Savannah morning news. [volume] (Savannah) 1868-1887, 1885-11-27
A YEAR In THE BANKS.
COMPTROLLER CANNON SUB
MITS HIS ANNUAL REPORT.


MITS HIS ANNUAL REPORT.
Contraction of the Currency, and How
II May Re Rem medied-SmalIer Divi-
dends Paid by American Than by For
eIgn Banking COrpOratiOns-3,40 ,406 Ma
tiOnal Banks Since the Inauguration
of the system.
WASHINGTON, Nov. 26.-The annual re-
port OF Hon. II. w. Cannon, Comptroller Of
the Currency, to Congress, has been COM
pleted and copies have been furnished to
the President and Secretary of the Treas
ury. 1t shows that during the year end
ed Nov. l, 1885, 145 banks we're organ
lzed, with capital of $40, ,93S, 900, and cir
culating notes were issued to these new
associations amounting to $i,274,0l0.
Since the establishment of the national
banking system on Feb. %, 1863, there
have been organized 3,4O6 national banks.
THE NUMBER IN LIQUIDATION.
or these 432 have gone into voluntary
liquidation for the purpose of winding up
their affairs, 10 have gone into voluntary
! liquidation for the purpose of reorganiZa-
tion, 81 are in liquidation by the expira-
tion of their charters, of which number
80 have been reorganized, and l04 have
been placed in the hands OF receivers for
the purpose of closing up their affairs,
leaving the total number in existence
2,T27 on Nov. /, 1885, which is the largest
number that has ever been in operation
at any one time.
Under the provisions OF the act of July
~, 1882, national banks with capital of
$4,000 TO $l50,000 may be organized upon
a minimum deposit of United States bonds
equal to % per cent. OF their capital. The
Comptroller states that this reduction to
the minimum deposit had the effect Of
increasing the number OF small banks
organized. While number of banks
organized from July |, 1879. TO July 1,
1882. with a capital of $l5O,0 900 and under
was 232, the number of banks Of this class
organized from July l, 1882, TO July l,
1885, was 54S.
OBJECT OF THE BANKS.
He calls particular attention to the fact
that banks are no longer organized
especially for the purpose Of issuing cir
| culatiOn, for the reason that in majority
of cases only the minimum amount OF
bonds required is deposited for the pur-
pose of issuing circulation, and he states
in this connection:
1t is believed that the National banking
| system will be continued, even If the assoca-
tons organized under 1t cannot issue circula-
tiOn at profit, inasmuch as experience under
IL has SHOWN LnaL IL IS Tor the DeHt interests OF
| the public, as well as for banks. that this
business should be carried on under general
l1w having effect throughout all the different
states.
STATE LAWS DEFECTIVE.
The statement is made without prejudice to
banks organized und er the statutes OF those
States which contain provisions and restrlc-
tions similar TO those OF the national banking
laws. that the statutes are detective, and
it is evident that legislation upon the subject
tuuYn anfh hn h N a.
the laws so harmonious and useful under stat
utes passed by 3S States as under one general
law OF Congress applicable to all banking in
| stitutOns.
Notwithstanding the organization Of
new banks, the aggregate amount OF
bonds on deposit to secure circulation has
during the past year diminished from
$325, 1916, 300 to S30S, ,364550, and the net de-
crease in circulation during the year has
been l5,545, ,46l.
REDUCTION IN CIRCULATION.
The reduction i'm circulation has been
less than was estimated by the Comp
troller in his last annual report, as no
United States bonds have been called for
payment during the year ended Nov. 1,
1885. The reduction from other causes,
notably tine small profit on circulation,
has been greater than was anticipated,
and the Comptroller believes that the con-
traction OF the national bank circulation
| will continue, unless some legislation Is
had which will increase the profit which
national banks derive from the issue of
circulating notes, and proposes that the
tax on circultiOn be removed and the
amount Of circulation which national
banks are permitted to issue be increased
to the par value OF the bonds deposited by
| them.
THE CIRCULATING MEDIUM INCREASED.
He refers to the fact that, although
! there has been a contraction in national
bank notes, the circulating medium Of
the country has been increased by silver
dollars and silver certificates, and in this
connection calls attention 10 the state
| ment in his last annual report that con-
tinued coinage OF the standard silver
dollar, under the present provision Of the
law, is in excess of the requirements OF
the country, and liable TO bring the busi-
ness Of the country to silver basis, and
cause some degree OF financial distur-
bance.
COMPARATIVE STATISTICS.
Tables are presented in the report in
order that comparisons may be made be-
tween the annual dividends paid by the
national banks in the United States and
those paid by foreign banks TO their stock
holders, which indicate that the average
1 dividends and earnings OF the national
banks in the United states are as a rule
less than those of banks in other countries.
The report contains comparative state
ments OF the resources and Liabilities OF
the national banks during the past ten
years, and a detailed statement OF their
condition on Oct. !, 1885.
INCREASED BUSINESS.
The different items Indicate the business
Of the national banks has largely in
creased during the past year, although
the Items Of United States bonds and CIR
culating notes have decreased the liabll-
ities 10 depOsitors, and correspondents
have increased more than $3.50, ZOO, 600
during the year, the banks have increased
their specie resources more than $4,000
coo. This increase Is made up OF Sl4,47l,.
| IA Of gold coin, and Si,70l,3s4 OF silver
coin. The legal tender notes held by the
banks have, however, diminished about
$2,500,0OO.