Full text of The Merchants' Magazine and Commercial Review : December 1868, Vol. LIX, No. VI

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T 11 R

MERCHANTS’

MAGAZINE

AND

C 0MME R CIA L

D E C E M B E R ,

REVIEW.

186

8.

THE COMPTROLLER OP THE CURRENCY ON CERTIFIED CHECKS.
The annual reports o f the heads o f the financial bureaus are unusually
important and voluminous, and yet somewhat infelicitious in some of their
recommendations. The report o f Comptroller Hulburd, though in the
main an able document, presenting a clear elucidation of important cur­
rent questions affecting banking, is yet open to objection on some of
its conclusions. W e have had repeatedly to take exception to the views
of the Comptroller 'relative to the certification o f checks, but never so
decidedly as in connection with this present document.
As we view the matter, the report appears to have totally misconceived
the nature and purpose of certifications as practiced by the banks o f this
city. The certification o f a check is an affirmation by the bank on which
it is drawn that the drawer is “ g o o d ” for the sum specified on the order,
and is regarded as binding the bank for the payment of the check. The
drawer may have assets to cover the check, or he may n o t; and, in the
latter case, the bank certifies on the understanding thathis account will be
made good before the close of business on the same d a y ; these anticipatory




1

402

the comptroller on certified

CHECKS.

[ December,

certifications are, o f course, granted only to firms of known means and
cred it; and the practice appears to be an almost inevitable adjunct of the
present method of- transacting business, especially in W all street. A broker
buys, say $100,000 o f bonds, for which he has to pay principally with
money borrowed from another party, giving the bonds as collateral for
the loan ; he cannot procure the money until he has deposited the bonds
with the lender, and yet he cannot procure the bonds until he can give
the seller a satisfactory check. The seller o f the bonds refuses the unen­
dorsed check of the buyer because the amount is large, and he does not
sufficiently know the position o f the drawer. To avoid this difficulty the
buyer of the bonds asks his bank to certify his check for $100,000 as
“ good,” promising to deposit before the close o f the day the check of the
party with whom he has arranged to borrow on security of the bonds.
The bank knows his affairs, has- confidence in his probity, and guarantees
his check; the effect being to grant him a credit for the time necessary
to get the bonds, deposit them with the money lender, and place the
check of the latter in the hands o f the bank. The banks in making this
a common practice with brokers of good standing, have an important
compensation in saving the handling o f an immense amount o f money.
The fact of the check being certified causes the receiver to deposit it
with his bank instead of presenting it for payment; and thus the trouble
and time of counting so much currency is saved to both the bank on
which it is drawn and that in which it is deposited, while the risk o f
carrying money from bank to bank is avoided.
Next morning, the
check is settled, through the Clearing House, without the use of
dollar of currency, the currency lying dormant in the banks instead
o f repeatedly changing hands. Certification is thus seen to be a very
important economy o f time and trouble to the banks and their customers.
W ithout some such arrangement, indeed, it would be almost impossible to
carry on the enormous daily transactions o f Wall streets Banks, bankers
and brokers would have to double their establishments for the purpose of
turning over and over and from hand to hand the currency which, under
the present joint operations o f certification and Clearing-House settle­
ments, lie, undisturbed in the bank vaults, representing the transactions
but not used in them, beyond the settlement of balances between banks.
The Comptroller characterises the expedient of certification as an
“ inflation” to the extent of about $112,000,000. That the checks serve
the functions o f circulation for the day is unquestionable; but it is an
error to regard them as an addition to the active circulation ; for they
cause, as before stated the cuirency in the banks to remain inactive, instead
of being turned over say twice daily. Without the use o f checks there
would be the same amount o f business transacted as with them, except




1868]

THE COMPTROLLER ON CERTIFIED CHECKS.

so far as operations might be curtailed by the clumsy, embarrassing and
more costly method of effecting exchanges.
Mr. Hulburd is literally
accurate in representing the certification o f checks as an extension o f
“ credit” to the customers of the banks; but his language leads to a
very mistaken conclusion, when he says that the banks thus furnish
“ 8112,000,000 of credit for speculation,” and that “ a fictitious capital
o f 8120,000,000 is created by means o f certified checks.” In the case
of certification where the assets do not, at the time, stand to the drawers
credit, there is o f course an extension of credit; the credit, however, is
but momentary; it is not independently o f funds to be provided by the
party to whom it is granted, but in anticipation of a deposit to be made
immediately after, when the credit ceases to be such. The transaction
effected through the certified check is really represented by the drawer’s
own means, and could have been effected equally without the certification,
only by a less convenient method, as before indicated. The Comptroller’s
objections, if they had any force at all, would apply against the use of
checks certified or uncertified. For if certification were abolished, checks
would inevitably be used to about the same extent as now ; the difference
being that the business would be transacted only through firms o f the
highest credit, whose checks would pass without certification. If the
certified checks are an inflation, why should not the uncertified be regarded
as such ? And why, according to this reasoning, should not all checking
be abolished as “ fictitious credit ” conducive to demoralizing speculation ?
The Comptroller attempts to prove more than even he himself allows
in affirming that the New York banks “ furnish 870,000,000 of capital and
8112,000,000 of credit for speculation.” A ccording to this, the spetu
lative loans, represented almost entirely by demand loans, ought to stand
at 8182,000 ; yet, in another part o f his report, he represents the demand
loans as averaging only 868,500,000; conclusively disproving the
assumption that the banks afford $112,000,000 o f “ cred it” or “ fictitiouscapital ” through certification.
It is much to be regretted that the Comptroller, upon these hastily
conceived opinions, should have undertaken the grave responsibility of
recommending that “ National Banks be prohibited bylaw
*
*
*
from certifying checks to be good which are not drawn against actually
existing cash deposits standing to the credit of the drawer when the
checks are made and presented.” Such a course would be an unwar­
rantable and mischievous interference with the method of conducting
business established between the banks and the public. It would accom­
plish no conservative purpose; would remedy no evil; would cause serious
temporary embarrassment and perpetual inconvenience; and the effects
would not fall alone upon the speculative interests o f W all street, but




4C4

THE LAKE SIMCOE CANAL.

[December,

also upon a large extent of wholesale operations in commerce, where certi­
fication is found to be as necessary to the convenience o f transfer as in
the transactions on the Stock Exchange.

