Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-04-26

ing the amount Of capital and surplua
funds OF different classes Of institutions.
Here the state banks. many OF them VITA
capital much below the minimum per-
mitted to national banks. lose the pre-
dominance which they derive from num-
bers. State banking capital and surplus
funds In 1857 are shown to have been
$100. 600. while national banking CAPT
tai and surplus funds were about $4so.-
100000. BY 1880 these funds for national
banks amounted to about $S75.00O.OOo.
while for state banks they had risen only
to about &11O.O00000. Then came an up
ward curve in the line OF progress OF both
classes, which eliminated in 1893 with
national banking capital OF $930.OOooco
and state banking funds Of $S2S.000.coo.
The downward dip OF the curve, after the
panic Of 1893. carried national banking
funds to about sso000o.0o0 in 1889. while
those Of state banks were about $780,
100000.
Then began the rapid upward movement
of the past ten years along almost par
allel lines, leaving national bank capital
and surplus funds In 1909 at 81, 500 10000
and similar funds for state banks al
500, 000, 600.
Rates of Discount.
The difference between banking condi-
tions in New York and other financial
centers Is indicated by the chart OF dis
count rates In Berlin. London, Paris ana
New York for the twenty years ending
with 1905. The Paris rates are the most
stable and the lowest, ranging above )
per cent only for brief periods at the
Bank of France and for still shorter
ner,ods in the open market The Lon
don rates. both at the Bank OF England
and in the open market show frequent
variations, but their range, except In tne
autumn OF 1907, Is never higher than as
LON nc
cent at the bank and below L per cent
In the open market. The Berlin rates
show a higher tendency. but only at the
close of the year, 1899. and The ear!
part Of 1900 did they go above o per
cent, until on the eve OF the panic OF
1907 The open market rate In Berlin
did not at any time. except In leoI, go
above Al per cent, and In 1894 was AT
point below per cent. IA, a..
The commission. i'm dealing win Lhe
New York market, did not take the vio-
lent fluctuations in call money as a basis.
but only the rate for commercial paper
running from two to three months. Be
ginning in 1890 at a rate or ABOUT osc
per cent, this New York rate fell tribe
below 4 per cent in 1892, to mount far
above in the panic OF 1888, when inc
maximum Berlin rate was just over '
per cent and that of London just over
Then came the fall in the New York
rate to per cent. during the depression
following the panic. when the Berlin
market rate was under per cent ana
the London market rate was under
per cent.
Goes Above 81 Per Cent.
The New York rate returned to little
more than 31s per cent in 1897. and then
advanced gradually to about 4.2o per cent
in 1900. and mounted upward after 1901
to about 81 per cent in 1903. Then came
q fall to 4.25 in 1904 and a rapid rise In
1905, which eliminated in a rate of 81
per cent in 1907 The New York rate
whether high or low. was in every case
higher than the rates. either ofhclal or
private, in London and Paris. and only
during the period from 1897 to 1901 was
il lower than the German official rate,
and during only a brief portion or THIS
time lower than the German private rate.
The last table OF the series. giving the
average gold holdings of the three princi-
pal European banks and of the United
States Treasury, brings into relief tne
great increase in gold stocks In recent
years The United States Treasury, with
over s1,1OO,OOO.0Oo OF gold, stands in the
front rank Of holders of the yellow metal,
offering a remarkable contrast with the
conditions of 1895. when total Treasury
holdings were under $14o.0ooo0o.