Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1820-03-10

possession Ut the bank by which they were is
sued. \ reasonable deduction being made
from the notes supposed 10 be ia circulation,
buf " hieh are in iact in the possession ot other
hanks, il is probable that the actual cheuid-
Ton OOtk OF paper and specie, ~ less at thts
lime tia, % 900 GOO dollars. b ' the same mode
of Gale uis tion. the whole amOunt Oi discounts
mas be estimated at lac 900 900 dollars.
The destruction OF lose of the returns made
ta the Treasury, before the Year 1916 Oy The
hanks IN which the publc mOuey Was deposi-
ted prevents any satisfactory comparison Be-
ing drawn between their condition betuie and
since that period Comparative statements,
hSweSer, have been received from sixteen
banks ia different par,s OF the Union. shelving
then situation on The 30th day or September,
in the year, 1913, 1915 anu 1919. BN state
nient ID il appears that those banks al Tie first
pcriot, with capital of S6,9O3 oO2. aud with
S ,Oj9, tie OF specie IN their vaults. ciJCuiated
ISIS 3Il of their notes, and disconiIted To the
amount oil W. y90JI5: at tho second period,
tier capital Mas 4. oJ2,37i; Specis, 6J3 DIS;
circulation, 0,1ii,751 ;amd discounts 10 III 2iS;
aud at the third period. tteIr capital was
9,ili $50 specie, 7zGOGJ cTcBIation,
4 ZjD 23i aud DISCOUNTS. 1899 JO'.
By state 'pent b a,read, referred to, il has
ben Shewu that IN the year toil, the nomi-
n. bank capita! IN tue U. States exceeded
50 90 900. Ii il understood, that large adj
ditI"u was aiad. TO IL, la Jhal year III several
o. the states IL il be- admitted that such ad>
ditiOu amounted 10 5,O00, GOO the bank ca
stated al Us, 0a0 $50 Allowing 10 tits capital
Zoe same amount OF specie, circulation and
di~counts aS was comparatively possessed BY
TN bInhs compreheHded IN statement ID the
estimate VIII be, specie p 900 900 oitcuia-
ton u, 000, 00,i /; aud discounts III 900 Gao Ia
l-i5 the bank capital had increased 10
b Ooo,O 900; whist IA OH tile same principle OF
COL ulatipn thr specie would have been esil-
ma Ell al 10 800 600 circulation AT 90 $50 900 !;
aud discounts al 10000 900 Applying this
principle TO lhr l2j 900 03J of bank capital
III operation durIn. tie ear 1919, the specie
possesses by all the banks wonid amount TO
~ ,5o0bO0 circulation So ,00U, 900 /; and dis
cou 10 i57 900 900 dollars
In last results, with tue exception OF tke
discounts, very materially differ tom thos.
which have been obtained by tive mode OF Gals
cuatiuh pre- viou'ly adopted. They neVertne
less furnish materials which NAV be tful IA
Tue progress OF tins inqu ~. FroH, them the
ioiiowlh2 deductions niIy he drawn.
T." ihat, IN thu year 1913, the circulation
capital
q. That, in the wear 1915, it ded l,hc
capital by one eighth.
Sd. Thai IN the year 1919. it was less THAI,
TIE capital nearly in the proportion OF ]
to25.
All That, whilst the amount OF bank cap-
tai has Increased since 1913 from 6j TO Ia
miii'dnS the metallic basis upon which ih.
circulation of notes IS founded has decreased
III proportion OF i5.5 10 IS; being equal 10
1i.O pen cent.
9Th. That. the circulation of notes in the
year 1919 IN proportion TO the specie in the
possession OF the banks, exceed, d that Of 1918,
Lay per cent
oh. That, i'll The year 1913 the discounts, in
iiopOr'io" 10 The USuk capital employed eN-
re"oed 'hoseof 1915 in TIL ratio Ot is to I! aIiU
thOse o! 1919, IL the raj" % Is To IL.
ith. ihdi the Increase At tauh tule~ in cir
cuidiioi, between the years 1913 anu 1915, eX-
Ceeded the increase of discounts durin. the
same period by 1900 900 /; whilst the specie,
III IN vaults OF tile banks, was diminished
| / ,0U0,O0O
SIN That, whist hrtwe en- the years 1915 aud
1919 a" ai'ition Of - 0sD,O3D dollars has been
'nau 10 IN. nominal aux capital. Hut ii, 100 900
uo.iais nave been aided to the aggregate d.
nipnui OF discounts
Ii is probable. that between the wear 1871
ahd Tie year 1913, a consider able addition was
made 10 the paper ciTCuiatioK Of The CuuutT, .