THE LAKE SIMCOE CANAL.
The attempt has been made, we observe, to revive the project o f a ship
canal from Lake Simcoe to Lake Ontario. So far as the conformation of
the land through which it would pass is concerned, this undeitakingseems
to be feasible enough while the benefits which would accrue would be of
the greatest commercial importance. Lake Simcoe is situated in the
northwestern part o f the Canadian Peninsula ; its length is thirty miles,
and it empties through the Severn River into the Georgian Bay. it thus
has an uninterrupted communication with all the upper lakes, enabling it
to be readily converted into a valuable thoroughfare for commerce. This
would be effected easily enough, it would seem, by the construction of a
ship canal of adequate dimensions, from the southern extremity of the
lake to the city of Toronto on Lake Ontario, a distance o f about forty
miles.
This would reduce the length of water communication between the
western ports and the Atlantic about four hundred miles, by obviating the
necessity of passing down the southern part o f Lake Huron and through the
River St. Clair, Lake St. Clair, Detroit River and Lake Erie. Not only is
there a great saving o f distance, but time is also greatly economised by
enabling vessels coming down from Mackinaw to continue on their voyage
without delay from the head winds which prevail on Lake Huron blowing
with such force as to impede rapid progress. Captains complain greatly of
the delay and annoyance which they experience from these winds, which
are, perhaps, the greatest obstacle to profitable navigation. Another advan­
tage, by no means inconsiderable, of this route o f lake transit, lies in the
fact of the greater coolness of the water. Vessels laden with wheat and
corn are therefore far less liable to injury and loss of their cargoes from
heating than is the case by the other modes of transportation. Business
men would not be slow to appreciate this fact.
There will be, however, we conceive, great difficulty in obtaining the
-necessary funds for the accomplishment of this undertaking. The prospect
of securing any considerable government aid, it must bo remarked, is verv
feeble. The public debt of Canada is of too formidable dimensions to war­
rant any such expectation. There can be only lands to giant, and the
practical value of such a donation is too inconsiderable to be taken into
the account. If the peninsula had been a part of the United States, this




1868]

THE LAKE SIMCOS C AN AL.

405

matter would have been agitated many years ago, and perhaps, with such
assistance, an entire success achieved, as has been the case in so many of
the States. But this country was sought by settlers and emigrants from the
Old W orld, whereas British North America derived but small additions
to population in this manner. Hence the prospective value of the sur­
rounding land could not be a very desirable inducement for any con­
siderable internal improvements, nor would the plan of laying direct taxes
for such a project find supporters in a province sparsely populated, with
little wealth.
The Simcoe Canal, therefore, must depend upon private enterprise.
This is a formidable difficulty. Capitalists seldom invest largely in enter­
prises where the emoluments are likely to be for a long time inconsider­
able as well as precarious. It is very doubtful whether the Erie Canal
itself would have been constructed at this day, if individual enterprise
had been required to make the entire outlay.
But times have greatly changed.
The railroad era has introduced
new ideas among men of fortune. Undertakings which would once have
been regarded as Utopian are now taken into serious consideration. There
has been for years past a great augmentation of wealth, the accumulation
o f which enables outlays for ventures that, in Canada, and, indeed, in our
own country, not many years ago, would have been deemed chimerical
It is yet to be demonstrated whether the New Dominion of Canada
has the requisite enterprise and ability to engage in an internal improve­
ment so extensive as this proposed Lake Simcoe Canal. That any con­
siderable subsidy can be obtained from the Home government is not, as
we have already stated, to be anticipated, and we seriously question
whether there is private capital or inducements sufficient for the purpose
at present.
A company has been in existence for many years having for its express
object the construction of a canal to connect the waters of Lake Huron with
those of Lake Ontario. Two years ago it had pluck enough to give a public
entertainment, at which leading forwarders and other distinguished citizens
of the United States were present. The evident purpose was to divert
attention from the proposed Niagara ship canal, for so long a time a pet
project o f citizens of Oswego and Ogdensbnrg. Terrapins and turkeys
were duly sacrificed and copious libations made, which indeed served to
bring out able speeches on the subject of better water communication, but
was followed by a long spell o f somnolency, which has not been since dis­
turbed.
W hether a like end awaits the attempted revival o f the Simcoe project
remains to be seen. It is hardly the kind of undertaking after all to attract
capital from the United States. The “ solid men of Boston” and Portland,




406

f l u c t u a t io n s

in

the

gold

p r e m iu m

.

[ December,

to be sure, could make it o f service to those cities, as it would materially
reduce their expenses of transportation, and they have but to make freights
a little cheaper to increase very largely their business. So also the for­
warders of Oswego would be enabled to load vessels and receive cargoes
from the upper lakes, which might enable them successfully to rival
Buffalo. But the proposed canal, if ever constructed, will be under the
control of citizens of a foreign government which is not always sure o.f being
friendly; and in the event of hostilities, it would be employed for the
passage of vessels of war and the transportation of war material to be used
in military operations against every American town situated on the great
lakes. At the present time there are too many unadjusted matters in
controversy between Great Britain and the United States to permit our
men of capital to be very lavish of means for the construction of a foreign
route o f transit capable of being operated for so mischievous a purpose.
The Mississippi with its branches, affording all the facilities o f an inland
sea, the Erie Canal with full power of transporting double the freight that
now rides upon it, and the four great trunk railroads— all which are in
our own territory and subject to our legislation— will in preference be
depended upon for many years to come. There are too many openings
for the investment o f capital in this country for our men of fortune to
occupy themselves about, without the necessity of crossing the line to find
an opportunity in a foreign realm.
The projectors of ihe Simcoe Canal will, therefore, we fear, be compelled
to wait some time before obtaining sufficient capital for this enterprise.
W e apprehend and prize the value o f the facilities which they offer. The
Niagara Ship Canal and analogous enterprises have not half the advantages.
W e regret that we have not the proper opportunity to avail ourselves
of them. It would bo a commercial improvement which we cannot over­
estimate. But we must^accept the situation, and leave it for “ British
gold” instead of American greenbacks to do whatever is required for better
navigation and transportation in the Dominion of Canada.

FLUCTUATIONS IN TIIE GOLD PREMIUM.
W ithin the last three months we have seen the gold premium fluctu­
ate 18 points; and within the last few weeks the fluctuations have
been frequent within a range o f 10 points. These changes too plainly
show that, although we have now attained a comparatively settled
condition o f affairs political and commercial, yet we are subject to wide
variations in monetary values.
It is the misfortune o f a suspension o f specie payments that it always




1868]

FLUCTUATIONS IN TUB GOLD PREMIUM.

