Daily Kennebec journal., 1890-11-25
COMPTROLLER OF CURRENCY
shows a Wonderful Growth In Bank
irg Business.

The animal report of Lacey, comptroller
of currency, covers the operations of the
bureau for the twelve months ended Oct.
81, 1890. Daring this period 307 new asso-
Citations have been organized, but fifty have
gone into voluntary liquidation and nine
placed in the hands of receivers. a larger
growth than during any similar period since
1865; the number of active banks Oct. 81.
1890, was 5 ,567, an increase over any pre-
vious date; these banks have in capital
stock, 1863, 1872 sos; bonds deposited to Sc.
cure circulation, $40, 1870 900; bank notes $
$l79, 1855 ,643, including S54,-
796,?01, represented by lawful money de-
posted TO redeem circulation still outstand-
ing.
The gross decrease of circulation during
the year, including notes on gold banks
aud those of failed and liquidstipg associa-
tions, 1922 ,267, 772; decrease in the circula-
ton secured by United States bonds, So
PAS, $40. October 2. 1890, 10 the date of
the last report of the condition of 3540
banks open for business. There associa-
tons report an aggregate capital of $780,
447 ,235 surplus, $2l3, 563, ,S95; undivided
profits, S97 ,006.636 Gross deposits. in
cludiDg amounts due banks is stated at 81
OPS .602 067; loans and discounts, fill .970,-
022 ,GS7 there is an increase in each of
these items over any previous date. They
held Sl95, ,908, 1863 in specie; $50, ,604 ,73l
in legal tender notds; slS. 1872 ,392 in ma
tional bank notes; S6,l55 900 in United
States certificates deposite.
The comptroller again calls attention to
the fact that the issue of circulation notes
has become unrenumerative on account of
high premium commanded by bonds of the
United States, and renews the recon
mepda,ion Of last year that obligatory de-
posit bonds be reduced and circulation be
issued equal 10 amount to the par value of
bonds pledged, and semi-annual duty
thereon be fixed at q fourth Of one per cent.
ported to Senate by Sherman is now pend
ing in both Houses recommended. If
passed it would reduce the obligatory bonds
to $1,000 for each association
with reference to the amount of its
capital and increase the Issue of circulating
notes to 100 per cent bonds pledged for
their redemption. The withdrawal of bonde
would be limited to S3,000.00 a month.
The volume Of paper money would be at
once increased by about SIS 900, 900, which
would in a marked degree relieve the pres
en-, monetary stringency. New sssoci ,tions
could form more rapidly without advancing
the premium on the bonds necessarily pur-
chased by the Secretary Of the Treasury
for a sinking fund. Reports received show
that drafts were drawn by 1929 national
banks upon their CORE spondeuts during the
year ending Jupe 30 1890, sggre eating
Sill $50, 1898 ,255, at an aversge cost TO the
purchaser of l-2 cents premium on Zach
$780, about I-l2 of one per cent.
Comparison was made with the condi-
tons existing prior to the establishment: of
the National system, when one per cent.
was the average rate of premium on dones
tic exchange. An estimate of the amount
of drafts drawn by other banks ard bankers
was submitted, from which it would appear
tha. the domestic exchange drawn by bank
ing institutions 10 the United States during
the last fiscal year aggregated S17, 1927 524, :
760. The reports received from 1864
national banks show the total receipt, July
!, 1890, TO be 1921 1924 1926. Of this
s3,126,605 ia gold coin, Sl,352, ,647
silver, S6.427,o73 gold treasury Ger.
tifcates, S6.4i2, 63s silver treasury
certificates, S7,ssi.7s6 legal tender
treasury notes, S5.2i4,967 national bank
notes, $500 coo United States csrtidcstes
deposit for legal tender noets, sls9, ,407 .70s
checks drafts, certificates deposit, bills of
exchange, S4, ,39l ,ls7 clearing house Ger.
,ificates. Sl94 ,290, ,20S exchange for clear
ing houses, 50, 1888 022 miscellaneous items
Total receipts 3474 National Banks Sept
II, ls90, stated 1927 1913 ,25l Of which coir
ard paper money constituted 96 per cent
che cks. drafts, etc, 9l.04 per cent. Com
piroller states falling off in the total re
ceipt on the latter date due 10 the severe
stringency in the money market then pre-
vailiug.
The comptroller expresses the opinion
that the evident lack of currency neces
sary TO properly conduct business during
the past few months was greatly agaravatet
by the retirem ant of national bank notes
which form of paper money alone possesse'
the eis,tic property 90 essential in per cen
circulation. All the money issued directly
by the government, whether coin or paper
10 necessarily non-elastic by reason Of ii
being in all cases available for lswfd
money in reserve of nationxl banks and IL
most cases possessing legal tender quelity.
The comptroller says that asi3e from tht
right to issue circulating notes, the nation
al banking system is, if it, rapid extension
is correct criterion, more fsvorably regard
ed than heretofore. and the transactions OF
the year have been attended by more thas
the average degree of success. The stock
holders have as rule received satisfactory
dividends and the people at large faithfully
and economically served, and as bank
the discoaIt and deposit associations be
longing to the national system, they hav.
as whole merited high commentator
from unpreiudiced observers.