compcurr_1892_vol1

ANNUAL REPORT

COMPTROLLER OF THE CURRENCY

TO THE

SECOND SESSION OF THE FIFTY-SECOND CONGRESS

OF

THE UNITED STATES.

DECEMBER 5, 1892.

IN TWO VOLUMES.

VOLUME I.

WASHINGTON:CrOYERJWENT PRINTING OFFICE,

1892,Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TREASURY DEPARTMENT,Document No. 1565, 3d ed.Comptroller of the Currency,

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS,

Page,Report submit ted to Congress 3Trade balance and condition of the national banks 3,4Cash held by national banks 5Currency and exchanges , 5Paper money in circulation 6Coinage of silver 6,7Profit on circulation of national banks 8F u n d i n g of the national debt 10Stat is t ical information wi th respect to financial inst i tut ions organized under State s ta tu tes 11-16Clean money 16Statement of national banks organized dur ing the year 17States leading in numerical accessions, capital, and deposits 17Number and capital of national banks organized and closed since establishment of system 18Amendments to present laws 18United States at torneys as s ta tu tory counsel for receivers 19-21Closed national banks 22Domestic exchanges 24Amount of drafts drawn by national banks, comparison for throe years and rates of ex-

change 25-31Subst i tu tes for money 31-39Impruden t methods of bank ing 39Directors and officers 40Excessive loans 41Examiners 43Comparative s tatements of the national banks 45Extension of the corporate existeuce of national banks 48Circulating notes 49Increase or decrease of circulation 50Banks wi thout circulation 51Security for circulating notes 52Interest-bear ing funded debt of the Uni ted States and amount held by national banks 54Marke t prices of United States bonds 55Inves tmen t value of Uni ted States bonds 56Issues and redemptions. . . , - 57Additional circulation issued and retired dur ing the year 58National-bank notes received and destroyed yearly since the establishment of the system 59, CORedemption of notes of banks reducing circulation, and of failed and l iquidat ing banks 60Tax upon circulation, redemption charges, assessments, and amounts collected 61Loans by national banks in reserve cities and country 61Failed banks 65Causes of failure 60Dividends paid to creditors of failed banks 73Inact ive receiverships 74Banks in l iquidation 75Legislation 75Legal decisions 77Clearing-house associations 77-83State, savings, pr iva te banks, loan and t rus t companies 83-89Conclusion 89

I


II TABLE OF CONTENTS.

APPENDIX.Pa^e.

Names and compensation of officers and clerks 93Expenses of the office for the fiscal year 94Names and addresses of national-bank examiners 94Index to digest of decisions of the courts in cases afflding national banks 95Digest 97National banks organized, in liquidation, and in operation, with capital, bonds, and circula-

tion October 31, 1892 127Summary of the state and condition of national banks reporting during the year ended Septem-

ber 30, 1892 128Comparative statements of the national banks for fifteen years from 18(54 129Authorized capital stock each month from January 1,1871, to November 1, 1892, with amount

of bonds, circulation, and lawful money deposited for redemption 130Changes in capital, bonds, and circulation by geographical divisions , 134Additional circulation issued and lawful money deposited to October 31,1892 139National-bank notes outstanding and the amount and kind of United States bonds on deposit. 140Increase or decrease of circulation quarterly and for the year ended October 31, 1892 141National-bank notes issued, redeemed, and outstanding, by denominations, since the establish-

ment of the system 142National gold bank notes issued, redeemed, and outstanding 145National-bank notes issued during the year 145Minimum amount of bonds required and the amount actually held September 30, 1892 146National banks with capital of $150,000, under and over, and the increase or decrease of capital

during the year 148-151Classification of loans and discounts 152Amounts of coin and coin certificates held in 1888,1889,1890,1891, and 1892 153-159Lawful money reserve 100Liabilities and required reserve 162State of the lawful money reserve from 1886 164Reserve held and classification by geographical divisions 166Deposits, circulation, and reserve of national banks in New York City by months 176Movement of reserve of national banks in New York City for sixteen years 177Abstract of earnings and dividends, September 1, 1891, to September 1, 1892 178-185Ratios of capital and surplus to earnings and dividends 186Earnings and dividends for semiannual periods 188National banks in voluntary liquidation under sections 5220 and 5221, Revised Statutes 190National banks in liquidation succeeded by associations with same or different titles 202National banks in liquidation for the purpose of reorganization 203National banks in liquidation under section 7 of the act of July 12, 1882 205National banks in the hands of receivers 206Insolvent national banks, assets, collections, disbursements, expenses of receiverships, divi-

dends paid 214Abstract of reports of condition of State banks, loan and trust companies, savings and private

banks 227Reports of condition of the National Savings Bank, The National Safe Deposit Company, The

Washington Loan and Trust Company, and The American Security and Trust Company, ofthe District of Columbia , 249-252

Condition of the Canadian banks .' 252Statements of condition of the banks of the United States and State banks, 1774 to 1892 253Aggregate resources and liabilities of national bank s from 1863 to 18D2 325-345Summary of the state and condition of national banks on dates of report during past year 347-397General index .. 399Condition of each, national bank at close of business September 30, 1892 Vol. II


REPORTOF

THE COMPTROLLER OF THE CURRENCY.

DEPARTMENT OF THE TREASURY,OFFICE OF THE COMPTROLLER OF THE CURRENCY,

Washington, D. (7., December 5, 1892.SIR: I have the honor to submit for the consideration of Congress?

in compliance with the provisions of section 333 of the Eevised Stat-utes of the United States, the thirtieth annual report of the Comp-troller of the Currency.

The year covered by this report ended October 31,1892. The cropof 1891 was phenomenal in all the great staples produced by this coun-try, and at the same time a partial failure of the cereal crop in Europecreated an unusual demand for our food products. The total value ofour merchandise exports for the fiscal year ended July 1, 1892, ex-ceeded one billion dollars$1,030,335,000.

1891. 1892.

The merchandise balance of the United States (excess of exports overimports) for the fiscal year ended July 1 J $39,565,000 ! $202,934,000

Excess of exports over imports, gold and silver I 72,703,000 i 13,352,000

Trade balance j 112,268,000 i 216,266,000

The remarkable feature is that we were compelled to add to an exportmerchandise balance of $242,000,000 over $86,000,000 in gold andsilver.

Europe's short crop followed a serious financial crisis, which un-settled values, disturbed confidence, and entailed heavy losses. Insteadof paying for our cereals from their surplus, they were obliged to drawupon their principal.

In a normal condition of affairs this large merchandise balance in ourfavor would have resulted in large gold imports; instead, they sent usour securities.

The interest upon American securities held abroad aggregates a largeamount, and its payment forms a continuous factor in internationalbalances. The return of any portion of our securities increases ourwealth at home, and the reieptjpn $f the earnings of guofa securities

3


REPORT OF THE COMPTROLLER OF THE CURRENCY.

adds to our home prosperity. The absorption and assimilation of solarge an amount in so short a period of time may have produced tem-porary disturbance, but the permanent effect is beneficial.

The financial needs of Bussia, and the accumulations of gold byAustria-Hungary, with a view to the resumption of specie paymentsupon a gold basis, caused a premium to be paid for gold exports, andwas an important cause of its outflow.

Distrust of our monetary legislation, and the fear on the part ofEurope that we were drifting towards a silver basis, also had an impor-tant influence upon gold exports.

The national banks held on September 30, 1892, nearly $22,000,000more gold than on September 25, 1891. This, coupled with the knownfact that many State banks and trust companies have also fortifiedthemselves with a gold reserve during the year, shows that the fearthat we were drifting towards a silver basis was not confined toforeigners.

All periods of monetary stringency, which necessarily restrain andcurtail business ventures, are followed by a plethora of money.

On June 18, 1892, the total deposits in the associated banks of thecity of New York were $543,663,100. The highest amount ever reachedbefore was $455,306,300 on December 26,1891. The same plethora ofmoney existed in all money centers 5 the rate of interest for the yearaveraged, on demand loans, 1 per cent to 3 per cent, and time loansand commercial paper ranged about 2 per cent higher.

The cholera at home and abroad, with attendant quarantine restric-tions, has held trade in fetters, and, to some extent, impaired the busi-ness of the year. The vigorous measures adopted by our authoritiesreduced it to control and kept its baleful influence at a'ininimuin.

With conditions in the United States favorable for a year of unusual,prosperity, speculation has been held in check and business keptwithin conservative limits. The lessons taught by the monetarystringency of 1890-?91, which fell so heavily upon all whose businesswas too much extended, have not yet been forgotten. Ahardening proc-ess has obtained, and yet the record of the year covered by the re-port characterizes it as one of growth and prosperity.COMPARATIVE STATEMENT OF THE CONDITION OF THE NATIONAL BANKS WITH RE-

SPECT TO CERTAIN ITEMS AT NEARLY CORRESPONDING DATES FOR THE YEARS1891 AND 1892.

1891.

Number of banks in existence October 31Capital stockBonds deposited to secure circulation |Bank notes outstanding jLawful money deposited with the Treas-

urer, United States to redeem circula-tion outstanding

Surplus and undivided profits September25 and 30, respectively

Individual deposits September 25 and 30,respectively .

Bank deposits September 25 and 30, re-spectively

Total resources September 25 and 30, re-spectively

3,694$684, 755, 865152,950, 350172,184, 558

35, 430, 721

330, 861,159

1892-

3,788$693, 868, 665164,883.00C172, 432,146

25,191,083

340, 524,179

1,588, 318, 081 1, 765, 422,983

Increase. I Decrease.

