The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1883-12-13
THE CURRENCY.

Extracts from Controller Knox's Report
Controller OF the Currency Knox reports the
organization OF 262 banks for the year ending
with last month, leaving ASA In operation. the
system extending into every territory. The
bonds outstanding. which can only be redeemed
by purchase In the market, aggregate u ,052,-
g70,062. The Government has gained about
"A, 600 900 by the accidental destruction OF bank
notes, and the whole cost Of the system In TWEEN
ty years has been but 8, $40 CO. Controller Knox
bank circulation Is to reduce the redundant rev.
enue. Az to the extension OF the corporate ex-
istence Of National banks, the Controller says:
existence OF eighty National banks had ex-
pired. and thirty of these banks had extended
their existence under the act OF July IL. 1882,
hfty-two banks went into voluntary liquidation,
and were succeeded by other associations organ
lied in place thereof chiefly previous 10 the act
of July II, 1892, which authorized the extension
twenty years of National banks whose
franchises were about TO terminate. The
four remaining banks expired by limitation,
and did not effect new organizations. The
number of National banks organized under the
act OF Feb. 25, 1868. which were In operation
at the date OF my last report In December was
307. OF these banks, 273 have extended their cor
porate existence under the act of July ~. 1882,
seventeen have been placed in liquidation by
vote of shareholders OF the bank, and four have
expired by limitation. All OF these h8nlks which
have been placed in liquidation and have ex-
PRED by limitation, with the exception of two,
have been succeeded by new associations, or
titles. The whole number OF banks now In op-
GRAFTON which organized under the act of June 3.
1864, whose periods OF succession will terminate
during each year previous to 1900, is 1876. The
number, capital and circulation of banks expir-
ing IN 1884 and 1885 Is as follows
Years. No. of banks Capital. Circulation.
1884,. .249 s9,61l,57o 5 6O,526,Sl5
1885 ........727 1875, IFS ia, s07, 450
AS to the relation Of the banks to the bonds,
the Controller of the Currency says:
The average rate OF interest now paid by the
United States on the bonds deposited as security
for circulating notes is about 31 per cent. upon
their par value, but it Is equal to about 3.19 per
cent only of the current market value of the
bonds. The banks now hold s41. 100000 of ANS,
06, 900 900 Of AZ. and S2l 100000 Of per cents,
which have been refunded from 3h per cent.
More than one-half of the bonds now held by
the National banks are 3 per cents. III the pub
lie debt continues TO be paid as rapidly "a 1t has
been during the past all of these bonds will
talnly be called within the next three years
Those Of the lower numbers, which 1t Is safe to
estimate will not be called within the next ten
years, cannot be purchased for a premium of
much less than per cent, and at that price
there Will be loss upon circulation based on
this class of bonds IL they are redeemed within
three years. The profits on circulation based on
other bonds held by National banks are merely
nominal.
OF the amount of United States bonds held by
the National banks and bv banks organized
under State laws the Controller says:
Through courtesy of State officers, the Con-
troller has obtained official reports made to
them under State laws by State banks in twenty
two States, by trust companies in five States,
and by savings banks in fourteen States at diff
ferent dates during the year 1888, and from
these returns the following table has been COM
piled:
Held by 754 State banks In twenty
TWO OJdUtS. O,Sol,OUo
Held by thirty -four trust companies
in five States ...................... I74s7 900
Held by $50 savings banks in fourteen
States. 219, OF 1913
Total. s2n, 742, 900
The Understanding funded debt OF the United
States was November 1, last, s., 273,475,450. The
total amount of bonds held by the National
1879 4S6, $500 and State and savings banks SAL,
100000 was 1921 900 $50, which is not greatly
less than one-half of the Understanding debt
The U nited States bonds held by State banks is
given by geographical divisions for the years
| 1880. 1881 and 1882. 1888. as follows: