Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1890-11-25
Annual Report on their Condition by the
Comptroller of Currency.

Annual Report on their Condition by the
Comptroller of Currency.
WASHINGTON, November 24th.-The an
nnsl report of Comptroller of Currency
Lacy covers the operations OF the Bureau
for the twelve months ending October 3lst.
During this period 307 new banking asso-
Citations have been organized, so have gone
into liquidation ard nine were placed in
the hands of receivers, net increase of
24S, constituting larger growth than for
anv similar period since 1865.
The number of active banks October 31st
was 1857. These banks have in capital
stock 1868, 49,, $50; bonds deposited to Sc
cure circulation, $40, 10000, and bank
netes outstanding, $l79. 755,6 42, including
S54, 796 907 represented by lawful money
deposited to redeem the circulation still
outstanding.
The gross decrease in circulation during
the year, including notes of gold banks
and failed and liquidating associations,
was S22, 267, 772, and the decrease in circu-
lation secured by United States bonds,
So, 24S. $40.
At the last report the gross deposits of
these banks, including interest due to banks,
was 81 023, SOP ,067; loans and discounts,
81, 970022, 6S7. Both of these items show
great increase over any previous report.
The Comptroller again calls attention to
the fact that the issue OF circulating notes
has become unremunerative on account OF
the high premium commanded by Federal
bonds. He renews the recommendation
that the obligatory deposit of bonds be re-
duced; circulation issued equal in amount
TO the par value of the bonds pledged, and
the semi-annual duty fixed at one-fouIth
of ore per cent. per annum. The passage
of the bill to this effect now pending in
both houses, would at once increase the
volume of paper money by about s15,00O,-
600, which would in a marked degree re-
lieve the present monetary stringency.
New associations could form more rapidly
without advancing the premium on bonds
necessarily purchased 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 tantamount to dec
laration that the National Banks will no;
be called upon to furnish the additional
circulation evidently needed, and the dis
cussion of the measures providing for the
extension and perpetuation of note issues,
based upon some new form Of security Is
deemed inopportune.
An exhaustive statement of the proper
ton OF coin, paper money, ETC., used in
banking operations in 1881 and 1880 shows
an increase in money equal to 6S per cent,
which is deemed significant, when consid-
cred in connection with the present appar-
ent insufficiency in amount of coin and
paper money in circulation.
The Comptroller says il is evident that
the 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 in perfect
circulation. All money issued direct by
the Government is necessarily non-elastic,
by reason of its being in all cases available
for the lawful money reserve OF the ma
tional banks, and in most cases possessing
legal-tender quality.
The Comptroller says that if the rapid
extension is a correct criterion, the national
banking system is more favorably regarded
than heretofore, and the transactions of the
year have been attended by more than the
average degree of success.