Daily globe., 1883-12-06
THE CURRENCY.

What the National Banks are Doing
| Prospects of Their Currency Being Con.
| tracted-Detsiis of Sound and UnsounC
| Concerns.
The comptroller of the currency in his
| annual report says that 262 banks were
organized during the year ending Novem
Der l, 1888, with an aggregate authorized
capital of $28, $50; circulating notes
| have been issued to these new associations
amounting to $7,9O9,19o. TITS Is the
| largest number of banks organized in any
year since 1865.
These banks are located by geographical
divisions as follows. Eastern states, seven
| banks, with capital of $1,275,O 600; Middle
states, forty, with capital of S3,115, 200;
Southern states, forty-six, with capital of
So, ,79S, $50; Western states, one hundred
and thirtg-two, with capital of SIS ,205.500:
Pacific states, eleven, with capital of
$500, 600; and territories, twenty six, with
capital of 1550,000.
Forty banks, with aggregate capital of
S7,736.000 and circulation of $4,137,033
have voluntarily discontinued business
during the year; twelve of which were sue
cseded by other banks, located in the came
pioSSo Will AOoIl bAtS ooLIC cltnI ICuOt0SI5t
Two national banks with an aggregate
capital Of $250O0O. during the year end
ing November 1. 1888, haye been placed
in the hands of receivers, making eighty
nine in al. since the establishment sof the
system.
The total number of banks which have
voluntarily closed their affairs by vote
of shareholders owning tgothirds of their
stock, under sections, 5,220 and 1921 of
the United States revised statutes, has
been 450, Of which sixty-seven were placed
in liquidation, in anticipation of the ap-
proach of the termination of their corpo-
rate existence, for the purpose of organ
iziug new banks as their successors.
The shareholders of ten banks in all
have permitted their corporate existence
to expire, and these associations are in
liquidation under section Of the act of
July u, 1892. National banks are organ
ized in every state of the Union and in
every organized territory. The total num-
Der in operation on November 1 was
twenty five hundred and twenty-five, the
largest number tha. has been in operation
at any one tine.
NATIONAL VS.. PRIVATE BANKS.
The capital OF the 2,30S national bar ks
in operation on December so, 1882, was
$464, 883, ,492, no; inc.uding surplus. which
fund at that date amounted to more than
one hundred and tnirty Eve millions of
dollars; while the average capital of all
the state bauks, private bankers, and saw
ipgs banks, fer the six months ending No
vember 50, 1882, was bui 1882, ,435, $50.
The latter amount is less than two-ifths
of the combined capital aud surplus of
the national banks.
ExTE EsIoN OF COOPERATE EXISTENCE.
At the date of my last report, the cor
porete existence OF eighty-six national
banks HAD expired. and thirty of these
banks had extended their existence under
act of July II, 1882; fif.y-two banks went
into voluntary liquidation, and were sue
cseded by other associations organized in
place thereof, chiefly previous to the act of
July II, 1882, which authorized the extern
sion of the corporate extence for new
period of twenty years of national banks
whose franchises were about to terminate.
The four remaining banks expired by linn
itation and did not effect new organiza-
tions. The number of national banks Or
gauized under the act of February 25,
1868, which we're in operation at the date
of my last report, December 2, 1882, was
3O7.
OF these banks, 273 have extended their
corporate existence under act of July u,
1882; seventeen have been placed in liquid
alton by vote of shareholders of the bank,
and four have expired by limitation. All
of these banks which have been placed in
1ar nd bau Nv
tion, with the exception of two, have been
succeeded by new associations, organized
in the same localities with different titles.
Ali the banks organized under act of
Feb. %, 1868, ceased to exist by the terms
of the acE on or before twenty years from
the date of its passage; but the banks Or
gained under act OF June 3, 1864, have
succession for twenty years from the date
of their Organization.
CONTRACTION OF CIRCULATION.
Referring to the secretary Of the treas:
ury having been compelled, on account of
the large receipts OF revenue IN excess of
expenditure, to call in rapidly for payment
that portion of the bonded debt which Is
payable as the pleasure Of the United
STATES, the comptroller says:
Il is evident that unless there is addi-
tional legislation the bonds held as securi
t. for circulation will rapidly diminish.
New legislation may, however, postpone
the payment of the public debt, or cause
the profit On circulation to increase sufici-
emily to induce the national banks to invest
in the long four per cents, which are not
to mature for period of twenty -four
years. The contraction of the bank circu-
ietion may be avoided by reduction of the
redundant revenue, and there is no doubt
that this is the true policy.
NATIONAL BANK FAILURES.
Two national banks have been placed in
the hands of receivers during the year
ending November 1, 1888, namely: The
First National Bank of Union mills, Union
City. Pa. with capital Of $4,000, on
March y. 1888, and the Vermont National
bank, Of Saint Albans, VT, with capital
of 100000, on August 8, 1888. The
affairs OF seven national banks have been
finally closed within the year.
The report of last year gave list of
fifteen banks in the hands of receivers,
which were completely liquidated, with the
exception of litigation pending in the
courts. Three of these have been closed
during the year. The others, owing to the
delay in reaching the cases, are still in the
aara condition aIteougn in scme in