The Kalida venture. [volume] (Kalida, Ohio) 1841-1865, 1846-02-05
Az, FEBRUARY S, lsAe.
Facts on Ramlking. mo-. I.

sion will permit And commencing, we
cannot do better than to give brief synop-
sis Of report made in ls4l, by the present
judge Woodbury., then Secretary of the
Treasury, to the U. s. Senate, in answer to
resolution Of that body calling forinforma-
ton in reference to the following points:
/: What amount has the Federal Govern
ment lost, from its organization to this time,
by the employment of banks, by the use OF
bank paper, or by its connection in any wise
with banks, including the depreciation Of
bank paper2
2: What amount the people of the United
States have lost, from the commencement OF
of the Government to this time, by the failure
and suspension of banks, and by the depre-
citation of bank paper--by the loss and des-
truction of bank notes, and by the existence
of banks, and the use of bank paper gener-
ally?
8: What have the people and Government
of the United States paid, directly and indi-
rectly, to the aggregate banks of the United
States, for the use of those Institutions, an
nually, for the last ten years?
4: What proportion of the stock of the
several banks of the United States is at this
time owned by foreigners?
The following abstract is taken from the
tabular statements of Mr.. Woodbury's Re-
port We have adopted so far as pertinent the
oor, n;l,t;nn ond co,ou,aot. &c ,Lo Dolt;u...u
Sun, made at the time the report first appear.
ed. Several additions and changes have
however been found necessary, relative to
facts then incompletely developed:
Losses sustained by the Federal Gopern-
ment, by the employment Of banks and bank
paper before the gear 1887, and since
From this it appears that the loss estimated
by the Treasury Department on the depre-
citation of bank notes received prior to 1887,
amounts to $5,500,000; the loss appearing
on the books of the Treasury by banks as
repositories, prior TO 1887, to about $780,,
900; loss estimated by using banks as de.
positories since the year 1887, 100000;
loss estimated on bank notes taken and moi
redeemed, prior to 1887, $4,000; loss es
timated ON bank notes taken and not re.
deemed, since 1887, $4,000. These
several losses make an aggregate of Sc, $50,
600. The interest computed on this amount
is $S,S72, ,000-showing a direct loss to the
Government, in principle and interest, o
$l5, ,492, 900, from the use of banks and
bank paper This statement is, more favor
able to the Banks than most other reports
presented. II differs widely from the est
mated loss as shown by report Of the Com
mit,ee of Ways and Means to the House o.
Representatives, in 1880. The loss, as es
tmated by that committee, ON the depreca
ton of bank notes received prior to 1917, is
given at $34,000,00O. The view which
this committee is supposed to have taken
is that which includes a loss to the Govern
ment in the payment of debts in specie,
which were contracted in bank notes at a
discount of from seven to twelve per cent
in comparison with coin. For example, one
hundred dollars in specie, or its equivalent,
we're used in 1924, in redeeming certif-
Gates of stock issued in 1914 for 800
for and which only $ss had been received
by the Government Regarding the subject
in this light, the loss to the Federal Govern.
ment by the use of banks and bank paper
prior 10 and since 1887, is far beyond wha
| II is stated TO be in Mr.. Woodbury's report
If we recollect right, Mr.. McDuffie's report
in the U. S. Senate, sometime before this
stated that in the last war the Government
received $ss,0OO,OoO in loans of deprecia
ted paper, which the report characterized
as :!.not half as valuable as that in which the
stock given in exchange for it was redeem
ed" Mr.. Woodbury's report has certainly
not over estimated the amount of loss, if he
has moi fallen greatly below it.
i Number and Capital af banks yhich har,
failed in the United States since l7S9.-
From 1889 10 1911, the number of bank
which failed is ascertaned and estimated a
20, with capital averaging $l50,000 each
This would make the capital Of all falling be
tween these periods $3,000,0o0. From
1911 to 1880, 1876 are ascertained to hav,
failed. OF these Mr.. Gallatin, in his Con
: siderations on Banking, gives the exact cap
ital of l29 at 1874 ,247 800; and of SO wit
capitals not known; these Mr.. Woodbnr
!: estimates at $4,000 each, making $6,s4o
I 900. Thirty banks, computed not to hav
, been known by Mr.. Gallatin, make up thu
: Secretary's estimated number, which, wit
, like capital, would add TO the sums alread
stated, $5,7o0,000--making an aggregate
between the years 1911 and 1880, of $36
r 7S7, ,309. From 1880 to 1881, the numbe
ascertained and estimated to have failed
given at $50, with an average capital c
: S3OO,0O0 each this would make the capita
Of the $50 amount to $45, 100000. Of tn
: several banks suspended over the Souther
and Western part of the United States, espe
cially Michigan and Mississippi, at the tim