94$9,112,800 j11,932. 650 I

247,588 j

,1

9, GG3, 020

177,104,902

$10, 239, 638

430, 594, 774 I 530, 653, 202 100, 058, 428

3, 213,080, 271 i 3, 510, 094, 897 j 297,014,626

The above table shows a large decrease in the lawfnl money depositto redeem circulation. The net circulation outstanding has increased110,487,226 during the year,


REPORT OF THE COMPTROLLER OF THE CURRENCY. 5

The following table shows the total cash held by national banks in-cluding 5 per cent, redemption fund, and mutilated currency in processof redemption for the years 1891 and 1892.

Bills of other national banksFractional paper currency, nickels and

centsSpecie, viz:

Gold coinGold Treasury certificatesGold clearing-house certificatesSilver dollarsSilver Treasury certificatesSilver fractional coin

Legal-tender notesUnited States certificates of deposit

for legal-tender notesFive per cent redemption fundDue from United States Treasurer,

mutilated currencyTotalNet increase ..

1891.

$19, 991,167. 00

867,462.37

84,464, 347. 2460,173, 670. 00

7, 300, 000. 00. 6, 348, 573.00

20, 409, 735.004, 818, 750.67

97,615, 608.00

15, 720,000. 006,536, 9L'l. 51

1,457,807. 85

325, 704,052.64

1892.

$19, 557,474. 00

934, 648.37

95, 021, 952. 7771,050,180. 00

7, 860, 000. 006, 785, 084. 00

22,993,4M. 005, 405, 71tt. 92

104, 267, 945.00

13, 995, 000. 007,139, 564. 69

1,106, 987. 93

356,117,998. 68

Increase.

$67,186. 0010, 557, 605. 5310,876,510.00

560, 000. 00436, 511. 00

2, 583, 716. 00586, 960. 25

6, 652, 337. 00

602, 633.18

32, 923,458.96

Decrease.

$433, 693.00

1, 725, 000.00

350, 819.92

2, 509, 512.92

30,413,946.04 |

CURRENCY.

The business of banking is exchanging a generally known value orcredit for a local value or credit. This definition applies equally tothe money changers of the temple and to the banks of to-day. In thewonderful development of commerce and manufactures which has fol-lowed increased facilities for communication and transportation, bank-ing, though hand in hand with trade, is ever in the lead; for credit, ormoney, is the motor which moves the wheels of progress, and allfinancial transactions, whether local, national, or international, havebecome mainly a matter of bookkeeping. Throughout the UnitedStates every locality has its bank, and most people, however limitedtheir business transactions, have bank accounts, through which theypay their indebtedness. Bank accounts are generally used as the mostconvenient and most accurate method of keeping a cash account. Thispractice does not obtain in European countries in any such proportion.In this country, in the village having a single bank, the artisan paysthe merchant by check, or vice versa, and the payment is usuallyconsummated by a transfer of credit upon the books of the bank. Thusdoes the single bank become a clearing house for the community, andthe actual transfer of money is minimized.

The day's exchanges in our larger cities are adjusted through aclearing house, where each bank is credited with the total demands itholds against all other banks, in the same place, and is debited withthe total demands which the other banks hold against it, and eitherpay or receives the balance, simply,, in money. The aggregate clear-ing-house transactions for the year ended October 31, 1892, in 57 clear-ing-house cities, were $61,017,839,067, the balances were (partly esti-mated) $4,881,777,289. Thus, by a simple device of bookkeeping, thisimmense volume of business was done by means of 8 per cent of actualmoney.

Our international banking and commercial transactions are settledupon a system of balances through a few leading banks and bankinghouses that deal in foreign exchange. When the exchange marketaffords no bill of exchange to be remitted, gold is shipped to settle the


6 REPORT OF THE COMPTROLLER OF THE CURRENCY.

balance of trade existing against such nation, and when so shipped,whether bars or coin, it goes simply as commodity, at its market value,precisely like merchandise.

Thus it appears that the bulk of the world's business transactions isdone upon credit, witnessed by bookkeeping, and the percentage rep-resented by actual money transfer is very small, in the United Statesless than 8 per cent.

A man goes to his bank with his note, a local credit, and procures itsdiscount, receiving the proceeds in a generally known credit or value,namely, a bank draft, or certificate of deposit, or moneysomethingavailable for the contemplated business. The bulk of all business trans-actions is adjusted by the contracting parties, whether banking or other-wise. It is the portion in which money passes that appeals to the Gov-ernment for regulation. It is the recognized constitutional duty ofgovernment to furnish for its citizens a circulating medium adequateto their needs and convenient for their use. Gold and silver are therecognized money of the world, because they possess value in them-selves, are conveniently coined, not easily counterfeited, exist in quan-tity sufficient to supply the demand, and are not so redundant as tounduly impair their value. Such money is adequate to the public want,but not convenient for public use, except in small change transactions.Paper money is a business necessity. Paper money possesses no value,simply represents value.

A currency to serve the demands of business must be soundnodoubt of its redemption. It should be elastic, that it may expand andcontract, as the tide of business ebbs and flows. If supplied by theGovernment, the expense is borne by the taxpayers. If supplied bybanks, it must possess an element of profit. It will readily issue solong as there is a profit. It may be made to contract by fixing a stand-ard of issue and taxing the excess, so that the excessive issue wouldbe retired with the cessation of the necessity which called it into ex-istence.

The amount of paper money in circulation October 31, 1892,was:National-banknotes $172,432,146United States notes (greenbacks) 332,080,234Treasury notes 114, 567,423Gold certificates 120,255,349Silver certificates 324, 552,532Currency certificates 10,550,000

1, 074,437,684Per cent of national-bank notes, 16.04.The Government can not issue money gratuitously. It can only put

it in circulation in exchange for some value or obligation. It can notpay its bonds in anything other than coin of standard value.

By the terms of the act of February 28, 1878, the Secretary of theTreasury was directed to purchase and coin into silver dollars silverbullion not less in value than $2,000,000 worth and not more than4,000,000 worth monthly. This act was supplanted by the act of July14, 1890. While in force the Government purchased silver and coined378,166,793 standard dollars, the seigniorage on which (that is, thedifference between the price paid for the silver and the face value ofthe coinage) was $69,967,531.Total coinage of silver dollars under act of February 28, 1878 $378,166, 793Total cost of silver bullion used in such coinage 308,199,262Seigniorage or apparent profit 69, 967,531Bullion value of such silver October 31, 1892 250, 493,936Difference between actua] cost and market value October 31, 1892 57, 705,326



This coinage accumulated in the Treasury vaults until the happydevice was conceived of putting it in circulation by the use of papersubstitute. As shown above, $324,552,532 are serving the people byproxy.

Under the act of July 14, 1890, the Government purchases monthly4,500,000 ounces of silver, and pays for the same in Treasury notesissued for that purpose and equal at par to the cost of such silver.Thus the currency of the country is arbitrarily increased monthly.Up to November 1, 1892, the total issue of such notes has been$116,611,233. The present market value of the silver purchased is$102,648,944, showing a depreciation in value of $14,134,646. This actwas a compromise measure, designed to prevent the unlimited coinageof a dollar of full debt-paying power containing less than a dollar'sworth of silver. From its nature (arbitrarily adding a large amountto the currency monthly) it is evident that it was intended to be tem-porary. The severest commentary upon our silver coinage is the factthat it offers an inducement to the counterfeiter to coin a dollar exactlyreproducing the genuine in quality and intrinsic worth, as well as formand design, the profit to the counterfeiter being represented by thedifference between the market value of the silver contained in the coinand its face value, which was October 31, 1892, 33J cents.

In view of the above statistics, the silver currency furnished by theGovernment will hardly commend itself to the public on the score ofeconomy. It is in sharp contrast with the national-bank currency,which has paid into the Treasury in taxes $72,670,412.30.

What the settled policy of Congress as to the future currency maybe remains to be seen. If furnished by the Government, it will possessthe quality of soundness, for nothing can be better than the Govern-ment under which we live; but it cannot possess elasticity. Elasticitymeans conformity to business wants, the supply quickly responding tothe demand, and not conformity to fixed rules and statutory laws. TheGovernment in the very nature of things cannot supply such currencyas the public requires. The national banks can and with proper legisla-tion would supply this want fully and completely. Large appreciation ofthe price of United States bonds, the basis for circulation, large depre-ciation of the rates of interest, and onerous taxation have made circulationunprofitable, and the volume has fallen from $362,889,134, September 30,1882the highest amount in circulation at any one timeto $172,426,610atthecloseof the last fiscalyear. The volume would have beenmuch morecontracted but for the fact that all national banks, whether they takeout circulation or not, are obliged to own and assign to the Treasurerof the United States in trust interest-bearing bonds of the UnitedStates, and in case their capital is $150,000 or less, to the amount at par ofone-fourth their capital stock. If the capital exceeds $150,000, they arerequired to have on deposit in the Treasury not less than $50,000 inbonds. Being obliged to own these bonds, to measureably lessen thecost of carrying such high-priced securities, they take out circulation.

The following carefully prepared tables show the profits upon circu-lation based upon a deposit of $100,000, bonds. June 30 was selected,as it marks the close of an interest period for Government bonds.



JUNE :u>, 18922 PER CENTS.$100,000 two's at par interest $2, 000. 00Circulation, 90 per cent on par value $90, 000. 00Deduct 5 per cent redemption fund 4,500. 00Loanable circulation at 6 per cent 85, 500. 00 5,130. 00Gross receipts 7,130. 00Deduct

1 per cent tax on circulation 900.00Annual cost of redemption 137.48Express charges 3.00Cost of plates for circulation ' 7.50Agents' fees 7.50Examinations 43.00 1,098.4&

Net receipts 6, 031.52$100,000 loaned at 6 per cent 6, 000.00Profit on circulation 31.52

Total profit on $21,837,000 bonds, $6,194.72.Percentage on maximum circulation obtainable, 0.032 per cent.

