The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1890-11-25
STATEOF THECURRENCY
The Comptroller Submits His Annual
Report.
UNCLE SANS READY MONEY
recommendations as TO Ways OF
Increasing the Circulating Me-
dlum So as to Prevent Strin-
gency In Wall Street

WASHINGTON, Nov. 2i.-Ths annual re-
port OF ofComptroler of the Currency Lacey
covers the operations Of the bureau for
twelve months ending October 81. During
this period B1 new banking associations
were organized. The net increase IL 2ls.
constituting lager growth than any
similar period since 1855. The number Of
active banks on October 81, was SSS7.
These banks have in capital stock, $751;
'o2,otS, bonds deposited 10 secure circula-
ton, SIN, 0,lD,s0 and bank notes outstand-
ing, sEs7SS,6l2, including sSi,7s6, ,sC7
represented by lawful money deposited 10
redeem the circulation still outstanding.
The gross decrease OF circulation
during the year including notes Of
closed banks and failed and liqui-
dating associations, was 81, 2,S7,-
az, and the decreased circulation
secured by United States bonds, s5,2ts,-
$40. AT the last report the gross deposits
OF the banks, including amounts due
banks was s2023, 5f,2. .067, loans and dis
counts sl,s70Gg2.6s7. Both these items
show great increase over any previous
report. The comptroller again calls at
teniion to the fact that the issue of circu-
lating notes has become unremuuerative
on account Of the high premium COM
manded by federal bonds. He reuews
recommendation that obligatory deposit
OF bonds be reduced; that the circulation
issued be equaliD amount to the par value
OF the bonds pledged and the semi annual
duty be fixed at one fourth Of one per cent
per annum. The passage Of bill to this
effect no. pending in both houses would
at once increase the volume OF paper
money by about sl5,000OO0 which would
in marked degree relieve the present
monetary stringency.
New associations could form more
rapidly without advancing the premium
or 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 consid-
cred by the comptroller 10 amount 10 a
declaration that the national banks will
not he called upon 10 furnish any add-
tional circulation evidently needed and
the discussion Of measures providing for
the extension and perpetuation OF note
tSne'e- ~ psss"i hpoh cosffr NV Ui
security. is deemed inopportune.
An exhaustive statement Of the propor-
ton OF coin, paper money, ETC., used in
banking operations in 1859 and
ls9o shows an increase Of money
equal 10 6s per cent which
Is deemed significant when considered
IN connection with the present apparent
insuiiiciency in the amount Of coin aud
paper currency in circulation. The
comptroller says the evident lack Of cur
rency is greatly aggravated by the retire
ment Of national bank notes, which form
OF paper money alone possesses that elias
tic property so essential 10 perfect cir
culation. All money issued direct by the
government is necessarily non-elastic, by
reason Of being in all cases available for
lawful money and in most cases possess
ing the legal tender quality. The comp
troller says II the rapid extension is cor
rect criterion, the national banking sys-
tenn is more favorably regarded than
heretofore, and the transactions OF the
year have been attended by more than
the average degree Of success.