The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1879-12-11
Report Of the Comptroller of.the Cur.
renCv. 70 ~
WASHINGTON, November a.

WASHINGTON, November ~
The Comptroller of the Currency
has Just completed the seventeenth an
nual report of the operations of that
Bureau, which will be submitted to
Congress at the opening of the winter
session. The following extracts are
taken from the report: .-
The total number of National banks Of.
tional-banking system, February q, 1868, to
| November of the present year is z, 4S8. OF
these 307 have gone into voluntary liquidation
| BY the vote of shareholders owning twO-thjrdl
OF their respective capitals, and eighty-one
have been placed III the hands Of Receivers
for the purpose Of closing up their affairs,
leaving 1850 in operation at the date last
Since my last annual report thirty-eight
banks have been organized, with an aggregate
authorized capital of sass, 0W. to which g.
$50, 440 in circulating notes have been issued.
Thirty-eight banks, with an aggregate capital
of $4,45O,O0O. have voluntarily discontinued
business within the same period, and eight
banks have failed, having u total capital of
$1N3O, 10. The insOlvent banks include two,
with u capital of 100000, which failed after
having previously gone into voluntary liqui.
The aggregate capital of the various classes
Of banks has diminished from $7l9, 900 in
1876, to $656, 10000 in 1873. and the aggregate
1876, to *1,SGS5OO,0OO in 1s19-a reduction of
$62, 800 900 in capital and $751; 100000 in depos-
its during the last four years. The National
banking capital has diminished 81, 100 eco, but
the deposits of the National hanks are almost
precisely the same that they were in 1915.
Savings banks with capital show a reduction
OF about one million in capital and the same
tts of State banks and private bankers are less
by seventeen millions and eighty-three mill
ions, respectively. The greatest reduction,
however, is in the deposits of savings banks
without CaDitgl. WhfPh have 6ivniniohnd
$4,000.
The great war debt of the United States was
contracted con in less than four and half years In
on January l, 1851, the whole debt of the Union
amounted to but $66,2i3, I'll. During the next
six months it increased ut the rate of about
four millions month, being, ON the first day
of July, 1851, 500, $50 1913. During the next year
1t increased at the rate of more than thirty-six
millions per month, and at the close of the ifs
$524,l76,4ls At the end Of the succeeding year
1t was considerably more than twice that
amount, being on July l, 1868, 81, ll9, az, l3S.
seven hundred millions, reaching on July j,
1854, the sum of Sl,Sl5, 1S4 $40. During the next
nine months, to the close of the war, April /,
1865 the debt increased at the rate Of about
two millions day, or about sixty millions q
month, and for the five months next there
after, at the rate of about three millions per
day, or about ninety millions month, reach
date it amounted to &, SIS, 9O7 6s5.
The sales of United States bonds since 1871.
under the Refunding acts. have been five hum
five millions of 41.s and $7lO,;45, $50 of i per
cents; in all, more than one thousand three
hundred and ninety-five millions of dollars.
There have also been sold for resumption
purposes, since March l, 1875, under the all-
thOrity of the Resumption act of January IA,
1879. twenty-five millions of Is and sixty-five
millions of a - per cents; the latter being at
The reduction on the ihterest-bearing debt
OF the United States, from its highest point,
on August 81, 1855: to November |, 1879, is
accomplished since the refunding operations
were commenced on May l, 1871.
AT the highest point the annual interest on
the debt was $l5O,977, 697, while it is now
$sa i'5,s.s only. There has, therefore, been
total reduction in this charge of $67, 2O3 ,9l9.
The total annual reduction of interest under
these refunding operations since March, 1877,
has been $l4, ~, Ut, while the saving on this
account, growing out of the operations of the
present year alone, is nearly nine millions
S,sOS, 100, and the total annual saving in all
the refunding operations Of the Government
since 1871 is nearly twenty millions iSlo, 0..601.
