22 June 1867. N. 1243.

The Economist, 22. Juni 1867. S. 695–697.
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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.|

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
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
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%.

 Zusammenfassender Kommentar von Marx.
Da diese Vergleichung nicht die gewünschte „deterioration“ ergiebt, vielmehr mehr securities unter dem National System, so vergleicht die Werthe des Verhältniß in beiden Systemen im Staat New York.

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.
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
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
Advances and Discounts 43.2 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  Interpretation der Tabelle von Marx.
in den National Banks  Interpretation der Tabelle durch den „Economist“.
(er sagt. about the same)
, 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,  Kommentar von Marx.
und das soll das Fürchterliche sein,
Circulation der National Banks 13%, der State Banks 9% (Unterschied von 4%) (in both instances secured by the deposit of public securities).  Kommentar von Marx.
(Ob mehr Deposits oder mehr Notes hängt von ganz bestimmten Zuständen ab. Wenn nicht, so könnte man nachweisen, daß, in different periods dieser Unterschied, bei der B. o. England, viel mehr als 4% fluctuirt.)


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  Kommentar von Marx.
(which is not uncommercial-State)
, 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.  Kommentar von Marx.
⦗Aber mon Cher, warum nicht umgekehrt die increase of prices Ursache der increased circulation? Prices mußten increase 1) weil die lawful currency (legal tenders) depreciated und die Banknotes stellen nur diese depreciated currency dar; 2) In Folge der taxation; 3) Mißerndte und 4) Mangel an Händen während des Kriegs. Ist das nicht sufficient? In derselben Art hatte Overstone, damals Lloyd Jones den englischen countrybanks vorgeworfen, daß ihre Circulation 1836–8 (oder 9?) expanded, während die der B.o.E. contracted und, umgekehrt, nach der Panic 1866, Gladstone, daß die Circulation der country notes contracted, während die der B.o.E. expanded. Stets derselbe Kohl.⦘

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
December 1862. Northern States only. Millions $
Notes of State Banks 180
Greenbacks 290
Fractional United States Notes 20
Coin 20?
510, increase of 50% over 340 Mill. of Jan. 1861.
April 1867. Whole Union. Millions $
Notes of State Banks 6
Notes of National Banks 290
Greenbacks 375
Fractional Un. States Notes 29
Coin 10?

These 710 Increase of 40% over the 510 mill. of Dec. 1862 und 100% over the 340 mill. of Jan. 1861.|


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  Kommentar von Marx.
(Du Esel! Die greenbacks in the Banks, als cash reserve, circuliren nicht, solange die Noten für sie cirkuliren, und die Noten cirkuliren nicht, sobald sie gegen greenbacks ausgetauscht werden.)
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 Zusatz von Marx.
 Kommentar von Marx.
(Also, wenn 15 Mill. £ Gold in the B.o.E. und 22 Mill. £. St. in circulation und 8 Mill. l. als Reserve im Banking Department, so circuliren für 30 Milll. Gold!)

Upon this  Kommentar von Marx.
(false and stupidly arbitrary basis)
, 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  Zusatz von Marx.
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
$ P.C. $ P.C.
  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
  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
  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
$ 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
Advances und Discounts:
  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 |
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
Nebraska 1 3
507 492 491 611 207 434 147 51 114 46
The Economist, 22. Juni 1867. S. 698.
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The Pollution of the Lee.  Zusatz von Marx.
(Sewage Irrigation)

About a Year ago, First Report of the Rivers Commission on the state of the Thames. In Folge davon der Thames Navigation Act of last session (1866), in which many of the recommendations of the Commissioners were adopted, and many of the grossest abuses of the former management provided against or remedied. Jezt Second Report derselben Commission to the River Lee. The great prevalence of the cholera in the East of London (1866) last year was attributed to the foul state of the water furnished by the company which draws its supply from the river Lee. This river is one of the northern tributaries of the lower Thames. It rises in the county of Bedford, above about 3 miles above the town of Luton, and with its tributaries drains a large area of Hertfordshire. It is a tidal river for about 5 miles in length, and is navigable for barges a distance of 28 miles. So old is this navigation of the river, that King Alfred availed himself of it to visit Ware, and that Parliament legislated for the river in the time of Queen Elizabeth. The weirs, locks, and other works are kept in good repair, nor has the river trade been injured by railway rivalry. In this respect the Lee presents an advantageous contrast to the Thames, but the comparative rates at which the 2 rivers are drained for the supply of London are out of proportion. While the Thames has a minimum dry weather flow of 350 millions gallons daily over Teddington lock, and supplies 48 mill. gallons daily to 5 London water companies, the Lee, with a dry water flow of 40 mill. gall., is said to be mulcted of 38 mill. gallons by two water companies. This almost incredible statement rests on the authority of the engineer to the East London Water Works Company. The New River Co. provides for about 840,000 persons, and the East London Waterworks Comp. for some 675,000. The first Co. furnishes about 24 gallons per head daily, the second co. 18 gallons. Few of the houses are put on the constant system; in most, the water is turned on for 35 minutes, and the poorer houses have a Sunday supply. The New River Co. lays pipes to the doors of houses, but does not hold itself responsible for anything further, and as the landlords very frequently provide the most scanty means of storing the water, there is a continual water famine. Of this, the engineer to the New River Co gives some examples. Die Company takes credit that it furnishes a Sunday supply to so many of the poorer class of houses, and the culpable indifference of the landlords has led to these exceptional privileges being granted to their helpless tenants. Whether such |147 privileges ought to be exceptional, and whether it is certain that „in few cases can it be truly said that the turncock[’]s services on Sunday are necessary“, are questions on which the consumers and the co. would, probably, differ.

