The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1903-12-08
BANK CIRCULATION SHOWS
$57,0o0,000 INCREASE

Secretary Shaw says in the fiscal year
ended June 20. 1888. national bank circu-
lation increased So, 200. 600 but only S12-
100000 Of II was due TO new organiza-
lions To continue this rate Of increase
additional bonds must be provided or
some other plan devised. The recon-
mendation is renewed that the proposed
$3.50. 600 of isthmian canal bonds be
made available as the basis of ecircula-
tion on the same terms as the consols
authorized by act Of March H. 1900.
The Export says some provision should
be made for an increase of subsidiary
coin and deals with subsidiary coinage
as follows:
There is now available for coinage
into subsidiary coin less than 5000 900
ounces of silver. This viii be exhaust
ed approximately at the close Of the
current fiscal year Authority should
be given to recon existing silver dol
lars into subsidiary coin, or to purchase
additional silver with which TO supply
the ever-increasing needs Of the coun-
try. The present volume of silver stored
in the vaults OF the Treasury is equiva-
lent TO nearly 800 carloads Of 80 tons
each. It would cost 100000 to recount 1t.
Redeemable in Gold.
This enormous amount is worth in
value. but II is all redeemable. at the
discretion OF the Secretary OF the Treas
ury, in gold. Manifestly it must always
be stored or other uses provided.
Whether II be wiser TO continue this
burden and purchase additional bullion
for subsidiary coinage, or 70 authorize
the conversion OF a portion Of these dol
lars into more available forms Of money,
Is for Congress 10 determine In any
event. some provision should be made
for an increase of subsidiary coin
To remove the scarcity of paper cur
rency of small denominations u
recommended that national banks De
perrnitted TO issue a larger proportion
Of their authorized Circulation III
nominations OF 30
It is recommended that the tax on
national bank circulation based on
bonds hereafter issued be one-hah OF
/ per cent
In discussing national banks. the re-
port says at the close OF the year
ended October 81. 1903. the national
banking system had been in operation
forty years and eight months n that
time 1865 national banks were organ
lied. IT, failures were Sc per cent
and liqglidauons I'll per cent Of the
total number Of banks organized.
$50 New Banks.
In the year ended October 81. 1903. 553
national banks were organized with
total capital OF $34.333.5o0. Under
authority OF the act OF March IA. 1900.
and from that date 20 October 81, 1903.
I148 banks with an individual capital
OF less than $4,000 and GIT banks with
capital Of $4,000 or over have been or
gained under the national banking
system.
II is notable that the banks organ
lied since the financial legislation of
March IA. 1900 constitute nearly one
fourth q the number organized within
the existence OF the national banking
system.
The net Increase for the year ended
October 81. 1903 in number Of banks
was 468. and in the amount OF capital
stock $s2.93l, 400. In the year twelve
banks failed and seventy-two went into
liquidation.
As a result OF the organization OF
new banks and the refunding operations
OF the Treasury Department. the bonds
on deposit TO secure circulation in the
year ended October 81 from S33S, AZ. go 10
$3.50 T26. $50. and the circulation secured
thereby Increased from 1895, 7s3, ls9 70
$3.50. 65O. SCI
October 81 bank circulation outstand-
ing covered by bonds amounted TO 4s5