, 1890-11-25

WASHINGTON, Nov. 24-The annual
report of Comptroller of the Currency
Lacey covers the operations OF the bureau
during the twelve months ending Oct. 81.
During this period 307 new banking asso-
Citations were organized, fifty went into
voluntary liquidation. and nine were
placed in the hands of receivers, net in
crense 24S. constituting a larger growth
than for any similar period since 1865.
The number of active banks on Oct. 81
was 1867. These banks have in capital
stock. 1863, 1872, sos; bonds deposited to
secure circulation, $40, 100, 900; and bank
notes outstanding, $l79, 755, 643, includ-
ing $54, 796, 907 represented by lawful
money deposited to redeem circulation
still outstanding. The gross decrease in
circulation during the year, including the
notes of gold banks and failed and hquI
dating associations. was so. 26T, 772, and
the decrease of circulation secured by
United States bonds, IS. PAS, $40 At the
last report the gross deposits OF these
banks. including amour due banks. was
81. O23, 500. 067; loans and discounts, ST.
970. 022, 6S7. Both OF these items show a
great increase over any previous report.
The comptroller again calls attention 10
the TACT that the issue of circulating notes
mas become unremuneIative on account
of the high premium commanded by fed
eral bonds; renews the recommendation
that the obligatory deposit of bonds be
reduced; that the circulation issued equal
in amount the par value of the bonds
pledged, and a %semi-anuual duty be fixed
of one fourth of per cent per annum. The
passage of the bills to this effect now pend
ing in both houses would at once increase
the volume OF paper money by about
SIS, 900, 000, which would In a marked de-
gree relieve the present strngency. New
associations could form more rapidly with
out advancing the premium or the bonds
necessarily purchased by the secretary of
the treasury tor the sinking fund.
The passage OF the act providing for
the purchase of silver bullion is considered
by the comptroller tantamount to a
declaration that the national banks will
not be called upon to furnish the ad-
ditional circulation evidently needed. and
the discussion OF measures providing for
the extension and perpetuation of note
issues based upon some new form of
security is deemed Inopportune. The ex-
haustiye statement of the proportion of
coin, paper money, etc, used in banking
operations in 1881 and 1890 shows an
increase of money equal to 6S per cent,
which is deemed significant when con-
sidered in connection with the present
apparent msufieiency in the amount Of
coin and paper money in circulation.
The comptroller saws the evident lack
of currency greatly %agrayates the retire
ment of national bank notes, which form
Of paper money alone possesses that
elastic property so essential in a perfect
circulation. All money issued direct by
the government is necessarily non-elastic
by reason of being in all cases available
for lawful money, reserve OF national
banks, and in most cases possessing legal
tender quality.
The comptroller says that il rapid ex.
tension is a correct criterion, the national
banking system is more favorably regard
ed than heretofore, and the transactions
of the year have been attended by more
than average degree OF success.