

INDEBTEDNESS OF THE UNITED STATES, OF THE STATES, ETC. 401 



in the adoption of a system of State national 

 banks, and a tax of 2 per cent was laid on the 

 issues of State banks above a certain percent- 

 age of their capital. The object was to tax 

 them out of existence. The circulation of the 

 national banks was to be secured by bonds of 

 the United States, with a small sum in specie. 



BONDS. On March 3, 1863, an act passed 

 authorizing the issue of $900,000,000 of 10-40 

 bonds, payable in coin, and in denominations of 

 $50 and upward, and exempt from taxation by 

 State or municipal authority. The same act 

 authorized the issue of $400,000,000 in Treasury 

 notes of not less than $10, bearing 6 per cent 

 interest, and payable within three years, and 

 exempt from taxation; also $200,000,000 in 

 Treasury notes, bearing 7 T 3 g- per cent interest. 

 Of the first notes, $44,520,000 were issued re- 

 deemable in one year, and $166,480,000 re- 

 deemable in two years. They were known as 

 " one- and two-year notes of 1863." Of the 

 latter notes, $248,601,680 were issued. 



On March 3, 1864, a further issue of $500,- 

 000,000 of 10-40 bonds was authorized ; and 

 on June 30, 1864, an issue of $400,000,000 of 

 5-30 bonds was authorized. Both classes of 

 bonds were to be exempt from State and muni- 

 cipal taxation. Subsequent loans of a similar 

 nature were made until the close of the war. 

 One year afterward, in July, 1866, the debt was 

 stated at its largest amount, $2,773,200,000. 



A recapitulation, showing the amount of 

 the principal of the public debt of the United 

 States, annually issued and redeemed from July 

 4, 1776, to June 30, 1880, presents the follow- 

 ing results : 



THE HOLDERS OF THE BONDS, AND AMOUNTS. 

 The bonded debt of the United States con- 

 sists of two classes of bonds the registered 

 bonds and the coupon bonds. Of the regis- 

 tered bonds there are four species the 4 per 

 cent, 4^ per cent, 5 per cent, and 6 per cent 

 and they are held as follow : 



Omitting the 6 per cent bonds from the cal- 

 culation, the total number of holders of the oth- 

 er species is 73,114, of whom 42,262 are males 

 and 29,325 are females, and 1,527 are corpora- 

 tions ; and of the amount held, the males own 

 $327,185,500, the females $90,353,350, and the 

 corporations $227,451,550. Of these holders, 

 also, 51 per cent, or 37,256, reside in 117 cities 

 of the United States; and they hold 85 per 

 cent of the amount, or $549,200,600. 



The number of holders of registered bonds 

 of 4, 4J, and 5 per cent, who live in different 

 sections of the Union, is shown by the follow- 

 ing table : 



$10,690,055,96832 



Redemptions 8,569,664,230 85 



Unadjusted, over. . , 



$2,120,891,737 47 

 92,815 46 



$2,120,484,552 93 

 Unadjusted, short 69,182 30 



Outstanding June 30, 1880 $2,120,415,870 63 



The amounts of the 4, 4|- and 5 per cent 

 bonds held in the different sections of the Union 

 by the above-mentioned holders are shown in 

 the following table : 



These tables show that while over 36 per 

 cent of the holders reside in the New England 

 States, not more than 11 per cent of the ag- 

 gregate amount of bonds are credited to New 

 England. On the other hand, over 42 per 

 cent of the holders have their residence in 

 the Middle States, and upward of 43 per cent 

 of the aggregate amount of bonds is held in 

 that section. Over 3 per cent of the holders 

 reside in the Southern States, and about 2 per 

 cent of the bonds are owned there. In the 

 Western States are 15 per cent of the holders, 

 and nearly 8| per cent of the bonds. The 

 VOL. xxn. 26 A 



banks, insurance companies, and other corpo- 

 rations, representing in number only 2 per 

 cent, own about 35 per cent of the bonds. 



The District of Columbia contains more bond- 

 holders, in proportion to its population, than 

 any of the States of the Union. The Middle 

 States take high rank in the proportion of bond- 

 holders to their population, while in the West- 

 ern and Southern States a small percentage of 

 the population is represented in the total num- 

 ber. The number of the holders of these bonds 

 residing in the different States of the Union is 

 as follows : 



