Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1890-12-04
NATIONAL BANKS.
Report of the Comptroller Of the Currency
-Business of the National Banks.


Business of the National Banks.
WARRINGTON. Nov. 26-The annual report
of Mr. Lacey, Comptroller of the Currency,
contains full information in reference to
the affairs of National banks and covers the
operations of the bureau for the twelve
months ended October 81. 1891 During this
period 31 new associations have been or.
ganized, fifty having gone into voluntary
liquidation and nine having been placed in
the hands of receivers. The net increase fs
z4S, constituting a larger growth than dur
Ing any similar period since 1855. The num-
Der OF active banks on October 81, 1890, was
1865, which Is an increase over any previ-
Gus date These banks have in capital stock
1853 7s2.sS5, bonds deposited to secure circu.
lation $40 100 go, and bank notes outstand-
ing sl79 755.e4s. incleding s54.79S9.7 repre-
sented by lawful money deposited to re.
deem circulation still outstanding. The
gross decrease in circulation during the
year, including notes OF gold banks and
those of failed and liquidating associations,
was s2l ,267.77I, and the decrease in circula.
ton secured by United states bonds was
s5.2is,5i9. October 2. 1890, the date of the
last report of condition. $40 banks were
open for business These as -ocations re-
port an aggregate capital of $3.50, ~, 235, sur
plus s213 503.s 95 and undivided profits .97,-
006,636. Gross deposits, including amounts
due banks. stated at So, O2s, sd, o67 and
loans and discounts 81 ,97G, 022 6s7. in crease
on each of these items over any previous
date They had s195. 9ns s69 in specie, $780,
60+751 in legal tender notes. SIS, 1892 in
National bank notes and Sc. 155 600 in United
States certificates of deposit. Accessions to
the system have been most numerous in the
States west of the Mississippi river, Texas
being most prominent with sixty three new
associations, followed in The order named
by Pennsylvania with twenty seven, Mis-
souri, with twenty. Nebraska with nineteen
and Washington with eighteen.
The Comptroller again calls attention tc
the fact that the issue of circulating notes
has become unremun erative account OF
the high nremium commanded nv he bonds
of the United States, and renews his recon-
mendations of last year that the obligatory
deposit of bonds be reduced; that circuia-
ton be issued equal in amount to the par
value of the bonds pledged, and that semi
annual duty thereon be fixed at one fourth
Of per cent. per annum. The passage of
the bill reported to the Senate by Mr. Sher-
man and now pending in both houses is rec
commended. If passed it would reduce the
obi igatory deposits Of bonds to 81 900 for
each association. with reference to the
amount of its capital and increase the issue
OF the circulating notes to 100 per cent. of
the bonds pledged for their redemption.
The withdrawal of bonds will be limited to
81, 600 900 per month. The volume of paper
money would be at once increased by about
SIS 100000. which would in a marked degree
relieve the present mon etary strinRency.
New associations could form more rapidly
without advancing the premium on bonds
necessarily purchased by the Secretary OF
the Treasury for the sinkin fund.
The passing Of the act providing for the
purchase of silver bullion is considered by
the Comptroller tantamount to a declara-
ton that the National banks will not be
called upon to furnish the additi nal circu-
lation urgently needed, and the discussion
of measures providing for the exten sion and
perpetuation of note issues based upon
some new form of security is deemed mop
perfume. He also asks that Congress pro-
vide for the semi annual publication Of the
detailed reports of National banking asso-
Citations.
Reports received and tabulated show that
drafts were drawn by 1929 National banks
upon their correspondents during the year
ended June 80, 1890. aggregating Sill $50. $685.
255, at an average cost to the purchaser OF
Sla cents premium on each 500. being
about one twelfth of one per cent. COM
parison is made with conditions existing
prior to the establishment of the National
system when one per centum was the aver
age rate of premium on domestic exchange
An estimate of the amount OF drafts drawn
| by other banks and bankers Is also submit
| ted from which it would appear that the do.
| nestle exchange drawn by banking institu-
! lions in the United States during the last
| hsca al year aggregated $17. 927, 524, 100
The Comptroller has obtained and pub
| lished returns exhibiting the proportion of
coin, paper money, checks and drafts used
| in bank ing operations, as shown by detaie ed
statements of the receipts of the National
| associations July l and September II,
| 1897. For the first date reports were re-
| ceived from 1854 National banks. Their to-
| tat recelptS on that Udy were S4E1,olf.tEO VI
this sum So, 726 Cos in gold coin, SI,352.6i7
in silver coin, Sc, 973 in gold treasury GER
| tficates, SS,442,6 in silver treasury certifi-
| Gates, 81, s., 7S6 in legal tender treasury
notes, S. PA 967 in national bank notes, $780,
| 600 in United States certificates of deposit
for legal tender notes. S1S9 407, 70S in checks,
drafts, certificates of deposits and bills of
| exchange, 81 391, III in clearing house and
| 81. 1873 %: in miscellaneous items. OF the to-
| tai receipts $50 per cent consisted of coin
| and paper money, and the remainder 81. so
| per cent. in checks. drafts and other substi-
tutes for money. The total receipts of ,47a
stated at s3!7.27S,25I, of which coin
| and paper money const tuted SO
per cent. and checks. drafts ETC..
| 9l.OA per cent The Comptroller states
| that the falling IF in total receipts on tn e
| latter date is due to the severe stringancy
! in the money market then prevailing. SINH
| lar statistics were procured in 1881 COM
| pariSon shows that a larger proportion OF
| coin and paper money entered into banking
! operations in 1899 than in 1881 These per-
| centages for the two days in 1881 are OF
| and 4.9I respectively; in 1890, for similar
| date, $50 ana So per centum. The increased
| use of money in banking operations here
| shown is equal to IS per cent. and is deemed
| sufficient. when considered in connection
| with the apparent insufficiency in the
amount of coin and pap, money in circula
| ton. 1t suggested in explanation that q
| great change has taken place during the
past nine years in the m; tier of credits, an
that all commo tiles now sol shorter
| time and to a much larger extent for cash
| than formerly
| The Comptroller expresses the opinion
| that he evident lack of currency necessary
| to the proper conduct of business during
| the past few months is greatly aggravated
| by the retirement of National bank notes
| which form of paper money alone possesses
| that elastic property essential in q circu
| lation All money issued directly by the
! Government, whether of coin or paper, Is
| necessarily on-eiastc by reason OF its
being in all cash available for the lawful
| money reserve of National banks and in
ost possessing the legal tender
] quality.
The Comptroller says aside from the right
| to issue circulating notes, the National
| banking system is, if its rapid extension is
| a correct criterion, more favorably regard
| ed than heretofore and that the trausac
tions of the year have been attended by q
| more than average degree OF success; the
| stOo khOlderS have, as rule, received salts
| factory dividends and The people at large
| have been faithfully and economically
| served and that AS banks of discount anC
| deposit the associations belonging to The
| National system have, taken as whole
| merted the high commentator of unpreju-
| diced observers.
The Brazilian Fleet.
NEW YORK, Nov. 26.-The Brazilian
feet consisting of the ironclad Aquid
aban, Rear Admiral Carlos Il. De Sill
\ viara and UOoHon obor