Evening star., 1895-04-30
Many Indications of an Increase in
Business Activity.
DEMAND Fur BANK NOTE CIRCULATION
Post Office Receipts as Barome-
ter of Business.
CONFIDENCEINT THETREASURY

The revival Of business activity and the
return of prosperity in the United States
are indicated by several developments at
the capital during the past few weeks in
quite as striking a manner as by the in
crease of prices and the volume of business
In the country at large. There are several
branches of the public service which af-
FORD pretty accurate barometers of the con-
dition of business, and they have all indi-
Gated during the last month a pressure
growing constantly more favorable. One of
these Indications is the rapid increase in
national bank note circulation during
March and April. The circulation was in
creased during the panic of 1893 to meet
temporary emergency and the long period
of duilness which followed led to a decrease
OF the circulation in consequence of the ac-
cumulation of idle capital in the banks and
the disincination of investors to embark
In new enterprises.
Not Immediately Responsive.
The bank note circulation in the United
States. being based upon securities instead
of upon the genera. assets of the banks, is
not regarded by economic students as being
quickly responsive to business demands.
but the fact that 1t is increasing after a
long period of declenson. in spite of the
scarcity Of bonds and their high price, Is
mand for money than IL the circulation
was based upon some more flexible securi-
ty. The increase in the secured circulation
during March was S,3G2,32l and the aggre-
gate circulation was carried up to $20T,-
4jo.144 The advance during April has been
equally marked. and Indicates an increase
OF nearly SI.0O.OD In the secured circula-
ton for the month. The aggregate circu-
ation on May will probably exceed $2l0,-
OU.OOO. and will be larger than at any time
since July, 1889. when the process of re-
duction had been steadily going on for five
years The bonds on deposit to secure cir
sessed a face value of $2U2 937, $50. as COM
pared with $197 500 on February 2S
and $2ol .1I6IOO on March 81. The bond de-
posits do not always coincide exactly with
the circulation. as they are required to be
deposited before the circulation is issued
New National Banks.
An even more striking proof Of reviving
business activity is afforded by the appli-
cations for authority to establish new ma
raining upon the controller Of the currency.
The number Of new banks organized, which
ran as high as 3O7 In 1880. fell to a mini
mum during the panic. and many applica-
tons for charters made In the spring of
1898 were withdrawn or abandoned. The
whole number of banks organized during
the year covered by the controllers report.
ending October 81. 1874. was only fifty,
smaller than in any year since 1879. The
banks organized during the six months
which have now nearly closed since the
last report have numbered fourteen, and
the applications now pending and await
ing action number thirty-one. The dis
tribution Of the new banks authorized and
the applications pending. with the aggre-
gate capital by states. is indicated in the
following table:
Orcnnjzod Annlcn tions nendnp