Evening star. [volume] (Washington, D.C.) 1854-1972, 1890-11-25
THE NATIONAL BANKS.
Interesting Facts in the Report Of the Con-
troller Of the Currency.

| troller Of the Currency.
The controller Of the currency, Col. Lacey,
in his annual report says: Three hundred and
seven new associations have been organized,
90 have gone into voluntary liquidation and 9
have been placed in the hands Of receivers in
the year ended October 81. 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 1857,
which is an increase over any previous date.
These banks have in capital stock $3.50 782, S65,
bonds deposited to secure circulation a140. 1OO,-
800 and bank notes outstanding s17s, 755, 643,
| including S54, 796. 907 represented by lawful
money deposited to redeem circulation still
| outstanding. The gross decrease in circula-
tion during the year, including notes Of good
banks and those Of failed and liquidating
associations was S22, 267. 772 and the decrease in
circulation, secured by United States bonds,
was $5,24s, SAG.
On October 2, 1890, the date Of the last re-
port OF condition, $40 banks were open for
! business.
Accessions to the system have been most nu-
merous in the states west of the Mississippi
river, Texas being the most prominent, with c.
new associations, followed in the order named
by Pennsylvania, with "a, Missouri with 20,
Nebraska, with 19, and Washington with IS.
The controller again calls attention to the
fact that the issue OF circulating notes has be-
come unremunerative on account of the high
premium commanded 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, ard that semi-annual duty thereon be
hxed at one-fourth of one per centum per an
num- The passage Of the bill reported to the
S senate by Mr.. Sherman and now pending in
both houses is recommended. II passed il would
reduce the obligatory deposit Of bonds to 81 900
Tor each association, with reference 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 $1,000. 900 per
month. The volume of paper money would be
at once increased by about S15OOOOOO which
would in a marked degree relieve tho present
monetary stringency. New associations could
premium on bonds necessarily purchased by
the Secretary Of the Treasury for the sinking
fund.
The passage of the act providing for tho pur-
chase OF silver bullion is considered by the con-
troller tantamount to a declaration that the
national banks will not be called upon to
furnish the additional circulation evidently
needed, and the discussion Of measures pro-
viding for the extension and perpetuation
OF note issues based upon some new form of
that Congress provide for the semi-annual pub
iicatlon OF the detailed reports 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 commodities are now
sold on shorter time and to a much larger ex-
tent fer cash than formerly.
The controller expresses the opinion that the
evident lack of currency necessary to the
proper conduct Of business during the past few
months is greatly aggravated by the retirement
OF the national bank notes, which form Of
paper money alone possesses that elastic prop
erty so essential in a perfect circulation.
All money issued directly by the government,
whether OF coin or paper. IL necessarily nom
elastic by reason of its being in all cases avaia-
BILE for the lawful money reserve Of national
banks, and in most cases possessing the legal
tender quality.
The controller says aside from the right to
issue circulating notes the banking system is, if
Its rapid extension is a correct criterion more
favorably regarded than heretofore. and that
the transactions of the year have been attended
by more than average degree of success: that
stockholders have rule received satisfac-
tory dividends; that the people at large have
been faithfully and economically served. and
that as banks of discount and deposit the asso-
CITATIONS belonging to the national system have
taken as a whole merited the high commcnda-
ton of unDreiudiced observers