Telegram-herald., 1889-11-27
NATIONAL BANKS.
Repor. Of the COGptxoAsr OF ths
Currency.
CHlyCESB TIE PRESESILlW URGED
Tas General CoadltloD of the n0Gst4rg
LasIir4tioas Il satisfactory -Only
To Failures Dortax
Ihs FSsE fs4r.
BrEREsrlss EIsUEEs.

WAsHIS6rOS, Nov. Z5--Ths forth
coming report of Hon. Mr.. Lacey, Comp
troller of the Currency, covers the year
ended October 81, 1859. AZ which time
there were IN existence s.Sls Ma
gate capital OF $40. ia. sos. The
LAST reports ot condition exhibit their
resources and Liabilities on Septem-
Der 80, 1888 The number reporting at
that time vas SEQ, having a cap
it4l Of s512, 5s4, O95; surplus, SI97, S94,-
T6l; undivided profits, So, 500, 500; gross
deposits including amount due banks,
q, 950, 935. 100; loans and discounts,
s., SOS, T29, ,739 The amount Of circula-
tion outstanding VAS S205, od2, 7S2, OF
which SlSl, 3s3, S34 was secured by
United States bonds, and the remain
der. 81, 2T9, 1872, was represented by
deposit OF lawful money IN the
treasury. These banks held Sl94, 9T2, 500
IN United States bonds lof which sl46,-
Al. TOO Vas 70 secure circulating notes.,
sl64 S26, 449 OF specie, and SD, 752, ,o93 OF
legal-tender notes Within the year 2l1
banks were organized. having an aggre-
gate capital OF s2l ,240, 600. These banks
deposited With the Treasurer 70 secure
calculations 81 37s, $50 United States
bonds, upon which were issued s., sl2,-
9T5 in circulating notes. Within the
year forty-One banks went into yOlun-
tary liquidation and only two failed.
The increase Of the National banking
system, the Comptroller says, mas not
kept pace with the needs OF the people.
The tendency 70 incorporate under State
laws IS due, according 70 the Comptrol-
Ter, 70 the fact that nc profit results 70
banks from the deposit OF bonds TO Sc
cure circulation, while in the West,
where interest is high, IL often results
IN actual loss. IL is deemed GER
tain by the Comptroller that with
drawal OF bonds held in excess Of the
minimum requirements viii continue SO
long as the present conditions exist, and
il is asserted that legislation is neces-
sary 10 prevent contraction of the vol
ume OF National bank currency.
In the opinion of the Comptroller the
laws governing National banks should
be SO amended as 10 produce the follow
ing notifications:
Il. The minimum depOst OF bonds 20 secure
circulation should be fixed al ten per centum OF
capital In respect 70 associations having cap
ital OF 800 OOO or less, and for all banks having
greater capital minimum deposit Of $4,000
IL bonds should be required.
- Circulation should be issued 70 the par
value OF the bonds deposited
IS Semi-annual duty on circulation should be
80 reduced as 70 equal one-fourth OF per cent.
per annum."
II is held that these changes in the
law would do little more than save the
National banks from loss on account OF
circulation If the present premium on
United States bonds is maintained.
Tho Comptroller says he has avoided
the discussion OF the various plans
which have been suggested for substi-
tuting other securities for United States
bonds as a basis for circulation. He is
of the opinion that the consideration
OF propositions looking 10 the adoption
OF untried measures would involve a
delay fraught with danger 70 the Ma
tional banking system in its present ex-
igency. In his opinion the adoption oi
she amendments proposed will afford the
selief now necessary and give an oppor-
tunity for proper deliberation before
adopting more radical measures.