, 1890-11-27
WE NEED MORE MONEY
Report of the Comptroller OF
the Treasury.
A DECREASE IN CIRCULATION
The Stringenoy Greatly Aggravat-
cd by the Retirement OF Ma
tional Bank Notes.

WAsuIseToS, Nov. 2i.--The annual
report OF Comptroller of Currency Lacey
covers the operations of the bureau for
the twelve months ending October 81.
During this period 307 new banking
associations were organized and hlty
have gone into voluntary liquidation
and been placed in the hands OF re-
ceivers, q net increase of 24s, consutut-
ing n larger growth than any hmi lar
period since 1865.
The number of active banks October
81 was 3, 567. These banks have in cap.
ital stock 1859, 7S2, s65; bonds deposited
to secure circulation, $40, 100, 800, and
bank notes outstanding, sl79, 100, ,6A3,
including S5i, 793, 0O7 represented by law.
ful money deposited to redeem circula-
ton still outstanding.
The gross decrease Of circulation dur
ing the year, including notes of gold,
banks that have failed and liquidating
associations. was s22, 267,772 and the de-
crease of circulation secured by United
States bonds, IS, 24S, $40.
At the last report the gross deposits OF
these banks including amounts due the
bauks, was So o23, 502, ,O67; loans and dis
counts, 1890 ,o22 6s7.
Both OF these items show n great in
crease over any previous reports.
The comptroller again calls attention
to the fact that the issue of circulating
notes becomes unremunerative on ac'
count Of the high premium commanded
by federal bonds.
He renews the recommendation that
the obligatory deposits OF bonds be re-
duced and circulation issued equal In
amount to the par value of bonds
pledged and semi-annually fixed at one.
fourth of one per cent. per annum.
The passage of the bill to this effect
now pending before both houses would
at once increase the volume of pa
per moneysby about SIS 600 900, which
would, IN a marked degree, relieve the
present monetary stringency. New as
sociations could form more rapidly with.
out advancing premiums on bonds nee
essarily purchased by the secretary of
the treasury for the sinking fund.
The passage OF an act providing for
the purchase of silver bullion Is consid-
cred by the comptroller tantamount to a
declaration that national banks can not
be called upon to furnish the additional
circulation evidently needed, and n dis
cussion OF measures providing for the
eSlctsloH anu peTIpetuhtiou VI nOlc
issues based upon some new form of Sc.
curity is deemed advisable.
An exhaustive statement of the pro-
portion OF coin, paper money, etc., used
in banking operations in 1881 and
1890 shows an increase OF money
equal to 68 per cent, which Is
deemed Insignificant when considered
in connection with the present apparent
insuifciency in the amount of coin and
paper currency in circulation,
The comptroller says IL Is evident the
lack or currency is greatly aggravated by
the retirement of national bank notes,
which form of paper money alone pos
sesses that elastic property so essential
in perfect circulation. All money issued
directly by the govern ment is necessarily
'on-elastic, by reason of being, in all
cases, available for the lawful money re.
serves of the national banks, and in
most cases possessing legal tender
quality.
The comptroller says If rapid extern
sion Is the correct criterion, the national
hiking system is more favoraby re.
garded than heretofore, and the trans
actions of the year have been attended
with more than an average degree of
success.