Evening journal., 1889-11-26
NEWS FROM TIE CAPITAL
Annual Report of the Comp
troller Of Currency.
TWO NATIONAL BANKS FAILED.

Private Dnlseil's Plea FOR the More Hasty
settlement Of Penaion Matters The
Pan-Americans Choose Their secre-
taries--other notes from washington.
WASHINGTON, Nov 30 The forthcoming
report Of the comptroller Of the currency
covers the year ended Oct 81, 1852, al which
time there were In existence $3.50 national
banks the largest number In operation sinco
the inauguration OF the system These asso-
Citations possess an aggregate capital Of
$500, 1865. The last reports II condition
exhibit their resources and liabilities ON
Sept 3d. 1889. The number reporting at
that time was $500. Within the year 2lA
banks were organized, having an aggregates
capital of S9l 10000 The state OF Penn
sylvania has now the largest number OF as-
soeiations in operation. Massachusetts leads
in point of capital stock and New York iu
respect 10 deposits and volume Of business.
Only Two Failed.
Within the post year Al banks went
into voluntary liquidation and only two
failed, leaving the not additions 70 the sys-
tenn Jos, as against 30 last year and 1913, the
annual average increase since the inaugura-
tion Of the system. Notwithstanding this
gratifying increase investigation Of the facts
demonstrates that the system has not kept
pace with the necessities Of the people for
increased banl,ing facilities This is evil
denced by the marked increase in percentages
OF state banks organized the Inst Eve years
as compared with the percentage OF the five
years Immediately preceding.
This growing tendency to incorporate
under tho statutes OF the several states is
not attributable to any change in the law
affecting other national or state institu-
tions but is charged directly to the fact
that no profits result 20 the banks by reason
Of the deposits of bonds and issue of circu-
lating notes It Is claimed, in fact. that an
actual loss results in many western states
and territories, where the interest is hignsst
and the banking facilities most nsvded.
The Banks Lose Money.
II Is demonstrated through tables pre-
pared by the government actuary that there
is an actual loss resulting to national banks
10y reason Of their being obliged to deposit
bonds and take out circu atinn wherever tile
current rate OF interest IS grealtar thai 4 l5
per cent. As iha prevailing rate in an Of
the states west Of the Alln2hanics is ia ex-
cess Of that rained, 1t follows that ia the
! greater nunbes ui states and those increas-
ing most rapidly IN wealth and population
the enforced deposit OF bonds 10 secure cir
culation is nn impediment IN tie way cf
organization ul now banks, and has Q tend
ency directly 20 diminish tho volume of
currency issued by the banks already in
existence. Ia confirmation of the state-
ments made. attention IS called 10 the fact
that the gross doglrase of national bank cir
culation duIing she report year was S37,
lsd, lSa, and that the deposits Of bonds OF the
new banks organized during the year were
only Sll 800 ia excess Of the minimum re-
quiremants
Reduction of Duty Commended.
The reduction of the duty on circulation
is commended upon tho ground that the
present tax h unjust to banks, because it is
imposed on account Of privilege now value
less, and the revenues Of The government ara
in excess Of its requirements The comp
troller has avoided tho discussion of the
various plans which have heen suggested
for Substituting other securities for United
States bonds as a basis Of circulation