The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1890-12-05
NATIONAL BANKS.
Report of the Comptroller of the Currency
business of the National Banks.


business Of the National Banks.
WASHINGTON. Nov. 26-The annual report
of MIR. 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 307 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 In
PAS, constituting a larger growth than dur
ing any similar period since 1863 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
1859 7s2.ss5, bonds deposited to secure circu-
lation $40 le0 9 o. and bank notes outstand-
ing SI19 5.s43, incleding s5i, 1897 repre-
scented by lawful money deposited TO re-
deem circula alton still outstanding The
gross decrease in circulation during the
year, Including notes of gold banks and
those Of failed and liquidating associations,
was 81, 267, al, and the decrease in circula-
tion secured by United states bonds was
s5,2Is,5i9. October 2 1890, the date OF the
last report of condition. g. $40 banks were
open for business These associations re-
port an aggregate capital of $50, ~, 2s5. sur
plus s2is ,se5 and undivided profits ss7,.
,636 Gross deposits, including amounts
due banks, are stated ct s2,0235J1,O67 and
loans and discount Is 81 ,910,Oa26sT. an increase
on each of these items over any previous
date. They had s1e5. sns, $50 In specie, $780,
eoL7sl In legal tender notes. ls,i9A,s92 in
National bank notes and Sc. I55, 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 Mis-
souri, with twenty, Nebraska with nineteen
and WashiuptOn with eighteen.
The Comptroller again calls attention &c
| 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-
mendations of last year. that the obligatory
| deposit of bonds be reduced: that circula-
| tion 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. II passed It would reduce the
obligatory deposits of bonds to 1900 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 10
| S. oO0, 900 per month. The volume of paper
money would be at once increased by about
| SIS, 100000 which would in marked degree
relieve the present monetary strinRency.
| 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 passing of the act providing for the
| purchase Of silver bullion is considered by
| the Comptroller tsntamount to declara-
\ tion that the National banks will not be
| called upon to furnish the additional circu-
| lation urgently needed, and the discussion
a TO- arfo air 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 $3.50 National banks
| upon their correspondents during the year
| ended June 30 1890, aggregating 81. $50 sea-
! 255, at an average cost to the purchaser OF
| sps cents premium on each 500. being
about one twelfth of one per cent. A 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 tue do
! nestle exchange drawn by banking institu-
| lions in the United states during the last
/ fiscal year aggregated 1892, 524,7 60
| The Comptroller has obtained and pub
lished returns exhibiting the proportion of
| coin, paper money. checks and drafts used
| in banking operations, as shown by detailed
| statements CT the receipts Of the National
| associations on July / and September IL,
| 1897. For the first date reports were re-
| ceived from 1891 National banks Their to-
| tai receipts on that day were SAILS OF
this sum So 726 SIS was in gold coin, s., S52.6I7
in silver coin, Sc 4l7,sIS in gold treasury GER
| tificates, SS,4426 in silver treasury certif-
! Gates, s7,SSl,7s6 in legal tender treasury
notes, s, 244 967 in national bank notes, $780,
| OOO in United States certificates of deposit
| for legal tender notes S1S9 t07, 10s in checks,
drafts, certificates of deposits and bills of
| exchange, 81 39l,l77 in clearing house and
| 81 ISS 02g in miscellaneous items. of the to-
| tai receipts 80 per cent consisted of coin
| and paper money, and the remainder 90 SO
per cent in checks, drafts and other substi-
| tutes for money. The total receipts of 8, 474
| National banks for September II. 1890, Is
stated at S3G7,27s,25l, of which coin
and paper money constituted s9S
rer cent. and checks, drafts, etc,
| that the falling # in total receipts on the
| latter date is due to the severe strlngency
! in the money market then prevailing SINH
| lar statistics were procured In ISL A COM
| parison shows that a larger proportion of
| coin and paper money entered into banking
I
| centages for the two days in 1851 are OF
| and 4.9l respectively; In 1890. for a similar
| date, $50 and S eS per centuIn. 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 insuficiency in the
| amount of coin and papt money in circula
\ ton. 1t IS suggested in explanation that a
| great change has taken place during the
past nine years in the m tier of credits, and
! that all commo Iities are now soil on shorter
/ time and to a much larger 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,
| which form OF paper money alone Possesses
| that elastic property so essential in a circu-
| Iation All money issued directly by the
| Government, whether of coin or paper, is
| necessarily non elastic by reason OF its
| being in all cash available for the lawful
| money reserve of National banks and in
| ost cases 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 fsvorably regard
| ed than heretofore and that the traDsac-
| lions of the year have been attended by a
more than average degree of success; the
| sto kholders have, as a rule, received salts
| factory div icends and the people at large
have been faithfully and economically
| served and that as banks OF discount and
deposit the associations belonging to The
National system have, taken a whole,
merited the high commendation Of unpreiu-