## 22 June 1867. N. 1243.

### The National Bank System of the U. States.

Table E brings into distinct contrast by means of Per Centage Proportions the 1649 National Bks., April 1867, mit den 1205 State Banks, in the Northern Portion of the Union, Dec. 1862.

Table H Abstract of the official Returns of 1626 National Banks, Jan. 1866, and of 1649 National Banks, April 1867 (Union, North und South)

Table F. Results of Detailed Return (Table I) on New York State brought in Smaller Compass.

Table G Total U. States Circulation in 1861, 1862 und 1867.

Table I New York State.

Table K Distribution of 1466 State Banks, Dec. 1862, and of 1649 National Banks, Dec. 1866.|

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Table E.) United States. Condition of 1205 State Banks, Jan. 1863, compared mit 1649 National Banks, April 1867. Per Centages of Liabilities and Assets.
1649 National Banks. April 1867. A.) 6 Eastern St.
807 Banks.
B) 5 Middle St.
491 Banks.
C) 9 North Western St.
207 Banks.
D) Total
1,205 Banks
Liabilities
Per Cent. Per Cent Per Cent Per Cent Per Cent
20.4 Circulation 26.0 5.7 32.5 13.2
7.7 Due to other Banks 7.1 12.4 10.2
37.0 Deposits 23.0 48.6 34.1 40.2
Other Liabilities 4.0 5.1 1.0 5.0
65.1 Total 60.1 71.8 67.6 68.6
34.9 Capital paid up 39.9 28.2 32.4 31.4
100.0 Total 100.0 100.0 100.0 100.0
Assets.
P.C. P.C. P.C. P.C.
7.0 Cash Reserves 4.5 15.3 13.7 12.0
8.8 Other Banks 14.1 12.7 26.8 14.6
34.7 Stocks 2.9 24.3 13.7 17.2
48.2 Loans 76.0 44.2 39.2 53.0
Real Estate 1.7 2.0 2.6 2.0
1.3 Other Investments 0.8 4.5 4.0 1.3
100.0 Total 100.0 100.0 100.0 100.0

In group A circulation of the 507 Banks 26.0% of their total liabilities, the deposits to 23.0% and so forth.

A distinction must be made between the State Banks of the 5 large and leading Middle States and the Banks of the East and NorthWest. In the National Banks the circulation is 20.4%, but in the Middle States it was in Dec. 1862 only 5.7%. In the National Banks the Cash Reserves are 7%, but in the Middle States they were 15.3 p.c., and even the average of the 3 groups gives 12%. In the National Banks the Cash Reserves and Gvt. Securities together are 41.17% of the assets. In the Middle States they were 39.6%, or very nearly the same; and in the North West the proportion was 27.4%.

Table F.) New York State. 308 State Bank, Dec. 1863, und 313 National Banks, April 1867 (Details in Table I.)
National Banks. April 1867. State Banks. Dec. 1862.
Per Cent. Per Cent.
Liabilities.
Circulation. 13.0 9.1
Deposits 45.0 47.0
Due to other Banks. 13.5 13.4
Other Liabilities 2.0 4.3
73.5 73.8
Capital paid up 26.5 26.2
100.0 100.0
Assets.
Cash Reserves 22.3 16.7
Due by other Banks 5.4 10.3
27.7 27.0
Government Securities 26.6 28.0
54.3 43.0
Other Assets 2.5 2.0
100.0 100.0

The State Banks held 28% assets in Gvt. Securities, the National Banks hold a trifle less, 26.6%. Cashreserves in den National Banks , Discounts grösser in den National Banks by 6/10% (er sagt about the same.) Paidup Capital grösser in den National Banks (er sagt (der Economist ) about the same) Deposits etwas grösser (by 2%) in den State Banks. Aber, Circulation der National Banks 13%, der State Banks 9% (Unterschied von 4%) (in both instances secured by the deposit of public securities). |

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We have seen that in New York State, the National Banks are hardly more numerous than were the State Banks. But the case is very different in the less commercial parts of the Union. A statement (K) gives the distribution of the 2 kinds of banks in detail; and we find there an increase of 120 banks in Pennsylvania , 85 in Ohio, 31 in Iowa, 57 in Illinois, 34 in Indiana etc. Früher, obgleich das building derselben free, 207 State Banks had grown up in the 9 North Western States, at the end of 1862. Jezt statt dieser 207 sind da 434 National Banks. The State Bank Circulation of these 9 Banks was 191/2 mill. of dollars in Dec. 1862. The National Bank circulation pertaining to them in Dec. 1866, was 501/2 millions, or 21/2 times greater. Diese expansion der Note Circulation in the North West – the eminently agricultural and grazing region – sicher Schuld an increase in price of articles of food, and in the wages of ordinary manual labour which has occurred during the 2 last year years.