JUNE 30, 18924 PER CENTS.$100,000 four's at 116| premium,interest $4,000. 00Circulation, 90 per cent on par value $90, 000.00Deduct 5 per cent redemption fund.. 4,500. 00Loanable circulation at 6 per cent 85,500.00 5,130.00Gross receipts 9,130.00Deduct

1 per cent tax on circulation 900.00Annual cost of redemption . 137.48Express charges 3. 00Cost of plates for circulation 7.50Agents' fees 7.50Examinations 43.00Sinking fund reinvested quarterly to liquidate premium. 696. 36 1, 794.84

Net receipts 7,335.16$116,750 loaned at 6 per cent 7,005.00Profit on circulation 330.16

Total profit on $129,759,000 bonds, $385,571.09.Percentage on maximum circulation obtainable, 0.330 per cent.

J U N E 30, 18926 PER CENTS.$100,000 sixes at 114 premium, interest $6,000.00Circulation, 90 per cent on par value $1)0, 000.00Deduct 5 per cent redemption fund 4,500.00

Loanable circulation at 6 per cent 85,500.00 5,130.00Gross receipts 11,130.00

Deduct1 per cent tax on circulation $900. 00Annual cost of redemption 137.48Express charges 3.00Cost of plates for circulation 7.50Agents7 fees * 7.50Examinations 43.00Sinking fund reinvested semi annually to liquidate pre-

mium 1,972.943,071.42

Net receipts 8, 058.58$114, 000 loaned at 6 per cent 6, 840.00

Profit on circulation 1,218.58Total profit on $11,600,000* bonds, $127,219.75.Percentage on maximum circulation obtainable, 1.218 per cent.



RECAPITULATION.Profit on tlie three classes of bonds, maximum circulation 90 per cent

2 per cent bonds, *$21,837,000$19,653,300, maximum circulation at 0.03152 percent, $6,194.72.

4 per cent bonds, *$129,759,000$116,783,100, maximum circulation at 0.33016 percent, $335,571.08.

6 per cent bonds, *$ll,600,000$10,440,000, maximum circulation at 1.21858 percent, $127,219.75.

Total of bonds, $163,196,000$146,876,400, maximum circulation at 0.353 per cent,$518,985.55.

It will be noted that by taking out circulation the banks realize ineach case more than 6 per cent on the money invested in bonds. Themoney invested in the purchase of bonds as a basis of circulationyields in the case of 2 per cent bonds 6.032; in case of 4 per centbonds, 6.33; in case of 6 per cent bonds, 7.218.

Since the 5 per cent redemption fund counts as part of a bank'sreserve as well in hands of the Treasury as in vaults of the banks, itwould have been proper not to make the deduction above. This wouldadd materially to the profit of circulation. The $43 average cost ofexaminations of banks with $100,000 capital is not wholly an incidentof circulation.

In the above tables money is assumed to be worth 6 per cent. Ifthe prevailing rate was less than 6 per cent a bank could better affordto take out circulation. If the prevailing rate was more than 6 percent a bank could less afford to take out circulation. By allowing cir-culation to the par of bonds and removing the tax on circulation itwould be possible for banks located in sections where rates of interestare high to take out circulation without loss.

Since the organization of the national banks $1,521,437,753 have beenissued and redeemed without loss to any bill-holder. There can be noloss upon national-bank circulation. All the solicitude as to whatshall serve as a basis for circulation when Government bonds cease toexist is premature. The 4J per cent bonds (act July 14, 1870) maturedSeptember 1, 1891; $25,364,500 were continued at the pleasure of theGovernment at 2 per cent interest; interest upon the balance ceased;$24,520,900 have been redeemed and $983,800 remain outstanding-$3,617,700 have been redeemed since October 31,1891. ~No bonds havebeen purchased by the Government during the past year, the interest-bearing debt has not been reduced, and with the diminished revenues,under the act of October 1,1890, and swelling volume of annual expend-iture, there is likely to be no reduction in the immediate future.The trend of public opinion is decidedly in favor of limiting our rev-enues to the current needs of the Government. The currency sixes thatbegin to mature in 1896 are primarily obligations of the subsidizedPacific railroads. The railroads will hardly be prepared to pay thesebonds at maturity, and they will likely be continued like the 4J percent bonds, at the option of the Government, at a low rate of interest.

By relieving national-bank circulation, as above suggested, thesebonds could be extended at a very low rate of interesttoo low for invest-ment purposes, yet available as a basis of circulation. Of the $25,-364,500 of 2 per cent bonds outstanding October 1, $22,050,350 were heldby national banks to secure circulation. The 4 per cent bonds do notmature until July 1,1907. Since December 6,1890, the Government hasbeen out of the market as a purchaser of its own bonds, and the price thenpaid for 4per cent bonds ($123,356) hasfallen to $114,625. Thelower theprice of the bonds the more available they become as a basis of profit-able circulation. If happily the time arrives when the United States

* Total amount of each class of bonds held to secure circulation June 30, 1892.Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 REPOET OF THE COMPTROLLER OF THE CURRENCY.

Government has no bonded debt, or not sufficient to be available as abasis for circulation, there will, of necessity, be other choice securitiesavailable for such purpose.

In my judgment the Government should issue 2 per cent bonds, run-ning twenty, thirty, and forty years, and with the proceeds purchasethe 4 per cent bonds outstanding. This would result in a savin g of inter-est to the Government, distribute the maturity of the bonds over a properperiod, and furnish the best conceivable basis for circulation. The Gov-ernment could hardly have floated a 2 per cent bond but for the needsof the national banks, and with liberal yet conservative laws as to cir-culation it is possible that a bond bearing a slightly lower rate than 2per cent could be placed at par.

A United States 4 per cent bond of 1907, in order to yield interestat the rate of 2 per cent per annum for the remaining period it has torun, must have been purchased October 1,1892, for $125,492. In otherwords, the Government could have exchanged a 2 per cent bond, atpar, maturing July 1, 1907, for the 4 per cent bond of 1907, at $125,492,without loss or gain. The exchange would have been equal. The 4 percent bonds on October 1,1892, were worth $114,625. The extended 2per cent bonds, payable at the pleasure of the Government, were worth,on the same date, 101. Could the Government have exchanged a 2 percent bond maturing July 1, 1907, for the outstanding issue of 4 percent bonds upon the basis of the quotations jufct given, it would haveresulted in saving to the Government (that is, the taxpayers) theenormous sum of $67,161,551.47, as appears from the following compu-tation:Par value of outstanding 4s, October 1,1892 $559,586, 750.00Market value of 4s at 114f, and of 2s at 101, October 1, 1892 641,426, 312.18Par value of 2s exchanged at 101 for 4s at 114f, October 1, 1892 635, 075, 556. 62Quarterly interest paid on 4s 5, 595, 867.50Quarterly interest that would be paid on 2s 3,175,377.78

Quarterly saving of interest 2,420,489.72Present value, as of October 1, 1892, of these savings of interest to

maturity, money at 2 per cent, reinvested quarterly 123, 406,683.57Present value, as of October 1,1892, of $75,488,806. 62, principal of

2s in excess of principal of 4s, money at 2 per cent, reinvestedquarterly 56,245,132.10

Present value of net saving to the Government in accordancewith the above statement 67,161,551.47

While the principal of the indebtedness would be increased, the in-terest reduction would be so great for the remaining fifty-nine interestquarto periods, from October 1, 1892, to July 1, 1907, as to show a netsaving of $67,161,551.47.

A 4 per cent bond at 114f, on October 1,1892, would pay an investor,interest at the rate of 2.793 per cent.

It is probable, from the above statistics, that investors would not ex-change 4 per cent bonds for 2 percents, but the fact that banks own,for the purpose of securing circulation, nearly 87 per cent of the con-tinued 2 per cent bonds in preference to the 4 per cents, shows thatthey prefer a bond at par, with a lower rate of interest, as a basis forcirculation. A fixed period to run, and a long period would add to thevalue of the bond.

With so great a saving possible, the interests of economy, as well asall public and private interests that depend for prosperity upon a sound



and elastic currency, emphasize the wisdom of settling this question ofa proper basis for national-bank circulation by the issue of bonds hav-ing a long time to run, at a low rate of interest, with which to retirethe outstanding issue of 4 per cent bonds.

The national banks for a long series of years have demonstrated theirability to furnish the country with currency ample in amount, elasticin volume, sound beyond peradventure, and every dollar of which,every moment of its existence, was worth par throughout the lengthand breadth of the land. A change from such a currency to another lesssecure is certainly an unwise experiment. It is proposed to restoreState bank circulation by removing the 10 per cent tax imposed March3, 1865. There is no fairer test of men or methods than the record theymake for themselves. Every item of assets and liabilities, as shown bythe trial balance of their general ledgers, of every national bank, forthe whole period of their existence, has five times each year been pub-lished in the locality, reported to the Comptroller of the Currency, andbecome a matter of record. Additional tables resolve all compositeitems into detail. Additional statistical tables complete the historyand workings of such banks. Special reports show the course of tradeand exchange. In case of failure, equally explicit information is ob-tained from receiver's reports, total claims, total assets, percentagepaid, percentage of loss, items of expense, including receiver's fees, andattorneys' fees.

All this information is annually reported to Congress and spread be-fore the country. The course of trade, the material condition, the pros-perity or depression of the country, are truthfully reflected in the con-dition of its banks. And the publication of the above conditions, inthe reports of these banks, has been of inestimable value to publicistsand economists. This is the record of national banks under Federalauthority and Federal supervision. To compare the present nationalbanking system with the old State banking system is to compare orderwith confusionperfect system, under central control, with imperfectsystem, under diversified control. The banking systems of the differ-ent States, during the period that they were banks of issue, differedessentially. Some had excellent banking laws; others had very crudelaws. Some had effective supervision, and some had none, or worsethan none. In no State was the aggregate or percentage of loss tonote-holders of State banks reported, nor the losses to creditors or stock-holders. The most careful research reveals only general statements, orestimates of*loss, in the current financial literature of the time.

