Connecticut western news., 1885-12-09
THE CURRENCY.
Figures From the COmptrOlIer's
 Annual Report,

The annual report of the Hon. H. W. Can non, comptroller of the currency, shows that during the year ended November l, 1885, 145 banks were organized, with capital of $l6,- 93S,C0), and circulating notes were issued to these new associations amounting to $4,274,- 9lO. Since the establishment of the national bank system on February 9, 1863, there have been organized 3,405 national banks. Of these 432 have gone into voluntary liquidation for the purpose of winding up their affairs; 79 have gone into voluntary liquidation for the pur- pose of reorganization, 64 are in liquidation by expiration of their charters, of which number 3S have been reorganized; and 104 have been placed in the hands of receivers for the pun pose of closing up their affairs, leaving the total number in existence 2,272 on November 1, 1885, which is the largest number that has been in operation at any one time.
 Under the provisions of the act of July 12, 1882, national banks with @ capital of from $5O,UJ0t to Sl50,0O0 may be organized upon minimum deposit of United States bonds equal to twenty-five per cent. of their capital. The comptroller stlteS that this reduction to the minimum deposit of bonds has had the effect to increase the number of small banks
 
 organized from July 1,1S79, to July l, 1882, with capital of Sl5O,0OO and under was 232 the number of banks of this class organized from July 1, 1882, to July 1, 1885, was 54S. He calls particular attention 10 the fact that banks are no longer organized especially for the purpose of issuing circulation, for the reason that i'll great majority Of cases only the minimum amount of bonds required by law is deposited for the purpose of issuing circulation
 Under the provisions of the original Ma tional Currency act of February 25, 1863, banks organized had period oi succession not exceeding twenty years from the date of the act. The National Bank act of June 5, 1863, superseding that of February 25 1863, provides that each national bank shall have succession for twenty years from the date of it's organization. The act of July 12, 1882, permitted the extension of the corporate ex- istence of national banks for twenty years, and under its provisions 1,169 associations have extended their corporate existence, of which number S0l extended during the year ending November 1, 1885. A larger number of banks expired by limitation during the year 1885 than have or will expire during any year prior to 1909.
 Notwithstanding the organization of new banks, the aggregate amount of bonds on de- posit U secure circulation has, during the past year, diminished from S325, ,3l6 3G0 to $30S, 364, 550 and the net decrease in circula- tion during the year has been $15, ,545, 461. The reduction in circulation has been less than was estimated by the comptroller in his last ann lal report, as no United States bonds have been called for payment during the | year ending November l, 1885
 The co nptroller proposes that the tax on | circulation be removed and tie amount of | circulation which national banks are per- mitted to issue be increased to the par value of the bonds deposited by them. Even if this | be done the national bank note circulation is | n rpfIIptinn md HUo1 o1TNox of the debt of the United States. The comp | troller adds:
 "While the bank note circulation of this | country is steadily increasing, there has been no reduction in the total circulation medium ill the United States. the reduction in the na- | tional bank currency outstanding having been more than met by the coinage of the standard silver dollar and the issuance of certificates thereon.'
 Through the operation of the act to author ize the coinage of the standard silver dollar and to restore it's legal tender character, the | circulating medium issued by the govern ment has been increased in the sum of $243,- 259,43l, of which $49, 442 O59 in standard sii- yer dollars are in the hands of the people, and SIC, GIG, ,570 of like coins are in the treas ury of the United States, in addition to s93.- l46,S72 of said standard dollars which are represented by silver certificates in the hands of the people.
 He calls attention to the statement in his
  | age of the standard silver dollar under the | present provisions of law is in excess of the | requirements of the country, and is liable to bring the business of the country to a silver basis and cause some degree of financial dis | turbance.
 Four banks with an aggregate capital of $500. 6GO failed during the past year. Divi- dends have been paid during the year to the | creditors of insolvent anks to the amount of | $!,15I, ,e6S.
 During the fiscal year ended June 30 1885, there was paid to the government of the ULited States 8, 749, 584, taxes on circu, | lating notes of national banks.
 | The reI ort contains compara tive state | ments of the resources and liabilities of the national banks during the past ten years and a detailed statement of their condition on the | first day of October, 1885, The different items indicate that the business of the pa tional banks has largely increased during the | past year. although the items of Unite1 States bonds and circulating notes have de | creased. Liabilities to depostors and core | spondents have increased more than SlsO, GOO, 900. During tue year the banks have in creased their specie resources more than S56, 000 900. This increase is made up of S44, All, ,- TIA of gold coin, and $1 ,99l, ,2S4 of silver coin. | Tie legal tender notes held by the banks have, however. diminished about $2. 500OJ0