UNITED STATES, FINANCES OF THE. 



829 



1886, to $63,899,000 that were uncalled and 

 $6,723,150 that have been called but not pre- 

 sented for redemption. 



The following table shows the changes in 

 the various denominations of United States le- 

 gal-tender notes in circulation during the fiscal 

 years 1885-'86 : 



The National Banks. During the year ending 

 Nov. 1, 1886, 174 national banks, with an ag- 

 gregate capital of $21,358,000, to which $2,- 

 900,550 in circulating notes were issued, were 

 organized. Of these banks 5, with $500,000 

 capital, were located in the Eastern States; 

 15, with $4,000,000 capital, in the Middle 

 States; 27, with $2,108,000 capital, in the 

 Southern States ; 85, with $11,295,000 capital, 

 in the Western States; 18, with $2,100,000 

 capital, in the Pacific States; and 24, with 

 $1,355,000 capital, in the Territories. 



Since the establishment of the national bank- 

 ing system, on Feb. 25, 1863, there have been 

 organized 3,580 national banks. Of these, 456 

 have gone into voluntary liquidation for the 

 purpose of winding up their affairs; 79 have 

 gone into voluntary liquidation for the purpose 

 of reorganization ; 65 are in liquidation by 

 expiration of charter, of which number 38 

 have been reorganized, and 112 have been 

 placed in the hands of receivers for the pur- 

 pose of closing up their affairs; leaving the 

 total number in existence 2,863 on Nov; 1, 

 1886. The corporate existence of 31 national 

 banks expired during the year ending Nov. 1, 

 1886 ; 30 of them have been extended under 

 the act of July 12, 1882, and one is in liquida- 

 tion under section 7 of said act. The corporate 

 existence of one national bank with a capital 

 of $150,000 will expire during December of 

 this year, and the corporate existence of five 

 national banks, with an aggregate capital of 

 $1,050,000, will expire during the year 1887. 

 There were eight failures of banks during the 

 year ending Nov. 1, 1886, as against four dur- 

 ing the previous year, and in two cases the 

 creditors were paid in full, principal and inter- 

 est, two banks have paid 50 per cent., one 75 

 per cent., and one 20 per cent. 



Out of the 3,580 national banks organized 

 since February, 1863, only 112, or about 3 per 

 cent., have been placed in the hands of receiv- 



ers. Of these 112, 38 have paid their creditors 

 in full, while 20 have besides paid interest, 15 

 in full, and 5 in part. Of the banks which have 

 been placed in the hands of receivers, 9 had 

 been previously placed in liquidation by their 

 stockholders, but, failing to pay their deposit- 

 ors, receivers were afterward appointed to wind 

 up their affairs ; 78 have been finally closed, 

 leaving 34 in process of settlement, of which 9 

 are virtually closed with the exception of pend- 

 ing litigation, leaving 25 receiverships only in 

 active operation. 



Notwithstanding the rapid surrender of bank 

 circulation resulting from the repeated calls tor 

 3 - per - cent, bonds during the past year, 

 there is no reason to anticipate an abandon- 

 ment of the system for many years to come. 

 About $200,000,000 of the 3-per-cent. bonds 

 were originally taken by the banks as a basis 

 of circulation. The amount of such bonds held 

 on deposit for circulation April 1, 1883, was 

 $199,000,000, and at that time the aggregate of 

 bonds on deposit for circulation was about 

 $357,000,000. One year later the amount of 

 3 - per - cent, bonds deposited for circulation 

 had been reduced to $155,000,000, and the 

 amount of all bonds to $325,000,000. No great 

 change, either in the aggregate oj in the 

 amount of 3-per-cents deposited, was made be- 

 tween that date and Nov. 1, 1885, when 

 the amount of 3-per-cents was $138,000,000 

 and the amount of all bonds deposited was 

 $309,000,000. These figures show that the 

 tendency for some years, prior to this year, 

 was to a gradual reduction in the bank circu- 

 lation, though the slow retirement of 3-per- 

 cents was to a considerable extent compensated 

 by the substitution of other bonds in the de- 

 posits. Another influence which operated to 

 prevent the retention of circulation by many 

 banks was the putting into circulation bjjthe 

 Treasury of paper currency of other kinds and 

 standard silver dollars, and these forms of 

 money have to some extent taken the place of 

 bank-notes formerly circulated. After the 3- 

 per- cents have all been retired, there will yet 

 remain at least $160,000,000 of national-bank 

 circulation based on other kinds of bonds. 

 This reduction would be important were it not 

 for the fact that it would be in part compen- 

 sated by the increase in amount of small silver 

 notes in circulation. Meanwhile there is noth- 

 ing to indicate a disposition to surrender circu- 

 lation by those banks which hold on deposit 

 other kinds of bonds, and it is expected that a 

 gradual increase of bank circulation will occur 

 through the establishment of banks in new lo- 

 calities, where especial demands for banking 

 facilities and circulation will render the busi- 

 ness profitable. 



The following table exhibits the number and 

 amount of national-bank notes of each denom- 

 ination that have been issued and redeemed 

 since the organization of the system, and the 

 number and amount of those outstanding on 

 Nov. 1, 1886 : 