Congress, by resolution in 1832, directed the Secretary of the Treas-ury to procure and publish statistics relating to banks in the severalStates. Such publication was made more or less complete, with theexception of some years, until 1864*; then followed an interval until1873, when the Comptroller of the Currency was directed to procurefrom official and other reliable sources and report to Congress infor-mation in relation to State banking institutions. The statistics inrelation to State banks prior to 1864 have been the subject of much

* When is stated that the statistics relating to the period prior to 1864 are mainly-unofficial, it will be understood that the information conveyed is only approximatelycorrect. The principal sources of information in compiling these statistics have beenthe reports of the Secretary of the Treasury to Congress since 1832, Baker's work onBanks and Banking, Blodgett's Economica, Elliott's Funding System, Thompson'sBanknote Reporter and Counterfeit Detector, the Banker's Magazine, Hodges' newBanknote Safeguard, Consideration on the Currency and Banking Systems of theUnited States, by Albeit Gallatin; History of Banking in the United States, by JohnJay Knox.


1 2 REPORT OF THE COMPTROLLER OF THE CURRENCY.

study and research on the part of mf predecessors. The Comptroller'sreport for 1876 contains elaborate tables upon this subject. The ques-tion of restoring State bank circulation gives especial value to all in-formation of this character, and I have therefore carefully studied andanalyzed all the statistics attainable upon this subject, showing thecondition of State banks prior to 1864, arid x^ublish in the Appendix ofthis report, arranged in convenient form, tables presenting such in-formation.

The most notable feature of the State-bank circulation was the violentexpansion and contraction to which it was subject.

The charter of the United States Bank expired March 4,1811. Mr.Gallatin made the following estimate of the total circulation of thecountry, including notes of the Bank of the United States: In 1811,$28,100,000; in 1815, $45,500,00 j ; in 1816, $68,000,000; and in 1820,$44,863,000.

In 1840, according to Knox, there were in Ohio thirty-seven banks,with $10,000,000 capital. January 1, 1845, there were but eight banksin operation, with a capital of $2,171,807. Up to and including 1856thirty-six of the banks organized under the laws of that State hadfailed, their notes being wholly worthless, and eighteen more hadfailed, their notes being worth 50 to 75 cents on the dollar. FromJanuary 1, 1857 the circulation of the whole country shrank from$214,788,892 to $155,208,744 on January 1, 1858, a decrease of over$59,000,000 in one year (Eeport of Secretary of the Treasury). Thecirculation of Illinois increased from $5,500,000 in 1857 to $12,300,000in 1861. (Knox.) Much of this circulation was secured by variousforms of security, and its redemption provided for by State authority.Yet it was seldom that this security proved adequate. The Bankers'Magazine for February, 1858, advertised a list of twenty-eight sus-pended banks in Indiana whose notes would be redeemed by the audi-tor of that State at the following rates: ten at par, and the remainderat prices ranging from 97 down to 69. According to the same au-thority, in July, 1859, a convention of Wisconsin bankers, held at Mil-waukee, fixed the discount on Illinois bank bills at 1 per cent untilSeptember 20, and at 3 per cent thereafter. This action was retalia-tory, and simply established the same discount upon Illinois billsthat Illinois had adopted as to Wisconsin. In April, 1859, the Indianabanks determined not to accept the notes of Illinois or Wisconsin. Allbank notes of interior banks were at a discount in New York (manyunsalable) from 50 per cent down to the current exchange, which wascharged against the notes of perfectly solvent banks.

The above instances illustrate the friction existing between differentStates.

The cost of exchange on commercial centers was greatly increasedunder State-bank circulation. Now a man in Montana deposits hismoney in his local bank and buys Chicago exchange. His money is asgood in Chicago as Helena, and he simply pays the cost of transmittal.In fact, the competition for business is so intense and the indulgenceof banks correspondingly great that frequently when an interior mer-chant goes to New York to buy goods he takes a letter of introductionfrom his home bank to their New York bank correspondent, drawschecks for the amount of his purchases upon his home bank, which arepaid by the New York correspondent and debited to the home bank.Thus the item of exchange disappears entirely.

The dangers of counterfeiting under the national-banking systemare at a minimum. The bills are printed by the Government upon


KEPORT OF THE COMPTROLLER OF THE CURRENCY. 13

carefully prepared paper made by the Government and never out ofthe Government's possession. If circulating notes were to be printedby the forty-four different States, the opportunities for counterfeitingwould be multiplied. Under the old State-bank system counterfeitingwas an established industry, and a description of the methods anddevices possesses the qualities of a romance. From January 1 to April1,1859,* there appeared 242 new counterfeits. Hon. John Jay Knox(whose long incumbency of the office of Comptroller of the Currency,as well as his qualities as a student of finance, entitles his judgment tohighest consideration) estimates the average loss to note-holders underthe old State-bank system at 5 per cent. As before remarked, no esti-mate can be made of the loss to creditors and stockholders. By adver-tising for the redemption of circulating notes the statutory periodand refusing all later presentations, it frequently happened that thestockholders reaped large profits where the note-holders met almosttotal loss.

I have given the above random illustrations as suggestive simply ofthe evils attendant upon the old State-bank circulation. It is by nomeans exhaustive. I am aware that the present can hardly be com-pared to antebellum times, and that the changed conditions which nowexist would necessarily obviate some and soften many of the evils at-tendant upon State-bank circulation.

In order to furnish a modern standard of comparison betweennational banks and those other than national, Comptroller Knox re-ported statistics, showing the number of failures of State, savingsbanks, and private bankers, for the three years ending January 1,1871).The number of failures was 210 5 total claims, $88,440,028; amount paidand to be paid, $58,152,638 ; losses, $32,616,661; upon which he comments:

The average annual loss sustained by creditors during the past sixteen years bythe insolvency of national banks throughout the United States has been $390,012,and that occasioned by the failures of banks other than national, as shown by th*>incomplete data obtained by the Comptroller, has for the last three years been notless than $10,872,220.

Hon. Edward S. Lacey, in his report as Comptroller for the year1891, gave a list of failures in the United States of bankers, brokers,trust companies, and savings banks, for the year ended June 30,1891.u These number, in all, 117 institutions, having liabilities estimated at

$38,271,511, and assets valued at $20,794,092. (Bradstreet.)"Through the courtesy of Bradstreet I am able to report, in a table to

be found in the Appendix, the failures of State, savings, and privatebanks, and loan and trust companies for the year ended June 30,1892.The number is sixty-nine. Aggregate liabilities, $11,024,628. Esti-mated value of assets, $6,125,189. The percentage of assets to liabili-ties 55.56.

The seventeen national banks that failed during the last report yearhad aggregate liabilities amounting to $12,538,448. Estimated valueof assets, $10,750,347. Percentage of assets to liabilities, 85.74.

However recent the comparison the conclusion is in favor of thenational-bank system.

If the forty-four States are to furnish the currency of the country,then we will have a chain of sovereignties furnishing our circulatingmedium, each with varying laws and varying supervision, and, like allchains, the system as a whole would be no stronger than its weakestlink. Disorganized finance in one State would affect all. Argentina

* Tbompson/s Bmk Note Reporter and Counterfeit Detector,Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis


financial troubles precipitated the Barings failure at a time when thiscountry was generally prosperous; and yet it produced a quasi panicin the United States and cast a cloud over the financial horizon of thewhole world which has not yet fully disappeared. Banking is not aphilanthropical business and banks will not issue circulating notesunless it is profitable. Manifestly issuing notes would be most profit-able where greatest latitude was allowed or greatest laxity prevailed,and with the circulation of any State discredited or the particularbanks of any State discredited, conservative bankers and conservativebusiness men would have to discriminate against such bills.

We all know the practical machinery employed to enforce such dis-crimination. Our State boundaries and commercial centers would bepoliced with brokers' offices, and commerce would be compelled to pauseat State lines and pay the exchange demanded in order to provideitself with money acceptable in the locality where proposed businesswas to be done. The bill of a perfectly solvent bank in Oregon wouldbe worth just as much less than its face in Chicago or New York as itwould cost to send such bill to Oregon for redemption and secure the pro-ceeds in returncost of transmission each way and interest for the timerequiredin short, exchange. It would be precisely on a par with thenote of any equally reputable business firm. The only way this dis-count could be avoided would be to provide for the redemption of suchnotes in Chicago, New York, Boston, and other money centers. Shouldinterior and far Western banks make their bills worth par throughout thecountry by providing for their redemption at convenient money cen-ters, it would compel them to keep an amount of idle reserve with theirredemption agents that would seriously impair the profits on circula-tion. And the United States Government would not facilitate bankingtransactions then, as it does now, by receiving money at its subtr^as-uries and transporting the same to any part of the country for themeager charge of 15 to 50 cents per $1,000.

A bank bill or note is a noninterest-bearing obligation payable tobearer upon demand, in lawful money, titje to which passes by delivery.The value of such note depends upoji the financial credit of the bankissuing the same, the special provision of law for its redemption, thesecurity set apart for such purpose, the fidelity with which such lawsare enforced, as to redemption, the character of supervision, and thedegree of conservative banking thereby insured. The profit to a bankissuing such bills depends altogether upon the length of time theyremain outstanding before being presented for redemption. With thefacilities afforded by railway and express companies for presentingsuch notes for redemption, it is probable that they would speedily findtheir way back to the place of issue. This would seriously impair theprofits and would necessitate more favorable conditions of issue inorder to render the issuing of circulation profitable. No circulationwill issue unless there is a profit in it. The fact of the probable andspeedy return of this circulation to the locality of issue is made anargument in its favor, inferring therefrom that each locality would beabundantly supplied with money. A bad penny always returns, andthe tinge of doubt that would attend this State-bank circulation woulddoubtless give it a homeward impetus. But bear in mind that it wouldbe worth no more at "the place of issue, though passing at par, than inBoston or New York. By just such a percentage as its purchasingpower was diminished in our commercial centers, by just that percent-age would the price of commodities be appreciated where it passed atpar. This is an inevitable law attendant upon depreciated currency.



