The Emporia weekly news. [volume] (Emporia, Kan.) 1881-1889, 1889-12-05
coMPTRoLLER's REPORT.
Concerning National Banks and Sugge
tIons For Their ImprOvem MT.


tIOns For Their ImprOvem MT.
WASHINGTON, Nov. 27.-The forth
coming report of the Comptroller of
the Currency covers the year ended
October 81, 1889, at which time there
were in existence 1919 National banks
the largest number in operation
since the Inauguration of the system.
These associations possess an aggre-
gate capital of 500, ia 1865. The last
reports of condition exhibit their re-
sources and liabilities September 80.
The number reporting at that time
was 800. Within the year 228 banks
were organized, having an aggregate
capital of $2l ,24O,O Thirty-six of the
new banks were organized in Texas
the largest number in any one State.
The State of Pennsylvania has now
the largest number of associations iii
operation, but Massachusetts leads in
point of capital stock and New York
in respect to deposits and volume of
business. Within the report year forty
one banks went into voluntary liquida-
ton and only two failed, leaving the
net additions to the system 16S, as
against ninety last year.
Notwithstanding this increase inves-
tigation of the facts demonstrates that
the system has not kept pace with the
necessities of the people for increased
banking facilities. This is evidenced
by the marked increase in pero sntage
of State banks organized the last five
years as compared with the percentage
of the five years Immediately preced-
ing. This growing tendency to incor-
porate under the statutes of the several
States is not attributable to any change
in the law affecting either National or
State institutions. but is charged di-
rectly to the fact that no profit results
to the banks by reason of the deposit
of bonds and issue of circulatingn
1t is claimed in fact that an actual loss
results in many Western States and
Territories, where the interest is high
est and the banking facilities most
needed. 1t is demonstrated through
tables prepared by the Government
actuary that there is an actual loss re-
sulting to National banks by reason of
their being obliged to deposit bonds
and take out circulation wherever the
current rate of interest is great
er than 4.76 per cent. AS the prevail
ing rate in all the States west of the
Z1AACEAoAlCo ID CACCoSO1 u
it follows that the greater number of
States and those increasing most rapid
ly in wealth and population the en-
forced deposit of bonds to secure circu-
lation is an impeachment in the way
of organization of new ban1s, and has
tendency directly to diminish the
volume of currency issued by the banks
already in existence. In confirmation
of the statements made attention is
called to the fact that the gross de-
crease of National bank circulation
during the report year was $S7 ,4S6, 139,
and that the deposits of bonds of the
new banks organized during the year
were only 81 800 in excess of the min
imum requirements. The reduction of
the duty on circulation is recommended
upon the ground that the present tax
is unjust to the banks because it is i'm
posed upon account of a privilege now
valueless and the revenues of the Gov
eminent are in excess of its require
mentS.
The Comptroller has avoided the dis
cusSion of the various plans which
have been suggested for substituting
other securities for United States bonds
as basis of circulation. He is of the
opinion that the consideration of propo-
sitions looking to the adoption of un-
tried measures would involve a de-
lay fraught with danger to the Ma
tional banking system in its present
exigency. In his opinion the adoption
of certain amendments proposed will
afford the relief now necessary and
give an opportunity for proper delibera-
ton before adopting more radical
measures. He does not recommend
any issue of long date bonds which
would defer the payment of the present
issues as they mature, but favors a re.
duction Of interest upon existing bonds
to q per cent. by the prepayment to
holders of the difference between that
rate of interest and the per cent. in
terest which the bonds now carry.