Milford chronicle., 1885-12-11
..l rsport Of the Hon. H. W, Ca

/ during the year ended November ], 1887, l4o
banks were organized with capital Of SIG
93s, s,CO) and circulating notes were issued to
these new associations amounting to S3,2I4,-
90. Since the establishment Of the national
bank system on February 25, 1868, there
have been organized S,4O5 national
banks. OF these 432 have gone into
voluntary liquidation for the purpose
Of winding up their affairs; ~ have
gone into voluntary liquidation for the pur-
pose of reorganization, 6i are IN liquidation
BY expiration OF their charters, OF Whlcn
number 80 have been Teorganizedi and lO4
have been paced in the hands OF receivers
for the purpose Of closing up their affairs,
leaving the total number in existence 2,StS
on November /, 1886, which is the largest
number that has been in operation atany one
tins.
Under the provisions Of the act Of July l2,
1882 national banks with a capital OF from
S5O, OOO to Sl50,OO0 may be organized upon
minimum deposit Of United States bonds
equal 10 twenty-five per cent OF their capital
Tie comptroller states that this reduction to
She 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,1S79,'to July ], 1889,
with a capital Of Sl5O,OO0 and under was ~
the number Of banks Of this class organized
LlfiaA Alf i 1907 u bAAN - 1901 Neso ftAAs
He calls particular attention 10 the fact that
banks are no longer organized especially for
the purpose Of issuing circulation, Tor the
reason that in a great aiority 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
tionll Currency act Of February 25, 1868,
banks organized had period oi succession
not exceeding twenty years from the date Of
the act The National Bank act Of June 3,
1863, supersedng that of February %, 1868,
provides that each national bank shall have
succession for twenty years from the date Of
its organization. The act OF july II, 1857,
permitted the extension of the corporate eX-
istence Of national banks for twenty years,
and under its provisions ], l69 associations
have extended their corporate existence, Of
which number sol extended during the year
ending November ], 1885. A larger number
Of banks expired by limitation during the
year 1881 than have or wi expire during any
year prior to 1900
Notwithstanding the organization Of new
banks, the aggregate amount of bonds on de-
posit t1 secure circulation has, during the
past year, diminished from S325, ,3l6,3 3O0 to
S30S, ,564, $50, and the not decrease in circula-
tion during the year has been j,5i5, 46l. The
reduction in circulation has been less than
was estimated by the comptroller in his last
ann Ial report. as no United States bonds
nave betl tHlieAl AuI payment uullAlA buh
YER ending November ], 1885.
The co nptroller proposes that the tax on
circulation be removed and the 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
still liable to reduction and final payment OF
the debt of the United States. The comp
trOler adds:
"Whle the bank note circulation Of this
country is steadily Increasing, there has been
no reduction in the total circulation medium
in the United States the reduction in the ma
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 10 author
ize 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 $685.
259. .43l, of which $40, 442, ,0S9 in standard sill
YER dollars are in the hands of the people,
and S10,670,570 Of like coins are in the treas
ury Of the United States, in addition TO $685.
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
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 tue country ana 3 liable TO
bring the business Of the country to a silver
basis and cause some degree of financial dis
turbauce
-Four banks with an aggregate capital of
$500. go failed during the past year. Divi-
dends have been paid during the year to the
creditors Of insolvent anks to the amount of
S-,15l EOS.
During the fiscal year ended June 50.
1885, there was paid to the government Of
the III it'd States s. 749, 554, taxes on circu-
lating notes Of national banks.
The rel ort contains comparative state
ments Of the resources and liabilities of the
national banks during the past ten years, and
detailed statement of their condition ON the
first day of October 1885 The different
items indicate that the business of the ma
tional banks has largely increased during the
past year. although the items Of United
States bonds and circulating notes have de-
creased. Liabilities to depositors and CORE !
spondents have increased more than $50, ,OOO- |
QUO. During tue year the bankR have in
creased their specie resources more than $50,
100000. This increase is made up of S4i,45l,- |
IA Of gold coin and 81 ,99l, 2S4 of silver coin.
III legal tender notes held by the banks /
have, however diminished about 81. 50O,OJ0 ,