, 1881-05-15

H-A1tilNGioN, ~ I.s -N;ly l4.-Iue Weekly
statement Of the condition Of the National
banks, issued to-day, shows that the amount
Of bonds deposited to secure circulation is
S3;&5, oS4, 500, and the amount of National
bank currency outstanding is S3533, 710, ,1Gl,
besides 81, 0oo,::e2, Of gold notes. Thls is the
| highest point ever reached in National-bank
circulation. On the 1St Of December, 1874,
| the outstanding circulation Of National
banks was s3522 80; 3N. and that was the high
1 est point ever reached until this week.
| AN ERRONEOUS STATEMENT
regarding the circulation Of National banks
! is being published throughout the country.
! The paragraph reads as follows:
| The last official statement of the condition
] of the National banks, Issued Oh May Z, from
the office Of the Controller Of the Currency,
| presents one Or two features which are Just
beginning to attract attention. The total
amount OF United States bonds OH deposit
| to secure the circulation Of the National
banks is given as SS5544. SSS5544 97S 0co According to
the law. only 30 per cent of the amount Of
these bonds is allowed to be issued in National
bank notes. But the same report states the
amount Of NationaI-hank circulation out
standing was S3353 S3353 200 351 over S33, 600, 600 in
excess of the % per cent allowed by law. and
very nearly the total amount of the bonds
deposited. Congressional inquiry will be ttt
rectcd to this matter at the first opportunity.
Another fact shown BY the statement is that,
of the whole vast amount of over S354, ,000, 900
i'll bonds belonging to the banks, only about
900 are in the new 3l4 per cents. Evil
IDENTIFY the National banks are not hankering
after the 3ll7 per cents.
THE AMOUNT OF LEGAL-TENDER5 ON DE-
rUSIr
in the United States Treasury to retire Ma
tional bank circulation was SIS, $50, 5s3 ,22S33 Of
course, under the operation of the law, the
deposit by banks of those legnltenders to
redeem outstanding notes released the bonds
upon which that amount ofnotcs was issued.
This dispose5 Of the ''exccss S" referred to,
and something besides. No notes have ever
been issued to a National bank III excess of
% per cent Of the amount Of bonds deposited
by said bank. OF the whole amount of bonds
deposited to secure circulation when Sccre-
tary Windon issued his notice of extension
on the Us, only about St,0o3.0O3 were bonds |
OF that class. At the close OF business yes
tcrday the banks had on deposit So, 90 l50
Of the extended" bonds at 3A1 per cent,
CONTROLLER KNOX
says that much greater amount has been
presented by banks for extension, but that |
the process Of exchange has not been com-
pleted, and consequently the bonds do not |
appear as 314 per cents in the statement is
sued to-day. Ho thinks that substantially
the whole amount OF 6 per cents held by the
banks to secure circulation has been sent in
or will be received before May 20 to be con-
verted into 3h per cents. =
COOPERATION OF THE BANKS.
WAsu1SGToS, D. c., May 14.-Tl:ere was
received ut the Loan Division Of the Treasury
Department to-day 81, ,s29, $40 100 in per cent
bonds for continuance at So per cent, maxi
ing S50, ,5U, 900 received since the Issuance Of
The Secretarys circular, Thursday last.
More than 100 telegrams have been received
Turing the day from holders Of ) per cents
1esirlng to extend their bonds, asking for in
.ormation on the subject The Controller
IT the Currency says he has already in his
hands papers for the exchange Of per cent
ponds belonging to 40 National banks coy-
ring about S4o,030,0o0 of bonds. This
would leave
FORTY BANKS
o be heard from having six millions of
'onds, and these are all believed to be in the
lands OF the Secretary. Two hundred and / I
fty millions dollars of per cent registered
onds may bo surrendered and extended, !
nd Of this amount 1913 National banks holt :
16s, ,27G, coo, nearly all of which, the Con-
roller thinks, will be exchanged during
ext month. The acts of June %, 1874, and
an. II, 1875. authorized the retirement 4
nd reissue Of National-bank notes at the
leasure Of the banks, subject to the restric-
on Of the law. The circulation was at the
ighest point Dec. l, 1874, when it was $751;
y 33i6 From that date the circulation de-
reased in volume unti} the ;vear 1877 tho |
otal decrease being more than $4,000, 900. :;
ince that date it has steadily increased. On :.
|ov. l it was S3343 600 600, and since that time !.
lere has been an increase Of more than {
900, 600, the circulation now being S:Gp553,-
L, 1Gt, which is S315S15 higher than at any S
me since the passage Of the ETec-Banking S
ct Of Jan. Il, 1876. >,