New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-11-27
THE NATIONAL BANK SYSTEM.
ANNUAL REPORT OF CONTROLLER CANNON.
THE CONTINUED COINAGE or THE SILVER DOLLAR
LIKELY TO CAUSE TROUBLE.

THE CONTINUED COINAGE or THE SILVER DOLLAR
LIKELY TO CAUSE TROUBLE.
WAsurNGroN, Nov. 26.-The annual report
OH W. Cannon, Controller Of the Currency. has oeen
completed It shows that during the year ended NO
yember l. sS5, 115 banks organized witha captai
OF Sl693S 600. and circulating notes were issued 10
these new associations amounting to $i27iSLO since
tho establishment of tho National bank system Old
February 25, 1863 there have been organized 3,lOo
National banks or these 432 have gone into voluntary
liquidation for the purpose OF winding up their aarS
70 have gone into voluntary liquidation for the purpose
Of reorganization 81 are In liquidation by expiration OF
their charter OF which number 80 have been reorgan'
led and IOl have placed In the hands OF receivers
for the purpose OF closing up their affairs leaving the
total number in existence 2272 the largest number tha
has teen in operation at any tlmo. The Controller
states that tho reduction TO the minimum deposit OF
bonds equal % cent OF their capital has had the
effect to increase tho number Of small banks organized
While the number of banks organized from July l. 1879
to July l. 1882 with "A capital or S150000 and under
was 232 number OF banks OF this class organized
from July /. 1882. to July l. 1885. was 5i3
at IS believed" says tho report, that the National
banking system Will be continued even II the associa
lions organized under 1t cannot issue circulation at
profit inasmuch the experience under has shown
for the best interests Of the public as well as OF the
banks that this business should be carried under
general law having effect throughout all the different
States"
The Controller gives details in regard to the action Of
the banks expiring July II. 1882 and refers par
tcuary operation OF the law OF extension which
appears to have generally satisfactory Among tile
sol banks which have been extended during the past year
were thirty In tho city OF New York. with aggregate
capital OF SJ5 35OO OO well a large number in Bos
ton Philadelphia and other principal cities being some
OF the largest banking Institutions the United States
Attention is called to the fact that many of these
banks wero originally organized under the various
State laws and that the continuation Of their existence
under the National banking system indicates tho BELIEF
OF their shareholders that 1t is for their best interests TO
do business under the general banking laws OF the
United states.
Notwithstanding the organization OF banks. the
aggregate OF bonds deposit to secure crcula
ton has during the past year diminished from $685.
20 S30s 800 and the net decrease In circu
laton during tho year has been Sl5,5l546l The re-
ducton circulation has been less than estimated
by the Controller IN his annual report no United
States bonds have been called Tor payment during the
year ending November l, 1850. lhe reduction from
other causes, notably the small profit on circulation has
been greater than anticipated, and tho Controller
believes the contraction OfNatiOna bank circulation Will
continue unless s9mG te-Islatlon Is uiI when wiz n-
issue OF circulating notes. ana proposes That the tax on
circulation Dee removed. ana the amount OF circulation
which National banks are permitted To Issue be in
creased par value OF the bonds deposited by them
He refers To the Tact mat atAou-4 tcre mas Oeeh
cuuti.D tion u National bank notes the circulating
dunn the country has been increased hy SILVER dollars
attention TO the statement In hls last annual
silver dollar under One present provisions OF laws IS In
~ the requirements Of the country ana IL la
b'c 10 bring the business OF the country 10 silver
basis and some decree OF hnuuclal disturbance
Tho report contains chapter National bank fall
urc- from which 20 appears that four banks. with
q-.tl'r capital o. 100000. f4ltd dUUlug the past
year Dividends have been raid during the year to the
creditors OF iusoIyout banks to the amount OK
&-.l5l, sG5.
During tho fiscal year ending jane 30. 1855. there
paid 20 tie Government - T94 JS taxes on crCu
lafius notes ~ National banks.
The attention Jf Congress IL called 10 the difficulty OF
enforcing tlc provisions u Section 5000 Pcycu STAT
urc. which RESTRICTS Looms ~ National" banks any
ono individual hlm " corporation TO Onetonth OF their
capital stock.
Fables presented IN tie report which indicate that
the Averag" dividend and earnings ~ NAiOna banks In
IN other countries.
Tho Controeris OF tho opinion that tho National
banks have seriously affected by the large
her " mercantile failures which have occurred during
the past twO years
Information given I'm regard 90 the various clearing
houses throughout tho country and particularly OF the
New York Clearing House together with interesting
formation concerning clearinghouse certificates OF
rlous kinds.
different indicate that tho business Of tho
National banks has largely Increased during the past
year, though the Items OF United states bonds aud
culntng notes have decreased Liabilities dcpostOrs
ana correspondents have increased moro than $780,
100000 During the year the banks have increased
their specie resources more than Si6OO00O0 This In
crease IL made mp OF Si+,+71,7l4 OF gold coin, and
hyt tho banks have. however. diminished about