Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1885-12-03
Report Of Comptroller OF Cur,
rency.
Important Financial Facts and
Figures Presented.
The Removal of the Tax on Circula.
IatIon Recommended So as to AL
low Increasing Profits to the
Banks-Silver Coinage.

The annual report OF the Hon. e.
W. Cannon, comptroller Of the cur
rency, shows that during the year
ended Nov. 1, 1885, 145 banks were or
gained, with capital of SIC, 938, 900,
and circulating notes were issued TO
these new associations amounting to
81 274 90. Since the establishment
OF The national bank system, there has
been organized 406 national banks.
OF these 432 have gone into voluntary
| liquidation for the purpose Of wind
ing up their affairs seventy nine have
gone lato voluntary liquidation for
the purpose Of reorganIz 4tlOn, and
sixty-four are in liquidation by the
expiration of their characters, of
which number thirty eight have been
reorganized, and 104 have been placed
| in the hands Of receivers for the pur-
pose of closing up their affairs, leav
| ing the total number in existence
i2,727, which is The largest mum Der
that has been 10 operation at any one
time. Under provisions Of the acc Of
July 10. 1872, national banks with
capital uf from $50, coo to $3.50 900
may be ORGANIZED upon q minimum
deposit OF United States bonds equal
! to 25 per cent. of their capital rhe
comptroller says this reduction to the
minimum deposit Of bonds has had
the effect to increase the number Of
small banks organized.
CIRCULATION.
He calls particular attention to the
| fact that banks are 40 longer organ1z
ed especially for the purpose of issuing
circulation, for the reason that, in q
great majority of cases, only the MN
Imum amount of bonds required by
law is deposited for the purpose Of is
suing circulation and says in this con-
nection:
ct is believed that the national
banking system will be continued,
even If the associations organized uu-
| der it cannot issue circulation al a
profit, inasmuch as the experience
under 1t has shown that it is for the
best interest Of the public, as well as
the banks, that this business should be
carried on under q general law having
ef8ct throughout all the different
states. This statement is made with
out prejudice to banks organ zed I'M
! der the statutes Of these states which
coataln provisions and restrictions
similar to those of the National Bank
ing law. In many Of the states, how
ever, the banking laws are defective,
and it is evident that the legislation
| upon the subject cannot be homo
geneous, snd the working of the laws
SO harmonious and useful under stat
utes passed by thirty eight states as
under ono general law of congress,
applicable alike to all banking insti-
tutions."
The comptroller gives details In re-
gard to the action of the banks expir-
ing since July u, 1882, and refers
particularly to the operation Of the
law of exemption, which appears to
have beef generally satisfactory, but
calls attention to certain amendments
| which the experience of the last three
years has proven to be necessary.
CHARTERS EXPIRING.
A larger number of banks ex PRED
by limitation during the year Of 1885
than have, Or will expire, during any
year prior TO 1900. Among the banks
which have been extended during the
past year, were thirty IN the city Of
New York, with an aggregate capital
of $36 $50, 900, as well as large mum
Der IN Boston, Philadelphia and the
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 organized under the
various state laws. Notwithstanding
| the organization of new banks. the
aggregate amount of bonds on deposit
to secure circulation has, during the
past ear, diminished from 1926 316 :
800 to S308, 1854, $50, and the Let de-
crease liz circulation during the year
has been SIS. 545, 461. The reduction
| IN circulation has been less than was
estimated by the comptroller In his
last annual report, as no United States
| bonds have been called in for paw
| nent during the year ended Nov 1
The reduction FROM other causes. nc
tably the small profit on circulation
has been greater than was anticipated,
and the comptroller believes the con-
traction of the national bank circula-
| ton viii continue unless some iegis-
| lation is had which will increase the
profit which national banks derive
from the issue of circulating notes,
and proposes that the tax on circula-
| ton be removed and the amount of
circulation which 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
of national bank notes the circulating
medium Of the country has been in
creased by silver dollars ana silver
certificates.
COINAGE OF SILVER.
In this connection he calls attention
, to the statement IN his annual report
that the continued coinage of standard
silver dollars, under the present pro
vision OF law, is IN excess of the coun-
try and is liable to bring the business
! of the cOI1ntrV TO a silver haSIs and