407

creates a powerful speculative interest, which seeks to prolong the sus­
pension for the sake o f profiting b y means o f these fluctuations. The
magnitude of the speculative movements in gold in W a ll street is an
illustration o f the extent to which this interest has expanded during
the past few years in the United States. The ordinary commercial demand
for gold, for the payment o f duties, the purchase o f exchange and the
liquidation o f contracts payable in gold, probably does not exceed
$20,000,000 per w eek; and yet this amount does not represent onetwentieth part o f the weekly transactions o f the G old Room . One day’s
exchanges at the Gold Exchange Bank this week aggregated close upon
$180,000,000, and the total business of the Bank for the first fourteen
days o f this month reaches the surprising total of $1,580,000,000. On
an average, the whole stock o f gold on the market is turned over about
four times every day.
W hen it is considered that upon the major
portion o f this enormous amount o f transactions a commission is paid
o f 1-16 or l o f one per cent, and that besides this dealers make large
profits out o f the lending o f coin, it is apparent that the trading in gold
yields an enormous annual revenue to W all street,and that theconsolidation o f this branch o f business becomes an important bar to the resumtion o f specie payments. F o r in such an extensive business inter­
est, dependent upon the transactions in gold, we have an evident motive
for a continuance o f the present condition of the currency and the strong­
est possible inducement to efforts for producing fluctuations in the pre­
mium ; while, with an immense amount o f capital engaged** in the
transactions o f the Gold R oom , the power is always at hand for con­
trolling the market upon the most shadowy pretexts. It thus becomes a
part o f the business o f the gold dealer to produce the widest possible
oscillations in the premium. W hatever may occur in the spheres o f pol­
itics, finance or commerce which can be supposed to have any bearing
upon the value o f gold has its importance magnified to the utmost,
upon the well-understood principle that an exaggerated response in the
premium will be followed b y a reaction to the opposite extreme,
enabling the speculator to make a double profit, first by buying and
next by selling, or vice versa. , W ithin the last few days we have wit­
nessed a significant illustration o f the expedients to which the profits
upon gold manipulations will induce speculators to resort. In two
instances, the funds of a large corporation, to the extent of several
millions, have been employed in the purchase o f gold to be held off the
market, with the result o f compelling borrowers to pay from I to 2 per
cent per day for its use, and o f producing a fluctuation o f 2 @ 3 points in
the premium.
W ith such a large and influential interest dependent upon the creation




408

f l u c t u a t io n s

in

THE

oold

f r e m iu m

.

[ December,

o f the most frequent and the widest possible fluctuations in the pre­
mium, it is clear that steadiness in the price is virtually impossible.
Could we have an even range o f the premium, the evils o f suspension
would be much less aggravated ; for the mercantile interest would then
have steady data upon which to predicate its operations.
But, with
wide and constant oscillations thus rendered inevitable, the trade of the
country is perpetually baffled and discouraged by artificial and unneces­
sary risks, and commerce is demoralized by being made unduly specj
illative. It is only necessary to analyse the course o f trade, for the
last few weeks, for illustration o f the deranging effects o f these fluctua­
tions. The importers, instead o f remitting in payment for their imports
in September and October, when they had realised upon their goods, have
anticipated a decline in gold this month as the result o f the elections
and o f the free exportation o f breadstuff's and cotton, and have post­
poned their remittances until such decline should occur. Hence the
holders o f gold now take advantage of this postponement o f remit­
tances, and use every sort o f expedient for keeping up the premium.
In some instances, the importers have borrowed gold to make their re­
mittances, intending to return it at the time o f the anticipated decline;
and, to catch merchants in this position, gold has been made artificially
scarce, and exorbitant rates on loans exacted. This postponement o f
foreign payments helped to induce, for a time, a large amount o f mer­
cantile deposits in the hands o f banks and bankers, and to keep down
the rate o f interest to 3 @ 5 per cent, with the result o f encouraging an
advance in stocks to figures from which they have had to decline heavily,
under a subsequent pressure for money. The breadstuff’s trade has
also suffered serious inconvenience from similar causes. A decline o f
10 points in the price o f gold has required a cor/esponding fall in
the price o f grain, to equalize our markets with those o f Europe.
Farmers, however, are slow to perceive the connection between the
gold premium and the market value o f their produce, and have
therefore resisted the required decline. The grain merchants o f the W est
have been naturally desirous o f satisfying themselves that the fall in
gold wmuld be permanent before conceding, and they have therefore held
on to their large stocks with much tenacity. The result o f this hesita­
tion has been an accumulation o f grain at the lake ports beyond what
the banks were willing to carry, and a severe decline in prices, with
injury to dealers; while the foreign exchanges have been deprived o f
relief the expected from a liberal supply o f produce bills. During the
same time, the cotton trade has been in a measure retarded, from the
same cause. These are but illustrations o f the manner in wh'ch the
fluctuations in the gold premium impede and derange all commercial




1868]

PROPOSED DIVISION O P THE STATE OF NEW YORK.

409

operations. These embarrassments, o f course, very largely augment the
risks o f business enterprises, and so far tend to prevent that free em­
ployment o f capital which is essential to the industrial and commercial
recuperation o f the country. The value o f raw materials, o f manu­
facturers, o f produce and o f imported merchandise are thus all rendered
uncertain; and as the possible fluctuations are large enough to cover
a good portion o f the usual profit on commercial transactions, it results
that many cautious capitalists prefer employing their means :n real
estate or securities to engaging in active enterprises calculated to increase
the wealth o f the country.
It is impossible to conceive o f any stronger evidence o f the mis­
chiefs of the suspension o f specie payments than is afforded by these
considerations. It is out o f the question to expect a permanent con­
fidence in business while the currency is kept thus fluctuating in value;
and every year o f the protraction o f suspension is therefore represented
b y a failure to accumulate a large amount o f wealth which would other­
wise have been realised.
In the meantime we are disqualifying ourselyes for competing with other countries in various forms o f enterprise,
and are necessitating the purchase o f a large proportion o f our varied
supplies in foreign markets, with securities which constitute a foreign
lien upon our resources.

PROPOSED DIVISION OF THE STATE OF NEW YORK.
In the midst of the excitement o f the recent Presidential election
several of the journals belonging to Western New Y ork published lead­
ing articles recommending the division of the State into^two separate com­
monwealths. The metropolitan newspapers have discussed the proposition
with the gravity due to a measure so important, and some readers may
have been induced to believe that the division was seriously contem­
plated. It is very possible that a resolution or bill will be introduced into
the Legislature at its next session at Albany, proposing to give the con­
sent required by the Federal Constitution, for the formation of a new
State; but it is hardly probable that the matter, in any event, will go
further. The counties to be included in the proposed “ State of M an­
hattan” are New York, Kings, Queens, Suffolk, Richmond, W est­
chester and Putnam.
The Federal Constitution, Article IV ., provides that “ no new Stat9
shall be formed or created within the jurisdiction o f any other State
nor any State he formed by the junction of two or more States or parts
of States, without the consent o f the Legislatures o f the States concerned




410

pro po sed

d iv is io n

op the state

or

n ew tork .

