Evening star. [volume] (Washington, D.C.) 1854-1972, 1879-11-24
The National Currency.

presents. as usual complete tables of the re-
sources and liabilities of the national banks,
from the organization of the system in 1863 and
for the last four years the capital and deposits
of state banks, savings banks, and private
bankers. The present report discusses the rela-
tiCns of the banks to the government in the re
funding of the public debt and resumption o
coin payments. and gives tables showing the
cost OF refunding in this country and in France
and OF the British debt into English Consols
from 1898 to 1856. 1t devotes separate chapters
TO the subjects of taxation. reserve, illegal cert
fications OF checks. the cost OF the settlement
of the affairs of ipsolvent banks, surplus, divi
dendS, and the losses OF national banks, and
gives the rates Of interest in New York aud in
England for series OF years; the coin held by
our banks and by the Bank of England and
Bank of France, for ten years, and much other
Information of interest to banks and bankers
accompanied with concise and well arranged
tables, for which the COnptrOller'S report is
noted.
THE TOTAL NUMBER OF NATIONAL BANKS
organized from the establishment OF the ma
ti0nal banking system, February %, 1868, to No
vember Of the present year, is 2,43S. OF these
307 have gone into voluntary liquidation by the
vote of shareholders owning two-thirds of their
respective capitals, and 81 have been placed in
the hands of receivers for the purpose OF closing
up their affairs leaving 2,O5o in operation at the
date last named. Since the last annual report 80
banks have been organized with an aggregate
81 500 40 in circulating notes have been issued.
Thirty eight banks, with an aggregate capital Of
4, 100000, have voluntarily discontinued busi-
ness within the same period, and eight banks
have failed having a total capital of ST t030 900.
The inSOivent banks include two, with a capital
of 100000. which failed after having previously
gone into voluntary liquidation. The capital OF
the 2O4S national banks in operation on June II.
1879, was S455, PA ,415, not including surplus,
which amounted at that date TO more than
S114, 600 O00 while the average capital of all the
state banks, private bankers and savings banks
for the six months ending May 81 previous, was
but S20l .241 ,4S4, which amount is considerably
less than One-half that OF the national banks.
The net deposits OF the national banks were
Sl1 ,403. .6I9 and the average deposits OF all other
banks including savings banks, were s, $50, 1922
$50 The average deposits for the same period
of the G44 savings banks having no capital stock,
which are Included in the above aggregate, were
Sl4I, ,062,0 ,05I.
THE TOTAL NUMBER OF BANKS AND BANKERS
in the country at the dates named was $3.50,
with total banking capital of $685., ,4s5, ,S99 and
total deposits of Fl, ,S93, ,526, ,4I4 The aggregate
capital Of the national banks, state banks, saw
ings banks and private bankers has diminished
from S19 400 600 in 1876, to $685. 500 900 in 1879.
and the aggregate deposits have fallen Off from
S2 0I5 800 900 in 1876 to 81 1893 500 600 in 1S19-a
reduction of S62 100000 in capital and S1S 500 900
in deposits during the last four years. The ma
tional banking capital has diminished S45, 900,
but the deposits OF the national banks are al
most precisely the same that they were in 1876.
Savings banks with capital show reduction of
about one million in capital and the same
amount in deposits. The capital and deposits
seventeen millions and eighty-thre millions. re-
spectively. The greatest reduction, however,
in the deposits of savings banks without cap
tai, which have diminished S9I, 100000,
REFUNpING THE PUBLIC DEBT.
The great war debt OF the United States was
contracted in less than four and a half years.