IRON return OF the tuimcr Bank OF lie L.
Sidtes made 10 tie I,eaSurN liz 1905 II ap
rcatN thai, with H. Bot, $50 of specie il cIrcu-
q" eu ouIN 4 7oI OO9 o. NOTES Another sc.
iuin made III 1910 showed its condition Ma
not materially changed Shorty after The en-
pTatiOn ut ITS chatter bauh capital To a .Icat
amOu"i,"h' iucVfpJrhituins OMe Oi The states
Tue e%peDdiihf ~ produced DN the wal wiic! II
vas declared III 1872 without doubt, tontri
Duted, ia some degree, 10 produce the dIiicI.
ence b-tweeH the condition. of the sixteen.
banks already referred 40, aud that or th. for
meT Bank OF the UniIed States Hit b. al
nntted, however, that the circulation in 1913
~aS mel redundant II must have become ex
crSS'Ve III icl1. Az increase of ihe currency
IN the space OF iwU years, III the proportion al
30 TO 62, even II II had been wholly metallic
could not have Idiedto have produced very
great depreciation Ont when a j. consider
ed that NOT Ou.y ia, increase bnt the whole
CitCu'aiIOn consist, d of paper not convert
bis into SPECIE, some idea OF lis deprecIatiau
may be formed The dsprP citation however
vas not i"l'Ofm ~ every part OF the Union.
49,. 81. 4.
depended not onll upon the greater Issues OF
banks IN one section OF the matIGu, tnau in
OthcIS hnl, also. upou the local advantages
Nhich luey enOieh as 10 commerce. II is
| impossible TO determine, with precision, whore
the most excessive issue ut bank uOtGs uCcuT-
led. Statement T., which eNhiiiIts the rate of
exchange bet"een jiie principal cities To the
east OF tins place, aJ,d London, and the mice
o. DI'ls al New Ork npOu Boston, phiddeI-
pnia and Baltimore, dnTIr! the years 1873. 1874
loiJ and lSiG, may be considered presumpiIve
evidence at that fact. 30 iai as il csu I've re d.
lied upon tor tbhi purpose, baltimore was t!e
poi"t "i steataNtdf prcc'dtiou among She above
mentioned places. Tbs Is pIOI,dbiy ltue as
III IS known that the hae rs III that place made
greater advances 10 the government in th.
iOduN which u Obtained duTIug fie late war.
/" proportion Ia tlirir capital. tau those OF
PHiadcpiid, New York aud q ,-tou. But the
greatest deprp cation OF the cuT:eucy existed
~ ire Interior states, wbrrc Tie issues were
no oull excessive, bnt where their relation to
TIT c0mne.clhi ciues greatly aggravated Tie
EFT cts of dist excess
THIS statement my also assist IN explaining
the cause ct the necessity which existed Ia
lal4 ioi he Suspension OF specie payments by
ihe .hlLks. Eicm The C"mmeHc ciBcut Of the
"df udi, tiid ts"nt. 4 large amount of specie
"as idksn Ont o. the l.. states by the sale OF
English Cove Gmtut bills al d discount. tfe.
queptlN % from 80 10 20 pes ccui. lmm' ia
atriN ditaI Ihe SuspruSi0n they commanded a
pttniHiu ~ trOtf places wueIe the Diik~ had
-u-peIdtd payment, Nh.ch GIidusliy rose TO
% per cent, whist ~ y ,tOu ihry renamed
d, discount OF a!iou per cent Hniil FeDIu-
atN. 1919.
Whatever MAY have been til decree Of de-