The morning call., 1890-11-25
Report Of the Comptroller Of
Currency.
Highly Satisfactory Showing for the Past
Twelve Months.
Congressman Mills Of Texas DESTROYS Of
Succeeding Reagan in the United
States Senate.
Special to THE MORNING CALI.

WASHINGTON. Nov. 24.-The annual re-
port Of Comptroller of Currency Lacey
covers the operations of that bureau for the
twelve months ending October 31st. During
this period 307 new banking associations
have been organized, fifty have gone into
voluntary liquidation and nine placed in
the hands of receivers, q net increase Of 24s,
constituting larger growth than for any
similar period since 1865 The number of
active banks ON October 31st was 1867.
These banks have in capital stock S659, 7S2,
s65; bonds deposited to secure circulation,
$40, 10000; and bank notes outstanding,
SITS, 155,643. including S54, ,796.907 repre-
sented by lawful money deposited to redeem
the circulation still outstanding.
The gross decrease Of circulation during
the year, including notes of gold banks and
failed and liquidatng associations, was
81, ,26I,772 and the decrease of circulation
secured by United States bonds 95,24S, 549.
AT the last reports the gross deposits of
these banks, including amounts due the
banks, were 81 500, ,067; loans and dis
counts, $1,9I0, o22, ,6S7. Both of these items
show great increase over any previous re-
port.
The Comptroller again calls attention to
the fact that the issue of circulating notes
has become uuremuneratiye on account OF
the high premium commanded by Federal
bonds, and renews the recommendation that
the obligatory deposit of bonds be reduced
a circulation issued equal in amount 10 the
par value of the tOnds pledged and semi
annual duty fixed of one-f0urth of per cent
per annum. The passage OF the bill to this
effect now pending in 10th Houses would at
once increase tie volume of paper money by
about Sl5, coo, COO, which would, in marked
degree, relieve the present monetary strin-
gency. New associations could form more
rapidly without advancing the premium on
bonds necessarily purchased by the Secre-
tary of the Treasury for the Sinking Fund
The passage OF the act providing for the
purchase of silver bullion is considered by
the Comptroller as tantam0uDt to declara-
ton that national banks will not be called
upon to furnish the additional circulation
which is evidently needed, and the discussion
of measure providing fJr the extension
and perpetuation Of note issues based upon
some new form Of security is deemed in0p-
perfume.
An exhaustive statement of the proportion
of coin, paper money, etc, used in banking
operations in 1889 and 1890 shows an increase
in money equal TO 6S per cent, which is
deemed significant when considered in con-
nection with the apparent insufhciency In
the amount Of coin and paper money in cir
culation. The Comptroller says the evident
lack OF currency is greatly aggravated by
the retirement of national bank notes,
which form OF paper money alone possesses
that elastic property SO essential III perfect
circulation. All the money issued direct
by the Government is necessarily nom
elastic by reason of its being in all cases
available for lawful money, and in most
cases possessing legaltender quality. The
Comptroller says if rapid extension is a
correct criterion, the national banking sys-
tenn is more favorable regarded than hereto
fore, and the transactions Of the year have
been attended by more than an average de-
oraa Of supress