The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1879-12-05
THE NATIONS FINANCES.
Annual Rerort az the Comptroller u the
Currenex.

Eve uitoi upNpy VI WIZ bto"aaV Va eAS WV
of the United States, and the financial opera
tons OF the Government from tho beginning Of
the war 10 the present time Ths report says:
sThe total number Of national banks organ
lied from the establishment Of the national
banking system, Feb. Is. 1858, 10 NOV. Of the
present year II 2, 43a OF these, BOZ have gone
Into voluntary liquidation By the vote Of share
huaders owning two- thirds OF thsir respective
capitals, and eighty enc have been placed In the
hands Of receivers for ths purpose Of closing
mp their Affairs, leaving 1850 IN opsration 81
the date last named
sEines my Last annual report thirty eight
banks have been organized, with an aggregate
authorized capital OF t5.5b, 600, 10 which e.
Thirty eight banks with an aggregate capital Of
"a, 46O, COO have voluntarily discontinued bust
meas within tha said period, and eight banks
have failed, having total capital Of 81 90 90
The iDeolyent banks included tHo, with Q capt.
tai OF s7u0, 600, which failed after having gone
into voluntary Liquidation
The report IL accompanied by tables exhibit
Ing the aggregate average capital and deposits
on May 81, 1873, Of al classes Of banks other
than national, and the capital and deposits Of
the national banks on June II following. The
aggregate capital Of the various glasses Of
state, savings and private banks, says the
0Imptroller, has diminished from s7f9. 400, :
OO0 In 1876 to $3.50 so, 100 In 1878, and the ag-
gregste deposits have fallen of from e2,076,-
SOOOOO in $50 to 81 SO, 500, 900 in iS7S-s re-
ducion Of s62 800, 00O In capital and slsi $40,
zoo In deposits during the last four years. The
national banking capital has diminished S45,-
100000, but the deposits Of the national bank
ers are almost precisely the same that they
were In 1876. Savings banks with capital show
reduction Of about 81 GOO, 600 In capital and
the same amount ia deposits. The capital and
n "A "a md mi "A haT la -
less by s17, 0OO, 600 aud 3S3 700, respective
ly. The greatest reduction, however, 10 in the
deposits OF savings banks without capital,
which have diminished s97, 5O0,OOO."
Upon the subject Of the funding Of the pub
Lie debt the Comptroller says:
sThe great war debt of the United States " g
contra o. ed in Jess than four and half years
In 1885 the country was entirely out Of debt.
and on Jan. l, 1861, the whole debt Of the
Union amounted to but s66, 2i3, 72l. During
the next ak months 1t increased at the rate OF
about "a, QUO, 90 q mouth, being, on the Let day
Of July, 1851, 81, So, S73. During the next
year it incIe leased ct the rate of more than
go, 0Oe, Op per month, and ct tie close Of the
fiscal year ending July |, 1852, il had reached
esq, liz, ALP. at the end Of the succeeding
year it was considerably more than twice that
amount, being, on July !, 1858, 81, 119, az, 13s
During the following year 1t increased nearly
StVV,Vvo,uov, IeAcnlnS On Suy !, loozJ the sum
OF 81 ,Sl5, 7S4, so During tine next nine
months, to the close Of the var, April /, 1875.
the de0t increased ct the rate of about s2,0D,.
coo o day, or aoout S6U, 000,0U0 O month and
for the i've months next thereafter, about s3,-
OO0, go per day, or about go, 0O0,UO0 9 month,
reaching its maximum on Aug 81, 1865, at
which date it amounted to %, S45, 9J7,626
San aggregate Of more than OIL ,276, 90, 600 of
temporary obligations Of the Government, Of
which $50, 600, 90 bore interest at 7.3O per
cent was funded within the three years which
followed The close of the war, and the skill and
good judgment displayed in 60 doing can only
be fully appreciated by those who are familiar
with the difficulties aud delicate conditions un-
der which this q eat work WAS accomplished
The temporary loans, certificates of indebt.
sdness, 1S0 notes, and AL the other itsms Of
the debt, except the legal-teDder notes and
fractional currency, which have been largely
reduced, have been paid, have matured and
ceased TO bear interest, or have been funded
into 20 @ per cen.s. Of which more than one
thousand SIX hundred millions (sl ,6J2, So, 800
were issued
"Ihe acts Of July Il, 1870, and Of Jan. 90,
1871, authorized the issue Of bonds for the pur-
pore of refunding the $40 6 per cents. The
FORMER act authorized the issue Of 81 800, Co.,
OOO OF bonds. s200 90. go Of which were 70 be
per cents., payable ten years after date, at the
ID
AZ per CENTS, payable in fifteen years; and
sl,0OO, 0OO, 600 payable in thirty years from tie
date OF their issue, and barring interest ct the
rate Of per cent per annum. The act provided
that these bonds should not be sold for less
than ,heir par value in coin, and that the pro-
ceeds should be applied to the redemption Of
the $50 bonds The latter act increased the
amount of the 5-per-cent bonds to $500 O00, 000,
AID provided that the whole amount Of Londs
issued should not exceed the amount originally
and the subsequent act Of Jan. %,
1873, authorized the rebuilding or exchanging
of any other or 6-per-cent bonds which were
redeemable at the pleasure Of the Govern
ment.
