Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1878-12-06
DEPARTMENT REPORTS.
Official Figures and Recommendation
from the Cabinet and other Federal
Afftnnrs
CONTROLLERS REPORT.

(OMlIhOILEk > kElOhl.
The belief is very generally entertained
that considerable portion of the circu-
lating notes of each national bank will
ultimately be lost or destroyed, and will
therefore never he presented for redcmp-
ton. 1t is also frequently stated that the
loss of such notes inureS to the benefit of
the banks. Neither supposition is cor
rect. Section 5,222 of the revised stat
ules requires that all national banks
which 80 into voluntary liquidation shall,
within six months thereafter, deposit in
the treasury an amount OF lawful money
equal to the amount Of their circulating
notes outstanding. The law also pro
vides that full provision shall be made
for the redemption of the circulating
notes of all insolvent banks, before divi
dcnds Shall be made to the creditors Of
such associations Thus it will be seen
that no national bank can close nip its
business without first providing for the
payment of all its circulating notes, and
that the amount deposited must remain in
the treasury until the last note outstand-
ing shalt have been presented. 1t is
plain, therefore, that the government, and
not the bank, receives all the benefit arts
ing from lost or unredcemed circulating
notes.
In a previous report returns were
given for 2S6 state banks organized un-
der the authority Of the legislature Of the
state Of New York The maximum
amount Of circulation issued to them
was $50, 754,5 and the amount Of unre.
deemed circulation at the date Of the re-
port named was $780, 37, or 2.63 per
cent of the highest amount issued. The
maximum amount Of circulation issued
to thirty state banks III the city Of New
York, which are still in operation, either
as national or state associations, was
$7,163,0l0, while the amount remaining
unredeemed in October, 1875, was $l42,-
SO, or only SD per cent, of the highest
amount issued The amount Of circula-
ton issued 10 240 state banks in Wlscon-
sin was 1856, 400 and the amount nm.
redeemed is Sl34, 741-the percentage of
unredeemed notes being LIS only, The
maximum issue to 2l0 state banks in the
six New England states was $39245,3 $50,
while the amount remaining unredptmed
Is but 500, 1G7-thc proportion Of tic
latter to the formed being zoe per cent
The returns from .}32 state banks in New
York, New jersey, Delaware and Mary.
land, show their maximum circulation
10 have been $50 664, l16, while the
amount unredeemed is Sl,7O149s, and
the percentage go. The percentage Of
unredeemed notes Of Is state banks in
Ohio, having Il circulation Of S2,19G,3s1,
was 80 The greatest amount of circu
lation issued To 707 state banks. in ~
states, was S114,61l ,346, the amount out.
standing $2,G96,2s2, and the proportion
unrcdeemed PA per cent.
II is probable that, under tho more
complete national system Of redempti1 ID,
the proportion of national bank uotys re-
deemed will be much greater than that of
the state bank notes under the old sys-
TENS. The highest amount Of eircula-
ton issued Ii ID national banks which
failed previous to 1870, was Sl,554, 40,
and the amount outstand ne on Noyem
Der l, 1873 was S13, 440.50, the proportion
of notes remaining unredeemed being
only 0.S6 per cent Of the amount issued.
The total amount issued To 23 national
banks which failed previous To the Year
1873, was 3,i96,693, and tile amount
outstanding on November !, 1878, was