The systematic way in which the sewage of the towns on the banks of the Lee, and the refuse of an agricultural and industrial district are poured into the river, schlimmer als die pollution der Thames selbst. At Luton, indeed, where the Lee is yet „a slender stream“, the sewage is clarified by the lime process before passing into the river. This purification is the result of legal measures taken by a landed proprietor, and, though not a perfect remedy, is an improvement. As we drop down the river much litigation is found without any such result. „We learn“, say the Commissioners, „with something approaching to dismay, that one manufacturer alone employs from 1 to 2 tons of oxalic acid in bleaching straw plaits, but are somewhat reassured upon consideration that the poisonous character of this substance is entirely destroyed by admixture with the carbonate and sulphate of lime contained in the water of the river.“ Then, the river is polluted by sheep washing, and, as the preparation for dipping sheep contains arsenic, another noxious ingredient is added to the new witches’ cauldron. But, besides these directly poisonous substances, the river receives the sewage of Hatfield, Hertford, Ware, Enfield, Barnet, and Tottenham. The foulness of the stream after passing by all these places, or their outlets, is such that the enormous volume of sewage, pumped in by West Ham, which has a population of more than 22,000, makes no visible alteration. Every town complains of the town next above it, and gives cause of complaint to the town next below. At Luton, a perpetual injunction has been obtained against the town authorities. At Hertford, the New River Co. is threatened by the authorities of Ware. Ware itself passes on both grievance and complaint. Bishop Stortford has been threatened by several parties. „Our neighbours at Sawbridgenorth have told us that we have been poisoning them. We have said that we are sorry for it, but we think that they contribute to the nuisance to some extent themselves, and we have, therefore, not heeded what they had to say.“ Indeed, Bishop Stortford prides itself of having discovered a plan for the utilisation of sewage, and having appeased the discontent of its own inhabitants at the expense of strangers. „The nuisance of which the inhabitants have complained from the smell of the river was during the summers of 1864 and 1865, but it was very much abated in consequence of our having wet seasons, and a plan was adopted that succeeded remarkably well, and that was this: During the summer when the water is very short, the filth will sometimes almost crop up to the mouth of the drains, and when there has been a flood in the winter, this accumulation has been stirred up by a large and a heavy rake behind, so that we have passed it on to our neighbours to some extent. We thought we had kept it long enough, and by the use of the flood water relieved ourselves from a considerable quantity of stink by that means.“ The Commissioners see no hope in the litigation opened by Edmonton against Enfield, by Tottenham against Hornsey, by the Lee Trustees against Tottenham. What the Commissioners propose is a Conservancy Board, acting for the entire watershed, and bound to provide for the cessation of the present supply of sewage to the river, as well as for its general maintenance and protection.

A few fresh details in diesem Second Report on manner wie sewage to be applied to land und success of grassfarming under the system of irrigation. Crops of Italian ryegrass, grown under sewage irrigation at Worthing, are cut at the rate of from 5 to 8 tons to the acre, whilst adjoining pasture lands are almost bare. „A small dairy has been established, the cows being stall-fed on the cut grass; the milk produced, from its richness and superior quality, commanding a preference in the town.“ Irrigation was tried at Tottenham under the direction of the surveyor to the local board, and his report was, that the system had to contend against much prejudice, but was, in itself, successful. There was, however, a difficulty in procuring land for the experiment where every acre was so valuable for building purposes, and those who had land in cultivation were the most reluctant to run the risk of their crops being injured. Of course, so long as all the refuse of town and country can be turned into the rivers, people will refuse to look beyond the present need. But when the rivers are closed to them, they will admit that the disposal of sewage becomes a practical question.


  • London. 1868.
  • 1866 „The Economist“ (Jahrgang 1866) vol. XXIV.
  • The Social Economist, 1. Oktober 1868
  • „The Economist“ (Jahrgang 1866) (Fortsetzung)
  • Jahrgang 1867.
  • Register der obigen Auszüge aus dem Economist für 1866 und 1867.
  • The „Money Market Review“. Jahrgang 1866.
  • The Money Market Review. Jahrgang 1867.
  • Register Money Market Review Jahrgänge 1866 und 1867