The stream that flows from the mountain to the sea obeys no morenatural law than that which accumulates currency in commercialcenters. If the water stood in pools on the mountain it would neces-sarily be pretty damp at the seaboard, and, if these localities that soloudly clamor for more money had all the currency they wanted, thatsame currency would be a drug in banking centers. There is moneyenough, and the range of interest for the past year has been phenom-enally low, and, as before stated, any bank in any part of the countrycould have had any quantity of money transported to it at the moderatecharge of 15 to 50 cents per $1,000. But such bank must have theequivalent of money; it must have securities, or receivables, or someform of credits, acceptable, in order to get the money. And right hereis the trouble. This clamor for more money comes from the newer, less-developed sections of the country, and from people who have somethingto sell that no one wants to buy. The securities they offer do notcommend themselves to investors. No amount of currency would cor-rect this. They say, " Money is plenty while the crop is being moved,but we want it plenty at all times." When the crop is gone, whathave they to represent money, with which to buy money? People canget money for their labor and for their produce. They can borrowupon good collaterals, real or personal. People with any equivalentof money can get it. This whole trouble is born of the heresy, whichhas a strangely extended hold upon the public mind, that the Govern-ment can create wealth and that if there were more money peoplecould, in some unexplained way, obtain it without rendering an equiv-alent.

A conditional repeal of this 10 per cent tax is proposed, conditionedupon compliance by the State banks with certain regulations imposedby Congress, designed to secure circulation and protect note-holdersagainst loss. Such State banks would then be national banks for thepurpose of issuing circulating notes, and Congress must provide fortheir supervision and examination, to see that the laws are compliedwith. Can currency be better taken out by a bank organized under aState law than under an act of Congress ? Would Congress or the coun-try gain anything by the proposed divided jurisdiction over these banksof issue? Would not division lead to conflict and confusion? Allnational banks make reports of condition to the Comptroller, on a pastday, fixed by him, in such form as the Comptroller prescribes, and uponblanks furnished by him. These forms are very complete as to balancesheet and detail. In order to comply with these calls a bank's booksmust be so kept as to furnish the required information. These reportsare of very great value to the banks themselves, in systematizing theirbookkeeping and insuring good and uniform methods of business. Theinformation reported, all on the same date, is of great value to the pub-lic. What would be gained by denationalizing our banks in all respects,except as to circulation? Can the various State legislatures bedepended upon to provide better laws and better supervision than Con-gress?

It is argued that 92 per cent of all business transactions consum-mated through banks are represented by creditsthat is, exchangesand offsetsand that 8 per cent only is represented by money. TheGovernment does not assume to regulate the 92 per cent. Why shouldit the 8 per cent? Why not as well allow State bank notes to circu-late? Their acceptance is purely voluntary. That statement is theo-retically true, but practically it is wholly false. A banker, or large

h t manufacture^ may b in % position? equipped with skilledDigitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis


men or expert information, to exercise discrimination between thestrong and the weak banks. Bnt what can the artisan, the day laborer,the miner, or the farmer know of such a matter^ From the nature oftheir calling they can exercise no discrimination. They know, andthy can only know, that the Government allows such bills to circulate,in form and semblance of money, and they have the right to hold theGovernment responsible that it be worth 100 cents on the dollar,whether it comes from New York or New Mexico.

The Constitution of the United States prohibits the States fromcoining money or making anything except gold and silver legal tender.State-bank bills could not become a legal tender. Neither are national-bank bills. State-bank bills when issued add just so much to theliabilities of the bank. They would circulate freely in times of pros-perity and confidence. In times of monetary stringency and generaldistrust they would return to the banks for redemption. They wouldhave to be redeemed in legal-tender money provided by Congress.Congress must, under the Constitution, provide all the money thatpossesses a full debt-paying power. By every consideration of soundbusiness principles it should provide all the money that the countryrequires. No public interest can be served by dividing this functionwith the forty-four States. Every period of financial depression inthe past resulted in the suspension of specie payments, more or lessgeneral, by the banks; that is, resulted in the inability of the banksto redeem their notes. The same conditions would produce similar re-sults in the future. If State-bank notes*are allowed to circulate, theiracceptance is not voluntary; it becomes a business necessity. Manymine-owners, manufacturers, and large employers of labor practicedpaying their help in store orders, in order to control their trade andmake the extra profit. Surely, under the law, the acceptance or rejec-tion of such orders was purely voluntary, and yet their acceptance forfear of losing their employment was general.

So great did this abuse become that many States have enacted lawscompelling corporations to pay their laborers, at regular intervals, inmoney. The wealthy class could provide themselves with the means ofdiscriminating against the notes of weak banks, and if they found them-selves possessed of any would proceed to work them off upon their lessfortunate neighbors. That is the record of the past. It would be theexperience of the future. To the average laboring man a bank-note re-porter and detector would be as inexplicable as the binomial theorem.When a bank suspends, the fact that the note is secured and will beeventually paid is poor consolation to the laborer who needs his money forhis daily use. The note of a failed national-bank is as good as that of anybank in the system. The restoration of State-bank circulation portendsdisaster to that class of our citizens who most need and have most rightto ask protection from the Government. State-bank circulation loses itsmoney power in a crisis. It is a source of weakness and adds to thedanger. Instead of paying debts it cbmes forward itself to be paid.

CLEAN MONEY.

Currency, as applied to the money of a country, has been defined asa " continuous succession of uses." A little reflection upon such con-tinuous use, the journey from hand to hand, till to till, pocket to pocket,over the damp counter of the saloon, through the necessarily soiled handsof honest industry, treasured by the poor and carried in close proximityto the person, it is easy to realize that it becomes " filthy lucre." Soiled


REPORT OF THE COMPTROLLER OF THE CURRENCY. 17paper money is popularly believed to be a potent means of disseminat-ing infectious and contagious diseases. The Bank of England neverreissues a note.

The statute provides for the redemption of United States notes whenthey "are so mutilated or otherwise injured as to be unfit for use," andfor the redemption of national-bank notes when they are "worn, de-faced, mutilated, or otherwise unfit for circulation." A note with theaccumulated filth of continuous use is unfit for circulation and shouldbe redeemed. Send in the old and let the people have new and cleanmoney. My experience as examiner in the discount and savings banksof New York has impressed this matter upon me.

The following table gives the number of banks organized during theyear ended October 31, 1892, in each State and Territory, with theiraggregate capital :

States and Territories.

TexasIowaIndianaOhioPennsylvania...IllinoisMinnesotaWashingtonMassachusetts..WisconsinWest Virginia..ColoradoIdahoNew HampshireNew JerseyKansasMontanaTennesseeMaineIndian Territory

No. ofbanks. Capital.

$1, 445,000725, 000

1,110, 0002, 000, 000700,000

2, 500, 000710,000700,000650, 000500, 000350, 000260, 000200, 000250, 000250,0002C0, 000200, 000160, 000150,000150, 000

States and Territories

New YorkCaliforniaNew MexicoOklahomaWyomingMissouriVirginiaGeorgiaNorth Carolina.ArizonaAlabamaFloridaKentuckyMarylandMichiganNebraskaNorth Dakota..Utah

Total .

No. ofbanks .

163

Capital.

$300,000150,000100, 000100, 000100, 000200,000200, 000150,000125,000100,000100, 000100,000100, 000

50, 00050,00050,00050, 00050, 000

15, 285,000

In point of numerical accessions to the system, Texas leads withtwenty-two banks; Iowa, Indiana, Ohio, and Pennsylvania followingin the order named. Illinois, however, provided the largest amount ofcapital. It has been noticeable for several years that the large propor-tion of increase in the number of active national banks is assignable tothose States and Territories located West of the Mississippi River andin the Southern States. Of the one hundred and sixty-three banksorganized during the past year, eighty-two are located in States andTerritories west of the Mississippi, and thirty-six are located in theSouthern States. Pennsylvania still has the greatest number of na-tional banks in operation, Massachusetts the greatest aggregate capi-tal, and New York the largest amount of deposits. As prosperity andpopulation increase in the western portion of the country, extendingfrom north to south, so the privileges of the national banking systemare availed of in contrast with private banks and other financial corpo-rations organized under State laws. During the past year the seventeenfailures were widely distributed, there having been three in Kansas; in!New Mexico and Texas two each, and in other States only one. Thefollowing table exhibits the number of banks organized, failed, and involuntary liquidation, and the net increase or decrease, numerically, eachyear since 1863:

9647 2


18 REPORT OF THE COMPTROLLER OF THE CURRENCY.NUMBER AND AUTHORIZED CAPITAL OF BANKS ORGANIZED AND THE NUMBER AND

CAPITAL OF BANKS CLOSED IN EACH YEAR ENDED OCTOBER 31 SINCE THE ESTAB-LISHMENT OF THE NATIONAL BANKING SYSTEM, WITH THE YEARLY INCREASE ORDECREASE.

Year.

18631864186518661867 . . .1868186918701871...1872187318741875 ..1876187718781879 ..18801881188218831884188518861887188818891890 .18911892 .

TotalDeduct de-

crease ....

Total net in-crease .

Organized.

No.

