786 



UNITED STATES, FINANCES OF THE. 



tion has been much more largely due to the con- one year ago they had ahout $116,000,000 4s 



tinued retirement of the notes originally based and about $70,000,000 4s; and now they have 



upon the 3-per-cent. bonds, for the redetnp- about $105,000,000 of 4s and $69,000,000 4$s. 



tion of which the banks furnished funds when It will thus be seen that the proportion of 



the 3 per cents were redeemed than from the 4-per-cent. bonds has fallen instead of rising, 



voluntary surrender of 4 or 4| per cent, bonds. This is partially offset by the fact that the 



Expensive as these bonds have become, and national bank depositaries have furnished over 



slight as is the inducement for holding them as $37,000,000 of 4s and less than $18,000,000 of 



a basis of note-circulation, here is another evi- 4|s as security for deposits ; and this amount 



dence that the banks surrender their ciroula- of 4-per-cents is, to some extent, owned by 



tion very slowly, and that the contraction national banks, which can substitute these 



which is in progress is more largely due to the bonds for the 4Js now held as security for 



compulsory surrender of the 3-per-eent. bonds, circulation. 



when they were being called, than to the sub- The Comptroller has matured an elaborate 



sequent voluntary sale of the high-priced bonds plan for the issue of circulation based upon 



now held as the basis of circulation. commercial paper and a small cash reserve, 



Despite the heavy burden that is now im- and regulated by national-bank unions in vari- 



posed upon bank-note circulation, and the un- ous cities, in which the banks as well as the 



just and illogical requirements of law, the banks Government will be represented, 



adhere tenaciously to their bonds, and are mak- The following statement shows the condition 



ing a desperate struggle for existence. The of the national banks on Dec. 12, 1888, as 



vitality of the system and the strength of its shown by reports from 3,150 banks then in 



popular support are shown by the pertinacity operation: 



with which the banks maintain their charters RESOURCES. 



and continue to complv with the requirements, Loans and discounts $1,665.573,83643 



,. , j-i i Overdrafts 10.981,52724 



Which are Steadily becoming more Severe as the United States bonds to secure circulation . . 1 62,820,650 00 



prices of bonds advance. The analysis of the Uuited states bonds to secure deposits 48,949,00000 



vpar'<* rptnrns <dmw<* flpnrlv that sr>iTV>plv a. United States bonds on hand 6,374,40000 



years returns snows cieany tnat scarcely a other stocks, bonds, and mortgages ... 102,276,89817 



bond has been surrendered except under the Due from approved reserve agents 156,587,19927 



pressure of absolute necessity, and yet the re- ue $ rom th f r national banks_ *SH!$4S! 5? 



f. . , j j ji Ai_ Due from State banks and bankers 24,217,16551 



JmquiShment has proceeded more rapidly than Keal estate, furniture, and fixtures 63,436,066 74 



it can continue without forcing many banks Current expenses and taxes paid 11,342,19245 



out of the national system. fiSSSKfc^'i^\";:::::::::: iifijS 8 



Public sentiment has demanded the mainte- Exchanges for ciearing-House 91,765.29299 



TinnoA of thp mtinml hnnlrn in thp o-rpit r>itip<s Bills of other banks 21,728,23800 



Fractional currency 628.387 42 



and small towns throughout the country, no Trade-dollars 78656 



matter how well established State or private Specie, viz. : 



banks may be. The returns show a steady re- Gold Treasury certiflotes .'.' 75,334,420 oo 



duction of the bond-deposits to the amounts Gold cieanng-House certifl- 



which the law makes compulsory, and that the t^^M^'""".". JSffi oo 



new banks organized have deposited less bonds silver coin, fractional 3.270,20054 



for circulation than a similar number of banks Silver Treasury certificates. . 8,812,844 oo img427850 



have ever done before. The action of the old Le^i.tender notes &2,555>6o oo 



banks and the continued admission of new United states certificates of deposit for le- 



ones show the earnestness of the battle that the Fiv ^ n Sm P on fund "with'Trea^ a>M ' MO 



banking-system will make for self-preservation; urer of the United states 7,141,434 41 



but the returns show, in a manner equally con- Due from Treasurer of the United states 



, . ,. ., '. other than redemption fund 1.246,39104 



elusive, the necessity lor a prompt reduction in 



the compulsory amount of bond-deposits. Aggregate $2,777,575,799 oo 



One respect in which the year's returns will LIABILITIES. 



be disappointing is the failure of the banks to Capital stock paid in $5f3.S48,247 29 



make any progress in the substitution of 4 for ?rP lu8 f " n d , y 



Other undivided profits 88,302,639 01 



4$ per cent, bonds. As the torrner have sev- National-bank notes issued. $1 46.033,429 oo 



eral years longer to run, there has been gen- Amount on hand 2,484,18250 



eral recognition among bankers of the import- Amount outstanding ..." 143.549,296 5!) 



ance Of Substituting the long-term for the State-bank notes outstanding 82.35450 



almrt- tprm hnnrh nnd rhim <5prrmno- Hio mnin Dividends unpaid 1.267,93019 



, ' , ing trie mam- Individual( j e ^ osit8 ... . 1,331,260,61708 



tenance of the bank charters at least as long United States deposits 46,707,010 38 



as the lease of life of the 4-per-cei5t. bonds. Deposits of United States disbursing offl- 



. , , j , cers. 4,415.60b 41 



The two classes of bonds are nearly at a par Due to'other national banks 252,29 1.1 34 so 



when interest worth is computed; but the Due to State banks and bankers 108,001,60646 



' past two years have not witnessed any prog- $$"$$? re - discounted 1 Jjggg g 



ress in this direction. Two years ago the 



national banks had on deposit, as security for Aggregate $2,777,575,799 oo 



circulation, about $315,000,000 of 4-per-cent. The Coinage. The gold deposited at the mints 



bonds, and about $57,000,000 of 4| per cents ; and assay-offices during the fiscal year 1888, not 



