Rensselaer Republican, Volume 19, Number 13, Rensselaer, Jasper County, 2 December 1886 — THE CURRENCY. [ARTICLE]

THE CURRENCY.

Export of Comptroller Trenbolm—lmpor-' tant Changes Suggested—lntereutinr Statistics. ' The annual r port of the Hon. William L. Trenholm, Comptroller of the Currency, contains suggestions for the amendment of the i ational-bank laws in bout a dozen instances, including the contingent liability of shareholder?,' requirements as to reserve, the limit, of loans to individuals, more thoron .h examination of bank?, and? their protection again- t unequal State taxation. The specific character of these suggestions i* withheld for the present. Three thousand five hundred and eighty national banks have been organized in all, of which *2,80S are now in operation. Of these 174 Lave been organiz'd dating the last year, with a capital of $21,(iliO.tHH); circulation, $ - 2,!k>0,000. Twentyfottr banks went into voluntary liquidaiipn during the y, ar, one ceased lo exist by expiratjon of charter, and, 'eight faded; Since the he ginning of tl;e system in 18> 1, ojly 11'2 national banks have failed. Of these, sixty-tl.ree have paid their creditors in full, nnd twenty have paid interest besides— fifteen in, full and five in part.. Over 90 per cent, of all national bank ntock* is' held by the residents of the State in which the bank is located, mo-e than 91 ..per cent, is he d by natural persons, and 9ti per cent, of the number of > haielrolders are natural persons. The total number of shareholders is 223,(M10; 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 the volume of national bank circulation is very fully illustrated in the report. The contraction in national bank circulation during the year exceeds 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, have 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 agsregate deposits in the ban ks has increased from $522,000,000 in January, 18.SG, to $1,173,000,000 in October, 1886, while .'dans 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 OetobiF, lto’s, it was only $8,000,000; while in July, 1885, it was $177,000,000, and is now $156,009,000. ■ .j ■ Mr. Trenbolm declines to say whith.r his report contains any specific recomm.ndatlons 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 array of facts and figures to show how valuable the system has become to the entire countrv, and Low 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.