Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1885-11-27
THE CURRENCY.
Annual Report Of Comptroller Cannon
Condition Of the National Banks
"A Larger Number
In Existence iaan at Any Time Since
the Organization Of the Sys-
tem-Reductisn
In Circulation Less than Was Estimated
Inflaence Of the Silver Dollar
Recommendations.

WASHINGTON, November 26.-The an.
nual report of the Hon. ii. w. Cannon,
Comptroller of the Currency, to Congress,
has been completed, and copies have been
furnished to the President and Secretary
of the Treasury. It shows that during the
year ended November 1, 1885, 145 banks
were organized with a capital OF Sic, $685.
000 and circulating notes were issued to
these new associations amounting to $4,-
274,9l0. Since the establishment of the
national bank system on February %, 1858,
there has been organized 3406 national
banks. OF this number 43 have gone into
voluntary liquidation for the purpose OF
winding up their affairs, 79 have gone into
voluntary liquidation for the purpose
of reorganization, and A are in iqui-
dation by expiration Of their charter, OF
os have been reor3anized,
Whlcn numper ban6s of
1Q4 have been placed In I..~ nanu' y. .,a;r
ceivers for the purpose of closing mp 81
affairs, leaving The total number in exist
ence 2727, which is the largest number
that has been in operation at any one time.
Under the provisions OF the act Of July II,
1872, national banks with capital of from
$50, 600 to $50, 600 may be organized upon
a minimum deposit of bonds equal to 25
per cent. of their capital. The Comptroller
states that this reduction to the, minimum
deposit of bonds has had the effect to in
crease the number of
EMAIL BANKS ORGANIZED.
He calls particular attention to the fact
that banks are no longer organized espec-
tally for the purpose OF issuing circulation,
for the reason that in 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 that it is believed that the
national banking system will be continued,
even if the associations organized under it
can not issue circulation at profit, mas
| much as the expel iences under it has shown
| it 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
pref udice TO the banks organized under
| the 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 that the
legislation upon the subject cannot be
| homogeneous, nor the working OF the laws
| SO harmonious and useful under statutes
| passed by thirty-eight States as under a
general law of Congress applicable to all
| banking institutions.
| The Comptroller gives details in regard
| to the action of the banks expiring since
July II, 1882, refers particularly TO tne op-
Grafton of the law of extension, which ap-
pears TO have been generally satisfactory,
but calls attention to certain amendments
which the experience of the past three
| years has shown to be necessary. A larger
number of
BANKS EXPIRED BY LIMITATION
during the year 1885 than have or will ex-
| pire during any year prior to 1900. Among
the banks which have been extended dur
| ing the past year were thirty in the city of
| New York, with an aggregate capital of
| $50, ,350,0 600, as well as a large number in
Boston, Philadelphia and other principal
cities, being some of the largest banking
| institutions in the United States. Atten-
ton is called to the fact that many of
these banks were originally organized un-
der the various State laws. Not
| withetandipg the organization of new
banks, the aggregate amount of bonds
on deposit to secure circulation has,
during the past year, diminished
from s325,3l6,300 to $30S, 1854 $50,
and the net decrease in circulation during
the year has been sic, ,545, ,461. The reduc-
| ton in circulation has been less than was
estimated by the Comptroller in his lsst
annual report, as no United States bonds
have been called for payment during the
year ending November LIST. The reduc-
ZION from other causes, notably the small
profit on circulation, has been greater
than was anticipated, and the Comptroller
I believes the contraction of national bank
circulation will continue unless some legis-
lation is had which will increase the profit
which national bank reserve yields 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 par value of the bonds de
posted by them. He refers to the fac
that although there has been a contract or
in national bank notes the circulating me
dunn of the country has been increased by
silver dollars and silver certificates, and il
this connection, he calls attention to ths
statement in his last annual report, tha
the continued coinage of the standard
silver dollar under the present provisions
OF the law is in excess of the requirement.
of the country, and is liable to bring tn,
country to silver basis and cause som,
degree of financial disturbance Fou
banks, with an aggregate capital of $500, 600
failed during the past year. Dividends hav'
been paid during the year to the credi
of insolvent banks to the amount of g, isl,
S6S. During the fiscal year ending Jun,
Both there was paid to the governmen
e, ,794, ,5S4 taxes on circulating notes o
national banks. Information is given a
to loans and rates of interest throughou
the country, particularly in the principa
cities. and the attention of Congress i
called to the difficulty of enforcing tn
provisions of section $500, Revised Stat
utes, which restricts loans of natioDa
banks to any one individual, firm or col
poration to one-tenth of their capital stock
Tables are presented which indicate tina
the average dividends and earnings @
national banks in the United States are
| as rule, less than those of banks in othe
countries. The Comptroller is of the opin
ion that the national banks have not beel
seriously affected by the large number @
mercantile failures which have occurre'
! during the past two years. The usual ia
| bles in regard to the
} Distribution CT COIN AND PAPER CUI
RENCY
throughout the country among the peopl
: and the banks are brought down to dats
showing an increase for the year in gol(
r silver and paper currency. The repo
| contains comparative statements OF th
resources and liabilities of the nations
: | banks during the past ten years, and de
i tailed statement of their condition on tn
lst day of October, 1885. The differer
I items indicate that the business of the d.
: tional banks has largely increased durin
! the past year, although the items {
. . United States bonds and circulatin
. notes have decreased. Liabilities to depoI
e itors and correspondents have increase
s more than $lS0,000,000. During rh
year the banks have increased their spec
n resources more than 1000, 900. This il
: crease is made up of S44, All ,714 of gol
: coin, and 81. 79l, 1884 Of silver coin. Th
! legal tender notes held by the banks hav,
y however, diminished about $780, ,00
y The various subjects treated of are accon
q panied by elaborate statistical showing
d and there are chapters on State taxation
$ national banks, the operation of the priI
7 cipal clearinghouse, clearing-house ce
t .ifcates, the condition of State and saviD,
: banks and other financial ques.ions.
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