The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1889-11-26
THE NATIONAL BANKS
Increase Not Keeping Pace with
the Country's Growth
MANY STATE INTERPRETATIONS.
Less Results From Deposits Of Bsnsss-
Legfsiatsen needed 20 sEaintain fas
vslanas Of Notes.

waxH1xsrox. Nov. a5.-The forthcoming
reportof Comptroller OF the Currency Lacey
eoYers the year ended October 81. lSs9. 81
which time there we're in existence 5 SIS
national banks. the largest number since
the Inauguration of TIE systesn. These as-
seriations possess an aggregate capital Of
SO. i74.s7l- The last reports Of condition
exhibit their resources and liabilities sep
tember 30. The number repostsng at that
time was $50. 4 summary Of these re-
ports shows capital OF sS21 .5Ss 095; surplus,
$la7 81. Isl; undivided pFofifs, 81 sss, 800
gross deposits. inclading amounts due
banks, si95 $50 ,I60: loans and discounts,
81 SD ID. 739. al OF which iESnas show en
increase over any previous date.
The amount Of circulation outstanding
is 1903 Sc, 30 of which sI3l. SO. .s3a is Sc
cured by United States bonds, and the re-
nainder 81. 279 .se6. is represented by .
deposit Of lawful money in the treasury
These banks held SI94. 81 800 in United
States bonds tof which sisS al. TO was %
secure circulation notes). $i64 sd. 1A9 of
specie. and $50, ,7522. .es3 Of legal tender notes.
Within the year oil banks were or
gained, with an aggregate capital Of ST.
80 00. Thirty-six Of the new banks were
organized in Texas, the largest number in
any state. Within the year Al banks went
into voluntary liquidation, and only 2
failed. leaving the net addition to the sys-
tam I6S, as against last rear i2ee. Notwith-
standing this increase, says thu comptrol-
Ter, sthe system has not kept pace with
the needs Of the people for increased hank
ing facilities
The growing tendency to incorporate IN
der the statutes Of she several states Is not
attributable to any change in the law affect
ing either national or state institutions. bat
il charged directly TO the fact thatno profit
results 10 the banks by reason Of the de-
posit of bonds and issue OF circulating
notes. 1t Is believed. In fact. he says, that
actual loss results in many Western ststes
and territories, where interest Is highest
and banking facilities are most needed. II
is deemed certain BY the comptroller that
the withdrawal OF bonds held in excess Of
the minimum requirements viii continue
so long as the present conditions exist, and
that legislation IS necessary 20 prevent con-
traction of the volume Of national bank
currency.
The comptroller makes number OF
recommendations for amendments Of the
law governing national banks. Among
other things. reduction Of the duty on cir
eulatson Is recommended, On the e-ound
that the present tax Is unjust 10 banks, be-
cause imposed on account of . privilege
now yalneiess. and the revenues Of the gov
eminent are in excess Of requirements.
The burden OF enforced deposits IL fest
more severely whore TIE current rats OF in
tereet Il higher, and banks organize with
the Smallest capital.
The complfeller has avoideS discussion OF
v1fieas plans which haye a 1nS rested
for substituting other securities for United
States bonds as a basis OF circulation, being
OF the opinion that consideration OF propo-
sititions looking 10 adoption Of untriei
measures would involve delay franght with
danger 10 the national banking system in
its present urgency. He favors the retiuc-
ton OF the interest on existing bonds 70 21<
per cent. by prepaymeat to helders Of the
difference between that rate and per cent.
interest on bonds now carried.