134453

1,0146210129221701756871107362928385786227262191145174225132211307193163

4,811

Capital.

$16,378,70079, 366, 950242, 542, 9828, 515,1504, 260,3001, 210, 0001,500, 0002,736, 00019,519, 00018, 988,0007, 602, 7006, 745, 50012,104, 0003,189, 8002, 589, 0002, 775, 0003,595, 0006, 374,1709, 651, 050

30, 038, 30028, 654, 35016, 042,23016,938, 00021, 358, 00030, 546,00012, 053,00021,240,00036, 250, 00020, 700, 00015, 285, 000

698, 748,182

Closed.

In voluntaryliquidation.

No.

3Q412181714111121203832264133.9267840308525253441504153

844

Capital.

$330,000650,000

2 160 000O AAK PiOO3, 372, 7102, 550, 0001, 450,0002,180, 5003, 524, 7002, 795, 0003, 820, 0002 565 0002, 539, 5004, 237, 5003, 750,000570,000

1, 920, 00016,120, 0007, 736, 000Q 64.7 9^ fl

17, 856, 5901, 651,1002, 537,4504,171,0004, 316, 0005,050, 0004,485,0006,157, 500

114, 588, 501

Insolvent.

No.

A

11

611359101483

3211488o

Capital.

$50, 000500, 000

1,170, 000410,00050 000

250,000

1, 806,1663, 825, 000250, 000

1 000 000965,000

3, 344,0002, 612, 5001,230, 000700, 000

1,561, 300250, 000

1, 285, 000600, 000650, 000

1,550,1001 QAH Ann

21 250,0009: 750,000

25' 3, 622, 00017J 2, 450, 000

181 33, 030, 900

Net yearly in-crease.

No.

134

Capital.

$16. 378. 700450 79, 366, 950

1, 007 242,162, 08?56 7, 365,150! 930. 300

159158364864

4560146220150561411929016824812793

3,855

69

18, 069, 00015, 001, 400

253,0003, 700, 5007, 283, 800

5,104,1707, 731. 050

12, 357, 00020,668,35011,109, 980

19, 056, 90026, 458,5505,982, 000

16, 674, 00030, 450, 00012, 593, 0006, 677, 500

565,374,282

14.245.500

1*3, 786 t551.128.782

Net yearlydecrease.

N-

8109

57273

69

Capital.

$1, 645, 5001, 922, 710

64, 000

340, 2003, 294, 5004, 075, 0001, 385, 000

1, 518, 590

14,245, 500

* Two banks restored to solvency, making 3,788 going banks.t The total authorized capital stock on October 31 was $693,868,665; the paid-in capital, $692,812,330,

including the ca-pital stock of liquidating and insolvent banks which have not deposited lawful moneyfor the retirement of their circulating notes.

As stated elsewhere with more particularity, the failures during thepast year were not disastrous, and in proportion to the number in activeoperation were not so numerous as in some preceding years.

AMENDMENTS TO THE LAWS.

The Comptroller of the Currency is required annually to report uanyamendments to the laws relative to banking by which the system maybe improved, and the security of the holders of its notes and othercreditors may be increased."

(1) In my judgment the law should be amended so as to providedas follows: That the minimum deposit of Government bonds, requiredby national banks, be reduced to $1,000 in case of banks of $50,000 cap-'ital, and to $5,000 in cases of banks whose capital exceeds $50,000.Such deposit would be sufficient to guarantee the payment of all ex-penses and assessments imposed by law. Banks are no longer organ-ized for the purpose of issuing circulation, and when organized to dobusiness as banks of discount and deposit it is clearly a hardship torequire them to purchase these high-priced Government bonds beyondthe amount above suggested,Digitized for FRASER

http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis


(2) That any national bank be allowed to issue notes equal to thepar value of the United States bonds which it may purchase and assignto the Treasurer of the United States for the purpose of securing circu-lation.

(3) That the monthly withdrawal of bonds pledged to secure circula-tion shall not exceed four and a half millions in the aggregate. Shouldwithdrawals equal the amount named in any month (which is unlikely)such amount would be offset by the additional circulation issued underthe second amendment suggested.

(4) That the tax on national-bank circulation be repealed. The bankshave already paid into the Treasury $72,670,412.30 in taxes upon circu-lation. The banks should only be assessed an amount sufficient todefray the actual cost to the Government of providing circulation.

(5) That the limit of the amount which may be loaned to any person,company, corporation, or firm, to 10 per cent of the capital stock of thebank, be so amended as to read "capital and surplus." There shouldbe an additional amendment making an exception in favor of temporaryloans, secured by collateral, in our largest business centers.#

(6) That the Government issue bonds, with a long period to run andat a low rate of interest, wTith which to retire the present bondeddebt of the United States, and which bonds may be used as a basis tosecure national-bank circulation. *

(7) That the Comptroller of the Currency, with the approval of theSecretary of the Treasury, be empowered to remove officers anddirectors of a bank for violations of law, leaving the vacancy to befilled in the usual way 5 first giving such officers and directors an op-portunity to be heard.

(8) That bank examiners be required to take an oath of office beforeentering ux)on the discharge of their duties, and to give a bond in suchamount and with such sureties as the Comptroller of the Currency mayrequire.

(9) That the Comptroller of the Currency be allowed to appoint twogeneral examiners, of conspicuous ability and experience, to be paidout of the public funds, whose duty it shall be to visit, assist, andsupervise the various examiners in their several districts, in order tosecure uniformity in method and greater efficiency in work.

(10) That the law be so amended as to prohibit officers or employesof a bank from borrowing its funds in any manner except upon appli-cation to and approval by the board of direction.

(11) In order to facilitate the collection of assessments upon share-holders in failed national banks, that the receivers of such banks berequired to file with the county clerk or register of each county whereany shareholder may reside a statement showing the names of share-holders residing in such county and the amount of stock held by themrespectively; the filing of such statement to constitute a lien uponthe realty of such shareholders, which lien may be vacated, upon motion,by giving proper bond, and which shall be discharged, by the receiver,upon payment of the assessment.

(12) Section 380, United States Eevised Statutes^ reads as follows:All suits and proceedings arising out of the provisions of law governing national

banking associations, in which the United States or any of its officers or agents shallbe parties, shall be conducted by the district attorneys of the several districts, underthe direction and supervision of the Solicitor of the Treasury.

Under this section it is claimed that United States district attor-neys are ex-officio attorneys of the receivers of all failed national banks

Discussed elsewhere in this report.Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis


located within their respective districts, and that all suits and proceed-ings must be instituted by or through them. It is difficult to believe thatthe courts will finally sustain such a construction, that a simple actionfor debt, which can be maintained in a State court as well as in theUnited States court, and is not based upon any provision of the na-tional-bank act, falls within the provisions of said act, or that a re-ceiver of a failed national bank is an "agent" of the United Stateswithin the meaning of said section.

It is difficult to believe that Congress has the power to impose theservices of any attorney upon such a trust, where the assets are whollyprivate property, belonging to creditors and shareholders. Certain itis that had Congress intended that such a broad construction would beput upon this section it would have made some provision for excep-tional cases. It is a physical impossibility for the various UnitedStates attorneys to act as attorney or counsel for the receiver. In manyinstances they reside several hundred miles distant from the trust. Inother instances there are so many trusts within a single district thatthe United States attorney can not attend to all the business to bedone. The result in such cases is that where United States attorneysinsist upon being employed they become attorneys of record, nominallyappearing in all actions or proceedings, while some resident attorneydoes the actual work. As a consequence the trust is obliged to paydouble fees for having its work done.

If the United States attorney must be employed in accordance withthe above section, then every time there is a change in such officer itwould necessitate the substitution of his successor in office, thus bring-ing in an entirely new man, with no familiarity with the pendiug liti-gation. Under such circumstances the usual practice has been toretain the ex-district attorney as counsel, thus producing a doublecharge for the services rendered.

Many United States attorneys make no claim to be employed.Others when confronted with the situation relinquish their claim, butstill others insist upon being employed, and, when not employed, insistupon being paid a fee for every act that is done by the attorney in theregular administration of the aflairs of the trust. The Department hasin its possession bills rendered by United States attorneys who havenever performed any act for the benefit of the trust, have never beenconsulted by the receiver, and never in any way had any connectionwith the affairs of the failed bank, except to ascertain from the recordwhat suits and proceedings had been instituted and then have madesuch suits and proceedings a basis of claim for compensation.

I append a table showing the various failed banks, their location,and the location of the different United States attorneys who wouldhave to be employed by the receiver in case the construction soughtto be placed upon section 380 is a proper one. Also, the distance atwhich such United States attorneys are located from the respectivetrusts.

From this table will clearly appear the physical inconvenience, if notimpossibility, of these United States attorneys acting as attorneys forvarious receivers. Surely these attorneys ought not to be paid forwhat they can not and do not do. These trusts should not be sub-jected to double fees, and the above section should be amended so asto provide that attorneys other than United States attorneys may beemployed by receivers of failed banks, whenever in the opinion of theComptroller of the Currency such employment will be for the interestof a trust?


REPORT OF THE COMPTROLLER OF THE CURRENCY. 21TITLE AND LOCATION OF EACH RECEIVERSHIP WITH LOCATION OF UNITED STATES

ATTORNEY.

Name of each failed bank.