[ Decem ber,

as well as of the Congress.” No action has ever been taken under this
provision, except in the case of W est Virginia. The erection o f that
State was accomplished under the pressure o f a war necessity, and we are
inclined to the opinion that some political convulsion will be required to
obtain any sufficient pretext for dividing the State o f New York.
There has never been any general agitation o f the subject, or discus­
sion, to enable the people and the Legislature to mature their judgment
in regard to its expediency. In 1857, the Mayor of this city, having
been defeated in his opposition to the Metropolitan Police Law, started
the idea of a division of the State and procured the calling o f a public
meeting for the purpose of agitating the subject. But the movement
perished, still born. A second attempt, in 1861, had no better success.
The alleged grievance then was the legislation for this city and the coun­
ties nearest to it, by the State Legislature; certainly a questionable policy,
but clearly within the province of that body as much as local legislation
for any other county.
N ow we have another agitation of the same question, but we predict for
it and for future efforts in the same direction a similar result. The
different sections of the State have too many and great interests in
common to permit this division. It is not the city alone that is inter­
ested in the vast wealth that has been accumulated here, and its future
profitable employment and increase ; for this port has become, by reason
of its position and commercial facilities, the most prominent outlet
for the productions o f the interior not only of this State but of the W e s t ;
and the rendering o f those facilities more perfect and complete must be
the object and intent alike of both sections. It may be urged that a
division would not change this. W e admit that it would not in the main,
and yet petty jealousies and disagreements would likely arise giving a
cheek to the present freedom o f intercourse, and necessarily resulting
in a direct injury to the whole country.
But as the question is raised it is not uninteresting to remember that
the seven counties of the Southeast could afford the division as well as the
remaining fifty-three. Whatever risk they would incur in the way of
unfriendly action o f the Northern State would be counterbalanced by
the advantages possessed for retaliation in holding the ocean outlet for all
interior productions, and also in having two representatives in the Senate
of the United States always sure to watch over the interests of this
metropolis.
In regard to public indebtedness and taxation, the smaller State would
be the gainer. With a division, would be an adjustment of the existing
obligations.
The canal debts amounted, at the close of the fiscal
year in 1867, to $15,730,960; and the General Fund Debt, which is also




1868]

pro po sed

d iv is io n

or

the

state

or

new

tore

.

411

chargeable against the revenues o f the canals, amounted to $5,642,600.
A s the Northern State would contain all the canals within its limits,
it would naturally become their proprietor, and must accordingly take
with them this total debt of $21,380,000. The Bounty State Debt is in
terms about forty-eight millions, of which, making the apportionment
according to valuation, the Southern State would have twenty*eiglit
millions to assume. This would be all the State debt that would legiti­
mately devolve upon us, and would make no addition whatever to our
present liabilities.
The most sensible relief, however, would be in the matter of taxation
for the support of Free Schools. B y the law of 1867, an annual tax
of 1J mills is to be levied for all time upon the taxable property of the
State, received into the Treasury and apportioned among the school
districts for the free tuition of the children. Our representatives also
voted for that measure, so that under the present arrangement we have
no right to complain. The aggregate of this tax for the present fiscal year
will be $2,080,134 6 5 ; of which four-sevenths will be collected here,
and only about one-third received back in the subsequent distribution, as
will be seen in the following table:
Counties.
N ew V o r k ...................... . . . .
Kings ...........................................
R ichm ond.....................................
Queens..........................................
P u tra m ..........................................
S u ffo lk ..........................................
W estchester..................................

School Tax
Paid.
$891,7 6 i 7
172 896 62
7,815 37
27,755 79
7,264 56
12,556 45
60,233 00

School
M oney Received.
$318,707 75
140 975 64
12,304 10
27,4-3 41
8,063 10
22,403 89
69,131 00

$1,162,246 86

$610,058 89

It is here seen that the seven counties which it is proposed to cut off
from the State of New York pay four-sevenths o f all the State taxes, and
actually are contributing $552,187 97 annually to support free schools
in Clinton, Franklin, St. Lawrence, Jefferson, Oswego, Onondaga, Monroe,
Erie, Chatauqua and other counties of the State, besides three millions
and more additional to support their schools at home. This saving o f
more than half a million is quite an item, even in this metropolis, and
tur country cousins up the Hudson and away out toward the Lakes find
it a snug little amount with which to lighten the burden of education in
their towns and school districts.
It will take very long for the inhabitants of Northern and Western New
York to ascertain what advantage they could derive and especially what
equivalent to the reduction o f income that would ensue after severing
the counties that pay the major part of the taxes. The fable of Minutius
of the Belly and the members is by no means inapplicable. It is possible




412

THE BRID GE OVER THE HUDSON.

[December,

to divert much commerce from the port of New York, in the event o f
a division of the State, by discriminating legislation in favor of other
centres of trade. Perhaps the Erie Railway might be made a thorough­
fare for the benefit o f Boston and Philadelphia; and the Niagara ship
canal could direct commerce to Montreal and Portland. But on the
other hand the crippling o f this great centre o f trade would be to para­
lyze in a measure the trade of the whole country.
The configuration o f the soil and the courses of the streams all indicate
that Nature intended the entire State to belong to one commonwealth;
and the sagacity of her four millions o f inhabitants will maintain that
unity unbroken. To the motto “ Excelsior,” if need be, will be added the
watchword of the French Bepublic of 1793 : “ T he commonwealth, one
and indivisible.”

