Evening star., 1896-09-21
Facts From a Treasury Circular to Be
Soon Issued.
PROFITS ON THE CIRCULATION
Average Dividends and Earnings for
Twenty-Five Years.
RESOU RCES IN STATES

The treasury circular regarding the ma
tonal banking system which will be ready
for general distribution in few days will
contain seventy-one pages of statistics and
extracts from various reports of the con-
troller of the currency, intended to give
the Information most generally sought for
during the present financial discussion. The
condition of the national banks every year
since the foundation Of the system fills the
first twenty five pages Of the pamphlet,
and then come some statistics of state and
private banks and savings banks, which
indicate the rapid advance in deposits and
of banking resources, the profit on bank
ing institutions. The gold and silver held
by the banks, The Ler capita distribution
of banking resources, the profit on bank
note circulation, the large payments by
the banks for taxation. the classes of bonds
upon which circulation is based, and the
transactions of the clearing house make
up the principal statistical tables. The
other matter includes a statement of the
lawful money reserve and the m ethod of
computing 1t. the use of credit Instruments
as ascertained by Controller Hepburn in
1882 the history of clearing house certifi-
Gates embodied in the report for 1891, and
the facts regarding depositors gathered by
Controller Eckels in 1894 Nearly all of
this matter has appeared in previous re-
ports, but has not been brought together
in such compact and accessible form. Two
or three of the tables addressed most di-
rectly to the pending financial discus
sion have been brought down to later dates
than the annual report for 1885.
Profit ON Bank Note Circulation.
One of these is the calculated profit on
national bank note circ culation, based upon
the actual market price of bonds on three
different dates. The first date, October 81,
1854, shows net profit circulation of
considerably less than one per ceat on four
and five per cent bonds, barely more than
half Of one per ccnt on the continued twos,
and little less than two per cent on the
six Ter cent Pacific railway bonds, of
which only few are available 20 secure
circulation. The market prices on October
81, 1893. showed a trihe than one
per cent profit on the old fours and the
hVes, but less than one per cent on the new
fours and the twos. with little charge in
The six per cent bonds. The latest figures
for August 81, 1886. show a larger profit
on each class of bonds due to their lower
prices The highest profit is :;.Sl7 per cent
| on the six ger cent bonds. Then come, in
order, the fives, With a net profit of 1SsG;
tie cid fours 1.tS52; the new fours, l:Sil
and the continued twos, 0629 per cert
This table is likely to be used by the
| friends of the banks to dispute the fables
| OF excessive profit which they are sup
posed to derive from double interest in
| certain sections of the country
Average Dividends and Earnings.
Another table going to sustain the same
line of argument is that showing the aver
| age dividends and earnings OF the national
| banks from 1870 to 1ShJ. This table shows
| the average dividends to capital for twenty
sN years TO have been S.i per cent, but
| the figures of recent years have been much
| lower. Those for 1891 We're 20 per cent:
| for lS,2, 10 per cent: for 1872 -, per cent:
Tor ls:,l, 6-s per cent, and for 1885, 60 per
| cent. These figures are not an accurat re
| measure, however. of the real earnings of
| the capital invested in the national banks
! A pa: allel column gives the dividends upon
| capital ard surplus. and another column
the net earnings to capital and surplus.
| Ihe latter shows an annual average OF
| per cent, declining from Ills per cent in
| 1870 to 5.6 per cent in 1884, and per cent in
| 1893.
Banking Resources in States.
One Of the most interesting tables, and
one much relied upon by the advocates of a
banking currency, in proof of their argu-
ment in favor of a more elastic system CT
circulation. is the table showing the asgre-
gate banking resources in each state. The
| resources are made up by adding the capi-
| tai, surplus, undivided profits and indi-
| vidual deposits of national, state, stock
| savings and private banks and loan and
trust companies. This large agsre gate is
| then divided by the population 10 show TIE
average banking capital available in each
commonwealth. The total banking capital
of the country on June 10, 1885, was 81, 1u5,
544, ,USf The computed population at tha,
time was 69,954,Uo0, which afforded ali
average banking capital per capita OF
$685. 1t is the great inequality in the
distribution of this capital which is made
the basis of criticism of the present bank.
ing system by those who believe in a CIR.
culation based upon business assets. Rhod,
Island shows banking resources of $317
Massachusetts, SIS; New York, s2.S, ant
tottt ~,
states where money is massed under The
existing banking system. Types uf til,
i states whose banking resources are slen
der are: Georgia, with $1S.53; Mississippi
with $1O.21: Alabama, with $1.i9 and Ar
kansas, with s6.9O.
| An Argument for u Change.
These latter figures are regarded by the
supporters of the Indianapolis platform a:
convincing argument in favor of thei
declaration for a change in the eXistin:
currency system. These figures, showing
the immense accumulation of money IN ole
banking centers. and its scarcity in th'
newer sections of the country, are cited a.
proof that the existing currency system
does not provide currency where it l.
needed meet the demand for a flexible
and elastic circulating medium. 1t is aG
mitted that the northeastern states would
under any system, show Il greater availab
banking capital than the newer states, bu
it is argued by the supporters of bankin;
currency that the discrepancy would no
be so great as these figures indicate if tn
currency were adapted to the demands o
business. Stress is laid by the supporter
of the indianapolis platform upon thi
point, because it is in this respect tha
their platform differs from that of the re
publicans. They admit the existence o
evils and they claim to present method O
5 remedying them which does not carry tn
t paralysis to business and the injury {
( credit which they believe will accompau
2 the free coinage of silver at the ratio O
t IL to l.
SIS dressing table for $S95. Moses furn
| ture sale.-Advt.