First National BankThird National BankGerman-American National BankMechanics' National BankPacific National BankFirst National Bank

Do . . . -DoDo

Marine National BankFirst National Bank

DoMiddletown National BankExchange National BankFirst National Bank

DoFidelity National BankFifth National BankFirst National BankCommercial National BankMadison National BankCalifornia National BankFirst National Bank

DoDo

Third National BankHarper National BankGloucester City National BankPark National BankState National BankKingman National BankFirst National Bank

DoDo

American National BankCity National BankPeoples' National BankSpokane National BankFirst National BankPratt County National BankSecond National BankKeystone National BankSpring Garden National BankFirst National BankNational City National BankCentral Nebraska National BankFlorence National BankRed Cloud National BankNinth National Bank . . . .First National Bank

DoRio Grande National BankFirst National Bank

DoMaverick National BankCorry National BankCalifornia National BankCheyenne National BankFirst National BankHuron National BankFirst National Bank

DoBell County National BankFirst National Bank

DoLima National BankCherryvale National BankFirst National BankNational Bank of GuthrieFirst National BankYincennes National Bank

Location of trust.

Anderson, IndChicago, 111Washington, D. CNewark, N. JBoston, MassUnion City, PaLeadville,'ColoSt. Albans, YtMonmouth, IIINew York CityLivingston, MontAlbion N. YMiddletown, N. YNorfolk, YaSioux Falls, S. DakPine Bluff, ArkCincinnati, OhioSt. Louis MoAuburn, N. YDubuque, IowaMadison, S. DakSan Francisco, CalAnoka, MinnShetField, AlaAbilene, KansMalone,N. YHarper, KansGloucester City, N. JChicago, III...'Wellington, KansKingman, KansAlma KansBelleville, KansMeade Center, KansArkansas City, KansHastings, NebrFayetteville, N. CSpokane Falls, WashEllsworth, KansPratt, KansMcPherson KansPhiladelphia, Pa

doRed Cloud, NebrMarshall, MichBroken Bow, NebrFlorence, AlaRed Cloud, NebrDallas, TexKansas Citv, KansPalatka, FliiLaredo, TexColdwater, KansClearfield, PaBoston, MassCorry, PaSan Diego, CalCheyenne, WyoWilmington, N. CHuron, S. DakMuncy, PaDowns, KansTemple, TexDeming, N. MexSilver Citv N MexLima, OhioCherryvale, KansRockwall, TexGuthrie, OklaErie, KansYincennes, Ind

Location of UnitedStates attorney.

IndianapolisChicagoAYashingtonJersey CityBostonPittsburgDenver .^NorthfieldSpringfieldNew York CityHelenaBuffaloNew York City...NorfolkHuronLittle RockCincinnatiSt LouisBuffaloFort DodgeHuronSan FranciscoSt. PaulBirminghamTopekaBuffaloTopekaJersey CityChicagoTopeka. .do

dododo

....doOmahaAYarrentonSpokane FallsTopeka

dodo

Philadelphiado

OmahaBay CityOmahaBirminghamOmaha r.DallasTopekaJacksonvilleSan AntonioTopekaPittsburgBostonPittsbureLos AngelesSundanceWarrentonHuronPittsburg .TopekaDallasSanta F6

doClevelandTopekaDallasGuthrieTopeka -Indianapolis

Distanceapart.

Miles.36

8

143151

6785

1235067

10643

33519272

2912796

333229

94

193200

37152301193151142

156208128

392146225132192

6756

154302173

154127435200

225186134316364148151

28

140117


22 REPORT OF THE COMPTROLLER OF THE CURRENCY.CLOSED NATIONAL BANKS.

The following statement exhibits the title, capital, and circulationissued, redeemed, and outstanding of associations which were closedto business during the year ended October 31,1892. Of these 70 asso-ciations, 53 went into voluntary liquidation and 17 into the hands ofreceivers.NATIONAL BANKS CLOSED DURING THE YEAR ENDED OCTOBER 31, 1892, IN EACH

STATE AND TERRITORY, WITH CAPITAL AND CIRCULATION.

Name and location of bank.

Maverick National Bank, Bos-ton, Mass.*

Citizens' National Bank, Colo-rado, Tex

Corry National Bank, Corry,Pa.* - '--

California National Bank, SanDiego, Cal.*

Cheyenne National Bank ,Cheyenne, Wyo.*

First National Bank, Ply-mouth, Mich

First National Bank, Wilming-ton, N.C.* .

National Bank of Wooster,Indiana National Bank, Lafay-

ette, IndFirst National Bank, La

Grange, GaDefiance National Bank, Defi-

ance, OhioProduce National Bank, Phila-

delphia, PaHuron National Bank, Huron,

S.Dak.*First National Bank, Burling-

ton, WisMerchants' National Bank,

Kansas City, MoFirst National Bank, Manito-

woc, WisFirst National Bank, Faiineld,

TexCommonwealth National Bank,

Philadelphia, PaMerchants' National Bank,

Fort Dodge, IowaFirst National Bank, Muncy,

Pa.* '..Giles National Bank, Pulaski,

TennFirst National Bank, Quanah,

TexNorthwestern National Bank,

Aberdeen, S. DakCastleton National Bank, Cas-

tleton, VtFirst National Bank, Downs,

Kans.*Bell County National Bank,

Temple, Tex.*First National Rank, Deming,

N.Mex.*First National Bank, Silver

City, N. Mex.*First National Bank, Cham-

berlain, S. DakSedan National Bank, Sedan,

KansBronson N a t i o n a l Bank,

Painted Post, N YLima National Bank, Lima,

Ohio*First National Bank, Ains-

worth, Nebr

Date ofauthority tocommencebusiness.

Dec. 31,1864

Aug. 14,1890

Nov. 12,1864

Dec. 29,1887

Dec. 2,1885

Jan. 5,1872

July 25,1866Ohio Dec. 29,1871

Apr. 22,1872Dec. 20,1883Dec. 22,1871May 19,1886Nov. 21,1884Feb. 3,1872Dec. 2,1879Mar. 1,1865Apr. 22,1890Dec. 14,1864Mar. 20,1872Feb. 23,1865May 31,1872Oct. 24,1889Oct. 22,1888Oct. 21,1865Oct. 12,1886Aug. 25,1890Apr. 22,1884Sept. 17,1886Mar. 31,1883Nov. 5,1889Oct. 5,1887Jan. 16,1883Aug. 12,1889

Date of clos-ing.

Nov. 2T1891Nov. 3,1891Nov. 7,1891Nov. 12,1891Nov. 13,1891Nov. 14,1891Nov. 24,1891Nov. 29,1891Nov. 30,1891

Dec. 1,1891

Dec. 7,1891

Dec. 8,1891

Dec. 18,1891

Dec. 19,1891

Dec. 22,1891

Dec. 26,1891

Dec. 28,1891

Dec. 31,1891

....do

Jan. 11,1892

Jan. 12,1892

....do

Jan. 15,1892

Jan. 22,1892

Jan. 23,1892

Feb. 3,1892

....do

....do

Feb. 6,1892

Feb. 9,1892

Feb. 29,1892

Mar. 1,1892

....do

* Failed.

Capitalstock.

$400, 00060,000

100, 000

500, 000

150, 000

50, 000

250, 00053,900

100, 000

50,000

100, 000

300, 000

75, 000

50, 000

1, 000, 000

50, 000

50, 000

208,000

100,000

100, 000

100, 000

50, 000

100, 000

50, 000

50, 000

50, 000

100,000

50,000

50, 000

50, 000

50,000

200, 000

50, 000

Circulation.

Issued.

$78, 89413. 500

96,180

45,000

33, 750

45, 000

52, 88048, 510

90, 000

11,700

22,500

45, 000

18,000

10, 750

45,000

14,816

11,250

65, 480

22, 500

94, 899

22, 500

11, 250

22, 500

14, 630

10, 750

11,250

22, 500

11, 250

11, 250

11, 250

22, 500

45, 000

11, 250

He- Out-deemed, standing

$30,06410, 030

33, 058

12,173

12,016

20,573

5,660

6,239

16, 240

2,481

10,010

3, 010

3,200

19, 620

5,010

29, 250

4,662

2,550

6,030

3, 000

2,880

7, 540

3,170

2,470

5,660

9,978

2,100

$48,830

3,470

63,122

45, 000

33, 750

32, 827

52,88036,494

69, 427

6,040

16, 261

28,^60

18, 000

8,269

34, 990

11, 806

8,050

45, 860

17,490

65, 649

17, 838

8,700

16, 470

11,630

7,870

11, 250

14,960

11,250

8,080

8,780

16,840

35, 022

9,090


REPORT OF THE COMPTROLLER OP THE CURRENCY. 23NATIONAL BANKS CLOSED DURING THE YEAR ENDED OCTOBER 31, 1892, IN EACH

STATE AND TERRITORY, WITH CAPITAL AND CIRCULATIONContinued.

Name and location of bank.

Lansing National Bank, Lan-sing, Michi t N t isg,First National Bank, Leoti,Kans

First National Bank, Blaine,Wash

Erath County National Bank,Stephen vil'le, Tex

i N t i lS t p ,

American National Bank, Bir-mingham, Ala

First National Bank, Wilber,Nebr

First National Bank, New Lon-don, Ohioi t Nti,First National Bank, Green-

ll M i h

Date ofcommencebusiness.

Apr. 4,1872Feb. 7,1888Nov. 20,1890July 25,1889June 23,1887July 3,1883May 11,1872Oct. 7,1872

Date of clos-ing.

Capitalstock.

Circulation.