The refunding of the National debt com-
menced in 1871, at which time the National
banks held nearly four hundred millions Of
date to the present time they have held moro
than One-fifth of the Understanding debt OF
the United States. large portion Of the
bonds held by them in 1871 bore interest at the
since been greatly reduced. and is now less
than 0ne-eixth Of all the bonds pledged for cir
culatiOn, while more than one-third,of the
whole amount consists of bonds bearing inter-
est at four per cent.
The Government has still outstanding s:r3,-
6sl. go in six per cents, and more than S:0j,-
ture in 1881. The refunding of these bonds
into four per cents will save $104.3, 600 in in
terest annually. The credit of the Govern
ment is now such that it is not improbable
prifS fk,o, I.,1,<
may be refunded into three and Il half per
cent bonds, which is One-half per cent more
than the rate of the English coiisols, thus saw
ing to the Government u large additional
amount of interest.
The act of Jan. IA, 1915, required the Sccrc-
taTy of the Treasury to redeem "in coin the
standing, on their presentation for redemp-
ton at the Office of the Assistant Treasurer
OF the United States in the City of New
on and after Jan. l, 1879. At the time of the
passage of this act the leading industries
and general business of the country were very
much depressed. The agricultural classes
camille establishments and manufacturing
corporations in the three years previous rep
more than $5O0,OO.000. During the
succeeding years an era of economy super
vened, agricultural products greatly increased,
and the balance of trade was turned largely in
our favor, the excess of exports over imports
for the fiscal year 1876 being more than sew
enty-nine millions, in 1877 more than one hum
bred and fifty-One millions, in 1878 exceeding
two hundred and fifty-seven millions, and for
two hundred and ninety-four millions. For
1875 the excess was, it will be seen, more than
three times as great as that of 1876, and more
than two-thirds greater than that of 1877.
Of resumption, but authorized the Secretary.
In order to prepare and provide therefor, to
use any surplus revenues not otherwise APP
prOpriated, and to issue, sell and dispose of, ut
not less than In coin. Of the hOndS of
the United States described In the act of July
Il, 1870. Under this act, the Secretary. in 1871
and 600 Of tours, and in Aprii I ISL sSo
DOC, LOCO of four and a half per cents at pre-
MUM of one and a halfper cent. The coin in
the Treasury continually increased. so that on
the day of resumption the Secretary held one
hundred and thirty-five millions ($13s5 $50 639)
Of gold coin and bullion, and, in addition, over
thirty millions (f30,557, 1881 in silver cOiD, the
Der cent of the United States notes then out
The banks of the country at the date of re-
sumption held more than one-third of the out
Treasury notes; but they had SO
much confidence in the ability of the Secretary
TO maintain resumption that none were pre-
'ented by them for redemption. The people
also, who held more than three hundred mill
Ons of the issues of the National banks,
which issues were based upon the bonds of the
Nation, preferred such notes to coin itself.
There was, therefore, no demand for payment
If the notes of the Government, and the gold
,oin in the Treasury, which amounted to one
hundred and thirty-five millions on the day of
increased more than thirty-six
millions in the next ten months, the amount
held on the first of November, 1879, exceeding
Dne hundred and seventy-Onc millions.
During the last fifteen years gold coin has
been used by the banks in comparatively
small amounts as a reserve, and by the people
.nly in the payment of customs duties and in
he purchase of foreign exchange. If it was
Used for other home purposes, it was first con-
Terted into paper money; but since the day of
resumption the Treasury note and the Ma
1Onal-bank note have been generally prefer
red in business transactions to coin itself.
The amount of coin and currency in actual
at the present time is believed to
Turing the five preceding years.
It is manifest that at no time since the date
If suspension so large an amount of currency
has been needed for the legitimate purposes
If business as during the present year. The
larvests have been unprecedentedly large,
while the value of agricultural products, ow-
ng to the short crops of other nations and the
demand for our products abroad,
has greatly increased. There has also been
continual rise in wages, in the value of manu-
actured goods, in provisions, and in the price
If iron and other commodities.
If this statement is correct, It will explain
he scarcity of currency in the City of New
York during the last two months, and the con-
IeQuent demand for additional issues, the
,Y1O,,nf IF Natl, 1-hnuk rotoo cd 6,,ripu