The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-05-25


the results and the meaning of Stats
tics, where done with care and con.
scientiousness, affords very effective
means of disseminating information,
particularly in reference to subjects
whose appeal to popular interest is
from the nature of the case limited.
The National Monetary Commission
has therefore done wisely to illustrate
some of the statistics compiled under
it's direction by having a series of
charts prepared which make use of
the method of graphic art to disclose
to the busy man the story of the
changes in banking conditions during
a period of thirty of forty years. One
of these charts shows gradual pro-
gress in the number of national banks
from about 1850 in 1867 to about $500
in the summer of 1893; then a recess
sion due to the liquidations following
the panic of that year, which resulted
in a fall below $500 in the summer of
1899, and subsequent upward turn
apparently as the result Of returning
business activity, but accentuated by
the act of March II, 1900, which per-
mitted the reaction of national banks
with a capital of between $4,000 and
$50, 900. This upward movement con-
tinued until total of nearly 600
banks was attained inthe summer of
1908, after which there was a slight
relaxation owing to conditions grow
ing out of the panic of 1907.
An interesting comparative view is
afforded of the changes in the number
and the capital of state and national
banks respectively in the period under
consideration. Beginning below 300 in
1867, the number of state banks rose
to just above 600 in 1876, fell to ATS
in 1878, rose again gradually to little
under 1000 in the summer of 1885,
fell off quickly to about $50, and then
in the summer of 1886 began sudden
upward movement which has since
continued without permanent Interrupt
ton. In the spring of 1895 the line of
the number of state banks crossed
that of national banks, rising from
about $500 institutions in 1896 to H.
400 in the summer of 1908. A some
what different showing is made in a
chart depicting the growth of capital
and surplus in the two systems OF
banks. In this the state banks lose
the predominance derived from num-
bers. The capital and surplus funds
of the state banks amounted to about
500, 100000 in 1867, when those OF
the national banks were about $3.50,
900 900. In 1909 the capital and sur.
plus of the state banks amounted to
$720, 100000, while those of the nation
al banks reached the total of about
81 500 100000.
An interesting chart is that compar-
ing discount rates at New York with
those of Paris, London and Berlin for
the twenty years ending with 1908.
In this showing the Paris rates are the
most stable and the lowest, ranging
above per cent. only for brief per-
, iods at the Bank of France, and for
still shorter periods in the open mar
I ket. The London rates both at the
Bank of England and in the open mar
ket show fequent variations, but their
average except in the autumn of 1907,
is never higher than Az per cent while
| in 1895 it was as low a rs per cent.
at the bank and below 1 per cent. in
the open market. A higher tendency
| is shown by the rates at Berlin, but
only at the close of the year 1899 and
the early part of 1900 did they go
above per cent, until on the eve of
the great panic of 1907 At no time eX-
cept in the latter year did the open
market rate go above p pc cent,
while in 1894 it was at a point below
per cent.
In dealing with the New York mar
llet the basis taken is not the rate fol
call money, in which there have been
violent fluctuations. but that for com.
mercial papers running from two to
three months. From about 81 per
cent in 1890 this rate fell a trihe be-
low per cent. in 1892. It mounted
far above per cent. in the panic of
1898, when the maximum Berlin rate
was just above 4 and that of London
just above per cent. during the de.