Issued.

ville, MichNational Exchange Bank, Co- |

Iambus, Ohio ! Nov. 30,1864Citizens' National Bank, Roan- j

oke, Va Mar. 10,1891Inter-State National B a n k ,

New York, N. YFirst National Bank, Platte

Nov. 7,1889May 31,1890City, Mo

Citizens' National Bank, Mankato, Minn j June 27,1872

First National Bank, Jetmore, jKans j Oct. 29,1887

Tampa National Bank, Tampa,- IFla I Mar. 26,1891

Birmingham National Bank,Birmingham, Ala

Cherryvale National Bank,Cherry vale, Kans *

l BCherry vale, Kans

First National Bank, Rock-ll T *wall, Tex.*

,

National Bank of Guthrie,Okla.*First National Bank, Stafford,' Kans

National Bank of Commerce,Hutchinson, Kans

First National Bank, Grafton,Mass

First National Bank, Erie,Kans.*

First National Bank, Dorches-ter, Nebr

First National Bank, Salina,KKans June 27,1881

Vincennes National Bank, Vin-cennes, Ind.* . July 17,1865

Ashtabula National Bank,Ashtabula, Ohio Aug. 22,1872 j July 10,1892

Lincoln National Bank, Lin- jcoin, Nebr I July 6,1882 | July 12,1892

Second National Bank New | jMexico, Santa Fe, N. Mex.... Aug. 1,1872 j July 17,1892

First National Bank, Aurora, ! j

Apr. 23,1887Apr. 16,1890

Mar. 5,1892 j. . . .do |Mar. 9,1892;Mar. 15,1892 \Mar. 22,1892

.--.doMar. 23,1892Mar. 28,1892Apr. 1,1892Apr. 4,1892 jApr. 15,1892 |Apr. 25,1892Apr. 27,1892Apr. 30,1892May 2,1892. . . .doJune 10,1892

May 29,1888 | June 11,1892July 31,1890Mar. 7,1888Mar. 30,1888Jan. 7,1864Jan. 15,1889Sept. 8,1885

June 13,1892June 15,1892. . . .doJune 21,1892June 25,1892July 5,1892. . . .doJuly 6,1892 j

Mo .Farmers and Traders' National

Mar. 5,1883Bank, Oskaloosa, IowaFirst National Bank, San Luis

Obispo, CalFirst National Bank, De Smet,

S.DakThird National Bank, San-

dusky, OhioMerchants' National B a n k ,

Chattanooga, Tenn j Nov. 3,National Bank of tbe Repub-

lic, Tacoma, WashThird National Bank,

bana, OhioUr-

Sept. 1,1890 ! July 22,1892

Dec. 24,

Jan. 16,Oct. 28,

18871886

1872

1890

Total.

Sept. 30,1890Dec. 18,1872

July 30,1892Aug. 27,1892Sept. 14,1892 jSept. 18,1892Sept. 24,1892 |Oct. 1,1892 !Oct. 15,1892 !

$185,60050,00050, 00050,000

250, 00050, 00050, 00050,000

100,000100, 000200,000

50, 00070, 00050,00050,000

I250,00050,000 I

125, 000100,000

50,000100,000100, 000

50, 00050, 000

150, 000100,000

80, 000100, 000150, 00050,000

100, 000150,000

50, 000200, 000

i

250,000 j200,000 j100,000 I

8,007,500 j

$36, 70010.250 I11,250 !

i1 1 , 2 5 0 I

j45,000 |13,000

11, 250

11, 250

50, 670

21,700 I

45,000 |11,250

35,750

11,250

11,250

45, 000

11,250

26, 720

21, 800

11, 250

22, 500

25,102

11, 250

11, 250

33, 750

41, 320

67, 850

22,500 I

33,750

11,250 '

22, 500

33,750 j11,250 !

!

45,000 I

45, 000

Re-deemed.

$5,9803,680

5,050

2,350

14, 530

2,060

2,918

2,775

9,960

3, 920

9,980

1,550 !

2,483 ;

1,780 I

1,800 I

13, GOO !

45,000 '

1,910

1,320

2,800

2,641 j1,450 !

1,060 j2,090 !

12,070 |4,700 |2,320 |

I2,497 I

1 ,650 I

1,350 I450 |

1,050 ;1,170 !

22,500 I.

Out-s tanding.

$30, 7206,5706,2008,900

30,470

10, 9408,3328,475

40, 71017,78035,0209,700

13, 2079,4709,450

31,400

11, 25026,72019, 890

9, 95019,700

22,46i

9,800

10,190

31,660

29,250

63,150

20,180

31, 258

11, 250

20, 850

32,400

10, 800

43,950

43,830

45,000

22,500

2,031,851 | 393,673 I 1,638,178

Failed.Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis


The gross liabilities of the seventeen banks which failed during theyear were $12,538,448. The estimated value of the assets is $10,750,347,or 85.74 per cent of the liabilities.

Five of these banks failed prior to December 1, and their failure wasthe result of the quasi panic of 1890 and 1891, and a continuation of thebank failures which characterized the year immediately preceding.

The Maverick National Bank of Boston had liabilities of $8,727,833,or more than two-thirds of the total liabilities of the banks failing dur-ing the year. Aside from that institution the failures were inconse-quential in amount, and, as noted above, the probable loss to creditorsis less than the average for previous years.

No bank has failed since July 6, 1892.

DOMESTIC EXCHANGES.

One of the great values which the national-bank system possesses isthe facility it affords for obtaining accurate statistical information asto the course and character of business. With nearly four thousandbanks, representing nearly every locality and every business interest,under central supervision, it is within the power of the Comptroller ofthe Currency to obtain data showing exact conditions of business atstated time or times.

.For the purpose of showing the course and magnitude of business ofthe banks, my predecessors have called for the exchanges drawn by thedifferent banks upon each other and upon the reserve and central reservecities for a certain year. These exchanges represent the settlement ofbalances between the different banks and correspond exactly with thecash balances paid or received by the different banks, in settlement oftheir exchanges in our clearing-house cities. My immediate predeces-sor, Mr. Lacey, called for such information for the year ended June 30,1890, and June 30,1891.

Thinking that the monetary stringency that prevailed in the fall of1890 and the early part of the year 1891 might be thought to impair thevalue of statistics for these years, as a criterion, I have also obtainedlike information for the year ended June 30,1892. Thus we have threesuccessive years, covering what maybe fairly termed a sample period,and the information set forth in the following tables may be accepted asfairly reflecting the volume and character of the business of the banksfor the periods covered, hence it will be unnecessary to call for similarinformation from the banks for some years to come.

Out of the 3,759 banks called upon, 3,647 complied with the Comp-troller's request and furnished the data for the following table:


REPORT OP THE COMPTROLLER OF THE CURRENCY. 25AMOUNT OF DRAFTS DRAWN BY NATIONAL-BANKING ASSOCIATIONS UPON NEW

YORK, CHICAGO, ST. LOUIS, THE OTHER RESERVE CITIES, AND ON ALL OTHERLOCATIONS, THE NUMBER OF BANKS DRAWING UPON EACH CITY, AND THE PER-CENTAGES OF DRAWINGS IN 1892.

Location of banks drawn upon.1892.

Numberdrawing.

Amountdrawn. Per cent.

Central reserve cities:New YorkChicagoSt. Louis

Other reserve cities :*BostonAlbanyPhiladelphiaPittsbui gBaltimoreWashingtonNew OrleansLouisvilleCincinnatiClevelandDetroitMilwaukeeKansas CitySt. JosephOmahaBrooklynSt. PaulMinneapolisSan FranciscoDes MoinesAll other localities.

Total.

3,4271,178

577

65418925572

18019240414197

11133542

2174

168102241

181,280

$7, 896,1, 428,

260,

1, 395.24,

546,111,

36,43,

160,31,55,38,

104,9,

135,

93,43,

379.

467,165828, 063649, 996

937, 524007, 580582, 679444, 735040,141363, 374882. 816444;458648, 321407,145916,023 j974,954 I336, 804301,148557, 812736, 111678, 219142, 540946, 228023, 513642, 241

12,994,959, 590

60.7711.002.01

10.75.18

4,21.85.68.05.28.33

1.24.24.43.30.80.07

1.04.01.72.3377

.022.92

100. 00

*The total amount of drafts drawn upon other reserve cities in 1892 is $3,029,372,125, and the percent-age 23.30.

For purposes of comparison the following table, snowing similar in-formation for 1891 and 1890, is reproduced:

Location of banks drawnupon.

Central reserve cities:New YorkChicagoSt. Louis

Other reserve cities :*BostonAlbanyPhiladelphiapPittsburgBaltimoreWashingtonNew OrleansLouisvilleCincinnatiClevelandDetroitMilwaukeeKansas CitySt. JosephOmahaBrooklynSt. PaulMinneapolisSan FranciscoDes Moines

All other localitiesTotal.

Numberdrawing.

1891.

Amount drawn.

t, 326 I., 146 |589 j853 !68 |

664 !204 j25867

24320042912810511139157

2286

17098

23122

.,325

$7, 836, 208, 2501, 254, 693,941

237,908,0101,492,266,242

26, 947, 718541, 333, 463147, 213, 86987, 802,1144, 651,14637, 518, 58756, 056, 805148, 726, 21829, 473. 23755, 549, 91336, 069, 676104, 363, 21410, 556, 220

104, 302,1201,771,97675, 937, 65829, 784, 617108, 329,7962, 291,146

352, 396,559

12, 782, 212,495

1890.

Per cent. Number jI drawing. A mount drawn.

61.31 3,1479.82 1,0241.86 48111.4!1.

l!

2.

612124156904304417244429820882016024850176

100. 00

$7, 284, 982, 6341, 084, 574, 558

188, 765, 842

2, 334 2, 527, 757, 482

1,080 464,817, 739

11,550, 898,255

Per cent.

63. 079.391.64

21.88

4.02

100.00

* The total amount of drafts drawn upon other reserve cities (not shown in detail in 1890) in 1891was $3,101,005,735 and the percentage 24.25.Digitized for FRASER

http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

26 REPORT OF THE COMPTROLLER OF THE CURRENCY.From the preceding table it will be observed that the percentage of

exchange drawn upon N

compcurr_1892_vol1

Documents

circulation of national

capital of national

closed national banks

statement of national

cases afflding national

national debt

addresses of national

iquidat ing banks