TIIE BRIDGE OYER THE MJDSON.
It was finally determined the last week by the “ Hudson Highland
Suspension Bridge Company” to locate their proposed bridge over the
Hudson River at the narrow point above Peekskill Bay known as Antony’s
Nose. On the western bank is the site of Fort Montgomery, and that o f
FortClinton near by on the eastern side. This was the site originally
contemplated, and it promises superior engineering and commercial
facilities.
This company was incorporated, as our readers will remember, by the
Legislature at its last session, and contains among its members such men
as General E . W . Serrell, Judge Robert Cochran, D eW itt C. Littlejohn,
Elliott F. Shepherd, and others engaged in forwarding and transportation
business, and closely identified with the commercial interest o f the country.
The stock is fixed at $2,500,000, and the usual powers of bridge com ­
panies are conferred by the act. The point selected for the site of the
bridge is very feasible. It is less than twelve miles distant from Turner’s ■
Station on the Erie Railroad. There is a gap in the mountains on that
route, so that the directors of the Erie Company could easily run a track
eastwardly, passing the freight o f the Dean Iron Mines and the Highland
Mills at an easy grade, to the bridge, and thus go down on the eastern
side of the Hudson River into this city. The New York, Newburgh
and Oswego Midland Railioad Company could, if they desired, avail
themselves of this way of getting over the Hudson River. So also the New
York and Albany Railroad Company, if their road should ever be con­
structed, will be enabled to carry their track over the bridge at Fort




1868]

the

b r id g e

over

the

H u d so n *.

413

Montgomery, and enter New York on the northern extremity. The aot
of incorporation expressly provides for giving such facilities to any “ Rail­
road corporation whose road shall have a terminus at said biidge, or shall
connect with the same or either of its avenues of approach, or shall run
its trains in connection with any railroad having such terminus or con­
nection with said avenues o f approach.”
These are all possible connections by means of this bridge, ndicating
the various ways in which it may be made available, and yet we have
reason for believing that the act of incorporation was never obtained for
the purpose of making connections with New York. So long as the car­
riage o f passengers and freight through this city is surrounded with the
difficulties, detention and expense now attending it, there can be little
inducement for making the upper part of this island a railroad terminus.
A tunnel from one end to the other of the island would work a great
change in this respect. But till that improvement is made it is a positive
disadvantage for a road to cross the Hudson. The Erie Railway, for
example finds it far easier and cheaper to lay down its freight at Jersey
City, where tug-boats can take it up and carry it to every side of New
York, and to receive consignments from every part o f this city in the
same manner. The difficulties, delays, and enormous expense of moving
freight through the city, are too exorbitant a tax not to be avoided wherever
it is possible.

The persons endeavoring to build a road on the western

side of the Hudson naturally take a similar view of the subject. The
freight question has been already brought to so fine a point, that any
increase in the expense of transportation which this change would require,
would be likely to result in a transferment o f a large part o f our traffic
with the W est from this city to other points. This project of bridging the
Hudson at Fort Montgomery, cannot therefore be regarded as an enter­
prise in which the city of New York has any considerable interest, and we
must look elsewhere for a true explanation of the decision to which we
have referred.
N or is it a problem o f very difficult solution. During the summer o f
last year several citizens of Putnam and Westchester counties, and resi­
dents o f Connecticut formed an association, and employed engineers to
survey a route from Turner’s Station eastwardly to the Hudson River at
or near the base o f the Highlands, and onward to the Connecticut river.
So favorable was the report o f the survey that the Erie and New England
Railroad Company was at once incorporated to construct a railroad with
two divisions; the western division extending from Turner’s Station to
the Hudson, a distance o f about eleven miles ; and an eastern division
extending from the Hudson to the State line in the town of North Salem.
There has been a route surveyed by citizens o f Connecticut from that




414

THE BRIDGE OVER THE HUDSON.

[D ecem ber,

place to Derby, on a direct line with another railroad now being con­
structed from Derby to N ew Haven. This will afford a continuous route
from the Erie Railway at Turner’s, in Orange County, in about a straight
line to New Haven, enabling a continuance as far as Boston.
This is sufficient to demonstrate that the “ Hudson Highland Suspension
Bridge” to be constructed at Antony’s Nose, despite the Knickerbocker
traditions, is emphatically a “ Yankee notion,” calculated, if not prima'ily
designed, for the benefit of the Eastern States. Indeed, the principal “ cor­
porators ” of the Bridge Company are directors also of the Erie and New
England Railroad, and expect to complete their track, and have it in
working order long before the bridge can be finished. They have antici­
pated this difficulty, however, by obtaining also a franchise for a ferry
across the Hudson at Peekskill Landing, which can be used till the bridge
is put in good condition.
The professed purpose of the men engaged in this enterprise is to
procure coal by a more direct route. It is estimated that four millions
o f tons o f coal are consumed every year in New England, and that part
of this State lying east o f the Hudson ; and that it can be transported
by this road a dollar a ton cheaper than by any other. The distance
round to Hartford will be sixty miles, and about the same to New Haven,
and no breaking of bulk will be required. Every person familiar with
transportation can readily understand the force of this.
The principal interest then which the city of New Y ork has in this
bridge enterprise is that derived from the general benefit o f improved
commercial facilities. What increase of prosperity may come to Hartford,
New Haven and Boston will, o f course, indirectly help this city.
It, however, brings out in strong light the importance to this city of
a system of tunnels, which shall enable us to carry from one end of the
island to the other, without delay or transhipment, the largely increasing
volume of freight whichis every year flowing towards New York for distri­
bution ; and when that is accomplished, then, if the Midland Railway
Company should determine to cross the Hudson at the bridge, as the
name of Mr. Littlejohn, and othei in the charter, would seem to indicate,
or if the Erie Rai/way Company should carry a track to this city over the
bridge, the distance being the same as the present route, of course the
interest of this city would become at once more direct.




1868]

THE HOME CONSUMPTION OF COTTON.

415

THE HOME CONSUMPTION OF COTTON.
It is a matter of considerable practical moment to the cotton trade to
ascei tain with accuracy the consumption " f cotton within the United States.
Before the war, the data were easily obtained, and estimate reached
sufficiently accurate for all practical purposes. But, within the last four
years, the routes of transportation have so materially changed that former
methods of estimating the consumption are no longer reliable. V ery
large amounts of cotton now pass up the Mississippi and over the railroads
to the East, instead of, as formerly, reaching that destination through
ocean transportation. This important change has not been sufficiently
taken into account in late crop statistics, and the result has been that
until this year a large amount of cotton has not been counted, and that
the estimates of consumption at the North and the South have been very
inaccurately proportioned, too little being allowed to the North and too
much to the South. In fact, no wholly complete system o f reporting the
cotton transported inland has been established; so that the movement
in that direction has had to be, to a certain extent, made up from quite
uncertain data. In our last annual cotton statement, however, we gave
a result more nearly accurate than has ever before been obtained; and
as other statements were deficient in this particular branch o f the move­
ment, our results varied from the figures of some who have been re­
cognized as authorities on cotton statistics. Taking into account the
railroad movement from the Southwest to the Eastern States, our es­
timates of Northern consumption exceeded others; while our estimate
o f the consumption in the Southern States was so much below contem­
poraneous computations that doubts were suggested in some quarters as
to its accuracy.
From the fact o f our inquiries having covered every
possible source o f information, we felt the utmost confidence in the sub­
stantial accuracy of our returns, and have since had the satisfaction of
finding that the trade has very generally recognized that our method of
making up the crop statement i3 more complete than those generally
adopted.
It is especially gratifying to find that returns recently completed by the
National Association o f Cotton Manufacturers and Planters, though com ­
piled from sources very different from ours, afford a marked confirmation
o f the accuracy o f our figures for the consumption in the North and South
respectively. The inquiries o f the Association cover all the known mills
in the country, and may be considered exhaustive. Returns have been
received from 643 mills, running 6,380,000 spindles; while the spindles
not reported upon are estimated at about 600,000. W e are indebted to




