New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-07
population, the per capita OF capital being SIS 30
and OF deposits s12s 80.
BANKING IN ISLAND POSSESSIONS.

population, the per capita OF capital being SIS 30
ana or deposits A2 80
BANKING IN ISLAND POSSESSIONS.
Through the courtesy Of the treasurers OF Porto
Rico and the Philippine Archipelago and from
private sources in the Hawaiian Islands sufficient
data have been obtained to indicate in what pro-
portion the island possessions rave contributed 10
me ngures representing the banking resources Of
consolidation of the reports Of colonial and
national banks received shows the aggregate re-
sources OF banks in these possessions on or about
June 80 1905 to have been S4ssl2ss The loans, in
o9Soing overdrafts aggregate S25Ss SIS; bonds and
other securities 81 s22 sss; cash in bank, 80 2o sol
pfohts- H6Ss,oas individual deposits. S23264.Sl5.
RECOMMENDATIONS
The Controller renews the recommendations con-
tanned in his report for 1902 for legislation in regard
to liquidation and consolidation of national banks
and extension OF corporate existence. The national
minority stockholders on the question of extension
OF expiring charters as explained in detail in the
call the attention Of the Congress TO this, and
urge that action be taken this important matter
shareholders
The most notable fact in regard to the national
bank circulation is the great increase in its volume
which reached s42 222 4S9 on September s. 1903 the
largest amount which has ever been in circulation
IL is 5543 per cent OF the maximum possible crcu
i,atlon, which is higher than this percentage has
been since 1886 This increase in the volume of cir
culation has been largely due to special efforts
On me part OF the Treasury Department 1t has
demand came for currency to move the crops this
fvTba No. Nsn5 produce more than me usIal dIs
mas been met with less disturbance and less adj
vance in rates OF interest than for several years
past is doubtless due largely. among other causes
20 TINS increase in banknote circulation. II Is
further OF interest TO note that Just as the crcu
iatlon was reaching its maximum and the demand
Tor bonds had advanced their price, the deposit Of
lawful money to retire circulation which for some
months had been light suddenly increased. and in
the latter half Of September applications were re-
ceived taking up the maximum of 100000 per
month for the months Of September October, No
Yember and December
This still further emphasizes the one serious
defect in the system-that the variation in the vol
une Of currency, instead Of responding TO the de-
Hand for currency, depends the market price
OF bonds. Until banknote circulation is made au-
tomatically to respond to demand for currency for
daily cash transactions without reference to the
price OF bonds it will never be entirely satisfactory
or efficient.
In the report for 1902 recommendation was made
that the national banks be allowed to Issue pOr-
ton Of their notes uncovered by the deposit of
bonds This seems the most simple and practical
well the safest way 10 introduce some elias
/ ITCHY into banknO1e circulation. and the same
recommendation is renewed.