Savannah morning news. [volume] (Savannah) 1868-1887, 1884-11-27
BANKS ON DRESS PARADE.
COMPTROLLER CANNON MAKES
HIS ANNUAL REPORT.

191 Banks Organized During the Year
Ended Nov. with an Aggregate Capt.
tai of S16,O42 3O-RecOmmendations
on the Circulating Medium-How the
National Bankers Weathered the Re-
cent Panic.
WASHINGTON, Nov. 26.-The annual
report Of Fl. w. Cannon, Comptroller of
the Currency, shows that during the year
ended Nov. 1, 1884, 191 banks have been
organized, with an aggregate capital of
Sl6,O42,2 ,23O, and that circulating notes
have been issued to these new associa-
tions amounting to $3,S66, ,23O.
These banks are located bv geographical
divisions as follows: In the Eastern States, 10
banks, with capital of $4,000: Middle
states, % banks, with capital of 81, l,Sl2. 250;
southern states, 30, with capital of S2,99l,-
100; western States, 100, with a capital of
Se.90j, $50; Pacific States, 5. with a capital of
S5o9OOO; the Territories. 10, with capital of
Sl,l43,OOO. Ninety charters expired during
the year, Of which So were extended
The corporate existence of l54 national
banks, with an aggregate capital of $56 l6l $40,
will expire during November and December
of this year, and the corporate existence of
120 national banks, with an aggregate capital
OF $lSo,Sll ,4l5. viii expire during 1885. Eleven
national banks, with an aggregate capital of
Sl.2o5,OOo, have failed and been placed in the
hands Of receivers during the year The dif-
ierent items OF resources aud liabilities as
tabulated indicate that the business of the
national banks during the past II years mas
generally increased.
NATIONAL BANK NOTES.
Whatever course may be deemed ex-
pedlent by Congress in regard to the
funding or future payment of the
public debt, the ComptroUer is of the
opinion that it is perfectly safe, and will
afford great benefit to the public to permit
az, an issue by national banks of circulation to
the extent OF 100 per cent. Of the par value of
the bonds deposited instead of 80 per cent.
Even admitting that bonds representing the
public debt when funded at lower rates might
at times in the future be below par in the
market, the government would, il forced to
redeem the notes of insolyent national banks
always have the right TO cancel the bends on
deposit, securing the same and thus eXtln-
gushing the amount Of Its debt equal dollar for
collar TO the notes redeemed 1t is further
submitted that the profits on circulation may
be increased to point which will induce
banks to keep their circulation to the maxi
mum and stop the contraction of their circu-
latlOn which ls now occurring, by repeating
the law taxing such circulation at the rate of
One-half of l per cent. semi-annually. The
expenses Of keeping up the national banking
system 10y the government are at present paid
IN part from the proceeds of this tax and in
part by assessment on the banks. If the tax
be abolished, all OF these Xrenses should be
paid by the last named method. In cOnsid-
ering this subject the Comptroller wishes to
have 1t distinctly understood that he is not in
fav II of anymeasure whichwill cause imitation.
He is of the opinion that the present aggregate
paper circulation. made up of legal tender
and national bank notes, and of gold ana
silver certificates, Is ample for all the needs of
business.
DANGER IN CONTRACTION.
He believes, however. that a sudden con-
traction of the national bank circulation,
which, without appropriate legislation, is i'm
minent, viii seriously embarrass the business
of the country, and that if this contraction is
permitted TO 90 on II may result in the entire
discOntinuance of the issue of notes by ma
uOnal banks. The Comptroller believes that
this for Of currency, which can be increased
or diminished IN accordance with the natural
laws which control business, should be
now permitted by law. In re-
gard to circulation based on silver the
Comptroller says the people of the United
States now hold paper circulation based upOu
silver dollars in an amount equal TO more
than One-third of the national bank circula-
tiOn. If it is for the best interests of the
United states TO issue circulation based upon
silver. the Comptroller believes that the cir
culat on should be issued upon coin or bullion
which contains n sufficient number of grains
OF silver to have an intrinsic value equal in
the markets of the world to its nominal value.
some writers have suggested that the circu-
latng medium might be based upon bullion,
both gold and silver, and the Comptroller
IS OF the opinion that under
certain restrictions and regulations
it would be far more correct in principle to
issue silver certificates based upon the deposit
portion of silver to gold, than to continue the
issue of certificates under the present law.
LIMIT NECESSARY.
The issue of currency based upon silver
should not, however. be unlimited, and the
present laws making the purchase and coin
age of fixed amount of silver bullion man
GatOry are very DcrnlclOus in their effect, as
the unlimited and continued issuance of full
legal tender silver coin and certificates based
thereon of intrinsic value less than their face
has already caused the boarding of gold and
Will eventually drive it from the channels
of trade, thereby causing a practical
suspension Of gold payments. In considering
the financial troubles of May, 1884. the Comp
trOller calls attention to the fact that while
many banks and private banking firms of eX-
ganlZed under the national bank act failed,
and but one suspended in the city of New
York. The liabilities of the State banks and
private bankers failing during the month OF
May in that city. 1t 5 estimated, exceeded in
the aggregate S}2. .000. .000, while the liabilities
of the only national bank in the same cate
CORY was about 81, ,250,0 600, no loss to the public
occurring through the national bank which
suspended. Only eleven national banks
failed IN the United States dur
ing the year ending Nov. ], 1884,
although more than 100 banks and bankers
other than national failed during the same
period. The records Of this Office show that
many of the transactions of the national
banks which failed. including the Marine and
Metropolitan National Banks of New York
city. were looked upon with dlsfavOr, and
that these associations had been frequently
reprimanded for irregularities during the
past few years. None of the disclosures made
by the examiners reports. however. gave the
department an adequate idea of the danger
Gus character of the business which was being
carried on by the Marine National Bank of
New y Ork, and this is not singular, as the di-
rectOTs of the bank were equally deceived in
REQ rH tn