Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1882-11-30


net expenditure decrease from $3.50, 1887
to $257 1881 ,44O, reduction of $2,731,447,
which, added to the increase in receipts
makes an increase of $45,474, 4O5 in sur
plus revenue applicable to a reduction OF
the public debt. The amount of standard
silver dollars coined from Feb. %.
1873, the date of the act recurring
| their coinage, to Oct. 81, 1882. is
$12S,S29, go, Of which $50, OO6.3s3 remains
In the treasury, and $35, 323, 49S, or about
2712 per cent, Is now in circulation. The
proportion of the total coinage in circula-
| ton Sept. 30, 1881, was 81 r. per cent. Of
the S3O,oO7,175 coined during the last
thirteen months $2,950,072 had gone into
circulation and $27, 057, lob remains in the
treasury. During seven months of that
period the dollars returned to the treasury
exceeded in amount those issued, the num-
Der in circulation running down from 1884,
950.120 on Dec. 81, 1881, to $31, $780,
1855 on Oct. 81, 1882.
The comptroller of the currency in his
report says: The capital of the 1929
national banks, July L, 1882, was $477,-
1s4, 800, not including the surplus, which
fund at that date amounted to more than
$131 100000 while the average capital of
all the state banks, private bankers and
savings banks, for the six months ending
May 81, 1882, was but 1924 1929, 1856, the
latter amount being less than two-ffths of
the combined capital and surplus of
national banks. The total number of
banks, and bankers in the country, in
Guiding savings banks, 1902; total bank
capital. $712.114.366; total deposits, g.
s50,67S,17s.
Comptroller Knox states that PROPOSE
items for the issue of circulation without
the fullest security cannot be too carefully
considered. The security of national bank
notes under the present system is perfect
In twenty years not single bank n ote has
failed to be redeemed at its face value.
Banks organized under the general law are
located so often at great distances from
commercial centers as to render security
for circulation of uniform and positive
value.
There are in this country, says Comp
troller Knox, more than q thousand state
banks, trust companies, and more than
$500 private bankers. The temptation
would be strong ON the part of these cor
porations and individuals to organize
banks of circulation, if the circulation
could be obtained without depositing
bonds as security therefor. The value of
the different notes issued would depend
upon the management of the bank and
the character and standing of the stock
holders. Many notes would be- at
discount in a change flor coin, and the
failure of one bank to pay its notes would
throw discredit upon the whole volume of
bank circulation, and the system under
trub Job III he s@ ho
issue of circulation we're confined to few
banks organized by men of character, in
tegrity and means, such associations
would be characterized as a monopoly.
Even if the corporations are organized
upon condition that all should contribute
percentage of circulation to safety
fund for the protection of the aggregate
circulation, there is danger that the issues
of fraudulent or badly managed banks
would soon consume the safety fund, and
it is evident the circulation would be paid,
if at all, at the expense of the depositors,
who would be stripped of the small divi-
dends which, under existing laws, are dis
tributed to unfortunate creditors. Under
the national banking system it is provided
that the circulation issued shall first be
paid from the proceeds of the bonds de-
pOSlbeU 10 S0CUT0 LNc SdIu0s 1Q0 proceeds
of the remaining assets are distributed pro
rata among the creditors. Eighty-seven
national banks in all having an aggregate
capital of $2O.262, 600 have failed during
the last twenty years, and since the organi-
cation of the system. The amount of
circulation to which these banks
were entitled under existing laws, namely,
80 per cent. upon capital is $19,336, $40,
| which is a less amount in aggregate
than the amount of dividends which was
equally paid to the creditors of these in
solvent institutions. Forty-four of these
banks. having capital of $1,000, 900,
would each have paid in full. Their circu-
lation of 80 per cent. had been issued up
on their capital from the proceeds of their
! assets, and would also have paid small div
idends to their depositors. The remain
ing forty three banks, having a capital of
$9,168, 500, would IN the aggregate have
paid, it is estimated, Is per cent. only
from the avails of their assets upon circu-
lation authorized, entailing loss
upon bill holders of over $2,OO0,O00, and
leaving no assets,whatever for the benefit
of depositors, whose claims are $9,O43, COS
and upon which dividends will be paid
averaging, it is estimated, 68 per cent