The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1889-12-04
THE NATIONS CURRENCY
SUMMARY OF COMPTROLLER LACY's
ANNUAL REPORT.

A Years Changes I'm Our National Banks
accommodation Concerning Changes
In the banking Laws-Chiefs of Divisions
I'm the Postofice Mako Their Reports
Washington special
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 3,3l9 National banks,
possessing an aggregate capital OF S0@o,-
i14, $50. The last report OF condition ex-
hiblts their resources and Liabilities on
Sept. 80, 1884, The number reporting at
the time was :, 300, having capital OF
1912. So, 005; surplus, Sl97, 394, 76l un-
divided profits, SSi, $50, $40; gross depos-
its, including amount due banks, 81, JoO,-
93a, 100; loans and discounts, 81, SO5. i2H,
739. The amount OF circulation
outstanding was $20J, 662, 132, OF
by United States bonds, and the
remainder so, 80, 800, was represented by
deposit OF lawful money in the treasury.
These banks held $l94, 972, 800 in the
United States bonds Cof which SAG, 41l,-
200 was to secure circulating notes., Sl64.-
1876, 449 of specie, and 49,, 152, OJ3 or
legal-tender notes. Within the year 21l
banks were organized, having an aggre-
gate capital of SCI, y4O, 0On. These banks
deposited with the treasurer TO secure cir
culations 81, 31S. 800 United States bonds,
upon which were issued S3, S12,9 $40 in cir
culating notes. Within tho year forty-on one
banks went into voluntary liquidation and
only two failed.
The increase of the national banki
system, the comptroller says, has not
kept pace with the needs OF the people.
The tendency to in orporate 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, il 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
it is asserted that legislation is necessary
to prevent contraction of the volume
of naIional-b bank currency.
In the opinion of the comptroller the laws
governing national banks should be so
amended as to produce the following modi-
fications:
81. The minimum deposit of bonds to
secure circulation should be fixed at 10 per
centum of capital in respect to associations
having a capital of $500, 900 or less, and
for all banks having a greater capital a
minimum deposit of $50, 900 in bonds
should be required.
so. Circulation should be issued to the
par value of the bonds deposited.
-. Semi-annual duty on circulation
should be so reduced as 10 equal one
fourth IF ! per cent per annum."
1t Is held that these changes i'm the law
would do little more than save the nation
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 the capital stock as
il appears in the summary OF reports for
Sept. 30, 1882 the present minimum of
deposit Of bonds is found to be 500, 201, =
2S3. If the law is amended as proposed,
the minimum Of bond deposit required
will be reduced TO $43, S9l, ISL, making
possb BILE withdrawal of sol 405, 712 IN
bonds, upon which is based s4G, 65, 1872 in
circulating notes. 1t is asserted that this
would greatly exceed the limit of possible
contraction, it beng fair to presume, says
the comptroller, that the banks now main
tanning a deposit in excess of legal require
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 that
the consideration Of propositions looking
20 the adoption of untried measures would
involve delay fraught with danger
to the national banking system in
its present exigency. In his opin-
ion the adoption of the amendment
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 de fer
the payment of the present issue as they
mature, but does favor a reduction OF in.
terest upon existing bonds to 81 per cent
by the payment TO holders of the difference
between that rate of interest and the 4
per cent interest which the bonds now
carry.
Superintendent Charles f. Mcdonald OF
the money order office says the money
order system was nearly self-sustaining
during the year, there being only mel
loss of So, 1913. The total gross revenue
was $7S7, S04. During the year there were
issued Domestic money orders, 10, lao,
140, amounting to S115, 0Sl, $40, de
crease OF 10, 933 and s., 567, 2l9 in amount
as compared with the previous year; inter
national money orders, S24 427. amounting
to $l2, go, 5l6, an increase of "a, 79l in
number and S3S6, GAG in amount; posta
notes, 8, SOP, go, representing 6l2. 0S2, 100.
Capt. n. NJ. Brooks assistant superin
tendent OF foreign mails, reports thai
during the year there were dispatched by
sea GA, III pounds of letters and postal.
cards and 3, 42S, 12l pounds OF other mail
matter, an increase over the previou:
year of 80, 5lS pounds of letters and pos
tal-cards and 40j, 80 pounds Of other
matter The aggregate cost of the service
was $6S7, 5t2. The report calls atteHti
TO the insufficient service with Brazil.
Judge James S. Tyner, the assistant
attorney general for the Postoffice depart.
ment recommends IA number of important
changes IN the postal laws, the most radi
cal one being in the law relating to OBJ
scene newspapers and publications so a,
to bring all filthy and indecent publca
tions found in the mails whether publish
! ed or pretended To be published IN the in
terest of science or not within the scop,
of the law.
Chief rostoflice Inspector f. G.. Rath-
bone reports that during the year g. SIC
complaints were made of losses in the do
nestle registered mail, of which g. 9yS
were investigated. There were reported
1913 cases of irregularities, losses, ETC.
in foreign mails. or these 6,65t related
70 registered matter, of which there wer,