Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1890-11-27
The Comptroller of Currency Makes
His Annual Report for the
Past Year.
He Recommends that the Obligatory
Deposits of Bonds by Banks be
Reduced.
A New Scheme is Proposed to Relieve
the Present Stringency of
Money.

WASHINGTON, Nov. 24.-The annual
report of the Comptroller of Currency
Lacey, covers the operations of the bureau
for the twelve months ending October 3lst.
During this period 307 new banking aSso-
Citations were organized; fifty have gone
into voluntary liquidation and nine were
placed In the hands of receivers. A net
increase of 4S, constituting a larger
growth than any similar period since
1865. The number of active banks on
October 31st. was 1867. These banks
have in capital stock 1868, 1882, 1854; bonds
deposited to secure their circula. ion
is $40, 1870, 800 and bank notes outstand-
ing S179, 1855, 643, including S54 1876, 907
represented by lawful money deposited to
redeem the circulation still outstanding.
The gross decrease In circulation during
the Year, including notes of gold banks
and failed and hquidating associations
was 500, 267, S72 and the decrease in circu-
lation secured by United States bonds is
S., 24S, 349. At the last report the gross
deposits in these banks, including the
amounts due the banks was S2,023 sos, 067;
loans and discounts, 81, $40, 022 ,636. Both
these items show great increase over any
previous report.
The comptroller again calls attention to
the fact that the issue of circulation notes
has become unremunerative on account of
the high premium commanded by the fed
eral bonds. He renews the recommended
ton that the obligatory deposit OF bonds
be reduced; the circulation issued Is equal
IN amount to the par value of the bonds
pledged and the semi-annual duty is fixed
at one-fourth of one per cent
per annum. The passage of the
bill to this effect now pending in
both houses would at once increase the
volume of paper money by about SIS, 000,
900 which would In a marked degree re-
lieve the present monetary stringency
New associations could form more rapidly
without advancing the premium on bonds
necessarily purchased by the secretary of
the treasury for he sinking fund. The
passage of the act providing for the pur
chase of silver bullion is considered by the
comptroller tantamount to the declaration
that national banks will, not be asked to fur
nish the additional circulation evidently
needed, and the discussion of measures
providing for the extension and perpetual
ton of note issues based upon some new
form of security is deemed inopportune.
An exhaustive statement of the proper
ton 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 consider
ed in connection with the present apparent
insuficiency In amount of coin and paper
money in circulation The comptroller
says the evident lack of currency is greatly
aggravated by the retirement of national
bank notes, which form of paper money
alone possessed that elastic property so
essential in perfect circulat on All
money issued direct by the government is
necessarily non-elastic by reason of
being in all cases available for the lawful
money reserve of national banks and in
most cases possessing legal tender
quality. The comptroller says ii rapid ex-
tension is 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
an average degree of success.
WILL CONTEST THE WILL.