Indian chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1882-1902, 1885-12-03

The Cduptroiief of tho Currency $ bnilts
His Annual Rcpsrt.

The Cduptroiier 8f tho Currency 5 bniIt
Ills Annual REPORT
WASHINGTON November e7.-The an
uual report OF II. w. Cannon, Comptrole
OF the Currency, contains much InterestIn,
information. II shows that during the yea
ended November /, 1885, 145 banks hav'
been organized, with capital Of si6,9Ss,
OOO and circulating notes have been issue,
70 these new orgnnizallons Amounting Il
A,91l,oid Sinct the establishment bf tlil
national bahkihg System, oil February %
1868, there have been organized s,Ol0 ha
tlonal banks OF these 432 have gone Into vol
untary liquidation for the purp0se Of wind
ing up their affairs, scventy-nine have gon,
Into voluntary liquidation for the purpose
OF reorganization, sixty-four are In liquida
ton by expiration OF their charter, Of
which number thrty-clght have been re-
organized, and i0l have been placed In the
hands Of receivers for the pHfbosd of clos
Ing ib their affairs; leaving the total NUM-.
Der IN existence on November 1, 1885, 2,T91.
which Is the largest ntniber that las been
IN operation At any one time.
! Under the provisions OF the act OF July
/ l2, 1882, national banks with capital
stock OF from S50,000 to si50,O00 may be
| organized Upon 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 Tho number
OF small banks organized. While the num-
Der Of small BANKS organifed from
July !, 1870 10 July 4, iss2
with capital OF $4,000 was 222,
tho humber nf banks OF this class or
ganized July 1, 1889, to July 1, 1888, was
54S He calls particular attention 10 the
fact that banks are no longer organized
especially for the purpose Of issuing crcu-
lation for the reason that In great major.
ity Of cases only the minimum amount Of
bonds required 10y law are deposited for
the purpose OF Issuing circulation.
ut Is believed that the national banking
system Will ba continued even II the asso.
Citations organized under It can not issue
circulation at profit inasnuch as the ex-
perience under Il has shown II Is for the
best interests OF the public as well as 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
hanks 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
Stales, however the banking laws
are defective, and lt Is evident
that the legislation upon the subject can
not be homogeneous. nor the working of
the laws so harmonious and useful under
acts passed by thirty-eight States as under
one general law of Congress, applicable to
ali banking Institutions" A larger mum
Der OF banks expired by limitation during
the year 1855 than have OF 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, ,3j5 900, as well
as large number In Boston, Philadelphia
aud other principal cities, being some OF the
largest banking institutions In the United
States Attention II 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 s53.5lG,-
800 10 SIS, 1854, $50, and the net increase I'm
circulation during the year has been Si5.-
5i5,46i. 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 /, 1855. The reduction
from other causes, notably the small profit
on circulation, has been greater than was
and the Comptroller believes the
contraction Will continue TN ess some legis-
lation is had which will increase the profit
which national banks derive from the issue
OF circulating notes aud proposes that the
tax on circulation be removed and the
amount Of c,rcruation which national banks
are permitted % issue be increased to the
par value OF the bonds deposited by them.
lie refers 10 the fact that although there
has been a contraction In national bank
noa'S the circulating medium OF the
country has been increased by silver dol |
lars and silver certificates, and In this |
he calls attention TO the state |
ment In his last annual report that the con. |
tinued coinage OF the standard silver dollar |
under tho present provision Of the law is In /
excess OF The requirements OF the country /
and is liable to brlg the business OF the |
country 10 silver ..isis and cause some de- |
gree Of financial di, urbance.
The report contains chapter on national |
bank failures from which II appears that 1
loar banks, with an aggregate capital OF .
sGO0,OO0, failed during the fiscal year. Full |
statistics In regard 10 the taxation Of /
t'fNfNNN NAlAhH Alt kAfElit NNNMllk NllNL ]
Turing the fiscal year ended June 30, 1885.
here was paid 10 the Government OF the
United States s2,70i,5si taxes on cir.
;ulating notes Of national banks.
The reports cOntal. comparative state.
ments OF the resources and lab lities OF
rational banks during the past ten years,
md a detailed statemen. Of their condition
IN the ist day Of October. 1855. The IT.
'ercnt items Indicate that the business OF
he national banks has largely increased
iuring the past year. although the
tens Of United States bonds
md circulating notes have decreased.
The Comptroller gives details IN regard
% the sctiun Of the banks expiring since
luly Il, lss2, and refers particularly to the
operation Of the law Of extension. which
lppears 10 have bees generally satisfactory,
jut calls attention 10 certain amendments
which the experience OF the past three
ears has shown to be necessary.
Dividends have been paid during the
'ear 10 the creditors Of lnsOlyent banks 10
he amount Of 81, i5i sos. Information is
.iyen As TO loans and rates uf interest
the country, particularly IN the
principal cities, and the attention Of Con.
'Tess is called 10 the difficulty OF enforcing
he provisions Of scciiun $500 OF the re
iscd statutes, which restricts loans OF ma.
ional banks to ans one individual, firm nr
orporation TO one-fOuuh OF their capital
tock.
The Comptroller is Of the opinion that
hr national hanks have not been s.rionsly
tected by the large number OF mercantile
ailures which have occurred during the
last two years.
Frssidents Message.
A. 4.