The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1884-12-04
THE CURRENCY.
Report Of tho Comptroller Of tho Cur.
rency on the National Bank.
ing System.
The Rcfnnding OF Bonds, the Issues
Of Notes, ind the Coin
1tAndniy.
The Oomptroller's Views as to tho Rcla-
tion Of Silver and Gold The
Formers Value.

lHc OoLuptioiuT ViuWn W. W tHu AelH-
ton Of Silver and Gold The
Formers Value
!, The, ANNUAL tepprs Of the tomntrelltr:s i the
Furroi,cs shows during The seas tnled Nov. /,
isst, III banks have been organized, with mi
aggregate capital Of sia,oia,san Circulating
notes have been issued otheso new associations
amounting TO st,san.asn. These hank. are To-
Gated by geographical divisions a. follows,
Eastern States 10 banks, with n capital Ut ssin,-
ooo; Middle States -. capital ssla,ssn; southern
Stat ~, capital SaMi, tuo. Western States ina,
capital ss,poassa: Pacific states 4, capital sasn-
ooo; Territories ~ capital sl,lta.We slnse the
establishment OF 'he national banking tystem,
Fth, u. tst'a therh have bern ORGANIZED a,sal
national hanks, The toll number IN existence
Nov. |, lssl, was 2.a,i~the largest number III
operation at any one tins, Eleven national
banks, With mn aggregate capital of siasa,ntA,
have failed and been placed IN the hands u 70.
ceivers during tho YEAR,
The different items Uf resources AMI liabilities,
NJ tabnlated, indicate that the business Of the
national banks during the last eleven years has
generally ncrcaeca The items ~ Nltea St.tcs
ionds and circulation thereon deereased during
the last two Years, The aggregate liabilities "
national hanks 10 dcposituis and corresponds
ents We're reduced during the war upward II
$a.uno 900, This reduction OF liabilities and the
general reduction Of loans hy hanks, which
amounted 10 over sG,Mnnaa during tho year,
the Comptroller saws was doubtless oecasione,i
by the financial troubles Of MAY and GENERAL aes
preston Of business. During the same period
national hanks increased their cash resources
by about Sal,opa,uuu speic and Sil,naa.nh legal
tenders and United states certificates VI deposit
Tor thu same
The To, al numhcr Of hanks still In operation.
organized under the act Of June =, lso,, and
the provisions II the Revised statutes. In pe+
RODS Of succession, which will terminate un-
less hereafter renewed during the wears mevi.
Gus to lsna, Il ,tss With capital OF SGl.tol,ita
and n circulation OF Slai. sas,aua
The hanks held Nov, !, iss., sisa.da,soo ! per
cent bonds, payable at the pleasure OF the 10Y.
ernncnt. Of which sa.as0,au have been called
for payment, interest ceasins Nov, |. issL
IL these bonds are not replaced by others bear
Ing interest, there will BE- an immediate rednc-
amount. Nov. there were SIN. iao,sa Per
cent bonds PAYABLE al tho pleasure Of the Gov
crnmcnt These bonds viii probably DO
Ma s nes IN
from 1857 to 1891, when Saaa,uaa,ean OF ~ yer
cents mature, there will be no bonds which tho
Government can cali IN for redemption No
doubt the accumulation of surplus revenue, II
II continues to accrue AT tho present rate during
the four years between issv and 1871, together
with the revenues Of isaa. will be more than
sufficient to pay OIL the AZ per cents. and from
lsaa until 1907 II will he impossible for the uev-
eminent 10 use any Of lis sus plus revenues tor
the payment Of its bonds, except At the option
OF their holders. II is apparent that the aer-
eminent cannot accumulate and hold It's sur
plus revenues, even during the short period
from 1851 10 isaa, withou, great disturbances to
buSlIltS~ lHttftsIN III tft NNNNttNs NlNNAl
less can IL do 80 during the longer period nom
lsaa To 1907
II appears. therefore. that the foregoing con.
siders,lons should be given due weight 70 any
in 1907, and the Controller therefore suggests
that the principal difficulties OF the situation
may. perhaps, BE- obsia,ea ~ well as resiae-
tiun IF interest effected hy funding these hanas
into others which shall mature In propar,lonate
amounts n. certain liked Intervals Thus the
S7ssueo,eoa Ter cents might he funded into an
al "a IL
iisn 81 @h,sa or siaaea to tom mature 's ' IN
tcryals OF hive wears, the first installment ane
July l, 1897, and the remaining installmenss Of
Sas6ta,oao each Ut the LIST Of july in the last
wear each succeeding period Of tive wears, via. !
la2. 1907, 1aia, and ial1 The average ma.
turity of these hve classes Of honlS would lie
u. same as tina, OF the present per een's~~siz.
