The Portland daily press., 1879-11-25
THECURRENCY.
.nnual Renort Of Comnero,ler x

Annual Report of Comptroller Knox.
WASHINGTON. Nov. 24-From the report OF
Comptroller OF the Currency Knox it appears
that the total number % national banks organ
lied from the establishment of the national
banking system, Feb. 26, 1873, to Nov. of the
present ear, is 243S. Of these 30I have gone
into voluntary liquidation by the vote OF share
holders owning two-thirds of their respect
i've capitals, and 81 have been placed in the
hands Of receivers for the purpose of closing
up their affairs, leaving 2GJ0 i'll operation at
the date last named Since the last report OF
the Comptroller thirty eight banks hare been
organized with an aggregate organized capital
of $3.50, 900, to which s., $50 40 in circulating
notes have been issued, Thirty-eight banks,
with an aggregate capital of "A ,430,0oo nave
voluntarily discontinued business within the
same period, and eight banks have failed, hav-
ing total capital of Sl,0l0QO The lnsol.
vent hanks include two, with capital OF
S700,000, which failed after having previously
gone into voluntary liquidation.
The total number of banks and bankers in
she country on May 81, 1879, and June "A, was
$3.50. with Il total banking capital of S656, 49,
500, and total deposits of II ,S9o ,526, 474. The
capital OF the various classes Of banks has di-
minished from SIZE, 100000 in 1872 to S656, 500,
600 in 1879 and the aggregate deposits have
fallen off from s2075,30 600 in 1876 to ~, S93,-
100000 in 1SG9-a reduction OF So. 100000 in
capital ard SlSi S00, eco in deposits in the last
four years. The national bankiBgseapital has
diminished S4J, 100000, but the deposits Of the
national banks are almost precisely the same
as they were in 1876. Savings banks with cap
ital show reduction Of about one million III
capital and the same amount in deposits. The
capital and deposits of state banks and private
bankers are less by seventeen millions and
eighty-three millions respectively. The great
est reduction, however, is in the deposits Of
savings banks without capital, which have d.
unfinished S97 100000
The report gives history of the refunding
of the public debt The sale Of L, S. bonds,
since 1871, under the refunding acts, have
been five hundred millions OF tives, one hun
bred and eighty-fve millions Of four and a
halls and sic, 345, $50 of four per cents in all,
more than one thousand three hundred and
ninety-tive millions of dollars. There have
also been sold for resumption purposes since
March /, 1877, under the authority of the re-
sumption act Of January II, 1875, twenty-five
millions Of tours, and SlXty-tive millions OF
four and q half per cents; the latter being at
premium of one and half per cent. The re-
duction on the interestbearing debt OF the
United States. from its highest point, on Aug
ust 81, 1865, to November l, 1879, is S5S3, $780,.
J94 of which amount S105, 100, 500 was accom-
plshed since the refunding operations were
commenced on May 1, 1871. At the highest
point the annual interest on the debt was
$3.50 1871 G97 while it is now 1888, 773,77S only.
There has, therefore, been total reduction
in this charge of &67 203 ,9l9. The total annual
reduction of interest under these refunding
operations since March, 1877, has been $14,-
29T ,176, while the saving on this account,
growing out Of the operations of the present
year alone is nearly nine millions (SS, S03, 1919
and the total annual saving in all the refund
ing operations of the Government since 1871 is
nearly twenty millions, (S19,907 ,601.) These
funding transactions are believed to be with
out parallel in financial history.
at is certain" says the Comptroller, ''if the
national banking system had not existed, and
U. S. notes had been issued III place Of bank
notes, the funding operations herein described
and the consequent large reduction OF interest
on the public debt would not have been posi-
ble."
The estimated total amount Of the currency
on the first day of November in the present
year is shown By the following table:
Treasury notes outstanding. ....... &346,68l 016
National Bank notes outstanding. 33l, ISL ,4lo
Gold in the Treasury, less certif-
Gates held by the banks. lo7,960,19
Silver in the Treasury ......... o.. 5O,07S,620
Coin i'll the banks (Oct. I'D ......... AZ, 1874
Estimated amount of coin held by
the people.....,....,. .....-,.. %, 4fo,olo
Total ...........s1, 165. 500, 5o4
The currency is therefore at the present time
$3.50, 900, 900 in excess of the highest amount
reached between the time of suspension and
resumption. The banks outside of the large
cities held on October I'd S11, 47496l of specie,
which nearly equals three-fourths of the full
ed to hold while the banks in New York and
in the other principal cities held in specie con-
less than one-half Of their legal cash
reserve.
The Comptroller urgently recommends that
all the national banks shall take advantage of
the present influx of gold to accumulate in
their vaults an amount equal to the total cash
reserve required by law. He INDUCES the hope
that the reports of another year may show
them to be possessed Of at least 500 0000 900 of
gold coin. II this coin, which IS still flowing |
into the Treasury. shall also be largely accu-
mulated by the banks, ii will be more likely to
become dffused among the people. This would
be the case il the smaller denomina-
tons of notes were withdrawn from circula-
ton which might perhaps be done without in |
if postal orders were issued in |
small amounts, and at minimum cost, at ev- |
cry post office.
The addition of coin to the circulation |
should have the effect to reduce the amount Of |
paper money, if in excess OF tbs wants OF bust
ness and send homeward for redemption the |
lega-tender and the natonal-bank notes. Ii |
the legal-tender notes accumulate in the |
Treasury, they cannot again be issued, except |
upon acquisitions of the government; and the |
of such notes has q tendency to |
induce extravagant appropriations and ex- |
penditures by Congress. The law, as it now |
stands, requires that the Secretary shall keep |
in circulation the legal-tender notes, which is
not practicable, and their accumulation by him |
will lead to constant agitation or the SUBJECT
in Congress and among the people, which dis
cussions will encourage speculation, and dis
turb the current Of legitimate business With
the influx Of specie it is important that such
paper currency shall be in circulation as can
be easily retired, if in excess. a currency is
needed which viii act autom atically, and as
regulator like the governor in machinery, Or
the balance wheel in the chronometer. The
influx and accumulation Of a large amount OF
specie, the controller fears may result in injury
instead of benefit, producing redundancy Of
the currency and thus stimulating speculation
and advancing the prices of the necessaries OF
life