Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1889-11-29
MONEY IN CIRCULATION.
Report of the Comptroller OF the Currency
Ending October.

WASHINGTON, Nov. 25.-The fOrthcom.
ing report of Comptroller of Currency
Lacey covers the year ending Oct. 81. 80,
which time there We're III existence 3.3l9
national banks, the largest number since
the inauguration of the system. These
associations possess aggregate capital of
$40, IA 800. The last reports of their
conditions exhibit their resources and liza
bIlltles, Sept. 30. The number reporting at
that time was $3.50. The summary of
these reports shows: Capital. 1912. .5S4.-
O95; surplus. Sl97 1874. 76l; undivided
profits, SS4, ,S66, ,S69; gross deposits.
including amounts due banks. 81 $50. 935.-
l6O; loans and discounts. 81. .S05, 729, 739,
OF which the items show an increase over
any previous date. The amount of circu-
lation outstanding Is S203, ,662, ,732. of
which Sl3l 1888, ,334 is secured by United
States bank, and the remainder, S72. .279,-
1896. is represented by the deposit of lawful
money IN the treasury. These banks hold
5l94, 927, 900 in United States bonds (Of
which, SAG, All, 700 were to secure circu-
lating notes. Sl64, 326. .449 of specie
notes. Within the Year, 2il
banks were ornauized having an aggre-
gate capital of S2l .240,000 Thirty-six of
the new banks were organized in Texas,
the largest number Ill any one state. With
III the year Al banks went into voluntary
liquidation and only two failed. leaving
the net additions to the system l6S, against
80 last year, and 1913; the annual average
increase since the Inauguration of the
system. Notwithstanding this increase,
says the comptroller, the system has not
kept pace with the needs of the
people for increased banking facilities.
The growing tendency to incorporate
under the statutes of the several states
is not attributed to any change in law
affecting either national or state institu-
tions. but is charged directly to the fact
says the comptroller, that no profit results
tC banks by reason of the deposit of bonds
and the issue of circulating notes. 1t is
claimed III fact, he says that actual loss
results IN many western states and terri
tories where interest is highest and bank
ing facilities most needed It is deemed
certain by the comptroller that the
withdrawal Of bonds held in eX-
cess of the minimum requirements will
continue so long as present conditions eX-
lst and that legislation is necessary to pre-
vent contraction of volume of national
bank currency. The comptroller makes a
number of recommendations for amend
other things reduction of duty on circu-
lation is commended. on the ground that
the present tax is unjust to banks because
it is imposed on account of privilege
now valueless, and the revenues of the
government are IN excess Of requirements.
The burden of enforced deposits is felt
more severely where the current rate of
interest is highest and where banks organ
ize with the smallest capital. The comp
troler has avoided discussion of the vari-
Gus plans which have been suggested for
substituting other securities for L. S.
bonds as basis of circulation, being of
the opinion that the consideration of pro-
positions looking to the adoption of untried
measures, would develop delay fraught
with danger to the national banking sys-
TEN in its present exigency. He favors
reduction of interest upon existing bonds
to % per cent. by prepayment to holders
of the difference between that rate and
the four per ce ntinterest bond now carried