St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-11-25
The Silver Act Declared Ad-
verse to the Issue of
Bank Notes,
Which, With the High Pre-
MUM of Bonds initiates
Against Them.


80 have gone into voluntary liquidation,
and nine have been placed i'll the hands
of receivers. The net increase Is 24S,
constituting larger growth than dur
ing any similar period since 1865. The
number of active banks on Oct. 81, 1890,
was 1867, which is an increase over any
previous date. These banks have in
capital stock, S659. 7S2, S55; bonds depOS-
tied to secure circulation, S140. $780, 800;
and bank notes outstanding S179, 755, 643,
including $54, 796. 907, represented by law
full money deposited to redeem circula-
ton still outstanding. The gross decrease
in circulation during the year, includ-
ing notes of good banks, and those Of
failed and liquidating associations, was
81, ,772, and the decrease in circula-
ton secured by United States bonds
was S5,24S, 249. On Oct. 2, 1890. the date
of the last report of condition. $40
banks were open for business. These
associations report an aggregate capital
of $3.50. ,235; surplus, S2l3, 1858, S95;
and undivided profits, S97, 0O6,636. Gross
deposits, including amounts due bank.
are stated at S2,023,5 02, 067; loans and
discounts, Sl,970, 022,6S7, an increase in
each of these items over any previous
date. They held Sl95, 9OS. $50 in specie;
S9J,604, 73l in legal tender notes; SlS,-
492,392 in national bank notes; and
Sc, 55.009in 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
63 new associations, followed i'm the
order named by Pennsylvania with ~,
Missouri with 20, Nebraska with 10. and
Washington with IL. The comptroller
again calls attention to the fact that the
issue of circulating notes has become
unremuneratiYe on account of the high
premium commanded by the bonds of
the. United States, and reneWS his
recommendation of last year, that the
obligatory deposit OF bonds be reduced,
that circulation be issued equal in
amount to the par value of the bonds
pledged, and that semi -annual duty
thereon be fixed at 4 per cent per an
mum. The passage of the bill reported
to the senate by MIR. Sherman, and now
pending in both houses, is recommend
ed. If passed it would reduce the Oh
ligatory deposit of bonds to $1,000
for each association, with reference
to the amount of its capital,
and increase the issue of the circulating
notes to 100 per cent bonds pledged for
their redemption. The withdrawal of
bonds would be limited to S3.U0J,O00 per
month. The volume of paper money
would be at once increased by about
Sl5.00U,00O, which would in marked
degree relieve the present monetary
stringency. New associations could
form more rapidly without advancing
ha dc r;l
chased by the secretary OF the treasury
for the sinking fund. The passage of
the act providing for the purchase of
silver bullion is considered by the comp
trOller tantamount to declaration that
the national banks will not be called
upon to furnish the additional circula-
ton evidently needed. and the discus
sion of measures providing for the eX
tension and perpetuatiOn of note issues
based upon some new form of security
is deemed inopportune. He also asks
that congress provide for the semi-an-
nual publication of the detailed re-
ports of
National Banking Associations.
Reports received and tabulated show
that drafts were drawn by 1929 nation
al banks upon their correspondents dur
ing the year ended June 80, 1899, aggre-
eating Sll, $50. S98, 255, at an average cost
to the purchaser of 81 cents premium
on each 500, being about 1-12 of per
cent. A comparison is made with CON-
ditiOnS existing prior to the establish
ment of the national system, when 1
per centum was the average rate OF
premium Oh domestic exchange. An
estimate of the amount of drafts drawn
by other banks and bankers is also sub
mitted, from which it would appear that
the domestic exchange drawn by bank
ing institutions in the United States
during the last fiscal year aggregated
S17.927, 524, 760. The comptroller has OBJ
tanned and published returns exhibiting
the proportion of coin, paper money,
checks and drafts used in banking oper-
atiOns. as shown by detailed statements
of the receipts of the national asso-
Citations OF july l and Sept. II, 1890.
For the first date reports were received
from 1864 national banks. Their total
receipts OH that day were 1921 1924, 726.
OF this sum, 50, 726, sos was in gold coin,
81, 49,, 647 in silver coin, S6,427,9 73 in
gold treasury certificates, S6.442, 63S in
silver treasury certificates, S7,SSl,7S in
legal tender treasury notes, $5,244, 967 in
national bank notes, $500, 900 in United
States certificates of deposit for legal
tender notes, $3.50, 407, 70S in checks,
drafts, certificates of deposit and bills
of exchange, S4,39l. III in clearing house
certificates, Si94, 290.2O3 in exchange for
clearing houses, and So, 1880 2 in mis-
cellaneouS items. Of the total receipts,
$50 per cent consisted of coin and paper
money, and the remainder $3.50 per
cent in checks, drafts and other ShbSti-
tutes for money.
The Total Receipts
of 3,474 national banks for Sept. IL,
1890. is stated at 1892. PTS, PSI, of which
coin and paper money constitutes 1886
per cent, and checks, drafts, ETC., 91.G4
per cent. The comptroller states that
the falling Off in total receipts on the
latter date is due to the severe strin-
gency in the money market then pre-
vailing. Similar statistics were pro-
| cured In 1881. A comparison shows that
larger proportion of coin and paper
money enter into banking operations in
1890 than in 1881. These percentages,
| for the two days in 1881. are 4.87 and T. 81
| respectively: in 1890, for similar dates.
| $50 and S.96 per centum. The in
creased use OF money in banking opera
| tions here shown is equal to 6S per cent
| and is deemed significant. when conSid-
cred in connection with the prese mt ap-
parent inSufficiency in the amount of
| coin and paper money In circulation.
| 1t is suggested in explanation that a
| great change has taken place during
| the past nine years in the matter of
credits, and that all commodities are
now sold on shorter time and to a much
| larger extent for cash than formerly.
| The COMPTROLLER expresses the OpiniOn