Democratic Sentinel, Volume 10, Number 44, Rensselaer, Jasper County, 3 December 1886 — THE CURRENCY. [ARTICLE]

THE CURRENCY.

Report of Comptroller Trenholm—lmportant Changes nggested—lnteresting Statistics. The annual report of the Hon. William L. Trenholm, Comptroller of the Currency, contains suggestions for the amendment of the national-bank laws in about a dozen instances, including the contingent liability of shareholders, requirements as to reserve, the limit of loans to individuals, more thorough examination of banks, and their protection against unequal State taxation. The specific character of these suggestions is withheld for the present. Three thousand five hundred and eighty national banks have been organized in all, of which 2,858 are now m operation. Of these 174 have been organized during the last year, with a capital of $21,000,000; circulation, $2,000,000. Twentyfour banks went into voluntary liquidation during the year, one ceased to exist by expiration of charter, and eight failed. Since the beginning of the system in 1883, ouly 112 national banks have failed. Of these, sixty-tLree have paid their creditors in full, and twenty have paid interest besides—fifteen in full and five in pait. Over 00 per cent, of all national bank stocks is held by the residents of the State in which the bank is located, mote than 01 per cent, is he d by natural persons, and 98 per cent, of the number of tharebolders are natural persons. The total number of shareholders is 223,000; the total number of shares over 7,000,000. The effect of the reduction of the public debt and the high premium on bonds upon ttie volume of national bank circulation is very fully illustrated in the report. The contraction in national bank circulation during the year exceeds $56,000,000. Besides the usual tables showing the condition of national banks at various dates, the report this year contains an abstract which specifies each item of their resources and liabilities. The banks in the several States, reserve cities, and Territories, Lave their condition stated separately. A large diagram exhibiting the many features of the national banking system and its variations during the last twenty-one years accompanies the report. From this it appears that the aggregate deposits in the banks has increased from $522,000,000 in January, 1886, to $1,173,000,000 in October, 1886, while !oans and discounts have risen from $500,000,000 to $1,443,000,000. The specie held by the national banks in 1886 was $19,000,000; in October, 1875, it was only $8,000,000; while in July, 1885, it was $177,000,000, and is now $156,000,000. Mr. Trenbolm declines to say whether his report contains any specific recommendations in regard to a modification of the law making United States bonds the basis of the national bank currency, but it is understood at the department that he has presented a strong an-ay of facts and figures to show how valuable the system has become to the entire country, anil how important it is that it should be made adaptable to the needs of communities in the West and South, where vast natural resources await development by the aid of outside capital.