The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-11-25
THE NATIONAL BANKS.
High Bond Premiums Tend to
Contract Circulation.
REPORT or LIGHTHOUSE BOARD.


WAsHyNsroN CRY. Nov. A-The snnual ~
port Of Compsroller Of the Currency Lacey covers
the operations Of the bureau Tor the twelve
months ending 0tober 81 During this period
ao7 new banking associations were ofganised.
while 6fty have gone into voluntary lquids-
ton and nine have been placed IN the hands ct
receivers, making net increase OF 218 and con-
shutting larger growth than during any simi.
lar period since 1865. The number Of active
banks October 81 was S,56z. These banks have .
CAPITAL stock of 1854. 1855; bonds depcotted 70
secure circulation. $140l90.9o0, and bank roses
outstanding, $l7S 1858, including $S796 ,9W
reprs senred by lawful money deposited to re-
deem circulation still outstanding
The gross decrease in circulation during the
year, inc udipg notes of gold banks, and failed
and liquidating associations. was $22,267.772.
and the decrease 10 circHl don secured BY
United States bonds, was $5,24S,5a9. At the last
report the gross deposits OF these banks. includ-
ing amounts due the banks, Was $2,023 500, 067.
and loans and discounts, $3.50 OF. 6S7. Both
these items show great increase over any pre-
vious report.
The comptroller again calls attention to the
fact that the issue of circulating notes has be-
come unremunerative on account of the high
premium commanded BY federal bond4 and he
renews the Recommendation that the obligatory
deposit OF bonds be reduced. and that the circu-
lation issue0 be equal In amount to the par
value of the bonds pledged. The passage OF the
bill TO this effect. now pending in both houses,
would ct once increase the volume Of paper
money By about t110oo000. which would. In .
marked degree relieve the present
monetary ssringency. New associations cOuld
form mere rapidly without advancing the pre-
MUM on bonds necessarily purchased by the
secretary OF the treasury for ihs sinking fund.
The passage Of he act providing for the pun.
chase of silver bullion il considered BY the
comptroller AZ tantamount to declaration that
national banks will not be called upon TO furnish
additional circulation evidently needed, AID
the discussion of measures providing for the en-.
tension and preparation Of note Issues based
upon some new form Of security II deemed mop
perfume.
An exhaustive statement of the proportion of
coin. paper money, etc. used In banking opera
lions in 1850 shows an increase In money equal
to g per cent, which 10 deemed significant
when Conaidered In connection with the present
apparent insufficIency in the amonnt Of coin
and paper currency in circulation. The comp
troiler says the evident lack Of currency II
greatly agaravated by the retirement of the ma
tional bank notes, which form Of paper money
alone possess that elastic properly 20 essential
to perfect circulation. All money Issued direct
BY the government Il necessarily non-slaatc.
BY reason Of being In all cases available for the
ana In most cases possessing the legal tender
quality.
The comptroller says that II rapid exteuyion 10
IL more favorably regarded than heretofore,
tended By more than IN average degree Of sue