In 1885 the country was entirely out OF debt,
and on January l. 1861, the whole debt of the
next six months it increased at the rate OF
about four millions month, being, on the first
day OF July, 1861, 800, ,5S0, ,S13 During the next
year it increased at the rate of more than thirty
six millions per month. and at the close Of the
fiscal year ending July /. 1862. it had reached
1924, l76,412. At the end OF the succeeding year
it was considerably more than twice that
amount, being on July ]. 1868, 81, 1,119, ,II2 1885,
During the following year it increased nearly
seven hundred millions, reaching on July l,
1864 the sum OF Sl.S15. IS, $40. During the next
1865 the debt increased at the rate OF about two
millions day, or about sixty millions month
and for the five months next thereafter at the
rate OF about three millions per day, or about
on August 81, 1865. at which date it
amounted to s2,s45, 9Ol 62G.t in which was
included more than one thousand two hun
dred and seventy-six millions OF temporary OBJ
legations of the government, OF which eight
hundred and thirty millions bore interest at I-3o
per cent? This Immense amount OF temporary
Obligations was funded within the four years
which followed the close of the war, and the
skill and good Judgment displayed in so doing
can only be fully appreciated by those who are
familiar with the difficulties and delicate cOndi-
tions under which this work was accom- olished
The temporary loans. certificates OF Indebted
ness. 80 notes. and all the other items of the
debt, except the legal tender notes and frac-
tonal currency, which have been largely re-
duced have been paid have matured and ceased
TO bear interest, OF have been funded into j. 26
per cents, OF which more than one thousand six
hundred millions 6O2, $50, $500 were issued. The
acts of July IA. 1870, and of January 30 1871
of
refunding the 5.26 per cents
The report gives in few paragraphs the pro-
gleSS OF refuhd1ng in accordance with these acts
from 1871 to 1879, under Secretaries Boutwell,
Richardson, BristoW. Morrill, and Sherman, and
concludes the subject as follows 1.-The sales OF
United States bonds since 1871 under the re-
funding acts. have been five hundred millions OF
tives, one hundred and eighty-fve millions OF
four and halfs and $40 0,5i5. $50 OF four per
cents: in all. more than one thousand three
hundred and nirety-fiye millions OF dollars
There have also been sold for resumption pur-
poses, since March l, 1877. under the authority
of the resumption act OF January IA, 1915, twen-
ty-five millions OF fOurs, and siXty-fve millions
OF four and hall per cents, the latter being at
premium OF one and half per cent. The re-
duction on the intereSt-bearing debt OF the
United States. from its highest point, on August
81, 1865, to November ], 1879, is S5S3 $50 594 OF
which amount Sl05, 10000 was accomplished
since the refunding operations We're commenced
on May !, 1871. At the highest point the annual
interest on the debt was $50 81 69I while, it is
c.
total reduction in this charge OF S6l 263 ,919.
The total annual reduction OF interest under
these refunding operations since March. 1877.
has been S14 29I III, while the saving on this
account. growing out OF the operations OF the
present year alone, is nearly nine millions
IS, SOB 100, and the total annual saving in all
the rounding operations OF the government
since 1871 IS nearly twenty millions (S19 a07
These funding transactions are believed to be
without parallel il financial history,
The public debt OF England III JANUARY, 1893,
amounted TO 81 ,191. 145 900. AT that date began
the great expenditures caused by the wars OF
the French revolution and OF Napoleon, extend
ing from 1898 TO 1916. Between these dates
coo, 600 was placed on the market AT rates OF
interest varying from 10 ) per cent. The ave-
rage rate OF discount at which the stock was
sold was SO per cent, and the average rate
OF interest paid on the money actI-
ally raised by the sale was 5.l5 per cent.
After a long interval OF peace. the Irish famine
in 1S4l, and he Crimean war and Indian mu-
tiny. from 1854 to 1856, caused another addition
TO the public debt. In the years 1917, 1855, and
1885, three per cent. interest-bealing stock, to
the amount OF one hundred and seventy mil
lions of dollars. was issued, and sold at a dis.
count OF 1894 per cent, while the average rate
OF interest paid on the money raised by the Sale
was 81 per cent. The three great French loan
III 1870, 1871, ana 1872, OF nearly fifteen hundred
and ninety-two millions OF dollars, realize
dollarS only. The first loan was at the rate OF
) per cent, and realized to investors nearly per
cent. While the two subsequent and larger
loans were sold at $3.50 and $3.50. which was
about equivalent to per cent bonds at Dar
Inc fe1undlng OF the national debt commence