768 



UNITED STATES, FINANCES OF THE. 



capital, were located in the Eastern States; 

 20, with $2,895,000 capital, in the Middle 

 States; 21, with $2,425,000. capital, in the 

 Southern States ; 76, with $9,473,000 capital, 

 in the Western States ; 8, with $725,000 capi- 

 tal, in the Pacific States; and 16, with $1,- 

 020,000 capital, in the Territories. Since the 

 establishment of the national banking system 

 in 1863, there have been organized 3,406 banks. 

 Of these, 432 have gone into voluntary liquida- 

 tion for the purpose of winding up their af- 

 fairs ; 79 have gone into liquidation for the pur- 

 pose of reorganization ; 64 are in liquidation by 

 expiration of their charter, of which number 

 38 have been reorganized ; and 104 have been 

 placed in the hands of receivers for the pur- 

 pose of closing up their affairs ; leaving a total 

 of 2,727 banks in existence on Nov. 1, 1885, 

 which is the largest number that has been in 

 operation at any one time. The corporate ex- 

 istence of 864 banks expired during the year, 

 of which 801 have been extended under the 

 act of July, 1882; 48 have permitted their cor- 

 porate existence to expire, and are in liquida- 

 tion ; 13 have been placed in voluntary liqui- 

 dation ; and the remaining 2 became insolvent 

 and were placed in the hands of receivers. 

 The corporate existence of 14 banks, with an 

 aggregate capital of $4,450,000, expired during 

 November and December, 1885; and 18 banks, 

 with an aggregate capital of $3,135,000, will 

 expire during the year 1886. A larger num- 

 ber of banks have expired by limitation during 

 the year ending Nov. 1, 1885, than have or 

 will expire during any other year between the 

 passage of the act of July, 1882, and the year 

 1900. 



The following statement shows the condition 

 of the national banks on Dec. 24, 1885, as 

 shown by reports from 2,732 banks then in 

 operation : 



RESOURCES. 



Loans and discounts $1,881.887,918 21 



Overdrafts 5,629,G41 75 



United States bonds to secure circulation. . . 804,776,750 00 



United States bonds to secure deposits 18,012,000 00 



United States bonds on hand 12,665,750 00 



Other stocks, bonds, and mortgages 77,533.841 38 



Due from approved reserve agents 189,269,822 81 



Due from other national banks 79,421,93166 



Due from State banks and bankers 18,553,946 46 



Real estate, furniture, and fixtures 51,963,062 01 



Current expenses and taxes paid 



Premiums paid 



Clearing-House loan certificates 



Checks and other cash items 



Exchanges for Clearing-House. . . 



Bills of other banks 



Fractional currency 



Trade-dollars 



Specie, viz. : 



Gold coin $70,107,747 56 



Gold treasury certificates.. 59,611,840 00 



9,416,971 01 



11,802,199 86 



630,000 '00 



12,S09,940 57 



92,351,296 77 



23,178.052 00 



415,082 71 



1,671,208 77 



Gold Clearing-House cert's. 26,'c34,000 00 

 Silver coin, dollars 5.303,258 00 



5.303,258 

 2.060.136 81 

 1,637,340 CO 



15,C54,352 37 



67,585,466 00 



Silver coin, subsidiary 



Silver treasury certificates. . 



Legal-tender notes 



United States certificates of deposit for iegal- 



tendernotes 11,765,00000 



Five per cent, redemption fund with Treas- 

 urer of the United States 18,404,764 84 



Due from Treasurer of the United States 



other than redemption fund 1.576,256 05 



Aggregate 12,457,675,256 18 



LIABILITIES. 



Capital stock paid in $529,360,725 00 



Surplus fund 150,155,549 52 



Other undivided profits 69,25:9,645 82 



National-bank notes issued.. $273,61 1,130 00 



Amount on hand 6,180,298 00 



Amount outstanding 267.430,887 00 



State-bank notes outstanding 188,932 00 



Dividends unpaid 1,360,977 27 



Individual deposits 1,111.429,914 98 



United States deposits 12,05^,768 86 



Deposits of United States disbursing officers 8,005,788 11 



Due to other national banks 216,564,583 96 



Due to State banks and bankers 85,060.162 27 



Notes and bills rediscounted 9,932,828 24 



Bills payable 1,951,598 60 



Aggregate $2,457,675,256~18 



Notwithstanding the fact that 145 new banks 

 were organized during the past year, with an 

 aggregate capital of $16,938,000, depositing 

 bonds to the amount of $4,959,300 as security 

 for circulating notes, the aggregate of bonds 

 on deposit for that purpose has fallen from 

 $325,316,300 to $308,364,550. The following 

 table shows the kinds and amounts of United 

 States bonds deposited as security for circula- 

 tion on Nov. 1, 1884, and Nov. 1, 1885: 



It will be seen, from the foregoing table, that 

 the aggregate reduction of bonds deposited for 

 the year ending Nov. 1, 1885, was $16,951,750. 

 The decrease of national-bank circulation dur- 

 ing the past three years was: in 1883, $8,284.- 

 917; in 1884, $24,170,676; and in 1885, $15,- 

 545,461. 



The reduction of circulation during the past 

 year was mainly due to the small profits ac- 

 cruing to the banks after payment of the 1 

 per cent, tax imposed by the Government, the 

 reduction in the rate of interest due to the 

 superabundance of money in the country, and 

 the feeling engendered, by the rapid increase 

 of silver in the treasury, that the public se- 

 curities might at no distant date be paid in sil- 

 ver dollars. While it is doubtless true that, 

 with the gradual redemption of the public debt, 

 the tendency of bank circulation will be toward 

 contraction, and possible extinction, unless 

 some other form of security be adopted, it is 

 not believed that any considerable number ot 

 the banks will voluntarily surrender their cir- 

 culation. A few years ago it was thought they 

 would not remain under the national law un- 

 less their circulation were made more profit- 

 able. Jt is in reality less profitable now than 

 ever before; but the expectation that the 

 banks will withdraw from the system is very 

 much less. The gravity of the question is, 

 however, admitted, and Congress will no doubt 

 afford some measure of relief during its pres- 

 ent session. 



The President, in his annual message, thus 

 referred to the subject: u The very limited 



