Wessington Springs herald. (Wessington Springs, Aurora County, Dakota [S.D.]) 1883-1891, 1889-12-06
THE NATIONS CURRENCY
SUMMARY OF COMPTROLLER IAc..s
ANNUAL REPORT.


A Years Changes in Our National Banks
Recommendation Concerning Changes
In the Banking Laws-Chiefs of Divisions
In the PostOfiice Make Their Reports.
Washington special.l
The report of Hon. Mr.. Lacey, Comp
troller of the Currency, covers the year
ended Oct. 81, 1889, at which time there
were in existence 1919 National banks.
possessing an aggregate capital of s6aO.-
~. 365. The last report of condition ex-
hiblts their resources and liabilities on
Sept. 30, 1889. The number reporting at
the time was $3.50, having capital Of
SG12. 5S4, OBS; surplus, $197, 394, 49,; I'M
divided profits, SS4, 500, S6S; gross depos-
its, including amount due banks, 81, $780,
9Sa, l6O; loans and discounts, 81: 1905. 49,
7S9. The amount of circulation
Tdtstandn Ga, was a4 $685. Of
by United States bonds, and the
remainder ST., 219, 1872, was represented by
deposit of lawful money in the treasury.
These banks held $i94, o7s, 500 in the
United States bonds (of which STAG, 4Ii,-
200 was to secure circulating notes, SLID
326, 449 of specie, and $96, G52, O33 of
legal-tender notes. Within the year 91l
banks were organized, having an aggre-
gate capital of S21, 80, 900. These tanks
deposited with the treasurer to secure cir
culations. 81, 3TS, $50 United States bonds,
upon which were Issued 80, 1915 in cir
culating notes. Within the year forty-one
banks went into voluntary liquidation and
only two failed.
The increase of the national banking
system, the comptroller says, has not
Kept pace with the needs of the people,
The tendency to incorporate under State
laws is due, according to the comptroller,
to the fact that no profit results to banks
from the deposit of bonds to secure circula-
ton, while in the West, where interest is
high, it often results in actual loss. 1t is
deemed certain by the comptroller that
withdrawal of bonds held in excess of The
minimum requirements will continue SO
long as the present conditions exist, and
1t IS asserted that legislation is necessary
to prevent a contraction of the volume
of national-bank currency.
In the opinion of the comptroller the laws
governing national banks should be so
amended as to produce the following modi-
fcations:
VI. The minimum deposit of bonds to
secure circulation should be fixed at 10 per
centum of capital in respect to associations
having capital Of $4,000 or less, and
1or all banks having greater capital
minimum deposit of $4,000 in bonds
should be required.
'22. Circulation should be issued to the
par value Of the bonds deposited.
~. Semi-annual duty on circulation
should be SO reduced as TO equal one
fourth IF l per cent per annum' ~
1t is held that these changes in the law
YHyFfH RI RI Fla
al banks from loss ON account of clrcula-
ton if the present premium on United
States bonds is maintained. Taking as a
basis of computation tho capital stock as
it appears in the summary of reports for
Sept. ~, 1889, the present minimum of
deposit OF bonds is found to be S;95, sY7,-
2S3. If the law is amended as proposed.
the minimum Of bond deposit required
will be reduced to S43, Sy1, 5s1, making
possible withdrawal of $51, 4O5, 7i,2 in
bonds. upon which is based $45, 65, 133 in
circulating notes. 1t is asserted that this
would greatly a,secea U,Ae 1ir>i+ ae rosslo,o
contraction, it beng fair to presume, says
the comptroller, that the banks now main
ments would not withdraw the bonds thus
released.
The comptroller says he has avoided the
discussion of the various plans which have
been suggested for substituting other Sc
curities for United States bonds as a basis
for circulation. He is Of the opinion thai
the consideration of propositions looking
to the adoption of untried measures would
involve felay fraught with danger
to tho national banking system in
it's present exigency. In his opin-
ion the adoption of The amendmenr
proposed will afford the relief now neces-
sary and give an opportunity for proper
elaboration before adopting more radical
measures. He does not recommend any
issue of long-date bonds, which would defer
the payment of the present issue as they
mature, but does favor a reduction of in
terest upon existing bonds to q per cent
by the payment to holders of the difference
between that rate of interest and the
per cent interest which the bonds now
carry.
Superintendent Charles z. Mcdonald OF
the money order office says the money
order system was nearly self-srlstaining
during the year, there being only net
loss OF IS, 1873. The total gross revenue
was S797, S04. During the year there were
issued: Domestic money orders, 10. 1s0,-
l4O. amounting to $115,0Sl, S45, a de-
crease OF 10, 933 and 81, $50, 2l9 in amount
as compared with the previous year; inter-
national money orders, 1921. 427, amounting
to $l2, $50, SIG, an increase of 64,791 in
number and 1886, G46 in amount; postal
notes, 6,SO2. 72O, representing S12, 0S2, 100.
Capt. N. NJ. Brooks, assistant superin-
tendent Of foreign mails, reports that
during the year there were dispatched by
sea 6S4, 131 pounds Of letters and postal
cards and 3, 42s,T21 pounds of other mail
matter, an increase over the previous
year of 39,5l8 pounds of letters and pos
tal-cards and 405, 729 pounds of other
matter The aggregate cost of the service
was $6S7, SAP. The report calls attention
TO the insufficient service with Brazil.
Judge James S. Tyner, the assistant
attorney general for the Postof,ice depart
ment, recommends i. number of important
changes!in the postal laws the most rali-
cal one being in the law relating to OBJ
scene newspapers and publications so as
to bring all filthy and indecent publica-
lions found in the mails (whether publish
ed OF pretended to be published III the in
terest of science OF not within the scope
Of the law.
Chief rostotice Inspector Z. G.. Rath-
bone reports that during the year 6, $50
complaints were made of losses in the do
nestle registered mail: of which a,9yS
were investigated. There were reported