Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1884-11-27
Tho liabilities Of National Banks
Were Reduced $94O0o,0Oo
During the Past Year.
The Law Taxing Circulation Should be
Repealed-A Eow Scheme for Fund
ing tho Public Debt.
Tho Issue Of Currency Based on Silver
Should Not be Unlimited
as at Present.

OF currency SHOWS tnhb uuTiWk tu
year ended November /, 1884. 1911
banks have been orgaplzei with an
aggregate capital OF sl8,0l3 go Cir
cuiating notes have been Issued to
these banks amounting 20 So 500 go
These banks hre located by geographic.
cal divisions ~ follows:
Eastern states ten banks with cap
ilal of $4,000
The Middle states, - banks with u
capital Of 1891 100
Tho Western states, lo2 banks with
capital Of s. 005 $50.
The Pacific states, banks with
capital Of $3.50 600
The territories, " banks with capt
tai Of 81, ii8 900
Since the establishment Of tho na-
tionRl bank rystem, February % 1858
there have been organized 6 95l M
honal banks. The totul numbpr
In existence November /, 1884,
was 287i, tho largest number
in operation at any one
time. Eleven national banks with an
aggregate capital Of 81 2S0 900, have
failed and have been placed i'm the
hands of receiver during the year,
The different items at resources and
tho bu .incss of the national banks dur
ing the past eleven years hns generally
Increased. The aggregate liabilities Of
the national banks to- deposit m.
aud correspondents were reduced dur.
ing the yeNi upwards of S0i 600 600
This reduction Of liabilities and gen
eral reduction Of l0aus 10y tho bank-
which amounted to over 5000 600
during the year, the comptroller SAYS,
was doubtless occasioned by the tinan.
cial troubles 10 May and the a, pres
sion OF business. During the
same period the national
banks increased their cash
resources 10y abont 81, 100000 in
specie and 81 900, coo In legal tenders
and United States certificates OF de.
posit Tor the same
The banks held November 1. 1884
1858, COT A00 per cert bonds, payable
az the pleasure Of the government. of
which $3.50 30 worth have been
called Ia for payment, the in
lerest ceasing November I, 1884
II these bonds are not replaced
10y others bearing interest there will be
an immediate reduction in the circula.
ton OF 90 per cent of their amount.
On November there were Sl0i 100.
900 per cent. bonds payable nc the
pleasure Oi the government These
bonds will probably be mid I'm The
next two years, even lf considerable
changea are made In the tariffs. and
from 1857 10 1891, when $3.50 600 600
worth of Al ner ce,,,s
mature, there will be no bonds. " hicb
the government can call In for re
demptiOn No doubt the accumula.
llon OF surplus revenue, if II continued
70 occrueht tho present rate, during
inc tonr years between 1887 and 1901.
together with the revenues OF lSp9'
VIII be more than sufficient To nav of
the AZ per cents aud from iSD3 until
leO1 II will DO impossible Tor
the government 20 use any OF liza aur-
plus revenues for the payment OF ita
bonds except at the option OF their
holders. lt isapparent that the gov.
eminent cannot accumulate and hold
lls surplus revenues even during the
short period from 1887 10 1855
without great disturbances TO IND
business interestd OF the country.
aud much less can Il do so
curing the long period from 1892 10
NV IL appears, therefore, that the
foregoing consideration should be
given due weight In any plan for fund.
ing the per cent honda maturing In
lsui, ana the comptroller. therefore,
suEgests that the principal DIM
cultles can be overcome NV the
Funding OF these bonds into others.
which shall mature In proportionaia
amounts at certain fixtd intrrvnls
Thus the S73S COCOON four Der cents'
might be funded into an equal amount
OF three or two and one-half per cent
bonds, one-tlfth of which (Sl47 500. OO0l
70 mature at an interval Of five wears.
the nrst installment falling due july
!, lsSf, aud tho remaining install.
menm otfli7 $4,000 each, OH the lat
OF July ia the last year of each succeed
Ing period OF five years VIZ
1909, 1907 1912, ami 1917 The aver.
age maturity of these five clnssea ~
bonds would be tho same as that IN
the present { per cents, viz July 1.
Whatever course may be deemed ok.
pedient by congress In regard To the
funding or future payment OF the debt.
Tue comptroller Ia OF the opinion
ina. b Ia perfectly safe and
VIII auotl great benefit
TO the public to permit an issue by the
national banks Of y circulation 10 the
extent OF 100 per cent par value OF the
s'ANh Nt'p tHfttdt inttthukOi W Der cont
Even admitting that the bonds renre.
seniing the public debt when funded
AZ lower rates might al times in the
future be below par IN the market, the
government would, " forced to redeem,
the notes OF inaolvent national banks
always have the right TO cancel the
bonds on deposit, securing the aaroe
and thus extlnguish an amount on ita
debt equal dollar for dollar Ia the
notes redeemed.
lt 10 further submitted that the
prott on circulation may he Increased
70 a point which wlllinduce the hanka
10 Keep up their circulation 10 ire
maximum, and stop the contraction Of
thelr circulation which Is now
occurring, by repeating the law taxing
such circulation Rt the rate OF one-hait
ol one rer cent. seml.annuAlly. The
expenses Of keeping up the national
pAl'hing system BY the government.