The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1881-12-06
TELEGRAPHIC
THE COUNTRY's CURRENCY
The Money and Finance of
America.

Washington, 4.-Comptroller KNAPP,
in his report, states that eiehty-six ma
tional banks were organized during the
year ending November l st last, with an
aggregate authorized capital of SO, 65l,-
05O. to which $5,233, $50 in circulating
notes has been Issued. This is the largest
number of banks organized in any year
since 1872 Twenty-six banks, with an
aggregate capital of 81, 020, 900, and cir
culation of 81, 245, $50, have voluntarily
discontinued business during the year.
National banks are located in every
state of the Union except Mississippi,
and every territory except Arizona.
Total number in operation on October
1st last, 2,132; the greatest mum Der Of
national banks in operation a. any one
time. Total number Of national banks
organised from the establishment Of the
national banking system, February 26,
'63, to November lst, the present year,
2,5Sl; from the establishment OF the
system to November lst last, $40 banks
have gone into voluntary liquidation by
vote Of tie shareholders, and eighty
six been placed in the hands of
receivers Tor the purpose of closing
up their affairs Total amount of claims
proved by creditors Of these insolvent
banks, S25, 900, 500, and amount of diyi-
dends paid creditors, SIS, 56l ,698; esti-
mated losses to creditors from failures of
national banks during the eighteen years
since the passage of The act So $40, 600 /;
average annual loss, about S346, 600, in
the business of corporations having an
aggregate capital of about S450,00O, 900
and deposits averaging about $500, 000,-
600.
The imports of gold in excess of the
exports from the date of resumption to
NOvemb Der lst, 1881, have been $l97, 1884,
ia, aad the estimated gold production
Of the mines $l04, l50, 009 amount re
ceiVed from these two sources during the
year ending November lst, 1881, STA, =
749, 800. The stock of standard silver
dollars is increasing at the rate of
about 100000, 0o0 monthly; amount
coined during the year, S27, 1874 955;
and Of colo and currency in the country
on the lst of November $l.455, 60 ,6O2
total coin snd currency in the treasury
and national banks at the same date,
gold, 1894 $685. 500; silver, Sl03 098 200;
currency, Sl39, 579, 307: OF S58 838, 759 ia
silver certificates circulating on Novem
Der LIST, large portion are constantly in
the hands of the people, being paid out
by banks in preference to gold coin or
legal teader notes. The total amount OF
silver dollars coined TO Eovemb Der lst
wss 800, 672, I05. The increase of gold
and silver coin and paper currency out
side the treasury and banks since The
date of resumption, is estimated to be
$27l, 627 1902, and the increase during the
year ended November lst, 500, 99S ,254.
If the amount of silver certificates in
circulation be added, the total Increase in
circulating medium since resump-
ton would be $3.50, 05O,217, and
during the past year $40, $50 9S2.
The number of national banks which
deposit the legal tender notes for the our
pose of obtaining possession Of their
bonds, in anticipation of the passage Of
the funding act, was al Only about
one-third Of the bonds thus realized were
subsequently re-deposited, and for some
months thereafter the total amount of
bonds. re-dep0sited by the l4I banks
which reduced their circulation, was less
than S7,G00,0G0. The comptroller has
been unable to obtain any evidence that
there was s combination on the part q;
banks to deposit legal tender notes, and
Withdraw bonds for the purpose Of de-
=
now held are chiefly 81 and 4 per cent =,
there beingS24l GOO 600 of the former and
S92, GOO, coo OF the latter, The amount of
interest received from investment in
either class of these bonds is neatly he
same, and there is but little disposition
TO deposit legal tender notes for the DUR
pose of Withdrawing them. Some banks
take occasion to withdraw their 4 per
ho 81
large premium of is per cent. which they
now bear, as this premium can be used
for the purpose of the liquidation Of
any losses which may occur in their
business; 81 per cent. bonds are being
frequently those called by the secretary
and the banks may therefore have occa-
sion to withdraw them after the interest
has ceased, and 1t is important that they
continue to have this privilege upon the
deposit OF lawful money as now provided
by law. II banks, either national or
state, or private banks, should at any
time desire to deraDge the money IA Srket
they csn do 40 Independently OF any leg
lslatlon By Congress by calling in their
damsnd loans. Such q course would be
much more simple and easy Of accomp.
lishment than depositing legal tender
notes 10 the treasury and it would be
much more effective. II, however, Con-
gress shall consider it advisable TO pre-
vent banks from depositing in the treas
ury for this purpose, large amounts of
coin or other awful money, then section
of the set of June 20, 1874. may be so
amended as 10 require those desiring t.
Withdraw bonds to give reasonable notice
OF their intention to do so before complet-
ing the transaction, The whole number
OF national banks in operation on Octo-
Der last wts 2,14S. OF this number 393
were associations having q capital of $50
600 each, l64 had a capital of over $780,
QUO and less than 500. 900 and the caDi-
tai OF e29 banks ranged from 800 600 to
$3.50, 900 each. The minimum amount
OF bonds required to be deposited bv
banks of the capital named is one-third
their capital, but not less, in any case.
than $50, GOO. The minimum sneunt
required by all other banks is S5O. oO0
and the least amount of bonds which I'M
der any existing laws may be deposited
by the 2l48 banks now in question is
about $50 100000. It Is probable that
from Sl00, 100000 10 $50. 600 OO0
United States bonds wonld |
D. sufficient 10 supply the minimum
necessary to be deposited with II q treas-
ury by all banks which NAV he e.fsb- |
lIshed during the uext twenty wear.
Therefore, 1t is evident that the national
banking system may be continued with |
ont change IN this respect for many years.