416

[December,

the home consumption of cotton

Mr. B. F. Nourse, the Statistician of the Association, for the following
summary statement, made up to November 28th :
N ational A ssociation
R eturns

States.

of

from

C otton M an ufacturers

M il l s

re c e iv e d p r io r

N o.
N o . Mills. Spindles.

to

an d

P la n te r s .

S um mary

of

N ovem ber 28, 1868.
A y . No.
Yarn.

N orthern S t a t e s .
Maine ..................................................
N ew Hampshire.................
V erm ont...............................................
Massachusetts......................................
Rhode I s la n d ......................................
Connecticut..........................................
N ew Y o r k .........................................
N ew Jersey.......................
Pennsylvania.......................................
D ela w a re.............................................
M aryland.............................................
O h io.......................................................
Indiana..............................................
M issou ri...............................................

22
37
12
140
124
76
43
15
64
8
10
5
1
4

443,800
734,4b0
24,138
2,327,822
1,062,624
527,816
410,070
133,840
367,856
43,108
39,358
22,834
i c ,800
13,436

22.56
85.88
30.36
27.30
35.36
29.39
82.23
36 *2
17.06
19,34
12.37
13.06
14
10

N o. Pounds A v ’e No.
Cotton
Pounds Per
Spun Yearly. Spindles.
£8,838,608
48,089,439
1,041,125
134.568,652 *
50,742,373
29,425,720
20,545,044
6,8V5,000
83,353,004
3,038,280
6,929,788
3,170,CG0
1,500,000
2,475,000

64.98
65.48
43 13
57.80
47.76
55.75
50.10
51.44
90.67
70.48
176.07
13S.82
138.89
184.21.

Total N orth ...................................

501

6,161,962

28.03

370,602,033

60.14

Southern S t a t e s .
V ir g in ia ...............................................
N orth Carolina...................................
South Carolina...................................
G eorg ia ... ..........................................
Alabama................................................
M ississippi...........................................
T exas......................................................
Arkansas...............................................
Tennessee.......................... .......
.
K e n tu ck y ..............................................

10
-3 5
6
20
8
5
4
2
9
3

36,060
21,113
31.588
69,782
25,196
6,924
8,528
924
11,720
6,264

15.82
10.54
13.23
12.36
16.91
8.39
9.53
8.43
9.38
10

4,010,000
3,009,000
4.174,100
10.864,350
2,820,596
1,145,000
1,372,104
258,400
1,597,203
1,075,000

111.20
142.53
132.14
155.70
111.94
165.37
lfO 89
279.65
1:6 28
171.62

T otal South......................................
Northern States...................................
Southern States...................................

8J
561
82

218,039
6,161,962
218.099

12 93
23.03
18,93

30,325,750
310,602,033
30,325,750

139.
60.14
159.

Total U. S ...................................

643

1,380,061

27 51

400.927.S73

ۥ2.84

It appears that the 643 mills here reported upon consume 400,927,783
pounds of cotton per annum, or 890,000 bales. Allowing 85,000 bales
for the consumption of the mills not heard from, and say 25,000 bales
for consumption otherwise than in the mills, we have upon this basis o f
estimate a total consumption in the country of about 1,000,000 bales.
Returns o f this character, however, are subject to a certain degree of
over statement, owing to a very natural trade motive in the manufac-,
turer to give an appearance of importance to his works. It is not easy
to say what allowance should be made on this account; but a moderate
deduction would bring down the figures to a very close approximation to
our annual statement, which shows the consumption o f the United States
to have been 885,000 bales. W e think it must be in all fairness con­
ceded that this result, based upon the most direct sources o f information,
affords a satisfactory vindication of our last crop return and o f the method
of computation on which it was based ; and further, that it indicates the
fallacy of adhering to the old method o f making up the crop statements.




1868]

THE HOME CONSUMPTION OP COTTON.

417

This statement further shows that the error of those estimates which
placed the Southern consumption at near 200,000 bales. Our figures of
60,000 bales for the South, or 6 f per cent o f the whole home consump­
tion, were received with much incredulity, even by those in the trade who
have been regarded as authorities ; we find, however, that returns from
the mills of both sections give the proportion consumed in the South as
only 7£ per cent o f the whole home consumption.
Upon the foregoing estimates it may be fairly concluded that, for last
year, the consumption at home averaged 17,500 bales per week. Some
Eastern authorities hold that the current rate is 20,000 bales per weekTaking a course between these figures, and estimating the probable con­
sumption for the current year at 950,000 bales, it would result, assuming
the crop to be 2,700,000 bales, that we shall have for export
about 1,750,000 bales, or abuot 90,000 bales more than the exports of
last year. F or the years 1858-9 and 1859-60, the home consumption
averaged 950,000 bales ; so that the cotton trade has now recovered to an
extent which places it upon an equality with the most active o f former
years. The increase in the population o f the country of course requires
a larger supply of cotton goods than was needed in 1860 ; but, on the
other hand, a much larger proportion o f our cotton manufactures is now
kept at home, the exports being quite nominal; and this consideration
is the more material from the fact that the fabrics we formerly shipped
were chiefly of a heavy character.
The above statement affords an interesting indication o f the extent
and character o f cotton manufactures in the several States and sections.
T be largest consumption is in Massachusetts, the amount spun in that
State being one-third o f the total for the United States. Next in extent
comes Rhode Island, next New Hampshire, and then Pennsylvania, Con­
necticut and Maine. The New England States, according to this return,
consume about 295,000,000 pounds, or 73 per cent o f the total quantity
used in the country. New York ranks seventh in this class of manu­
factures. Among the Southern States, Georgia takes the lead, followed
in order by South Carolina, Virginia, North Carolina and Alabama.
The largest mills are in Maine and New Hampshire, where the average
of spind les is 20,000 to each mill, and in Massachusetts, where the average
is 16,500 per mill. The finest average class o f yarns is made in N ew
Jersey, vhere the average number is 36.22, and next in order Rhode
Island, New York, Vermont, Connecticut, Massachusetts, New Hamp­
shire and Maine. In the South, the goods produced are almost exclusive­
ly of a coarse, heavy character, the yarns varying from number 8.39 in
Mississippi to 16.91 in Alabama.
The W est has scarcely any standing
in this branch of manufacture, three States only being represented, and
the consumption in these being but 7,000,000, or less than one-fourth
that o f the South.
2




418

THE CURRENCY AND THE PUBLIC DEBT.

