Los Angeles daily herald., 1884-11-27
THE CURRENCY.
THE CURRENCY.
Report of the Comptroller
at Washington.
THE BOARDING OF GOLD
Measures Suggested or the Re.
demptiOn of United States
Bonds that Should
be Adopted.

Special TO The Herald bg Associated Press |
WASHINGTON, Nov. 26.--The annual report
OF the Comptroller OF the Currency during
the year ended November LIST. 1884, says:
One hundred and ninety-one banks have
been organized with an aggregate capital Of
$3.50, ,422, ,230; circulating notes have been
issued to those new associations amounting
| to 3, ,ss6. go. The total number iu existence
on Nov LIST. 1884, was 267l. the largest
number in operation at any one time
Eleven National banks with an aggregate
capital Of si,2s5.OO0 have failed and
been placed in the hands OF. receivers,
during the year The different items, re.
sources and liabilities as tabulated indicate
| that the business of national banks during
the past eleven years shasgenerally Increased.
| fhe items Of United States bonds aud circu-
| lation thereon decreased, during the past two
years. The aggregate liabilities Of national
banks to depositors and correspondents were
reduced during the yearaipwards Of ~. .O00,-
| 900. This reduction OF liabilities and gen
eral reduction OF loans BY banks. which
amounted to over 500, 900. 900 during the year
signed by the financial troubles during May
and the general depression of business
During the same period the national banks
incressed Inc @ their cash resources .n by about 81
Gates c Of % deposit is' for ''A'ts The same same
The total number Of banks still In operation
organized under the act of June g. 1864, and
| the provisions Of the revised statutes, for
the periods OF successlon which will term
mate, unless hereafter renewed during the
| years previous to 1900. Is 1883, with capital
Of 1921 461 l45,. and circulation OF $ls4,7i5.-
800. The banks mad on Nov. l, 1884, $l55,604.-
400 In three per cent. bonds. payable at the
pleasure OF the Government. Of which 50, $780,
200 had been called for payment, Interest
ceasing Nov; l, 1884. II these bonds are
not replaced by others bearing interest.
there VIII be an Immediate reduction In the
circulation of 30 per cent. of their amount.
On November LIST there were $ls4. 100. 500 OF
three per cent. bonds payable at the pleasure
ably be paid within the next two years, even
II considerable changes are made In the
tariff and from 1887 to 1891, when $250, 900, 900
Of ~ per cents mature. there will be no
redemption. No doubt the accumulation OF
surplus revenue, II II continues to accrue at
the present rate during the four years be-
tween 1887 and 1891, together with the reve-
nue. OF 1892, Will be more than sufficient to
pay of the ~ per cents. and from 1892 until
1907 twill be Impossible for the government
to use any Of Its surplus re venues for the
payment OF its bonds except at the option of
their holders II is apparent that the Gov
surplus revenues even during the short
period from 1892 to 1907. 1t appears, there
fore, that the foregoing consideration should
the per cent. bonds maturing in 1907, and
the Comptroller therefore suggests that
the principal difficulties Of tbe situa-
ton may perhaps be obyiated. as well
as reduction of interest effected, by
funding these bonds into others which shall
mature in proportionate amounts at certain
hxed intervals: thus, 1913 900 900 Of per
cents. might be funded into an equal
Of whi cS, or si17 TO- mature mature at inter-.
vals of five years. The first installments OF
yl47 600 each on the first OF July In the
last year of each succeeding period OF fye
average maturity OF these five classes Of
bonds would be the same as that OF the
present 4 per cents. viz: July I. 1907, what
ever course may be deemed expedient by
payment of tfe public debt
The Comptroller is OF the opinion that 1t Is
perfectly safe and will afford great benefit
70 the public to permit an issue by National
cent tpar value) of the bonds deposited. in
stead of go per cent. Even admitting that
the bonds representing the public debt,
when funded at lower rates, might In the
1e %aod ph Y orned .ne the gSy
notes Of insolvent national banks and al
ways have the right to cancel bonds on
deposit as security for the same, and
dollar for dollar to the notes redeemed.
He further submitted that the profit on cir
culation may be increased to point which
viii induce the banks to keep up their cir
culation to the maximum, and STOP the con
fraction OF their circulation, which is now
occurring, by repeating the law tax on such
circulation, at the rate of one-half of one per
cent. semi annually. The expenses of keep
ing up the national banking system by the
Government the nj ma raf IN,
part from the proceeds of this tax and n
part by assessment on the banks. II these
taxes are abolished, all these expenses
should be paid by the last named method.
In concluding this subject, the Comptroller
wishes to have II distinctly understood that
ne is not in favor OF any measure which will
cause imitation.
He is OF the opinion that the present aggre-
gate paper in circulation, made up OF legal
tender and national bank notes and gold and
silver Certificates, is ample for all the needs
OF business. He believes, however, that
lation which, without appropriate legisla-
tion, is imminent will seriously embarrass
the business of the country, and that IL this
contraction Is permitted to go on 1t may re-
suit In the entire disconfinuance OF the is.
sue OF notes by national banks. The Comp
troiler believes that this form of currency,
which can be increased or diminished in ac
cordance with the natural laws which con-
troll business, should be continued in pref
erence to any other now permitted by law.
In regard TO circulation based on silver,
the comptroller says that the people OF the
United states now hold paper circula
tion based upon silver dollars equal in
amount to more than one-third of the
national bank circulation. II 1t is for the
best interest of the United States to issue
circulation based upon silver, the comptroller
upon a coin or bullion, which contains
su unhcient number OF grains of silver to have
an intrinsic value equal In the market TO its
nominal value. Some writers have sug
sestesd sns that % ORIGINATING medium might be
and the comptroller is of the opinion that
under certain restrictions and regulations
1t would be far more correct in
upon deposit Of silver bullion to be valued
In the exact proportion of silver to gold,
than to continue TO issue certificates under
the present law. II this was done silver
bars might be stamped at their market value
and held in the treasury for the redemption
| of certificates which would call an amount
OF silver equal In value to their nominal or
fair value expressed In gold bullion repre-
certain proportion OF the amount of silver
so held might perhaps be coined TO provide
means for the redemption Of GER
dssrss thsates for h. the redemption conn was
troller believes that the use of silver as
money in this manner, and its periodical
valuation would have more influence in ap-
| preciating the market value Of silver among
the nations of the world than the present
arbitrary coinage of 4l2ls grains of silver as
dollar. The issue OF the currency based
upon silver should not, however. be unlim-
tied, and the present laws making the pur-
chase and coinage OF fixed amount of sill
yer bullion mandatory, are very pernicious
IN their effect, as the unlimited and contin-
ned issuance OF full legal tender" silver coin
ana certihcites based thereon. of intrinsic
value less than their face, has already caused
the hoardfng of gold, and will eventually
drive u from the channels OF trade, thereby
causing practically suspension of gold pay
ments; There are many Indications OF THIS
NOTABLY nneasiness in financial circles In
June ana July last, caused by the reserve of
goiu In the Treasury falling so near to the
| point az which, under the law the issuance
| OF gold certificates ceases. II would also be
observed that during the present year the
national banks throughout the country have
| increased their holdings OF gold, including
cert ihcates, in the sum of sIssi6,s5o
| The Comptroller concludes his report with
discussion OF the subject OF bank examin-
ations, and a consideration OF the financial
troubles OF May. 1884.
Taken 10 the Penitentfarv.
SALT LAKE. Nov. 26.-John Aird. late city
jailor, was arrested yesterday for unlawful