Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1878-11-28
FL iNCE.
Annual Report of Comptroller of
CURRENCY Most Interesting Pa.
per.

and private bankers IN the country at
6,45S, with an aggregate capital of
S675,7 900, and an aggregate of de-
posits of S1,S19,954,000 During the
past year twenty-eight banks have been
organized, with an authorized capital Of
S2,775, 900, to which 81, sos, 800 in circu
lating notes have been issued. Fifteen
banks failed within this period, having
an aggregate capital of S2,712, 500; and
Al banks with q total capital of $780,
| 600, voluntarily discontinued.
Total am cunt Of U. S. taxes collected
| from the commencement OF the system
to the present time IS as follows:
On circulation S$9 75 ST.
On deposits. ................ 40 32S 2J6
On capital. s. 929 $50
Total l...................... $50, ,083. .558
Of U. S. bonds held by national
banks, on Nov. l, 1868, and deposited
with the treasurer as security for their
circulating notes, nearly three-quarters
| 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 one-fourth of all the
bonds held, while nearly one-fourth of
the whole amount bears interest of AZ
and per cent. Only about 1-5 of the
entire issue of the latter class of bonds
| is now held by national banks.
| The comptroller defends the national
banking system and at length argues
for its continuance, anu says the fund
| ing of six per cent. bonds into per
cents. has made rapid progress during
| hn 10 81 n l.,
been of great service to the govern
ment in this process of refunding by
negotiating and absorbing very con-
siderable part of the. new issues. Should
the national system continue, there is
no doubt that the present rapid reduc-
| ton in the bonded debt will continue
also. If the National, bank system is
| to be abolished, and an additional
amount of United States notes is to be
issued, all hope of 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
the 5 and 6 per 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 800 millions of uncontro-
vertible treasury notes is $13,000,000
only. With. an issue of this large amount
Of government notes, the funding of
the public debt will be rendered i'm
possible, for the pledge of the govern
ment will then be violated, and its
credit permanently injured. Which is
the wiser course, to continue the work
of funding the debt, which has so
successfully progressed during the pres
ent year, thus saving the greater
amount of interest named. while add
ing to the credit of the country, cr by
the repeal of the national banking act
| to save the less amount and at loss as
well of the reputation and credit? Is
there not danger that the attempts to
remove an imaginary evil may be fol-
lowed by the introduction of a real and
much greater evil? Success in funding
the national debt, through the cooper
alton of 1000 of the principal moneta-
ry institutions of the country may be
secured, but the effect of the issue of a
large amount Of irredeemable govern
ment currency cannot be foretold. 1t
is not probable that additional legal
|
If the treasury notes shall be substi-
tuted for the present. national bank
notes, it is doubtful if they can be made
a legal tender in payment of all debts,
Two lands OF treasury notes will then
be in circulation, one of which will be a
full legal tender, and the other, notes
between national banks, as is now the
case with their own notes. The full le-
1 gal tender notes will be of greater value
than those of the other class, unless
both are redeemable in gold at COM
mercial centres. 1t is believed by the
comptroller that this proposed substitu-
ton is practicable, and that the re-
peal of national bank accounts will re-
suit not in an additional issue Of treas
ury notes but in the restoration of state
systems similar to those which were
previously In operation.
In regard to resumption, the comp
troller says congress has fixed day for
the restoration of specie standard, and
the legislation needed is that which will
not overthrow but cooperate with the
present well managed monetary insti-
| tutlons of the country, in accomplishing
this result. When this is done the pres
ent banking system, if then thought
desirable, may be modified without
danger to creditor or business, and the
commercial interests Of this great ma
ton. s.......--
Then follows a table showing that
the amount of reserve held on the LIST
of October last was greater than that
required by law.
&
The treasury department owns one
hundred and forty millions of coin
which is equal to more than 40 per
cent. of the issues of legal tender notes,
and is availablefo for their redemption,
while banks hold nearly one-third of
the legal tender notes. If the banks of
the country cooperate with the treas
ury it is impossible that resumption
should fail; but even if cooperation
fshould not be univeral, it could not ef-
4 feet the ultimate result, for if any con-
siderable portion of legal tender notes
| be exchanged for coin at the
treasury, and Withdrawn from
1 the United States, the notes will become
scarce and can be forced into circula-
ton 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 internal revenue taxes, and offered
in exchange for greenbacks and coin
certificates, which will be more general
! ly accepted, the same as the notes of
the bank of England and bank of
France are preferred to coin.
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