The Globe-republican. [volume] (Dodge City, Kan.) 1889-1910, 1890-12-03
NATIONAL BANKS.
Report Of the Comptroller Of the Cuffeacy
business of the National Banks.

| NATIONAL BANKS.
Report Of the Comptroller Of the culrese.
business of the National Banks.
WASHINGTON. Nov. 26-The annual repor
of MIR. Lacey. Comptroller of the Currency
! contains full information in reference Il
the affairs OF National banks and covers tht
operations of the bureau for the tweiv'
months ended October 81, 1891 During enl'
period 800 new associations have been OF
ganized, fifty having gone into voluntary
liquid alton and nine having been placed u
the hands of receivers. The net increase II
24s constituting larger growth than dur
ing any similar period since 1865 The mum
Der of active banks on October 81. 1880. was
ss65. which is an increase over any previ'
Gus date These banks have in capital sfocs
1853 7s2,ss, bonds deposited to secure circu'
la.ion $40 1870 go and bank notss outstand'
ing SIG 75564s. incleding $54 1887 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 ST., PSI, III, and the decrease in circula'
ton secured by United states bonds was
s5,2s,5sa October 2. 1890, the date of the
last report OF condition. 3,54o banks were
open for business These as oc.ations re.
port IN aggregate capital of $50, 4f.235. eur.
OOS 636. Gross deposits, including amounts
due banks. are stated at s2.02s so. ,067 and
loans and discounts 81, $40, 0!2 Ss7. an increase
on each of these items over any previous
date They had $l95. 1853 in specie. $780,
co., 73l in legal tender notes, SIS, 1872 in
National bank notes and Sc. Isl. 900 in United
States certificates of deposit Accessions to
the system have been most numerous In the
States west of the Mississippi river, Texas
vrrtf ci ~ n -
associations, followed in the order named
by Pennsylvania with twenty sewn, Mis-
souri, with twenty. Nebraska with nineteen
and Washington with eighteen.
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 the bonds
of the United States, and renews his recon-
men dations of last year that the obligatory
deposit of bonds be reduced: that circula-
ton be issued equal in amount to the par
value OF the bonds pledged, and that semi
annual duty thereon be fixed at ne-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
obligatory 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
S., OOO, 900 per month. The volume of paper
money would be at once increased by about
SIS 0oO. 900. which would in a marked degree
relieve the present monetary strinxency.
New associations could form more rapidly
without advancing the premium on bonds
necessarily purchased by the Secretary of
the Treasury for the sink ing fund.
The passing of the act providing for the
purchase of silver bullion is considered by
the Comptroller tantamo unit TO 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 pr. viding for the xtension 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 nal banking asso-
Citations
Reports received and tabulated show that
drafts were drawn by 1929 National banks
upon their correspondents during the year
ended June 30. 1890, aggregatinq S11, $50 s9s,
255, at an average cost to the purchaser of
Sig 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
An estimate of the amount of drafts drawn
by other banks and bankers is also submit
ted from wht h it would aprear that the do
NEST tic exchange drawn by banking institu-
lions in the United States during the last
fisc al year aggregated s17927, 524,76O
The Comptroller has obtained and pub
lished returns exhibiting the proportion of
coin, paper money. checks and drafts us'd
in bank ing operations, as. shown by detailed
6 q of ho int pf ho Nnf nj
on July l and September H.
1897. For the first date reports were re-
ceivcd from 1854 National banks. Their to-
tai receipts on that dar were $421, s24726 OF
this sum So 7266D was in gold coin, ST. 52.6.7
in silver coin. Sc 4a7,9.3 in gold treasury Ger
tificates, s., 1926 in silver treasury certifi-
Gates, s7,SSl,7s6 in legal tender treasury
notes, S, IA 96i in national bank notes, $780,
000 in United States Ger. iticates of deposit
for legal tender notes. SlS9. 497, 70S in checks,
drafts, certificates of deposits and bills of
exchange, 81 3Jl,l77 in clearing house and
81. 1885, %. in miscellaneous items. OF the to-
tai receipts 80 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 347A
National banks for September Ii. 1880, is
stated at s3!7,27S,25i, of W ich com
and paper money const tuted S95
per cent. and checks. drafts, etc.,
91.04 per cent The Comptroller states
that the falling If in total receipts on tt
latter date is due to the severe stringancy
in the money market then prevailing sim.
lar statistics were procured In 1851 A COM
parison shows that a larger proporti, n of
ccin and papermoney entered into banking
operations in 1899 tidn in 1884, These pr.
for the two days in 1881 are OF
and 4.9l respec lively; in 1890 for similar
date, $50 anu 9o per centum. The increased
use of money in banking operations her
shown is equal to IS per ceat, and is deemed
sufficient when considered in connection.
with the apparent inSufiiciency in the
amount Of coin and paper money in circula
ton. 1t s suggested in explanation that q
great change has taken place dur ng the
past nine years in the m tier of CREDITS and
that all commo tiles are now SOL on shorter
time and to a much largef extent for cash
than formerly.
The Comptroller 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 National bank notes,
IN .,l, So