The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1890-11-25
CURRENCY SUPPLY.
Comptroller of the Currency
Lacey's Annual Report.
DECREASE OF CIRCULATION.
The National Bank Question-PrOportion of
Coin to Paper Money-The Lighthouse
Boards Report.

WASHINGTON, Nov. 24.-The annual re-
port of Comptroller of the Currency Lacey
covers the operations of the bureau for the
twelve months ending October 81. During
this period 309 new banking associations
were organized and fifty have gone into
voluntary liquidation and nine placed in
the hands ofreceivers, a net increase of 24S,
constituting larger growth than any sim
liar period since 1865. The number of &C
tive banks October 81, was 1867. These
banks have capital stock of 1863 1o2 ,S65.
Bonds deposited to secure circulation,
$40, 10000, and bank notes outstanding,
$40, 80, CAB, including $50, 796907 repre-
sented by lawful money deposited to re
deem circulation still outstanding.
The gross decrease of circulation during
the year, including notes of gold banks and
failed and liquidated associations, was
81, l61, l12, and the decrease of circulation
secured oy United States bonds So, 2iS, 549
AT the last report the gross deposits of
these banks, including amounts due banks,
was S2.O23, 500, 067; loans and discounts,
Sl91 ,O22, 6S1. Both of these items show a
great increase over any previous report.
Inc comptroller again calls attention to
the fact that the issue of circulating notes
AieIo OCSSLiS ull Oh dCCOuQU Ol
the nigh premiums commanded by federal
bonds. He renews the recommendation
that the obligatory deposit of bonds be re-
duced, that circulation be Issued equal in
amount to the par value of the
bonds pledged, and semi-annually
fixed at one-fourth OF per
cent. per annum. The passage
OF the bill to this effect now pending in
both houses, would at once increase the
of nv
million dollars, which would in marked
degree relieve the present monetary
strlngency. New associations could form
more rapidly without advancing the
premium on bonds necessarily pure hased
by the secretary of the treasury for the
sinking fund.
The passage OF the act providing for the
purchase OF silver bullion is considered by
the comptroller.
He makes the declaration that the ma
tional banks should not be called upon to
furnish the additional circulation evidently
needed, and discusses measures providing
Tor the extension and perpetuation of note
issues, b ased upon some new form of Sc
curity.
An exhaustive statement of the proper.
ton OF coin to paper money, ETC., used IN
banking operations in 1881 and 1890 shows
an increase of money equal to IS per cent
hliASA~ 10 oOSAAiCu lilhSdHG WutH COu
sldered in connection with the present APP
parent insufficiency in the amount of coin
and paper currency. The comptroller says
the evident lack of currency is greatly
aggravated by the retirement of national
bank notes which form of paper money
also possesses that elastic property so es
sential in perfect circulation. All money
issued direct by the government is neces
sarily non elastic by reason of being In al
| nj 70
serve of national banks and in most cases
possessing the legal tender quality. The
comptroller says if this rapid extension il
correct, criterion in the national banking
system is more favorably regarded thar
| heretofore and the transactions of the veal
been attended by more than an average de
gree of success.