The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1885-12-04
CURRENCY.


His Annual Rsport.
WASHINGTON, November 27.-The A.
nual report Of H. w. Cannon. Comptroller
Of the Currency, contains much interesting
information. 1t shows that during the year
ended November 1, 1885, AS banks have
been organized, with . capital Of s16.o3a-
600, and circulating notss have been issued
to these new organizations amounting To-
$4.274, $40. Since the establishment OF the
national banking system, on February Is.
1868. there have been organized 3,o46 M
tional banks o. these 4s2 have gone into VOL
untary liquidation for the purpose Of wind
ing up their affairs, seventy nine have goner
into voluntary liquidation for the purpose
OF reorganization, sixty-fOur are in liQuida-
ton by expiration Of their charter, Of
which number thirty-eight have been NJ
organized, and 1o4 have been placed In tho
hands Of receivers for the purpose Of clos
ing up their affairs, leaving the total num-
Der in existence on November I, 1885, 2, 49,
which is the largest number that has beelss
In operation at any ono time.
Under the provisions of the act of july
12, 1882. national banks with . capital
stock of from $780, to $780, 900 may be-
organized upon q minimum deposit Of
United States bonds equal to 25 per cent
of their capital. The Comptroller states
the reduction to the minimum deposit Of
bonds has the effect to increase the number
of small banks organized. While the num-
Der Of small banks organized from,
July 1, 1879, to July l, 1884,
with . capital Of s15O,OOO was 49,.
the number Of banks OF this class Or
ganized July 1, 1882, to July l, 1885, was.
54S. He calls particular attention to the
fact that banks are no LONGER organized
especially for the purpose Of issuing circu-
lation for the reason that in great major
ity of cases only the minimum amount Of
bonds required by law are deposited for
the purpose Of issuing circulation.
1T is believed that the national banking
system will be continued even if the ass0-
Citations organized under it can not issue
circulation at profit, inasmuch as the ex--
perience under it has shown it is for the
best interests Of the public as well Is of the
banks that the 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 the statutes of those
States which contain certain 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
that the Legislation upon the subject can
not be homogeneous. nor the working of
tie laws so harmonious and useful under
acts passed by thirty-eight States as under
one general law OF Congress, applicable to.
all banking institutions" A larger num-
Der Of banks expired by Limitation during
the year 1885 than have or will expire dur
ing any year prior to 1900. Among the
banks to be extended during the past year
were thirty in the city of New York, with.
an aggregate capital of s35, 355, 900. as well
as large number in Boston, Philadelphia
and other principal cities, being some of the
largest banking institutions in the United
States. Attention is called to the fact that
many of these banks were originally organ
lied under the State laws.
Notwithstanding the organization of new =.
banks the aggregate amount of bonds on
deposit to secure the circulation has, dur
ing the past year. diminished from SIS, 516--
BOO to S3S 1864 $50, and the net increase iuA
during the year has been S15,--
49, The reduction has been less than
was estimated by the Comptroller in his an
nual report, as no United States bonds have
been called for payment during the year.
ending November /, 1885. The reduction,
from other causes, notably the small profit
on circulation, has been greater than was
anticipated and the Comptroller believes the
contraction will continue un' ess some legis-
latiOn is had which will increase the profit
which national banks derive from the issue
Of circulating notes and proposes that the.
tax on circulation be removed ard tie
amount of circulation which national banks
are permitted ~ issue be increased to the
par value Of the bonds deposited by them.-
He refers to the fact that although there's
has been o contraction in national bank.
notes the circulating medium of ther
country has been increased by silver DOH
ars and silver certificates, and in tbs
he calls attention to the state
nent in his last annual report that the con-
inued coinage of the standard silver dollar
under tho present provision OF the law is in
excess of the requirements of the country
md is liable 10 bring the business of the
country to silver basi, and cause some de-
srec Of financial disturbance.
The report contains chapter on nar5onaz
bank failures. from which it appears. that
fOur banks, with an aggregate capital OF
5000, 900, failed during the fiscal year. FuIss
statistics In regard to the taxation Of
national banks are given, showing that,
Turing the fiscal year ended June 80, 1885,
here was paid to the Government. Of the
United States 81, 794, 5S4s taxes on. cir
:ulating notes of national banks
The reports contains comparative state
ments of the resources and liabilities Of
rational backs during the past ten years,
md . detailed statemen: Of their conditions,
IN the Isl day Of October. 1885. The diff
'erent items indicate that the business OF
he national banks has largely iEcreasedi
Turing the past year, although the.
tens Of United States bonds
md circulating nstes have decreased.
The Comptroller gives details in regard
% the action OF the banks expiring since-
July IL, 1882. and refers particularly to the.
operation OF the law of extension. which
appears to have been generally satisfactory,
but calls attention to certain amendments.
which the experience of the past three,
FEARS has shown to be necessary.
Dividends have been paid during the
rear to the creditors of insolvent banks To-
he amount of SO, Isl, S6S. Information is
,iven a. to loans and rates of interest.
throughout the country. particularly in the
principal cities, and the attention of Con-
.ress is called to the difficulty of enforcing
he provisions of section 500 of the re-
Used statutes, which restricts loans of ma
i0nal banks to any one Individual, firm or
corporation to One-fOurih of their capital
took.
The Comptroller is Of the opinion that
he national banks have not been seriously
Effected by the large number of mercantile
ailures which have occurred during the
,ast two years.
Presidents Message.