840 



UNITED STATES, FINANCES OF THE. 



offices of the Government gold having a coinage 

 value of $49,228,823, against $48,900,712 received 

 the previous year. Of the former amount, $7,- 

 990,706 was of foreign bullion or coin, against 

 $6,583,992 in the preceding year. 



Of silver, the deposits and purchases had a 

 coin value of $43,565,135, against $41,457,190 in 

 the preceding year. Of the total amount re- 

 ceived, $37,736,902 was classed as domestic bul- 

 lion. It will be seen that the gold bullion vol- 

 untarily presented at the mints was considerably 

 greater in value than that of silver bullion thus 

 presented, even including that for the com- 

 pulsory coinage of standard dollars. The aver- 

 age monthly New York price of fine bar silver 

 was 92^ cents per ounce in July, 1889. It had 

 risen in Dec. 1886 to 97, and in June to $1.05. 

 On Aug. 19 it reached $1.21, the highest point for 

 many years, but it soon receded. The enhanced 

 value arose primarily from the operations of the 

 act of July 14 referred to. To bring the silver 

 and gold coinage to that parity of value which 

 Congress had declared was the purpose of the 

 Government, the value of fine silver should be 

 maintained at about $1.29 per ounce in gold. So 

 the parity has not yet been reached. 



National Banks. Notwithstanding the 

 growing scarcity of United States bonds avail- 

 able for securing circulation, within the year 307 

 banks have been organized, representing a capi- 

 tal of $36,250,000. On Oct. 31, 1890, there were 

 in existence 3,567 banks, the greatest number 

 since the organization of the system. These 

 banks then had a capital stock of $659,782,865 

 and outstanding notes to the amount of $179,- 

 755,643, including $54,796,907 represented by 

 lawful money deposited with the Treasurer of 

 the United States for the redemption of notes 

 still outstanding. Of the new banks organized, 

 the greatest number this year as last year was in 

 Texas, that State having organized within the 

 year 63 new banks with a capital of $5,050,000. 

 The second State in organizing such banks was 

 Pennsylvania, which had set up 27 with a capi- 

 tal of $2,375,000, though Missouri, which had 

 organized but 20, had employed a capital of $4,- 

 400,000. The strength, popularity, and vitality 

 of the system are well illustrated by such an ex- 

 hibit. In Texas and Missouri, where strong preju- 

 dice against the system has heretofore existed, 

 the number of banks and capital employed has 

 steadily increased, not only during the past year 

 but for several years, and in no part of the coun- 

 try does there seem to be any well founded ob- 

 jection to the continuance of the system, though 

 should the decrease of the debt continue as of 

 late, the inability of the banks to much longer 

 obtain national bonds to secure circulation must 

 lead to important changes in the method of issu- 

 ing notes, should such issue continue. 



The statement on page 824 shows the number 

 of national banks, their resources and liabilities 

 at the dates named. 



An examination of this statement shows an 

 increase in the number of banks of 214, of capi- 

 tal stock, $32,607,069, between the dates men- 

 tioned. The individual deposits had largely in- 

 creased, thosd of the Government considerably 

 decreased, as had the circulating notes. Loans 

 and discounts had increased nearly $200,000,000, 

 showing a good demand for the use of money. 



The most suggestive part of the exhibit is the 

 increase of specie, especially that of gold coin or 

 gold certificates, of which the banks held an in- 

 crease of about $29,000,000, indicating a signifi- 

 cant preference for that kind of circulation. 

 The increase in silver or its certificates was but 

 little in excess of $2,000,000, though there had 

 been, within the date, a great increase of such 

 circulation. 



