The Eaton Democrat. (Eaton, Ohio) 1875-1903, 1879-12-04
The aggregate capital of the various olasse,

OF banks shown by the foregoing table has
diminished from $719, 400, 600 in 1876, to $685.
Soo, 900 in 1879, and the aggregate deposits
have fallen off from $2,075 800, 900 in 1875, to
81, 893, SOC, 900 in 1874 reduction of So, $780,
900 in capital and s1s1 800, 900 in deposits dur
ing the last four years. The national banking
capital has diminished $45, 000, 600, but the
deposits of the national banks are almost pre-
cisely the same that they were in 1876. Saw.
ings banks with capital show . reduction of
81 ZOO, 900 in capital, and the same amount in
deposits. The capital and deposits of State
Banks and private bankers are less by 81, O00,-
900 and $S3 ,00O, 900 respectively. The great
est reduction, however, is in the deposits of
savings banks without capital, which have
diminished $97, SOC, 900
We summarize as follows from the report:
In 1885 the United States was entirely out of
debt; January 1, 1861, the whole debt amoun-
ted to $66, 243, 921.' During the beginning of
the war the national debt increased at the rate
of 1000 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.
600, 900 q day, and for the five months next
thereafter it increased at the rate of s., O00, 900,
or about $50, 000, 900 q month, reaching its
maximum on August 81, 1865, at which date
it amounted to 50, S45, 907, 626-less cash in
the treasury at that period, $ss, 21S,O 55.
The temporary loans, certificates of indebted
ness, seyen-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 II ,6O2,-
6s3, 350) were issued.
The reduction on the interest bearing debt
of the United States, from its highest point,
on August 81, 1855, to November /, 1879, is
1888 1884,, 594, ofwhich amount $105, 160, 900 was
accomplished since the reminding operations
we've commenced on May l, 1871.
At the highest point the annual interest on
the debt was $3.50, 977 ,697, while it is now
$50, 773, IT'S, only.
The total annual reduction of interest under
these refunding operations since March, 1877,
has been $14, 296 lit, while the saving on this
account, growing out of the operations of the
present year alone, is nearly pine millions
($8, 800, 707L and the total annual saving in
all the refunding operations of the Government
since 1871 is twenty millions 49, 07, 607I
These funding transactions are believed to be-
without parallel in financial history,
The Government has still outstanding $273,-
681 $50 in six per cents. and more than $780,
000, O0o in i've per cents. all of which will
mature in 1881. TIL refunding of these bonds
into four per cents. will save $10,473, 900 in in
terest annually. The credit Of the Govern
ment is now such that it il not improbable
that long before its maturity the present debt
may be refunded into three and halfper cent.
bonds, which is ons-half per cent. more than
the rate of the English eonsols, thus saving to
to the Government . large additional amount
Of interest.
RESUMPTION.
The act Of January II, 1875, required the
Secretary of the Treasury to redeem " in coin
the United States legal-tender notes then out
standing, on their presentation for redemption
at the Office of the Assistant Treasurer OF the
United States in the City of New York. in sums
IF not less than $780," on and after January l,
1879. Under this act, the Secretary in 1877
sold ct par in coin fifteen millions Of four-and-a
half and twenty-five millions Of four and in
April, 1878, fifty millions of four and q hall
per cents, at q premium of IL per cent. The
coin in the Treasury continually increased, SO
that on the day Of resumption the Secretary
held one hundred and thirty-fve millions
1876, Ss2, 63s) of gold coin and bullion, and, in
addition, over thirty millions $3.50, 657 1881 in
silver coin, the gold coin alone being equal To
more than 40 per cent. of the United States
notes then outstanding.
The banks of the country ct the date of 70.
sumption held more than one-third Of the out
standing treasury notes but they had SO much
confidence in the ability Of the Secretary t.
maintain resumption that none were presented
by them for redemption. The people also, whit
held more than $500 ,OO0, 900 of the issues of the
national banks, which issues were based upor
the bonds of the nation, preferred such notes tc
coin itself. There was, therefore, no demand
for payment of the notes of the Government
and the gold coin in the Treasury, which
amounted to $l35, 900 900 on the day of resump.
ton, increased more than $50, 900, 900 in tn,
next ten months, the amount held on the frs
day of November, 1879, exceeding $171 ,OOO, 900
On July l, 1854, $100 in gold was worth
1888 IN Treasury notes on August 81, 1865
the day when the Public Debt was at it,
maximum, it was worth moro than $144; ant
on January, /, 1870, $40 since which time thu