The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1879-12-04
GEOG RAPHICAL
DIVISIONS.

The aggregate capital of the various classes
OF banks shown by the foregoing table has
diminished from $71 ,400, 900 in 1876, to $685.
100000 in 1879, and the aggregate deposits
have fallen off from $2,075 800 900 in 1876, to
81 1898 500 900 in 1879-a reduction Of So,
900 in capital and $181 800 900 in deposits dur
ing the last four years. The national banking
capital has diminished s45, 100000, but the
deposits of the national banks are almost pre-
cisely the same that they were in 1876. Saw
ings banks with capital show a reduction of
81 700 900 in capital, and the same amount in
deposits. The capital and deposits of State
Banks and private bankers are less by SIT ,000,-
900 and $50, ,000, 900 respectively. The great
est reduction, however, is in the deposits of
savings banks without capital, which have
diminished $97, ,500,O 900
We summarize as follows from the report /:
In 1885 the United States was entirely out of
debt January !, 1861, the whole debt amoun-
ted to $66, ,243,921. During the beginning of
the war the national debt increased at the rate
of 81 900 900 per month. This increase rapidly
increased as the war progressed until, during
the last nine months preceding the close of the
war the debt was accruing at the rate of ST.
900 900 day, and for the five months next
thereafter it increased at the rate of 50 600 900,
or about 500, ,000, 900 month, reaching its
maximum on August 81, 1865, at which date
IL amounted 10 PZ,o4o,SU ,OLO-lesS caSu IN
| the treasury at that period, $S8 ,21S,055.
The temporary loans, certificates of indebted
ness, thirty notes, and all other items of
| the debt, except the legal-tender notes and
| fractional currency, which have been largely
reduced, have been paid, have matured and
ceased to bear interest, or have been funded
| into fve-twenty six per cents, of which more
| than one thousand six hundred millions ,602,
| 6S3 ,350l were issued.
The reduction on the interest bearing debt
of the United States, from its highest point,
| on August 81, 1865, to November l, 1879, is
1888 1856, ,594, ofwhich amount $105 ,160 900 was
accomplished since the refnnding operations
were commenced on May l, 1871.
At the highest point the annual interest on
the debt was $150,977 ,697, while it is now
/ $83, ,773,778, only. ~
The total annual reduction of interest undei
these refunding operations since March, 1877
has been $14, ,296, ,177, while the saving on this
account, growing out of the operations of the
present year alone, is nearly nine millions
| ($S, 1903, ,707), and the total annual saving il
all the refunding operations of the Government
since 1871 is twenty millions (19,907, ,607)
These funding transactions are believed to b,
without parallel in financial history.
The Government has still outstanding $273,
681 $50 in six per cents. and more than $500,
|
mature in 1881. Tho refunding of these bond
into four per cents. will save $l0, 900 in in
terest annually. The credit of the Govern
ment is now such that it is not improbable
that long before its maturity the present deb
may be refunded into three and halfper cent
bonds, which is one-half per cent, more thai
the rate of the English consols, thus saving t
to the Government = large additional amour
of interest. .z-ss
The act of January IA, 1878, required tn
Secretary of tho Treasury to redeem " in coil
the United States legal tender notes then out
standing, their presentation for redemption
at the Office of the Assistant Treasurer of tn
United States in the City of New York, in sum
of not less than $780," on and after January !
1879. Under this act, the Secretary in 1S7
sold at par in coin fifteen millions of four
half and twenty five millions of four and i
April, 1878, fifty millions of four and hal
per cents, at premium of l u per cent. Th
coin in the Treasury continually increased, S
that on the day of resumption the Secratar
held one hundred and thirty five million
\ (S135 1892 1891 Of gold coin and bullion, and. 7
addition, over thirty millions $3.50 ,557 1881 l
silver coin, the gold coin alone being equal t
more than 40 per cent. of the United state
notes then outstanding.
The banks of the country at tho date of re
sumption held more than one-third of the out
standing treasury notes but they had so mue
confidence in the ability Of the Secretary
maintain resumption that none were presente
by them for redemption. The people also, VIII
held more than 5000 200, 900 ofthe issues of th
national banks, which issues were based upo
the bonds of the nation, preferred such notes
coin itself. There was, therefore, no deman
for payment of the notes of the Gayernmen
and the gold coin in the Treasury, whic
amounted to $l35. 900 900 on the day OF rcsuml
tion, increased more than S36,000,000 in th
next ten months, the amount held on the hr'
day OF November, lsI9, exceeding tl'l ,ooo,oo'
A On July /, iS64, 400 in gold was wort
3 $2sS in Treasury notes on August 3ls 1856
: the day when the Public Debt was at il
4, maximum, it was worth more than Si44; an
on January, /, 1870, 1920; since which time u
Treasury and the national bank notes hay
;, gradually increased in value until the begir
d ming of tho present year, when they eae
r reached the same purchasing power as go
e coin. This may be seen by the following tabl