The Middlebury register and Addison County journal. [volume] (Middlebury, Vt.) 1883-1885, 1885-12-04
THE NATIONS CURRENCY.
Abstract of the Annual Report of
Comptroller Cannon.
An Increase in the Business Of the
National Banks.

The annual report of the Hon. II. W. Can
non, comptroller of the currency, shows that
during the year ended November !, 1887, las
banks were organized, with capital of S1G,-
03S,COJ, and circulating notes were issued to
these new associations amounting to s4,274,-
$40. Since the establishment of the national
bank system on February %, 1868, there
have been organized 3405 national
banks. OF these 1872 have gone into
voluntary liquidation for the purpose
of winding up their affairs; 80 have
gone into voluntary liquidation for the pur-
pose of reorganization, 81 are in liquidation
by expiration of their charters, of which
number IS have been reorganized; and 104
have been placed in the hands of receivers
FOR the purpose of closing up their affairs
leaving the total numb in existence 2,213
on November |, 1873, which is the largest
number that has been in operation at any one
tina
Under the provisions of the act of July 10,
1oS2, national banks with a capital of from
Soo,UuOt to $500 may he organized upon a
minimum deposit of United States bonds
equal to twenty-five per cont. Of their capital
The comptroller stIteS that this reduction to
the minimum deposit Of bonds has had the
effect to increase the number of small banks
organized, While the number of banks
organized from July l,1N19 to July ], 1882
with capital OF $4,000 and under was 233
the number OF banks of this class organized
from July |. lsS3 to JUL, t. 1881. was 54S
He calls particular attention 10 the fact that
Tanks are no longer organized especially for
the lurpOse OF ISIS ing circulation for tie
reason that in a great ma jority of cases only
the minimum amount of bonds required 10y
law is deposited for the PURPOSE OF
issHing circulation.
Under the provisions of the original Ma
ti1n1l Currency act of February %, 1863
banks organized had period OF succession
not exceeding twenty years from the date of
the act The National Bank act of June 3
lS'i3, supcrs,dng that OF February %, 1868
provides that each national ank shall have
sue csSion for twenty years from the date of
its organization The act of July Il. 1852
permitted tho eXtens on of the corporate cx-
istence of national banks for twenty wears
and under g. provisions |, 1863 associations
have extended their corporate existence of
which number SOL extended during the year
ending November /, 1883. \ larger number
CT banks expired by limitation during the
year 1850 than have or wi expire during any
year prior to 1879.
Notwithstanding the organization Of new
banks, the aggregate amount of bonds on de-
post t. secure circulation has, during the
past year, diminished from $325 ,3lG,3CO to
s3JS, 3G1,5JO, and the net decrease in circula-
ton during the year has been el554 ,46l 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
yer ending November !, 1875
The co M r4ller proposes that the tax on
circulate be removed and the amount of
circulation which national banks are per-
mitted to issue he increased to the par value
of the bond, deposi cd 10y them. Even if this
he done the national bank note circulation is
still Liable 10 reduction and final payment of
the debt of the United States The comp
troller adds:
''Whilo the bank note circulation of this
country Is steadily increasing, there has been
no reduction III the total circulation medium
Ill the United States, the reduction in the ma
tlonal 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
lie the coinage OF the standard silver dollar
and TO restore its legal tender character. the
circulating medium issued by the govern
ment has been increased in the sum of S243-
2IJ, i3I, of which $40, 4I2 0S9 in standard sill
yer dollars are in the hands of the people,
and SiO,hIO5Io of like coins are in the treas.
ury of the United States. in addition to Sq3
1852 of said standard dollars which are
represented by silver certificates in the hands
of the people.
He calls attention to the statement in his
last annual report that the continued coin
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
I turbanCe.
-Four banks with an aggregate capital of
$500 q failed during the past year. Divi-
do nds have been paid during the year to the
creditors Of insolvent anks to the amount of
s., l5l N6S.
during the fiscal year ended June 80,
lSs5, there was paid to the government of
the u it'd States s. 749, 5S4, taxes on circu
lahng notes of national banks.
Tho rel ort contains comparative state
ments of the resources and liabilities of the
national hanks during the past ten Years, and
a detailed statement of their condition on the
/ first day of October, 1855. The different
items indicate that the business of the ma
tional banks has largely increased during the
past wear, although the items of United
States bonds and circulating notes have de-
creased. Liabilities to depositors and CORE
spondents have increased more than 81 G, 900. e
OOO. During the year the banks have in
creased their specie resources more than $50,
0O0,O00 This increase is made up of s44, AL
III of gold coin, and 81 ,99l, 2s4 of silver coin.
The legal tender notes held by the banks
have, however, diminished about 81. 500. 900
THE WAR IN THE EAST.