Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1885-11-27
NATIONAL BANKS.
Animal Report OF the Comptroller OF the
Currsncy.

ANIMAL Report OF the Comptroller OF the
Currency.
by telegraph to the Dlspatch.l
WAsHINGToN, ID. c., November &c.
The annual report of Hon. II. W.
Cannon, Comptroller Of the Currency,
to Congress has been completed and
copies have been furnished to the Presi-
dent and Secretary Of the Treasury. Ii
shows that during the year, which
ended November |, 1885, las banks
Were organized with a capital Of sl6,-
$4,000, and circulating notes were
issued to these associations amounting
to a4,274,9lO.
Since the establishment Of the ma
al-banking system on February q.
1868, there have been organized 3, 400
national banks. OF these 432 have
gone into voluntary liquidation for the
purpose Of winding up their affairs, 70
have gone into voluntary liquidation for
the purpose of reorganization, and e.
are in liquidation by expiration of their
charters Of which number 80 have
been reorganized and lO4 been placed
in the hands Of receivers for the pur-
pose Of closing up their affairs, leaving
the total number in existence 1921 on
November /. 1885, which is the largest
number that has been in operation at
any one time.
Under the provisions Of the act of
July l., lSS2, national banks with q
capital Of $4,000 to $500 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 minimum
deposit has had the effect to increase
the number Of small banks organized.
While the number Of banks organized
from July |, 1875. to July |, lSS2,
with a capital of $4,000 and under,
was 232, the number of banks of this
class organized from July l, 1852, to
July !. ISo5, was SIS.
He calls particular attention to the
fact that banks are no longer organized
especially for the purpose Of issuing
circulation. for the reason that in the
majority Of cases only the mini
mum amount Of bonds required
is deposited for the purpose Of
issuing circulation. and states in
this connection: 1t is believed the
national banking-system will be con.
tinued even if the associations or
ganized under it cannot issue circula-
ton at profit, inasmuch as experience
under it has shown il is for the best in
ieresis OF the public as well as the
banks that this business should be car
ried on under a general law having ef-
feet throughout all the different States"
Notwithstanding the organization Of
new banks, the aggregate amount of
bonds on deposit to secure circulation
has during the past year diminished
from 25,3l6, 300 to s30S, 3G4,5j0,
and the net decrease in circulation
during the year has been sl5.545,64l.
The reduction in 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 which ended November /,
1855, the reduction from other
causes, notably small profit on
circulation, has been greater than
was anticipated, and the Comptroller
believes the contraction Of the national
bank circulation will continue unless
some legislation is had which will in
crease the profit which the national
banks derive from the issue Of circu-
lating and proposes that the tax on
the circulation be removed and the
amount Of circulation which the
national banks are permitted to
issue be increased to the par
value of the bonds deposited by
them. He refers to the fact that al
though there has been a contraction in
national. bank notes, the circulating
medium Of the country has been in
creased by silver dollars and silver GER
tifcates, and in this connection calls at
tention to the statement in his last
annual report that the continued coin
age of the standard silver dollar under
the present provision of the law is in
excess Of the requirements Of the coun-
try, and liable to bring the business of
the country to silver basis aud cause
some degree Of financial disturbance.
Tables are presented in the report in
order that comparisons may be made
between the annual dividends paid by
national banks in the United States and
those paid by foreign banks to their
stockholders, which indicate that the
average dividends and earnings Of ma
tional banks in the United States are,
as 9 rule, less than those Of banks i'll
other countries.
The report contains comparative
statements OF the resources and liabili-
ties Of national banks during the past
ten years, and detailed statement of
their condition on the LIST day Of Octo-
Der, 1885. The different items indicate
that the business Of the national banks
has largely increased during the past
year. Although the items Of
United States bonds and circulating
notes have decreased, the Liabilities to
depositors and correspondents have in
creased more than slS0, 100000. Du-
ring the year the banks have increased
their specie resources more than s46,-
900, 200. This increase is made up Of
IA, 47l,7l4 of gold coin, and 81, 1885,
3s4 of silver coin. The legal-tender
notes held by the banks have dimin-
ished about 81, 5000.
LATE WEATHER REPORT.