\D tC em btr ,

THE CURRENCY AND THE PUBLIC DEBT.
The financial condition o f the government must, from its prime impor­
tance, claim the early and earnest attention o f the new administration.
It is pertinent, therefore, for us to take a cursory view o f the situation,
with special reference to measures which seem to us practical and indispensible to any substantial progress towards the resumption of coin p ay­
ments, whether that result be more or less remote.
First— That portion o f the public debt which consists o f gold interest
bonds, having reached a condition in which government is relieved from
any present provision for it, except the punctual payment of interest)
may and ought to be left undisturbed until it can be either paid in coin
at maturity, or until government is in condition to avail itself of its re­
served right o f paying a portion, after five years from date, either from
proceeds of new loans, attained at lower rates of interest, or by exchange,
with the consent o f holders, for other bonds, upon a coin basis, on more
favorable terms. In our judgment it will be expedient for Congress to
authorize a five per cent loan o f definite period (in the act authorizing
which it should be unequivocally expressed that the principal and interest
are payable in coin), to be issued in exchange for the outstanding six per
cent bonds, at the option o f the holders. T o cover the contingency
that government may at times desire to use its surplus means in paying
a portion o f its debt, it may be made to mature at different, yet specific
periods. It is, in our judgment, certain, that all efforts to reduce the
rate of interest below five per cent will prove ineffectual; and to encum­
ber the contract with an objectionable option of pre-payment would defeat
the end in view. It is far better for government to take its chances of
the market in purchasing a limited amount of its debt from time to time,
than thus to depreciate the whole loan. With this simple provision for
the funded debt, we should leave it undisturbed by any Congressional
discussion whatever.
Second— Our next step would be to pass the law, obviously just in itself,
making all contracts, specifically payable in coin, legally binding upon
parties making them. T o this no sound objection can be made. It has
already received the decided approbation o f the Senate. Such a law
would remove a serious impediment to foreign commerce, and it is be­
lieved would open the way for the re-introduction and gradual increase
o f metallic currency. The two currencies working side by side with
equal liberty and legal protection, must produce the best results. It
would remove the temptation to fraud and relieve the community from
embarrassments which now exist with respect to all transactions in gold
credit. Even if it fail to secure all the good which is confidently expect
ed, it can at least produce little harm, and its manifest justice ought to
secure its immediate adoption.




1868J

THE CURRENOV AND THE PUBLIC DEBT.

419

Third.— The subject that next demands consideration is the paper cur.
rency, the money of the country. Here we reach the really serious and
embarrasing question. To lay violent hands upon it, will be to impede all
operations o f trade, arrest industry, and derange the affairs o f Government
'tself. The paper currency consists of two kinds. First.— The direct
issues of the Government. Second.— That which is issued by the Nation­
al Banks, and of which the Government is practically the endorser. It is
obviously the part o f wisdom, first to obtain relief from this incidental
liability for the bank notes, by placing them in condition to protect them­
selves, before a single step can be taken to provide for the direct issues of
the Government itself. This is in conformity with sound mercantile policy,
and. the necessity of the situation. In fact, to touch the legal tender
notes, which form the basis of all bank obligations, would only bring the
notes down upon the Treasury for payment. The indispensible course
seems therefore to be, to require of the banks a regular and practically
operative redemption of their notes at a central point (New York). To
secure this important end, it will be necessary so to modify the law, that all
bank notes received into the Treasury in payment of taxes, shall be assort­
ed, sealed up under Government seal, and sent to their respective places o f
redemption in New York City, for payment in legal tender notes. This
course will enforce upon the banks the habit of protecting their issues
which they have either never acquired, or have long since totally aban­
doned. The notes paid out now never return to the banks issuing them.
Thev possess the same value in public estimation as the paper into which
they are legally redeemable, and the banks have become accustomed to
regard them as not among their immediate liabilities.
Most of
these notes have never been seen by the banks since their fir'*
emission, and the feeling of direct responsibility respecting the i
has become praticallv extinct.
It is both the necessity and du-,
o f the Government to awaken this sense of obligation, and to create th 9
habit of accountability on the part o f the banks as principal debtors, b •fore any immunity can be secured by the Treasury from its legal obli­
gation to pay in case o f default by the banks. In fact the consideration
by which the National banks were allowed the privilage o f issuing circu­
lating notes was, that having special capital and resources, they possessed
the means and afforded the guaranty of prompt payment, and that they
were intended ultimately to supersede the legal tender issues, which
were simply a temporary expedient and a war measure. It is obvious that
such a system of practical redemption in legal tender notes will prepare
the banks for self-support, and relieve the Government from an impending
liability now hardly less than iliat which belongs to its own notes.
This requirement rigidly enforced would produce as much contraction




420

THE TREASURY REPORT.

[.December,

of the currency as the country could bear for a considerable time. It would
be unwise to proceed further until the operation o f this restriction had
produced a system o f acknowledged regularity, and this could only be
ascertained by actual experience.
Fourth.— Having done this effectually, and having thus given the banks
the character and stability contemplated by Congress to make them per­
manent institutions, it remains only to provide finally for the redemption
and funding o f the legal tender notes— or their redemption in coin— and
the consequent resumption of specie payment throughout the country. An
important expedient in accomplishing this result has already been found
in the exchange o f the legal tender notes for others bearing a low yet
accumulating interest, which would make it an object to withdraw some
of them gradually from circulation. It is confidently believed that by this
time the operation o f the law giving legal protection to coin contracts,
would so increase the metallic currency, and the beneficial result o f the
redemption system would render the banks so strong and reliable, that
the legal tenders could be gradually retired, first by conversion into
interest bearing notes, if need be, and these again into gold bearing five
per cent bonds; and that the process o f financial restoration would be
effected with greater facility than now seems possible. A t all events the
process we suggest is a natural one, and the steps in it those which afford
the best protection to all the great interests involved.
G. S. C.

