Wessington Springs herald. (Wessington Springs, Aurora County, Dakota [S.D.]) 1883-1891, 1886-02-12
THE CURRENCY.
Extracts from the Annual Report of
Comptroller Characterization of the
Banks.

Extracts from the Annual Report of
Comptroller characterization of the
Banks.
WASHINGTON, Nov. 27.-The annual re-
port of the Comptroller Of the Currency
shows tina during the year ended Novem-
Der l, 145 banks were organized, with a
capital of Sl6, 93s, 600, and circulating notes
were issued to these new associations
amounting to $4,274,910. Since February
25, 1868, there has been organized 3,40G Ma
tional banks, of which 432 have gone
into voluntary liquidation for the purpose Of
winding up their affairs, seventy-nine have
gone into voluntary liquidation for the pur-
pose of reorganization, sixty-four are in
liquidation by expiration of their charter
(of which number thirty-eight have been re-
organized), and 104 have been placed in
the hands of receivers for the purpose
OF closing up their affairs. leaving the
total number in existence 2,727, which is
the largest number that has been in opera
ton at any one time. Under the provisions
Of the act of July 12, 1872, National banks
with IL capital of from $50, 600 to $3.50, 900
may be organized upon a minimum deposit
of United States bonds equal to twenty-five
per cent. of their capital. The Comptroller
states this reduction to the minimum
deposit of bonds has had the effect
to increase the number of small banks.
A larger number of banks expired by limi-
tation during the year 1885 than have or
will expire during any year prior to 1900.
Among the banks which have been ex-
tended during the last year were thirty in
the city of New York, with an aggre-
gate capital Of $50, $50, 900, as well as a
large number i'll Boston, Philadelphia
of the largest banking institutions in
the United States. Notwithstanding the
organization Of new banks, the aggregate
amount of bonds on deposit to secure circu-
lation has, during the last year, diminished
from 1925, SIC, 800 to S30s, 1854, $50, and tho
net decrease in circulation during the year
has been Sl5, 545, 461. The reduction in
circulation has been less than was esti-
mated by the Comptroller in his last
annual report, as no United States bonds
have been called for payment DUR
ing the year ending November l. The re-
duction from other causes. notably the
small profit on circulation, has been greater
than was anticipated, and the Comptroller
believes the contraction of Nationai-bank
circulation will continue unless some legis-
$osoAA ~ AAA IhS VII AAAAVoOC WIG pLO1lN
which National banks derive from the issue
OF circulating notes, and proposes that the
tax on circulation 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.
lie refers to the fact that although there
has been a contraction in National bank
notes, the circulating medium Of the coun.
try has been increased by silver dollars and
silver certificates, and in this connection he
calls attention to the statement in his last
annual report that the continued coinage OF
the standard silver dollar under the present,
provisions of law is in excess of the require.
ments of the country and is liable to brins;
the business OF the country to a silver basis
and cause some degree Of financial disturb.
ance.
-Four banks. with an aggregate capital o..
$500, 900, failed during the last year.. Div.
dends have been paid during the year to the
creditors of insolvent banks to the amouns
OF 50, l51 SOS. During the fiscal year ended
June 30 there was paid to the Government
So, 794,5S4 taxes on circulating notes of Ma
tionai banks. The attention CT Congress ii;
called to the difficulty Of enforcing the pro-
VISIONS OF Section 5000, revised statutes,
which restricts loans Of National banks
TO any one individual, iirm, OF corporation
to onc-tenth Of their capita! stock. Tables
are presented which indicate that the aver
aye dividends and earnings of the National
banks in the United States are as a rule
less than those OF banks in other countries.
The Comptroller thinks that the National
banks have not been seriously affected by
the large number of mercantile failures
which have occurred during the last two
years.
During the year the banks have increased
their specie resources more than S46, OOO,-
600. This increase is made up OF S4l,47l,-
TIA OF gold coin and 81, 791, 3S4 of silver
coin. The legal-tender notes held by the
banks have, however, diminished about
s., 500, 900.