St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-11-27
Annual Report Of the Comptroller Of the
Currency, Showing Figures of Much
Importance.
A Number of Recommendations to Congress
Made-Removal of Taxes on
Circulation.
The President and Two Members of
His Cabinet Oppose a Change
of Rules.
Washington Filling UP With Lobby
lists, Who are on Hand to En-
Sineer Legislation.
The Comptroller,s Report.

WASHINGTON, Nov. 26.-The ANIMAL
report of the comptroller of the currency to
congress has been completed and copies
have been furnished to the president and
the SECRETARY OF the treasury. 1t shows
during the year ended Nov. l, 1885. 145
banks were organized, with capital OF $16,-
93S, 600. and circulating notes were issued
to new associations amounting to 4,274, =
90. Since the establishment of the ma
tional bank system on Feb. 25. 1888, there
have been organized 3,406 national banks.
Of these 432 have gone into voluntary liqui-
dation for the purpose of winding up their
affairs. 70 have gone into voluntary liquida-
ton for the purpose of reorganization, "a
are in liquidation by expiration OF their
charters, of which number 3S have been re-
rganized and 104 have been placed in the
hands of receivers for the purpose of closing
up their affairs, leaving the total number in
existence 2,272, which is the largest number
that has been in operation at one time under
the provisions of the act of July IL, 1872.
National banks with capital of from
$25, 600 to $4,000 may be organized
upon minimum deposit Of United States
bonds equal to % per cent. of their capital.
The comptroller states this reduction to the
minimum deposit of bonds has had the
effect to increase the number of small banks
organized. He calls attention to the fact
that banks are no longer organized espe-
cially for the purpose of issuing circulation.
for the reason, in the great majority of
cases, only the minimum amount of bonds
required by law is deposited for the pur-
pose of issuing circulation, and states, in this
connection. it is believed that the nation
al banking system will be continued. even
of associations organized under 1t cannot
ISSUE CIRCULATION AT PROFIT,
inasmuch as experience under it has shown
it as for the best interests of the public as
well as the bank that this business should
be carried ON under general law having
effect throughout all the different states.
This statement is made without prejudice
to banks organized under statutes
of those states which contain
provisions and restrictions similar
to those of the national banking law. In
many of the States however, the banking
laws are defective and it is evident the
legislation upon the subject cannot be
homogeneous, nor the working of laws so
harmonious and useful under the statutes
passed by thirty eight states, as under one
general law of congress, applicable to all
banking institutions. The comptroller
gives details in regard to action of banks
expiring since July II, 1885, and refers
particularly to the operation of the law OF
exemption, which appears to have been
generally satisfactory, but calls attention
to certain amendments which the expert
ence for the last three years has proven
necessary; a larger number of banks ex-
pired by limitation during the year 1885
than have or will expire during any year
nl,iOc fn 1O00 honlyc IUhioh hou
been extended during the past year were
thirty in the city of New York, with
an aggregate capital of $35, $50, 600, as we'll
as large number in Boston, Philadelphia
and other principal cities, being some of
THE LARGEST BANKING INSTITUTIONS
i'll the United States. Attention is called
to the fact that many of these banks were
originally organized under various state
laws. Notwithstanding the organization
of new banks the aggregate amount of
bonds on deposit to secure circulation has,
during the past year, diminished from
1926, 316, 800 to $3Os, 1854, $50. The net de-
crease in circulation during the year has
been SIS, 545, 461. The reduction in circu-
latiOn has been less than was 'timated by
the comptroller in his last annual report, as
no United States bonds have been called
for payment during the year ending Nov.
1. The reduction from other causes, nota-
bly, small profit on circulation, has been
greater than was anticipated, and the comp
troller believes the contraction of national
bank circulation will continue, unless some
which national banks derive from the issue
of circulating notes, and proposes
that the tax on circulation be
removed and the amount of circulation
which national banks are permitted to issue
be increased to the par value of bonds de-
posted by them. He refers to the fact that.
although there has been contraction of
national bank notes, the circulating medium
of the country has been increased by silver
dollars and silver certificates, and in this
connection he calls attention to the state
ment in his last annual report that contin-
ued coinage of the
STANDARD SILVER DOLLAR,
under the present provisions of law, is in
excess of requirements of the country, and
is liable to bring the business of the country
to silver basis and cause some degree of
financial disturbance. -Four banks with
an aggregate capital of 100000 failed
during the past year. Dividends have
been paid during the year to the
creditors of insolvent banks to
the amount of SO. 1858. During the
fiscal year ending June 80, there was paid
to them SO, 794, 5S4 taxes on circulation
notes of national banks. Information is
given as to loans and rates of interest
throughout the country, particularly in the
principal cities, and the attention of con-
gress is called to the difficulty of enforcing
the provision of section $500, revised stat
utes, which restricts loans of national banks
to any one individual, firm or corporation to
one-tenth of the capital stock. Tables are
presented which indicate that the average
dividends and earnings of national banks in
the United States are, as rule, less than
those of banks in other countries. The
comptroller is of the opinion that national
banks have not been
SERIOUSLY AFFECTED
by the large number OF mercantile failures
which have occurred during the past two
years. The usual tables in regard to the
distribution of coin and paper currency
throughout the country among the people
and the banks are brought down to date.
showing increase for the year in gold,
silver and paper currency. The report con.
tains comparative statements of the re-
sources and liabilities of the national banks
during the past ten years, and detailed
statement of their condition on the LIST day
of October, 1885. The different items in
dictate that business of national banks has
largely increased during the past year, al
though the items of United States bonds
and circulating notes have de-
creased. Liabilities to depositors
and correspondents have increased
more than $3.50, 900. 600. During the year
the banks have increased their specie re-
serves more than $4,000, 600. This in
crease is made up of S44, All, ia of gold
coin and 81, 791, 1874 of silver coin. The le-
gal tender notes held by the banks have,
however, diminished about So, 500. 600. The
various subjects treated of are accompanied
l. / oh,