Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-03-31
rTonetary ana Commercial.


report upon of the Banks in the United
which is addressed to of Currency York From
the forthcoming report Of the Secretary Of e Treasury
SUBJECT (Which is now the hands Of tbs public prnter
Gouge copy the table showing the coalition Of
banks throughout Union, according
to January I 1859 Comparing these with the of
and 1858, we have the following result:
1857 1853 1859
/ Number of banks and
! branches '4lD LIZ ls8H
CAPITAL paid s37O, s346so sSs4s2s,799 $4O a42
RESOURCES
Loans and discounts ga 1851 $50 I652l3 657 I83 79
Stosks......-...-. 59.972329 6O305,s6 6s 50s 40
Real Estate..... 90 I24J22 e8,755 s3I 25, 976 4gi
Other inyesi1ents-. 5ssoSS5 6'o75'9OS s3s3 .ol
Due by other baRks GO 1874 05 5s0j2 se9 e pa 1881
Notes Of other banks o, l24Oe s24yl, 436 leS5S ss
Specie funds-...-.... 25,vslb4i l3s3oO44l 26SOos2
specie........... 5s2is,S3s 74,4I2s5a 100 5s7 slS
CirsuiatiOn,-... al4,77s.sa 1s5.sossH 1913 3O6 SIS
Due to other banks. 1874 313 5l,I69s75 G9sI565l
Other liabilites. IO,sGJs5O I4,l66,7l3 I5,O48,427
Aggregateot investments
supposed to yield in.
come e., loans and
dlscauats, stocks, real
Ses@ent o-'. u 775774O74 67s,aoaaa 7549ss,zsS
Excess Of such invest
paid IA 4Oaaasas8 asss70A4s s5scOs,5al
Aggregate Of immediate
dues . ossr san. e sosaOsa aqsloaos saooo7s7
Aggregate EaIsgs Of immediate aSaait
specie funds, notes Of
other banks, and dues
BY other banks.... ,4O 5y2 ilIO 5ll 295 4fS e6
Excess OF immediate La. -
blities over immediate
mean, BPS s9Osis go OlS,757 sse e4Osal
posit3ries sOOO6lH IOas9,s29 sO33,6OO
Total Of Specie in Banks
and Treasury Deposit
tories ............ 7s,45s59 s4642,O6l 1851, SIS
Upon this exhibit Mr. Gouge remarks:
The Spe Funds consist with the exception some
amounts Of coin and mint certificates Of notes Of other banks
by other banks and other obi cations demand
All these mingled together by Of the banks, their
turns in such way that it is impossible separate them Out
Of respect to ancient usage the term Spece Funds retained
in the present report but hereafter other better adapt
ed to show the nature Of these be used IL such
can be found.
This table places in striking light the cOnracons and e1
pansions that take place under present banking system
From s to 1853 the Loans and Discounts decreased in the
s9i al s32 aud 1855 1859 they
Though between 1852 the capital banks
increased in the amount Of $751; $50 and though their Sour
rent credits or il the term be preferred their euent debts,
increased in the amount of S744o, the aecommo
the afforded merchants aad others
OF loans and discounts were ess on the LIST January 1852 by
1913 90 than they tn LIST January 1851 From this
would appear that to the Of the
lie expansion did net DO business men as much good as the
previous contraction did them harm
Between 1857 1858 the circulation dmnished in the ratio Of
nearly % cent Between 1855 and 1883 it increased in the
ratio Of about 24a per cent,
inamuch tine bank check far as tie bank
in making purchases and psymen debt currency Of the
% and "A cent and increased between 1883 and 1853 in the
ratio OF nearly % per cent.
place history According 10 that able writer Albert Gal
latin, tie bank circulation increased between ISL
the ratio o. 45 percet while between 1915 and 1870 it diminished
in the ratio Of upwards Of % per cent
In lsA the bank note circulation % Millions in 1e it
l49 mllisns, and in lSs3it was IS millions.
1t thus appears that the contraction Of 1888 small when
compared with previous and yet it sufficient 10
with sueh an inpepse increase Of culatng mediums as we
had Of
1852 the dizziness Of business complained OF in OF the
country al the beginning Of the present year could have arisen
~
chose let their deposes" lie inactive rather than employ
them in enterprises regard to which they could
The Increase Of specie in the vaults of the banks is remarkable
While fifty six millions the lst sfJanusy, 1857, 1t
millions the LIST Of January, 1889 and
millions the I Of January, 1859 New
in previous period did it amount to sixty millions
Here proper remark that, though the banks in TIE other
States have in the aggregate increased their specie during the
last the banks OF New York have diminished theirs in the
nearly million Of dollars while they have, the
PERIOD increased their circulating de in the amount Of
wards Of thirty two millions No doubt the banks in most Of the
other states WILL in due initiate this processing Of the
banks of New York. and then we shall all have good tines
again.
There not Bank OF issue in California Oregon Texas and
Arkansas being prohibited by law and act Of the Artan
Legislature the 9Th Of February last, entitled 'an
prevent the people from being deauied with bank paper
penalties imposed all who SHALL after The fourth
July OF the present pass put in circulation in Arkansas
any bank Of less denomination than dollars After the
denomination than twenty dollars.
There sbutone bank of issue in Mississippi and thst is wind
ing its affairs There banks in Washington, Utah. and
New Mexico Territories Minnesota and Nebraska
but four hanks aud they have circulation only seventy
thousand dollars.
The state which the specie the larg.
est in proportion to their Credits Louisiana In De-
cebe 1853 while the banks that their vaults
f622 specie, their circulation and deposits, taken to
gher, amounted to only S3096, 54 Ratio less than to
This is owing OF requiring banks
keep in their vaults gold equal
third of both their circulation deposits,
part their discounts paper having
short time to
The Illinois Banks have the least specie in comparison with
the circulation deposits While circulation depos-
its amounted October last s0S4IU6 specie
vaults amounted to only Ssj9 $50. Ratio less than
specie for each dollar in paper. Mr. Gouge says:
The perecon paper money banking consists in dispensing
with specie together To this pitch OF excellence banks OF
limos have not yet arrived though they to be in fair
In th State 1t is debt piled upon debt Funded debt forms the
capital banks and Coating debt the currency they issue
this floating debt which bears interest," the banks
TO fund debt due to them BY merchants and farmers, which
bears interest
traveller relates that the redemption OF Their notes with spe-
Gle the Illinois is lit than nominal but the
people, having confidence in their ultimae security found
ed on state stock, pass them freely.
Governor B find nothing complain OF IN this currency,
except that of the dirty and torn as to be hard
y ebe and that they will pass beyond the bounds OF the
One good crop bringing good prices will relieve people Of
Illinois from their present commercial emtarrassnens: but in
etous banking stem they have laid the foundaon for
Mr.. GOuge concludes his report as fonOws:
the STATE governments thrown everything int confusion
uy institutions to emit bills Of credit, the state
GOV ought TO ahae the nusances they created
II ty should 90 no further than prohibit the issue
Of nS q less denomination than five dollars such measure