El Paso herald. (El Paso, Tex.) 1901-1931, 1910-04-22
FLUCTUATIONS IN
MONEY IN THE
COUNTRY
United States Prepares a
Table Bearing on Fin
ances of Past.

Washington, D. c., April % "A set Of
charts, carefully prepared for the ma
tional monetary commission, by DR. A
Plat Andrew, special assistant to the
commission, was made public by the
commission today. These charts show
in graphic form the progress of Ameri-
can and foreign banking during the
past 80 to 40 years.
The first chart shows the progress
in the number Of national banks from
about 1850 in 1867, through the grad
ual rise, to about $500 in the summer
of 1893. Then comes the depression
of the line, due to the failures and liqui-
dations following the panic OF that
year. until the number in the summer
of 1899 falls below 5000. Then comes
sharp upward turn, which began in
the summer of 1899, apparently as the
result of returning business activity.
but was sharply accentuated by the
act Of March IA, 1900. which first per-
rnitted the creation of national banks
with a capital between $4,000 and $50
600. This upward movement continue
practically unbroken until a total of
nearly 500 banks is attained in the
summer of 1908, after which the NOV
ment is slightly relaxed as the result
of the panic Of 1907.
State Banks.
Even more interesting in some re-
indicating the number of state banks
Starting below 300 in 1867, the number
is barely above 500 in 1876 and shows a
decline to AIS in 1873 From that date
to the summer of 1885 there IS a gro
uaI upward movement until the number
of state banks is only a little under
1000 Then comes a depression to about
$50, which suddenly turns in the sum
mer of 1886 into a rapid upward move
ment. which has never been perma-
nently interrupted. II was in 1898 that
the number OF state banks began 20
overtake the number OF national banks
The lines of increase in banks OF both
types had been roughly parallel down
to about the summer Of 1888. with the
state banks nearly 1000 less IN number
than national banks
Then began "a stern chase oy the
state banks to overtake the national
banks in number, Influenced. apparent
w. by the small profit to the national
banks on circulation, which arose from
the high price of United States bonds
BY the summer Of 1891 the distance be-
tween the two classes OF institutions
had fallen to less than 100. by the sum
mer of 1892, to less than 500, and by the
summer of 1893 10 little more than
200. Finally, In the spring og 1895, in
the face of national bank liquidations.
the line of the number of state banks
crossed that of national banks and be-
gan the upward movement which car
ries the line at an acute angle from
about $500 institutions in 1895 TO 11,4OO
in the summer of 1908
Capital and Surplus.
4 somewhat different light is cast |
upon these figures by the second chart, !
showing the amount of capital and sur |
plus funds of different classes Of insti- |
tutions. Here the state banks, many IF |
them with capital much below the mini !
mum permitted 20 national ban.>s. lose |
the predominance which they derive 1
from numbers. State banking capital |!
and surplus funds in 1867 are shown 20
have been 800, 000,0 900. while national |
banking capital and surplus funds were 4
about s4S0.000 5000. BY 1850 these funds \
for national banks amounted to about 1
s575, 100000. while for state banks they /
had risen only TO about $4,000, 90. 1
Then came an upward curve il the line |
Of progress of both classes vnI>h ell |
minated in 1898 with na'ionai linking |
capital of $3.50 000, 900 and state banking |
funds of s325, 000,0 900. The downward |
dip of the curve, after the panic of 1893.
carried national banking funds - abo'.t |
$3.50, 900, 900 in 1889 while thos- of state |
banks were about s310.00O.000. Then l
began the rapid upward movement of /
the past 10 years along almost parallel |
lines. leaving national bank capital and /
surplus funds in 1909 ct $500. 900. geo. I
and similar funds for state banks at /
500. 000, 900.
In Financial Centers.
The difference between banking con- |
ditions in New York and other finan- |
cial centers is indicated by the chart
of discount rates in Berlin, London,
Paris and New York for the 20 years
ending with 1908 The Paris rates are
the most stable and the lowest. ranging
above percent only for brief periods
at the Bank of France, and for still /