Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1885-12-03
Report of Comptroller of Cur
rency.
Important Financial Facts and
Figures Presented.
The Removal OF the Tax on Circula'
latiOn Recommended So as ts Al
low Increasing Profits to the
Banks-Silyer Coinage.

/ Inc annual report OF the lion. ii.
w. Cannon, comptroller of the cur
rency, shows that during the year
ended Nov. /, 1885, las banks were or
| ganiZsd, with capital of SIG, 93S, 900,
and circulating notes were issued to
these new associations amounting TO
| 81 PA $40. Since the establishment
Of the national bank system, there has
been organized 406 nstional banks.
/ OF these 4S2 have gone illo voluntary
liquidation for the purpose of wind
ing up their affairs seventy nine have
gone lRto voluntary liquidation for
the purpose Of reorganlz ttion, and
sixty-four are in liquidation by the
respiration OF thei- characters, of
which number thirty eight have been
reorgauized, 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 number
that has been IN operation at any one
time. Under provisions OF the acC of
july u, 1872, national banks with a
capital of from $50, coo to $3.50, coo
may be ORGANIZED upon a minimum
deposit OF United States bonds equal
10 % per cent of their capital. The
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 no longer organlz
ed especially for the purpose OF issuing
circulation, for the reason that, in d
great majority Of cases, only the nun.
Imum amount Of bonds required by
law is deposited for the purpose of is
suing circulation and says in this con.
nection:
lit is believed that the national
banking system will be continued,
even If the associations organized un.
der it cannot issue circulation al O
profit, inasmuch as the experience
under 1t has shown that it is for the
best interest of the public, as we'll as
the banks, that this business should be
carried on under a general law having
effect throughout all the different
states. THIS statement is made with.
out prejudice to banks organized uu.
der the statutes of these states which
contain provisions and restrictions
similar 10 those of tho 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
ganeous, snd the working of the law,
so harmonious and useful under stat.
utes passed by thirty eight states as
under one general law of congress,
applicable alike to all banking inst.
tutloss'
The comptroller gives details in re-
gard TO the action OF the banks expir-
ing since July 49, 1882, and refers
particularly TO the operation of the
law Of exemption, which appears to
have beeL 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, 600, as well as large mum
Der in Boston, Philadelphia and the
other principal cities, being some of
the largest banking institutions n 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 y ear diminished from 1926, 316 =
800 to $308, 364 $50, AMI the net de-
crease in circulation during the year
has been S15 545 461. The reduction
IN circulation has been less than was
estimated by the comptroller ia his
last annual report, as no United States
bonds have been called in for paw
ment during the year ended Nov 1
The reduction from other causes, no
tably the small profit on circulation
has been greater than was anticipated.
and the comptroller believes the con
traction Of tho national bank cjTcula-
ton will continue unless some iegis-
lati0n is had watch 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 tho fact that al
though there has been a contraction
Of national bank notes the circulating
medium Of tie country has been in
creased by silver dollars and silver
ertificates.
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 aRd is liable to bring the business
OF the country TO 2 silver basis and
cause some degree OF financial disturb
anca. Four banks with an aggregate