In his Report of December 1861, Chase estimated amount of gold und silver coin in the whole Union at 275 Millions $(say 55 Mill. £. St.) Danach können wir in approximate form beurtheilen die additions to the amount of Circulating medium, besonders in the Northern or Federal States. Dieß in der folgenden Tabelle G. Table G. Estimates of Circulation in 1861, ’62 und 67 Jan. 1861. North. South. Total. Mill.$ Millions $State Banks Notes 140 60 200 Coin. Gold and Silver 200 75 (?) 275 Total 340 135 475 510 710  Notes of State Banks 180 Greenbacks 290 Fractional United States Notes 20 490 Coin 20? 510, increase of 50% over 340 Mill. of Jan. 1861.  Notes of State Banks 6 Notes of National Banks 290 Greenbacks 375 Fractional Un. States Notes 29 700 Coin 10? 710 These 710 Increase of 40% over the 510 mill. of Dec. 1862 und 100% over the 340 mill. of Jan. 1861.| 145 The 710 millions includes about 13 mill. of National Bk. Circulation established in the Southern States. In stating this part of the case, most American writers confuse themselves and their readers by making deductions for the quantities of Coin, Greenbacks etc held in the tills of Banks and the vaults of Sub-Treasuries. Such deductions are – fallacious and misleading Upon this , there seems to be good reason for concluding that at the present time the Circulating medium in the U. St. is very nearly double the amount before the Civil War, or in January 1861; and that out of the present 710 millions of dollars (say 142 Mill. £ St.), it will be necessary to redeem at least 220 to 250 Mill. dollars, (44 to 50 Mill. l. St.) before the volume of the currency will approach the level at which it stood when cashpayments were suspended. H.) U. States. National Banks. Founded Febr. 1863. Official Return at dates as under. 00,000 omitted. April 1867. 1649 Banks. Jan. 1866. 1626 Banks Liabilities.$ P.C. $P.C. Circulation National Banknotes 291.9 20.0 213.2 15.2 State Banknotes 5.9 0.4 45.4 3.2 297.8 2.586 258.6 Deposits Government Deposits 30.0 2.0 29.7 2.1 Private Deposits 510.6 35.0 513.6 37.0 540.6 543.3 Due to other Banks To National Banks 91.1 6.2 96.7 7.0 To other Banks 23.1 1.5 23.8 1.7 114.2 120.5 952.6 65.1 922.4 Capital Paid up 418.8 403.3 29.0 Reserves 60.2 43.0 3.0 Profits 31.1 29.0 2.0 510.1 34.9 474.3 1462.7 100.0 1396.7 100.0 Assets.$ P.C. \$ P.C.
Legal Tenders. 92.6 6.3 90.0 6.3
Specie 10.4 0.7 16.0 1.1
103.0 106.0
Due von Other Banks.
Balances Von Nat. Banks. 94.0 7.0 93.2 6.6
Other Banks 10.7 0.8 14.6 0.7
Notes 13.7 1.0 20.4 1.4
118.4 182.2
Government Securities:
U. S. Bonds for Circulation 338.5 23.0 298.0 21.2
for Deposits 38.4 2.6
in hand 46.6 3.1 142.0 10.0
Compound Interest Notes 84.0 6.0 97.0 7.0
507.5 537.0
Loans und Discounts 597.1 40.0 498.8 36.2
Stocks und Mortgages 20.2 1.3 17.5 1.2
Real Estate 19.6 1.1 15.4 1.1
Cash Items 87.8 5.8 89.8 6.2
724.7 621.6
Expenses 14.0 1.3 5.5 1.9
Total 1467.6 100.0 1398.2 100.0 |
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K.) Distribution of 1466 State Banks in Dec. 1862, and of 1649 „National Bank“ in Dec. 1866.
Six Eastern States St. Banks. Nat. Banks. Five Middle Sts. St. Bk. Nat. Banks. Nine Northwest. States State Banks. Ntl. Banks. Five Southern States State Banks Nat. Banks Five South West. States St. Banks Nat. Banks
Maine 69 61 New York 308 313 Illinois 25 82 Virginia 66 35 Alabama 8 3
New Hampshire 52 39 New Jersey 52 54 Indiana 37 71 Nth. Carolina 31 5 Louisiana 6 3
Vermont 40 39 Pennsylvania 94 201 Ohio 55 135 South Carolina 20 2 Tennessee 14 10
Massachusetts 183 208 Delaware 5 11 Michigan 4 42 Georgia 28 9 Kentucky 44 15
Rhode Island 88 62 Maryland 32 32 Wisconsin 64 37 Florida 2 Missouri 42 15
Connecticut 75 83 491 611 Iowa 14 45 147 51 114 46
507 492 Minnesota 7 15
Kansas 1 4