Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1890-11-27
THE NATIONAL BANKS.
Interesting Facts in the Report OF the
Controller Of the Currency.

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Interesting Facts in the Report of the
Controller Of the Currency.
The Controller Of the Currency, Colo
mel Lacey, in his annual report says ::
Three hundred and seven new associa-
tons have been organized, fifty have
gone into voluntary liquidation, and
nine have been placed in the hands OF
receivers in the year ended October 3lst.
The net increase is 24S, constituting
larger growth than during any similar
period since 1865. The number OF
active banks on October 81, 1890, was
1867. which is an increase over any pre-
vious date.
These banks have in capital stock
1863, 7S2, $50, bonds deposited to secure
circulation $40, l00,9 900. and bsnk-notes
outstanding Sl79, 755, 6i3. including S5,-
100. 907 represented by lawful money de-
posted to redeem circulation still out
standing. The gross decrease in circu-
lation during the year, including notes
Of good banks and those Of failed and
liduidating associations, was So, 267, 772.
and the decrease in circulation secured
by United States bonds was S5,24S, 5i9.
On October 2, 1890, the date of the
last report of condition, 3, $40 banks were
open for business.
AccessiOns to the system have been
most numerous in the States west OF the
Mississippi river, Texas being the most
prominent, with sixty-tbree new assocla-
tons. followed in the order named by
Pennsylvania with 81, Missouri with 70,
Nebraska with 10. and Washington
with Is.
The Controller again calls attention to
the fact that the issue of circulating
notes has become unremunerative on
account of the high premium command
ed by the bonds of the United States,
and renews his recommendation OF last
year that the obligatory deposit of bonds
be reduced that circulation be issued
equal in amount to the par value OF the
bonds pledged, and that semi-annual
duty thereon be fixed at one fourth OF
per centum per annum. The passage
OF the bill reported to the Senate by Mr..
Sherman and now pending in both Houses
is recommended. If passed it would
reduce the obligatory deposit OF bonds
TO 81, 600 for each association, with re-
ference to the amount Of its capital, and
increase the issue OF the circulating
notes to 100 per cent. bonds pledged for
their redemption. The withdrawal OF
bonds would be limited to S3,OOO,OOO
per month. The volume Of paper
money would be at cnce increased by
about SIS, 900, 600, which would in a
marked degree relieve the present none
tary stringency. New associations could
form more rapidly without advancing
the premium on bonds necessarily pur-
chased by the Secretary OF the Trea-
sury for the sinking fund.
The passage Of the act providing for
the purchase of silver bullion IS con-
sidered by the Controller,tantamount TO
declaration that the national banks will
not be called upon to furnish the addi-
tional circulation evidently needed, and
the discussion OF measures providing for
the extension and perpetuation Of note
issues based upon some new form OF Sc
curity is deemed inopportune. He also
asks that Congress provide for the semi
annual publication Of the detailed re-
ports of national banking associations.
1t is suggested that great change has
taken place during the past nine years IN
the matter of credits, and that all COM
modities are now sold on shorter time
and to a much larger extent for cash than
formerly.
The Controller expresses the opinion
that the evident lack of currency neces-
sary to the proper conduct OF business
during the past few months is greatly
aggravated by the retirement OF the ma
tional-bank notes, which form Of paper
money alone possesses that elastic pro-
perty SO essential in perfect circula-
ton.
All money issued directly by the Gov
eminent, whether Of coin or paper is
necessarily non-elastic by reason OF It's
being in all cases available for the law
full money reserve Of national banks, and
in most cases possessing the legal tender
quality.
The Controller says that aside from
the right to issue circulating notes tue
banking system is, if its rapid extension
is a correct criterion. more favorably re-
garded than heretofore, and that the
transactions OF the year have been at
tended by a more than average degree Of
success that stockholders have as q rule
received satisfactory dividends I; that the
people at large have been faithfully and
economically served, and that as banks OF
discount and deposit the associations be-
longing to the national system have,
taken as a whole, merited the high com
mendation OF unpreiudiced observers.