304 



FINANCES OF THE UNITED STATES. 



The national-bank act authorized the issue 

 of $300,000,000 of national-bank circulation. 

 The act of July 12, 1870, authorized the 

 issue of $54,000,000 of additional circulation. 

 Of this additional circulation there was issued 

 to November 1, 1871, $24,773,260; in the 

 year ending November 1, 1872, $16,220,210; 

 in the year ending November 1, 1873, $7,357,- 

 479. During the year ending November 1, 

 1874, there has been issued $5,817,316; and 

 during the same year there has been with- 

 drawn from circulation and destroyed $2,241,- 

 019 showing an actual increase of national 

 bank circulation during the year of $3,576,297. 



Two national gold banks have been organ- 

 ized in California during the year, with an au- 

 thorized capital of $700,000. The total cap- 

 ital of the national gold banks, all of which 

 are organized in the State of California, is 

 $3,650,000, to which banks circulation has been 

 issued amounting to $2,150,000. 



The amount of legal-tender notes authorized 

 is $382,000,000 ; the amount of national-bank 

 notes, $354,000,000. The amount of legal- 

 tender notes, under the act of June 20, 1874, 

 cannot be reduced, but must remain continu- 

 ally' in circulation ; the amount of national- 

 bank notes, however, may be reduced at the 

 pleasure of the banks. If the value of the 



paper dollar be determined by the amount of 

 such money in circulation, then the national- 

 bank note is more valuable than the legal-ten- 

 der note. The national-bank notes outstand- 

 ing are secured by a deposit of more than 

 $385,000,000 of United States bonds, which 

 are at a premium of more than 12 per cent. 

 If the United States bonds be not of sufficient 

 value to pay the notes, the capital and surplus 

 of the banks, amounting to $622,000,000, as 

 well as their entire assets, are available for 

 that purpose. The stockholders are individu- 

 ally liable for the full amount of their stock, 

 in addition to the amount invested in such 

 shares, and the United States guarantees the 

 final payment of the notes. There are, then, 

 absolute assets for more than three times the 

 amount of the national-bank notes outstanding, 

 available for the redemption of these notes, 

 and, in addition, the contingent liability of the 

 shareholders, and the guarantee of their final 

 payment by the United States. 



The amount of gold and silver in the form 

 of coin and bullion in the country is thus esti- 

 mated : According to the official reports of the 

 Treasurer of the United States and Controller of 

 the Currency, there were held by the Treasury 

 and national banks at the close of the fiscal 

 year ended June 30, 1872 : 



