The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1871-08-31
UNITED STATES BANKS.
a Brief History OF Banking and
Paper Circulation I'm the United
States

4 Brief History Of Banking and
Paper Circulation I'm the United
States.
In l7S2, says the Journal Of Commerce.
there was but one bank in the United
States; in 1870 the number had in
creased to four; in 1900 10 twenty-eight;
in 1910 to eighty nine; in 1920 to three
hundred and eight; in 1880 to three
hundred and thirty; in 1910 to nine
hundred and seven; in 1850 to eight
hundred and twenty-four; in 1855 to
one thousand three hundred; in 1857
to one thousand four hundred, and in
1861 to one thousand five hundred and
thirty-seven. The bank note circula-
ton was, in 1913, Sl2S, 800, 09l; in
in 1856, S200,000,0O0 and in 1856, S2l4, :
6IS,S22. In the deposits there was a
vast increase between 1913 and 1856,
the amount being $l03, 226, Ia in lS4S,
and $3.50, 35l ,352 in 1856.
The rapid progress of the national
wealth during the last decade before
the war is also seen by the increase OF
specie circulation from So, 100000 in
lSiS to $l3S,000,000 in 1856, and since
this latter date the industry, wealth
and commerce of this great country
have made enormous progress. Three
hundred and fifty millions Of dollars OF
circulating money was then sufficient
for the wants of the country; and if we
were on a specie basis now it is esti-
mated by the editor OF Hunts Magazine,
eight hundred millions in all probabil-
ity could not be too much to fill the cir
culating channels Of the currency.
From these considerations it is evident
that when in 1868 the national banking
system Of the United States went into
operation, it did not commence day
too soon to supply the growing neces-
sity OF the business of the country. In
October, 1868, there were sixty-six
banks reported, with capital stock Of
SI,lSS.39S. In October, 1864, there
were FIVE hundred and seven. banks,
with a capital stock Of $50, 49,, SOP. In
October, 1865, there were one thousand
five hundred and thirteen banks, with a
capital stock of 1898, Isl 200.
The increase after that was not so
rapid, as the limit OF the amount 10 be
issued was nearly attained. In Decem-
Der, 1870, we had one thousand six
hundred banks, with capital stock OF
S435, 356,004 The new law of July s,
1870, authorizing an additional amount
OF forty-four millions of bank note Cir
culation, was for the purpose of allow
ing the Southern States 10 secure their
proportion of the national banks, but
only small part OF this has, up to this
time, been demanded by them. The
fundamental principles of our National
Banking system are, says the same au-
thority, first, that ample securities shall
be given to the public, to the depositors,
and especially to the note holders, for
the prevention Of bank disasters, and
guarantee the payment OF liabilities OF
the banks in case Of failure; and, sec
ondly that the banks shall be scattered
equitably throughout the country, In
stead OF being local monopolies, as are
the Bank of England and the Bank OF
France. Certainly in the past few
years the national banks rendered great
service to the country 1t is the opinion
OF many well-informed men that with
out the machinery OF the national banks
the United States would probably have
succumbed under the monetary pres.
sure and prodigious losses of the war