Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1859-05-12
Banking in the United States.

connected Win the treasury lie
partment Of the United States, a
Washington, has furnished an elaborate
statement ofthe condition ofthe bank:
fiu the United States on the 1st Of Jan
uary last. Dir. Couch is one Of The
most experienced and capable o
A mereaD writer's on the subject o
currency, and having access to al
the returns sent to the Office Of the
Secretary Of the Treasury, this
statement, which is given in the form
of Report 10 the Board Of Cur
rency CT New York, mag be con.
sidered as accurate and complete, as
such Statements under the nature 0l
things can be made. The report is
Of too great length TO copy entire,
bot We give 4 synopsis of it that
will convey all the information that
may be desired by our readers.
The number Of banks is l476,
with a capital paid in of S40l,976,-
+ 242. Loans and discounts S657,-
I83.199, specie S104.!S7,6lS, cir
colstion Sl93,306,SI8, deposits
! S259,56S,27S.
The tables furnished in the report
place in a striking light the 'contrac-
tions and expansions that take place
under the present banking system.
From 1857 to 1858 the loans
and discounts decreased in the sun
of S94,47I,S32; aud from 1858 to
1859 they increased in the sum Of
@74,01o,54S
Though between 1857 and 1859,
the capital Of the banks was in
creased in the amount Of S3l, ,141.-
555, aud though their current cred
It's we're increased in the amount of
S7,744,S22, yet the 'accoWmoda-
tions the banks offered to merchants
aud Others, in the form of loaDs and
discounts, were less on the 1st of
January, 1859,by S27,273 0S, than
they were on the lst of January,
1857.
Between 1857 and 1858 the cir
celatiop diminished in the ratio of
nearly 2S per cent. Between 1868
and 1859 it increased in the ratio
Of about 24a per cent
Including the deposits Nith the
circulation, the debt-currency of the
banks diminished between 1857 and
1858 in the ratio of between % and
q per cent; and increased. between
1858 aud 1859, in ths ratio Of near
j. SO pei cent.
Mr.. Couch shows by reference TO
authorities that these fluctuations are
not SO great as some that have taken
place in our history. The bank note
circulation increased between 1911
and 1916 10 he ratio Of 56 per
cent, and between 1915 und 1916 in
the ratio Of As per cent. while be-
tween 1916 and 1920 it diminished
IN the ratio Of upwards Of 80 per
cent.
10 1884 the hank note circulation
was 81 millions; in 1857 il was l49
millions, aud in 1913 it WAS 5S mil
lions.
1t :hus appears that the contrac-
ton Of 1857 aud 1858 was small
when compared with some previous
years, and yet it vas sufficient to
spread desolation far and wide.
The increase of specie 10 the vaults
of The banksis remarkable. Whilst
it was sc millions on the lst Of JAZZ
uary, 1857, it was 73 millions on
the 1st OF January, 1858, aud l04
millions on the lst Of January, 1889.
Never in any previous period cid it
amount TO 60 millions.
A fact is stated worthy ofremark,
that though the banks. in the other
States have, in the aggregate, in-
creased their specie during the last
year, the banks of New York have
diminished theirs 10 the amount Of
nearly million Of dollars, while
they have, in the same period, lu-
creased their circulating debt in the
amount of upwards of 81 millions.
In California, Oregon, Texas, and
Arkansas there are no Sanks Of issue.
10 Mississippi there is but one bank
Of issue, the bank Of Manchester at
Yazoo City, which does bat a small
business. In Florida banking is
transacted by agencies of banks oil
the nejghboring States. In. Iowa,
Minnesota, and the several Terrific
ries. there are no banks of issue.