Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1892-11-26

W s>NiNsTuS. nov s5--- uc 1uuusi fe-
/ port OF Comptroller of the Currency Hep
/ burn. shows that the number of banks IN
operation oct- 81. ls0s WAS S.sS. having
an aggregate capital Of Ssa3 SOS, ,e6s, sur
plus and undivided profits sS4e-5sA.l l7a,
Individual deposits, ei,565 Az 1888. bank
deposits, $3.50, $50 ,202. and total resources,
50 sic, ,u93. The circulation outstanding
shows an increase for the year of sl0,4s1,-
22e. The surplus and profits increase is
50 SOS ,o2o. individual deposit increase
SIT .loi ,9o2, and bank deposit increase
sl0o, ,05s ,42s.
The comptroller recommends that the
minimum deposit of government bonds re-
qu;red of national banks be $1,000, in c. y
OF banks of s50,eoo capital, and 5000 q
ease of banks whose capital is above $50 :
600, that the tax Oh rational bank c'sen ST
ton BIZ repealed; that the limit of 'sr
amount which may be loaned to any per-
son. company. corporation or firm, to ~
per cent of the capital stock of tae bank. 1e
so amended as 10 read capital and sur
plus. - and also that exception be made in
favor of temporary loans, secured by col
lateral in cur largest business centres.
The report st1tes that the r.s.ional bark
notes constitute little over Ii per cent o.
the money in circulation. Tee total COR
age under the act of 1878 was S51s, l66.-
.is. The total cost Of the silver coInes
Was S3os, ,I99 ,26a The seignora2e or a.
parent profit was s69.a67 ,03l. The mari
value Of such silver, October Is, 1892, WI
s57 ..05 ,326 less than il cost The govern
ment Under the act Of July, lS9o, the
government had purchased silver and L.
sued certificates therefore up TO November
lst, last, to the amount of Sil6,6li .233.
The present market value of the silver pur-
chased was, on said date, $I4 l3t ,6i6 less
than ii cost.
The comptroller says The currency fur
nishcd by the government will not COM
nerd itself to tax payers upon the score OF
economy The government cannot issue
money gratuitously. Ii cannot possess
elasticity. The practical working has been
to arbitrarily increase or diminish the cur
rency to the detriment Of business interests.
National banks furnished currency ade-
quate to the wants of the public, sound,
elastic and beyond criticism. This form
of currency should be continued as the
money of the future. State bank bills when
issued add Just so much to the liabilities of
the bank. They would circulate freely IN
times of prosperity and confidence. In
times of monetary stringency and
general distrust they would return
to the banks for redemption
and they would have TO be redeemed III the
legal tender money provided by Congress.
Congress must, under the constitution, pro-
vide all money that possesses full debt
paying power. BY every consideration OF
sound business principles it should provide
all the money the country requires. No
public ir:erest can be served by dividing
this function with "a states. Every period
of financial depression in the past has re-
suited in the Suspension of specie pay
ments more or less general, by banks; that
is. resulted in the inability of banks to re-
deem their notes. 81
The same conditions would produce SINH
lar results in the future. If state bank
notes are allowed to circulate, their accept
ance is not voluntary; it becomes an abso-
lutte necessity. The restoration of the state
bank circulation portends disaster to class
of our citizens who most need and have the
most right TO ask protection from the
government.