The Hot Springs star. (Hot Spings [Hot Springs], Dakota [Dakota Territory, i.e. S.D.]) 1886-189?, 1889-12-06

AND BANKING.
ANNUAL REPoRr OF C0MPTROLLER
OF THE CURRENCY LACY.
The Years Net Gain In National Banks
Has Been 160-Only Two Failurcs-The
Need Of Farther Bank Legislation Urged
-Postoalce Statlstics.
Washington spccisl.l
The report Of Hon. Mr.. Lacey. Comp
trollsr o the Currency, covers the year
snded Oct. 81, 1889, ut which time there
we're in existence 1919 National banks,
possessing On aggregate capital of $685..
ia. 36h. The last report Of condition exc
hib,ts their and liabilities on
Sept. 80, 1889. The number reporting at
the time was {, 300. having a capital Of
1919, So, OBS; surplus, $197, 1914, 76i; I'M
divided profits, ss4, 500, $50; gross depos-
its, including amount due banks, 81, $780,
s'34, 100; loans and discounts, 81. S05. z 4,
13a. The amount Of circulation
outstanding was $cos, 6sas, 77aass Of
which Sl31.: go, 1874 was secured
by United States bonds, and the
remainder $722,2s0, 500, was represented by
deposit OF lawful money in the treasury.
These hanks held 1874, 9s2a, 500 in the
United States bonds tof which Sl4G.A71,-
100 was to secure circulating notes, SlB4,.
See, 449 Of specie, and $Ss, 7s52, 093 Of
legal.tender notes. Within the year gil
boulo evo,.o o,.0aOi0od hox,sn~ ~ Il.
gate capital Of SCI, y40, O0n. These banks
deposited with the treasurer to secure cir
culations. Sl,37S. $50 United States bonds,
upon which were issued s3,S1s,975 in cir.
culating notes. Within the year forty. one
banks Went into voluntary liquidation and
only two failed.
The increase Of the national banking
system, the comptroller says, has not
kept pace with the needs of the people.
The tendency to incorporate 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, 1t often results in actual loss. 1t is
doomed certain by the comptroller that
withdrawal of bonds held in excess of the
minimum requirements will continue so
long as the nresent conditions exist, aud
1t is asserted that legislation is necessary
to prevent n contraction of the volume
of nationat-banls currency.
In tho opinion OF tho comptroller the laws
governing national banks should 10 so
amended as to produce the following modi-
fications:
81. Tue minimum deposit of bonds to
secure circulation should DO fixed at 10 per
centum of capital in respect to associations
having n 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.
80: 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 Of | FER cent per annum.n
1t Is held that these changes in the law
would do little more than save the nation.
al banks from loss OH account of circula-
ton IL the present premium on United
States bonds Is maintained. Taking as a
basis of computation the capital stock as
it appears in the summary of reports for
Sept. 81, 1889, the present minimum of
deposit of bonds is found to be 500, 297,-
22S3. If the law is amended as proposed,
the minimum of bond deposit required
will be reduced to Si3, Sn1, 5Si, making
possible a withdrawal Of SOL, 405, 7Do in
bonds. upon which is based s:4G, .655. 132 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 tho banks now main.
tanning adeposit i'll excess of legal require
ments would not withdraw TIL. bonds thus
released.
The comptroller says he has avoided the
discussion OF tho various plans which nave
been suggested for substituting other Sc
curities for United States bonds as a basis
for circulation. He is of the opinion thar
the consideration Of propositions looking
to the adoption of untried measures would.
involve q delay frought 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. lie does not recommend any
issue of long-date bonds, which would defer
the payment of tile present issue as thew
mature, hut does favor q reduction of in-
terest upon existing bonds to 9. per cent
by the payment to holders Of the difference
between tina rate Of interest and the 4
per cent interest which the bonds now
carry.
Thu annual reports of a number OF chiefs
of divisions i'll the Postotfice Department.
have been made public.
Superintendent Charles E. Mcdonald OF
the money order Office n the money
order system was nearly self-sustaininp
during the year, there being only a net
loss of So, l2S. Tho total gross revenue
was S1sI,SDl. During tho year there were
issued: Domestic money orders, 10. 1tO,-
14O. amounting to $115, OS1, s4j. q de-.
crease OF 40. 9a33 and 81, $50. ol9in amount
as compared with the previous year; inter.
national money orders, S294.427, amounting
to $l2,2-O.5l6, an increase of 6 1901 in
number and $ys'i, GAG in amounts; postal
notes, 6,SO.. Is0, representing sig, OS22, 1870.
Capt. n. NJ. brooks, assistant superin-
tendent OF foreign mails. reports that
during the year there were dispatched by
seq GS1, III pounds of letters and postal
cards and ), i.s, i2.1 pounds Of other mail
matter, mn increase over the previous
year OF 3a,llS pounds of letters and pos
tal-cards and NJ, 129 rounds of other
matter. The aggregate cost of the service
was S6s1. 5t?. Tie report calls attention
TO the insufficient service with Brazil.
Judge james $. Tyner, the assistant
attorney general for the Postofice depart.
ment, recommends IL number of important
changes in the postal laws, the most radt.
scene newspapers and publications so as
to bring ali filthy and indecent publica-
lions found i'll the mails whether publish
ed OF pretended to be published in the in.
terest of science or not within the scope
of the law
Chiet rosto!iice Inspector l.. G.. Rath-
bone reports that during the year q, $40
complaints We're made OF losses in the do
nestle registered mail, Of which 3,9yS