The Portland daily press., 1890-11-25
THE PEOPLE BELIEVE IN THE BANKS.
Tho National System Firm In the
Favor of the Public.
Facts and Figures From the Report
of Comptroller Lacey.
Measures recommended to Better a
Service Already Admirable.

WASHINGTON. November 24.-The annual
report of Comptroller of the Currency Lacey
covers the operations Of the bureau for the
IL months ended October 81. 1890. During
this period 307 new associations have been
organized, 80 gone into voluntary liquidation
and nine placed in the hands of receivers.
This is larger growth than during any sim
liar period since 1865. The number Of ac-
tive banks October 81. 1890 was 1857, an in
crease over any previous date. These banks
have in capital stock S659, ,7S2, ,S65; bonds de-
posted TO secure circulation, Sl40, 100. 900;
bank notes outstanding, S179. .755, ,643, includ-
ing $c4, .9N represented by lawful money
deposited to redeem the circulation and still
outstanding. The gross decrease of circula-
tion during the. year was So, .772; de-
crease In circulation secured by United
States bonds, S5,248, $40. October 2, 1890 the
date OF the last report of their condition,
354O banks were open for business. These
ass Citations report an aggregate cap
ital of S650.44 ,235; surplus, S2l3. .563, ,S95;
undivided profits, S97. 7.0O6, ,636; gross deposits,
Including amounts due banks, 50 023, ,502,-
O67; loans and discounts, S1,970. .922, ,6S7, an
increase In each OF these items over any pre-
vious date. They held S195, ,90S, 1863 in spec
ie. $50, ,604, ,731 In legal tender notes, SIS.492-
1872 in national bank notes and S6.155,OOO in
United States certificates of deposit.
The comptroller again calls attention to
the fact that the Issue Of circulating notes
has become unremunerative on account of
the high premium commanded by the bonds
OF the United States, and renewS his recon-
mendatiOn Of last year that the obligatory de-
posit Of bonds be reduced, and circulation be
issued equal in amount to the par value of
the bonds pledged, the semi-annual duty
thereon being fixed at fourth of one cent
per annum. The passage of the bill report
ed t" the Senate by Mr.. Sherman, now pend
Ing In both houses, is recommended. II
passed 1t would reduce the obligatory depos-
1t OF bonds, and increase the issue of circu-
lating notes to 100 per cent IF the bonds
pledged for their redemDtion. The with
drawal OF bonds would be limited to S3,000,-
600 month and the volume of paper money
would be at once increased by about 15,000,
600, which would, in marked degree, re-
lleve the present monetary stringency. New
associations could form more rapidly with
out advancing the premium on the bonds
necessarily purchased by the Secretary Of
the Treasury for sinking fund.
The comptroller eXpre> SeS the opinion that
the evident lack OF currency necessary to a
proper conduct of business during the past
few mouths was greatly aggravated by the
retirement of national bank notes, which
form OF paper money alone possesses the
elastic property so essential in perfect cir
culation. All money issued directly by
government. whether coin or paper, is neces-
sarily non-elastic by reason of its being, in
all cases, available for the lawful money
reserve of the national banks, and in most
cases, possessing legal tender quality. The
comptroller says that aside from the right to
issue circulating notes, the national banking
system is, Il its rapid extension is the correct
criterion, more favorably regarded than
heretofore. The transactions of the year
were attended by more than the average
degree OF success. The stockholders have
rs rule, received satisfactory dividends and
the people al large have been faithfully and
economically served.