July l, l9a1.
Whatever course may be deemed exredent by
Congress in regard To the funding or future
payment Of the public debt, the Controller = OF
opinion that II Il perfectly safe and will afford
great benefit to the public To rsrmi, an issue
hy the national hanks NJ circulation to the ex-
tent OF iee per eent-par Nsine-et bonds de-
POSTED, instead Of super cent ESen admit
ting that bonds representing the lnhlle deht
when funded III lower rates might al times In
the future he below par in the market, the toy.
ernment would II forced to redeem the notes OF
insolyent national hanks, always hassa right to
cancel bonds OH DEPOSIT securing the same, aud
thus extinsnish an amount OF Its debt equal,
dollar for dallar, To the notes redeemed, III is
further submitted that the prof, ON circulation
may be increased To point which will induce
hanks To Keep NJ thelr circulation 10 the maxi
mum, anu stop contraction Y; Their circulation,
taxing such circulation al the rate Ut one hall 1t
| per cent. semi -annualiy. The expenses Ut
keeping up the national banking system by the
Government ART NJ present paid In part from The
proceeds Of III tax AMI in part by assessment
ON hanks, Ii this tax he abolished all these ~.
renses should 10 raid hy the last named
method.
In concluding this subject the Comptroller
wishes To have II distinctly understood that be
II mol In favor OF any measure which viii cause
imitation. lie i OF opinion that the present a.
gresate paper circulation, made up OF legal.
tender and Ea,laaal.hsnk ao,es AMI gold AMI
silver certificates, l. ample Tor all the needs III
business lie believes, however, that 4 sudden
contraction 81 nasioaal. hank circulation. which
without appropriate legislation i imminent, Will
SCI loasly .mharrass the business III the country,
anu that IL this contraction Is permitted 10 ~
on il may result in the entire discontInuanee ot
the issue OF notes by national tanks The
Comptroller believes that this form Of currency,
which can be increased or diminished in accord
anee with natural laws which control business,
should be continued in preference to any Other
now permitted by law.
In regard 10 the circulation based ON silver,
the Controller SAYS the people Of the lnised
states now hold paper circulation based upon
silver dollars in amount equal 10 more than one
third the na,ionai-hank circulation. II II i
tor the hest interests OF the United Statss
to issue circulation based upon silver. the Con,
truller believes circulation should I've ISSUED
upon coin or hullion which contains suftscteal
number Of grains oi silver 70 have intrinsic val
ne equal In the markets cf the world 10 its mona
inai value. Some writer's have suggested sha
the circulating medium naiSht ~ based npol
bullion. both gold anu silver. ami the tontrollea
il OF opinion that ahdvr certain restrictions AM
regulations 1t would he tar more correct IN lTin
elple To issue silver certificates based arol
the deposit of bullion. TO he valued IN eAae'
the issue Of certificates under the present law
III this were done, silver bars might he ssaanles
AT their market value aud held In the TreasaF,
for the redemption Of ,eftliestes which Meuls
call an amount VI silver equal In value U thsi
nominal or face value expressed In sold III
bullion represented by oestlneatss should b
periodically valued Al its market price In sela
and a certain proportionate amour. OF silver -
held mi1ht perhaps b. coined 10 provide meAn
for the redemption of certificates, IL Redemption
Was required Tor business purposes The Ton
tins manner, and Its periodical valuation Moals
have more influence In appreclatlag the marks
value OF silver among the nations OF the worls
than the present arbitrary eosnA~e Of ala
grains Of silver - dollar The issue u cur
reney based upon silver should not, however. y
unlimited, and the present laws making u
purchase and coinage ot anxed amount OF silNs
bullion mandatory are VERY lerniSions IN thsa
effect, ~ the unlimited AMI continued isSaSnss
af full legaI.tendsr silver coin, aud eertncsses
Kissed thereon, ef intrinsic salaa less than ,hsa
face. has already caused the boarding III gold
ami will eventually drive II fron the channels Q
| trade. thereby causing practical suspension .
! gold payments, There are many in0ieaton
OF this. notably the nnfaslnrss In financial cir
eles In June aud Jnly last caused hy the r.sers
Of gold in the Treasury fall NJ - near to
point AZ which under the law the issuance v
gold cert neates ceases II Will also be observes
that during the present YEAR national hank
throughout the country have increased thsl
holdings Of gold including certificates. in tn
sum Ut slasls, aan The Comptroller Sonelades
his rerort with a dissusssun Of tn. subject u
hank examinations AMI a consideration of tn
financial troubles Of Nav. is~a.