permanently injured.
WINCH IS the wiser course, to con-
tinuo the work of funding the
debt, which has SO successfully progressed
during the present year, thus saving the great
er interest named, while adding to the credit
OF the country, or to attempt by
less amount, and at n loss as we'll of reputation
and credit Is there not danger that the at
tempts 10 remove iginary evil may be fol-
lowed by the Introduction OF real and much
greater evils? Success in funding the national
DEBT through the cooperation of two thousand
OF the principal monetary institutions of the
country may he secured, but the effects of the
issue OF a large amount OF irreIeemabc govern
ment currency cannot be foretold.
1t is not probable that additional legal tender
notes can be cOnstitutionaly issued. If treas
nry notes shall be substituted for the present
national bank notes it is doubtful if they can
be made q legal tender in payment of all debts.
Two kinds OF treasury notes will then be in
circulation, one of which will be u full legal
tender, and the other not even between ma
tlonal banks,as is now the case with their own
notes. The full legal tender notes will be of
greater value than the other class, unless both
arc alike redeemablc i'll gold at commercial
centers. It is believed by the comptroller that
this proposed substitution is impracticableand
that repeal of tho national bank act will re-
suit, not in an additional issue of treasury
notes, but in the restoration Of State systems
similar to those which were previously in
operation.
In regard to resumption, the COMPTROLLER
says: Congress has fixed day for the restora-
ton of the specie standard, and legislation
needed Is that which will not overthrow but CO.
operate with the present we'll managed none
tary institutions of the country in accomplish
ing this result. When this is done the present
banking system, if then thought desirable
may be modified without danger to the creditor
tho 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 de' artment owns $140, 0G0,000 in
com, which is equal to more than 40 per cent
of the issues of legal tender notes, and is avail
able for their redemption, while the banks hold
nearly one-third Of the legal tender notes. If,
therefore, the banks of the country cooperate
with the treasury, 1T is impossible that resump-
ton should fail. But even if the cooperation
should not be universal, it could not affect the
ultimate result for if any considerable portion
OF legal tender notes be exchanged for
coin at the treasury and withdrawn
from use the notes will become scarce and can
be forced into circulation to supply the re-
quircments 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 green backs and coin certificates, which will
be more generally acceptable to the people
for the reason that notes Of the bank of
England and bank of France preferred to
coin.
posToFFtcE sUsIMARILY CLOSED.
WASHINGTON, Nov. observation-disclosures
Fey to-day ordered the Spring Garden, Ala,
postofice to be discontinued, and mails for
that place to be sent to the neshborng post
ottce al Ladega. on account of riotous demon
STATIONS and threats made by portion of the
inhabitants against the special agent Of the de-
partment. who has discovered gross frauds in
the stamp sales of The village postmaster, and
procured the latters arrest upon q warrant
from the United United States commissioner.
The agent who made the report, in conse-
quence of this action, was speedily arrested
the charge of libel and bound for trial
next April. After nights detention by the
sheriff he procured bail and is now at liberty,
but he informs the department that the friends
of the postmaster declare they will fix the
jury" when the case comes to trial, and are al
ready exulting over the prospect of seeing him
(the special agent) set to work On the county
roads.
SILVER PURCHASE.
WASHINGTON, Nov. 20.-The treasury pur.
chased A25,Oo0 ounces of silver to-day at prices
slightly below London quotations.