sThe whole amount of the funded debt, on
the LIST Of July, 1871, was OIL, 9l5, 3i2, 7OO, of
which 81 49,, OS, 800 consisted of $40 bonds.
and s194, 5s7, 800 of 1910 bonds On the first
day of August. 1871, nearly s66, coo, 0O0-s65,-
T76, 5J0-of new 5-per-cent bonds had been
subscribed for, chiefly by the national banks.
During the same month an agreement was en-
tered into by the Secretsry-Secretary Boutweli's
report, 1871, p. xvii with Jay Cooke d Co.,
for the sale Of The remainder Of 300, 0OU COO Of
said bonds, and, in the month Of January, 1873,
similar arrangements we're made for the sale OF
o large additional amount The remainder Of
the S5OO, OOO, OOO-sl7s, 54s, 8O0-was sold during
the next three years, the Secretary of the
Treasury stating, in his report Of Dec. 9, 1875,
that he had 'the pleasure Of announcing to
Congress that the fundingof $500, 0O0, 600 6-per-
terest has been accomplished secretary
Bris owls report 1875, p. XII
Referring 10 the resumption operations Of
the Treasury Department, the report says:
SThe act Of Jan. IA, 1875, required the Secre-
tary OF the Treasury to redeem sin coin the
United States legal tender notes then outetand-
ing, on their presentation for redemption at
the Office Of the Assistant Treasurer OF the
United States In the city Of New York, In sums
of not less than $780, on and after Jan. !, 1879
At the time of the passage Of this act the lead
try were very much depressed. The agricult-
ural classes were largely in debt, and the
failures Of mercantile establishments and man
ufacturing corporations In the three years pre-
vious represented more than $500, 100000
During the succeeding years an era Of economy
supervened, agricultural products greatly in:
creased, and the balance OF trade was TURNED ea
imports for the fiscal year 1876 being more
than s79, 0O0. 900, in 1877 more than sl5l Co.,
900, In 1873 exceeding s257, 900 900, and for the
year ending Sept 80 last moro than s294 Co.,
100. For 1873 the excess was more than three
times a. great 90 that Of 1876, and more than
two thirds greater than that OF 1877.
the Resumption act not only hxed the day
Of resumption, but authorized the Secretary, In
order to prepare and provide therefor, 10 use
any surplus revenues not otherwise appropn.
sted, and 10 Issue, sell, and dispose OF, at not
less than par In coin, any Of the BONDS Of the
United States described in the act Of July "a.
1870 Under this act, the Secretary In 1877
sold at par In coin els, 000,0U0 OF 4l{s, and
s25, coo coo Of &c, and in April. 1873. s5O.Oo0.-
900 Of ~ per cent?, ct . premium OF x per
cent The coin In the treasury continually in
80 that On the SsS Of Pon sn ns
bull on, and, in addition, CSC, 557 $50 in silyer
coin, the gold coin alone being equal to more
than 90 per cent of the United States notes then
sThe Comptroller has for 0 series Of years
presented In his reports thesfollowing tables,
showing the amount Of treasury notes and or
national bank notes outstanding ct the dates
named therein, with the currency price OF gold
and ths gold price Of currency ct the same
sOn July 1, 1864, siO0 in gold was worth
1898 In tea sury notes; on Aug. 81, 1865, the
day when the public debt was at its maximum,
Il was worth more than sl44; and on Jan. l,
1870. $40; since which time the treasury and
the national-bank notes have gradually in
creased In value, until the beginning Of the
present year, when they each reached the
same purchasing power as gold coin. This
may 30 seen BY the following table, which
gives the value In cents OF the standard gold
dollar In legal-tender paper dollars ON July
OF each year from 1864 to 1873, and also on
Jan. Of the present year:
Cents.
1854. i
1875 ........................lI2. l
1854. Isl q
1851 JOS
Is;s. l42 Z
1859. ACKNOWLEDGEMENT 1851
$50. ,,,.,...,,..........,.,.ll6 8
1871 li2.4
1879. li4.S
ts7s. ........................li 1877
is75. ,.,,,,...................i hoe
is5b. .,.....................1t4 HAS
ISL. .,....................l i2.i
1871. .......................l0o S