The New York herald., 1877-12-01


By reference to this table It will 90 seen that during
thnrst period tho average of specie 10 circulation
and deposits 1S during the second period 81 Is
and 1906 respectively The ratio OF specie and legal
tenders to circulation Of the national banks for
eight years named was 45.5l and 10 circulation aud
deposits 10. 10 per cent The returns Of the State
banks tho New England states and In the State OF
New York more regular ana renabc than those
OF the banks In any other portion of the Union and
q comparison between the State banks for the periods
named with The national banks for the last eight
years Is gwen In the following tables. Tho aggregate
ratio Of specie to circulation IN the New En- gland
States from 1885 TO ls42 was 1914, and from 1850
posits and bank balances from 1885 to 1s42, 11.3,
and to total liabilities, 90. In the national
Ssk in' Ss ssr'sss Yors ss n
aggregate ratios during tho first period were 355 aud
Is and curing the second period 49, and ~ per
cent In the national banks OF New York
state for the last eight years the ratios were lla4 10
circulation and 226 TO circulation, deposits and bank
balances In the New YORK city banks for six years,
from 1855 10 1860 the ratios of tho State banks
20l ~ and in the national banks, from 1879 70
1871, the aggregate ratios were 2ol.7 aud 26.3.
The national banks required by section 5,172 OF
the Revised statutes OF tho United states to pay Their
circulating notes on demand, and 6y section Of tho
Act OF Junc 20 1874 TO keep ana have deposit IN
the Treasury OF The United Sntes, In lawful money OF
the United States sum equal 70 fve per cont othcir
circuaton to be held and used Tor tho redemption OF
such circulation" when The legal tender notes shall
bo redeemed in coin the banks VIII also be required TO
rcdeem IN corn or IN sucn nc 90 no.es @ WI,
vcuient desirable for general use than CON- for the
reason that the cost OF heIr transportation Will DO
less than ofspcce.
STRENGTH OF NATIONAL RANKS.
1t will be that the average strength of the ma
tiona banks for the last eight years is fully equal 10
that oil State banks during periods OF suspension
and resumption in former times and II resumption rs
TO take place upon any liked dato the national banks
will be certain, as matter oil precautton, 70
strengthen their beyond the averages hero
given. IL be doubted therefore, that the ma
tona bpnks will be prepared to redeem their crcu-
ating notes at date OF resumption which may be
liked upon. But wnie IL Is admitted that the banks
may easily pay their circulating notes, IL Is
sad that II will impossible Tor them TO provide ~
the same way their deposits. Those VINO take this
view proceed the assumption that the Danks Will
DO called upon TO pay their deposits IN specio This
true during former period oi specie pay
mont, and IL less likely 10 be True under the ma
tionul banking system than u was under any
previous system OF banking. The banks In this
country rom their 1rst organization have, in times
resumption well as Of suspension, received rom
their dealers current bank notes anu have paid ous
the samc. This rs true to-day IN England, scotland,
Germany and France, In all Of which countries the
bank note 10 preferred, as rule, " either goiu or
silver Only a small portion Of the bank circulation
oil country any period prior TO 1858 Was either
safe convertible, aud tho losses 70 the noueIs oi
b,nk notos estimated 10 have been not less tnan
nve per annually upon the wnolc amount oi
circulation outstanding Yot even this circuiatch,
poor and defective VAS was freely received Dy tho
banks and was paid out by tncn 10 their dcpostors,
50 closely identified the interests oil the one with
the other. The which were returned from tne
commercial centres Tor redemption were readily paid
out and circulated at home, and the demand Tor
specie IT existed was almost entvciy owing
ldencc IN tho institutions when issued IT. Tho peo-
pie throughout the country now know wnat prior 10
1863 they could not know, tor was net tbeu true,
hat svssy banknos v sale psyona psFsavsessssb Aaa