306 



FINANCES OF THE UNITED STATES. 



circulating notes shall not in any case exceed 

 90 per cent of the par value of the bonds. 



Previously, also, this was practically the limit, 

 but there was some uncertainty as to the con- 

 struction of a section of the revised statutes 

 under which it was claimed by some that upon 

 "4 per cents," 90 per cent of the current mar- 

 ket value could be issued, although no such 

 issue was ever made to any bank. 



The second proviso of section 8 requires 

 banks in voluntary liquidation, when making 

 a final deposit of lawful money to retire their 

 circulation, to be assessed for the cost of re- 

 deeming their notes by the Treasurer of the 

 United States. These banks had heretofore 

 escaped paying any cost of redemption of their 

 notes, as had also the bank retiring circulation 

 under the act of June 20, 1874. The cost of 

 redemption in all these cases had been assessed 

 upon the active banks. But now both banks 

 in voluntary liquidation and banks retiring a 

 portion of their circulation are required to bear 

 their share of the general cost of redemption of 

 national-bank notesat theTreasury Department. 



Section 9 regulates the deposit of lawful 

 money by national banks for the purpose of 

 retiring their circulation. Previously, circula- 

 tion might be retired and bonds withdrawn 

 down to the minimum limit, by the deposit of 

 lawful money. This was a great convenience 

 to the banks, by enabling them to take out 

 bonds bearing a high rate of premium, and 

 afterward putting in other bonds, when the 

 market was more favorable for their purchase. 

 It was feared that the banks might, in the free 

 exercise of this right, bring about a severe 

 contraction of the currency; it was, there- 

 fore, provided that, except for the withdrawal 

 of called bonds, not more than $3,000,000 

 shall be deposited in any calendar month ; that 

 no bank retiring circulation by deposit of law- 

 ful money can receive new circulation again 

 for a period of six months from the time of 

 making such deposit. If more than $3,000,000 

 in lawful money are offered in any calendar 

 month, the deposits are received and acted 

 upon in their order, and the overplus in one 

 month becomes entitled to precedence in the 

 next month. 



Section 10 does away with the limit previ- 

 ously imposed, that no bank organized after 

 July 12, 1870, should receive over $500,000 in 

 circulating notes. It also removes the ambi- 

 guity previously existing in the law relative to 

 United States bonds bearing less than 5 per 

 cent interest, and provides that any United 

 States bonds bearing interest may be received 

 from national banks as a basis for the issue of 

 circulating notes. It also provides that the 

 amount issued to any bank shall not exceed 

 90 per cent of its capital stock, and that the 

 amount issued upon bonds shall not exceed 90 

 per cent of their current market value if less 

 than par, and in no case shall exceed 90 per 

 cent of their par value. 



Under the provisions of the act above re- 



ferred to, 187 new national banks were organ- 

 ized during the calendar year ended December 

 31, 1882, and were authorized to commence 

 business with a capital of $16,642,300. 



Section 12 of the Bank Charter Act, ap- 

 proved July 12, 1882, reads as follows: 



That the Secretary of the Treasury is authorized 

 and directed to receive deposits of gold coin with the 

 Treasurer or assistant treasurers of the United States, 

 in sums not less than twenty dollars, and to issue 

 certificates therefor in denominations of not less than 

 twenty dollars each, corresponding with the denomi- 

 nations of United States notes. The coin deposited 

 for or representing the certificates of deposit snail be 

 retained in the Treasury for the payment of the same 

 on demand. Said certificates shall be receivable for 

 customs, taxes, and all public dues, and when so re- 

 ceived may be reissued ; and such certificates, as also 

 silver certificates, when held by any national bank- 

 ing association, shall be counted as part of its lawful 

 reserve ; and no national banking association shall be 

 a member of any clearing-house in which such cer- 

 tificates shall not be receivable in the settlement of 

 clearing-house balances : Provided, That the Secretary 

 of the Treasury shall suspend the issue of such gold 

 certificates whenever the amount of gold coin and 

 gold bullion in the Treasurv reserved for the redemp- 

 tion of United States notes" falls below $100,000,000; 

 and the provisions of section 5207 of the Revised 

 Statutes shall be applicable to the certificates herein 

 authorized and directed to be issued. 



The effect of this proviso is to prevent the 

 holders of legal-tender notes from too rapidly 

 and freely presenting them for redemption in 

 gold coin, in order to deposit the latter and 

 secure gold certificates. The amount of gold 

 certificates issued to December 30, 1882, was 

 $64,619,840, of which sum $25,105,030 was 

 held by the Treasurer of the United States. 



The excess of exports over imports of gold 

 during the calendar year 1882 was $25,318,551. 



The deposits of bullion and coin, exclusive 

 of redeposits, were, of gold, $41,921,263.76, 

 and of silver, including purchases, $35,161,- 

 254.49, making a total of $77,082,518.25 ; of 

 which $18,900,132.57 of gold and $2,172,237.- 

 43 of silver were again deposited, making the 

 total amount received and operated upon dur- 

 ing the year at all the mints and assay-offices 

 $60,821,396.33 of gold and $37,333,491.92 of 

 silver, a total of $98,154,888.25. 



The deposits of domestic production were, 

 gold, $31,378,248.82, and silver, $31,400,792.- 

 95, a total of $62,779,041.77; of foreign bull- 

 ion and coin, gold, $8,338,619.78, and of sil- 

 ver, $2,788,039.84; of United States coin, gold, 

 $409,148.91, of silver, $587,529.43, a total of 

 $996,678.34; and of jewelry, plate, etc., gold, 

 $1,795,246.25, silver, $384,892.27. 



COINAGE OF CALENDAR YEAR 1882. The 

 total number of pieces struck during the year, 

 and their value, were as follow : Pieces, 88,- 

 805,831; of which 7,215,831 were gold; 31,- 

 507,000 silver, and 50,083,000, one, three, and 

 five cent pieces; valued at $94,820,120. 



The following table, prepared by the Bureau 

 of Statistics, presents in the order of magni- 

 tude the value of merchandise imported into 

 the United States by articles, during the fiscal 

 years 1881 and 1882 : 





