The Abilene reflector. [volume] (Abilene, Kan.) 1883-1888, 1885-12-03
CURRENCY.
The Comptroller of the Currency Submits
His Annual Report.

nual report of II. w. Cannon, Comptroller
of the Currency, contains much interesting
information. 1t shows that during the year
ended November l, 1885, l45 banks have
been organized, with capital of 1885,.
600, and circulating notes have been issued
to these new organizations amounting TO,
81. pa, 910. Since the establishment of the
national banking system, on February 25.
1868, there have been organized S,O46 na.
tional banks. o. these 4S2 have gone into VOL
untary liquidation for the purpose of wind
ing up their affairs, scventy-nine have gone
into voluntary liquidation for the purpose
of reorganization, sixty-four are in liquida-
ton by expiration Of their charter, or
which number thirty-eight have been re-
organized, and 1O4 have been placed in the
hands of receivers for the purpose of clos
ing up their affairs, leaving the total num-
ber in existence on November |, 1885, =, ,127. >
which is the largest number that has BEEN
in operation az any one time.
Under the provisions of the act of July
-, 1882. national banks with a capital
stock of from S50,000 to Sl5O,00 may be
organized upon a minimum deposit Of
of their capital The Comptroller states
the reduction 10 the minimum deposit OF
bonds has the effect to increase the number
of small banks organized. While the num-
Der of small banks organized from
July 1, 1879, to July l, 1892.
with a capital of S15O,O0O was 222,
the number of banks of this class or
ganiZed July l, 1882, to July 1, 1885, was.
54S. He calls particular attention to the
fact that banks are no LONGER organized
especially for the purpose of issuing circu--
latiOn for the reason that in great major
ity of cases only the minimum amount of
bonds required by law are deposited for
the purpose of issuing circulation.
at is believed that the national banking
system will be continued even if the aSso-
Citations organized under it can not issue
circulation at profit, inasmuch as the ex-
perience 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 a 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
States, however, the banking laws
are defective, and it 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 num-
Der of banks expired by limitation during
the year 1885 than have or 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, 800. 600, aS well
as large number in Boston, Philadelphia
and other principal cities. being some of the
largest banking institutions in the United
States. Attention is called to the fact that
many of these banks were originally organ
lied under the State laws.
Notwithstanding the organization of new
hanks the aggregate amount of bonds on
deposit to secure the circulation has, dur
ing the past year. diminished from So, 3,5l6,-
800 to SIS, 364 $50, and the net increase in
circulation during the year has been S15.-
545 461. The reduction has been less thaa
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 /, 1885. The reduction
from other causes, notably the small profit.
on circulation, has been greater than was
and the Comptroller believes the
will continue un eSs some legiS--
atiOn is had which will increase the profit
which national banks derive from the issue
# circulating notes and proposes that the
AK on circulation be removed and the
amount of circulation which national banks
ire permitted to issue be increased to the
jar value of the bonds deposited by them.
He refers to the fact that although there
Ias been a contraction in national bank
notes the circulating medium of tho
has been increased by silver dol
ars and silver certificates, and in this
he calls attention to the state
nent in his last annual report that the con-
inued coinage of the standard silver dollar
Inder the present provision of the law is in
excess Of the requirements OF the country
md is liable to bring the business of the
country to a silver basis and cause some de-
,ree of financial disturbance.
The report contains chapter on national
,ank failures. from which it appears that
our banks, with an aggregate capital of
5000, 900, failed during the fiscal year. Full
statistics in regard to the taxation Of
rational banks are given, showing that
bere was paid to the Government of the
United States S2,T94,5 5S4 taxes on cir
ulating notes of national banks.
The reports contains comparative state
nents Of the resources and liabilities Of
rational banks during the past ten years,
md detailed statemen. of their condition.
m the 1st day of October. 1885. The diff
erent items indicate that the business of
he national banks has largely increased
Turing the past year, although the
TENS of United States bonds
md circulating notes have decreased.
The Comptroller gives details in regard
O the action OF the banks expiring since
Tuly II. 1882, and refers particularly TO the
,peratiOn of the law of extension. which
.ppears to have been generally satisfactory,
,ut calls attention to certain amendments.
which the experience of the past three
ears has shown to be necessary.
Dividends have been paid during the.
ear to the creditors of insolvent banks TO,
he amount of 81, 151, ,S6S. Information is
iyen as TO loans and rates of interest.
throughout the country, particularly in the
rincipal cities, and the attention of Con-
ress is called to the difficulty of enforcing
be provisions of section 500 of the re-
ised statutes, which restricts loans of ma
onal banks to any one individual, firm or
orpOration 10 One-fOurth OF their capital
tOck.
The Comptroller is of the opinion that:
he national banks have not been seriously
fected by the large number of mercantile
ailures which have occurred during the
aSt two years.
Presidents Message.
WASHINGTON, November 26.-It is said
resident CIeveland's message will not
ccupy more than four average newspaper