TIIE TREASURY REPORT.
There are three topics in the Treasury report which, during the last
week, have been anxiously canvassed— the funding o f the debt, the
question o f taxation, and the resumption o f coin payments. The Secre­
tary o f the Treasury may certainly be complimented in having pre­
pared, as his last report, a document which in lucid statement, practical
wisdom and judicious suggestion, will compare favorably with any
financial state paper ever issued in this country or elsewhere. In read­
ing this paper we seem to pass over the entire period o f M r. McCulloch’s
Secretaryship, which forms indeed an interesting chapter in the financial
history o f this country. W hen he entered the Cabinet our finances
were in the deplorable state o f confusion and derangement incident to
the conclusion o f the war. Eight hundred millions o f money had to
be raised in a shorter space o f time than so large a sum was ever ob.
tained by any government in the world. The short date Seven-Thirties,
by means o f which the loan was negotiated, have now been funded
into long bonds, as have also the whole o f the short obligations which




1868]

THE TREASURY REPORT.

421

are supposed likely to embarrass the Treasury. The funding process is
just about completed, and the report before us offers, as one o f its chief
features, an account of the closing up o f the transaction.
A second point o f interest in the period o f M r. McCulloch’s service of
office, is the growth o f our internal revenue system. Clumsy and
costly, oppressive and inquisitorial, it destroyed much more o f the
nation’s wealth than it brought into the Treasury, and as it became too
burdensome to be borne, it has b y successive acts been so modified
and improved that it compares favorably as a system with the revenue
methods o f other countries. O f course we are speaking from a legis­
lative point o f view, and when the administering o f the revenue laws
is made so pure and strict, and faithful, as to break up the whisky
ring, and to stop the tobacco frauds, the improvement in our fiscal
methods may be pushed still further, so as to relieve the industrial
energies o f the people from the direct pressure o f taxation, and to let
the fiscal screw press where the body politic is the least sensitive.
By far the most important part o f the report before us is that discuss­
ing the currency.
A fter showing how our irredeemable paper cur­
rency increased the cost o f the war, and have added to the peace and
expenditure o f the Government; how it causes instability in prices,
perturbation in trade, and hinderance to industrial progress; how it
shakes the public credit b y raising dangerous questions as to the pay­
ment o f the public d e b t; how it gives to the rich and robs the poor,
he concludes that “ if our country is in a measure prosperous with
such an incubus upon it, it is because it is so magnificent in extent, so
diversified in climate, sorich in soil, so abundant in minerals, with a
people so full Of energy, that even a debased currency can only retard
but not put a stop to its progress.”
W hat is the remedy for this evil which is thus vividly set before us ?
On this point the reply o f M r. McCulloch is two fold. First, he very
justly says the remedy is to be found in “ a reduction o f the paper
circulation o f the country till it appreciated to the specie standard.”
This sound view o f the subject M r. McCulloch says he still adheres to,
and he adds that the remedy was emphatically condemned by Con­
gress, and it is now too late to return to it. A t a future time we shall
have something to say about this gloom y view o f contraction as being
condemned by Congress and impossible o f readoption. Congress in­
tended, as we have often showed, to forbid the abuses of contraction
rather than to stop contraction itself or to condemn the country forever
to the miseries of a redundant, depreciated, irredeemable circulation
A s there is no other remedy for redundancy but contraction, so there
is no other permanent remedy than this for the depreciation and un
stability which redundancy brings.




422

[December,

SOUTHWESTERN, G A ., R AILR O A D .

The ease does, however, admit o f palliation. Secondly, therefore
Mr. McCulloch proposes that the coin contract law should be enacted,
and that another law shall be passed providing, first, that after January
1, 1870, the greenbacks shall cease to be a legal tender for private
debts subsequently incurred, and secondly, that after the further lapse of
one year greenbacks shall cease to be legal tender for any purpose ex­
cept Government dues for which they are now receivable. Thirdly, he
proposes to contract the outstanding volume o f the greenbacks by
making them convertible at the pleasure o f the holders into bonds,
bearing such a rate o f interest as Congress may appoint.
This proposition of the Secretary is so judicious, and would meet
so many o f the conditions o f the case, that we wonder it has not re­
ceived more attention from the daily press. W hen the pending trials
in the Supreme Court have settled the mooted questions about the
constitutionality o f the legal tender law, we shall recur to this important
aspect o f the currency question.

SOUTHWESTERN, GA., RAILROAD.
The Southwestern Railroad of Georgia, as at present existing, consists o f
the following lines :
Main Line—Macon to A lbany.............................................................................................. 107.5 m iles.
( Fort Valley to Butler. ....................................................... ............................ 21.0
“
E ranches.-j Smithville to Eul'ala.......................................................................................
59.5 “
( Cuthbert to Fort Gaines................................................................................ 19.5
“
T otal length ow ned and operated............................................................................... 207.5 m iles.

The road is laid with iron varying from 34 to 51 lbs. to the yard, and
has cost about $17,500 per mile. It was constructed almost wholly on
the cash principle, and is perhaps the most economically managed line in
the United States. The company have never failed in the payment of
dividends, and even in the years subsequent to the war, when the work
of reconstruction was heaviest, have always had a surplus available for
the stockholders.
The stock o f engines and cars is ample for an increasing business, and
is well kept up by constant additions. The following shows the number
o f each on the 1st August, 1865, and at the close of each of the last three
fiscal years :
L ocom otives.................

fPdBseneer
p
J Mail. & « ..
C a r s ........1 F r e ig h t ...
(.Total . . . .




A ng. 1,
1365.
20
40
8
. 175
. 203

.
.

,--- -J u ly 81 ----»

1866.
20
20
8
222
250

1867.
22
20
8
240
277

1868.
26
20
8
320
348

1868]

423

SOUTHWESTERN, G A ,, RAILROAD,

The following is a statement of the mileage o f trains, and passenger
and freight traffic for the last three years :
( Passeneer and mail..
Miles run by trains___■< Freight, & c ................
( Total ............. ..........
i Through....................
Passengers carried....... ■<W a y ............................
( Total...........................
Bales o f cotton.........
Barrels o f flour........

{

1865-66.
122,660
141,864
264,524
10,867
104,920
115,787
87,250
9,351
1.820
271,842
8,866
9,687

1866-67.
151,682
151,653
806,335
12,003
97,474
109,477
137,696
16,411
10,005
639,538
4,615
50,416

1867-68.
173,621
159,681
333,302
9,853
85,021
94,874
232,343
4,405
39.411
149,643
5.086
85,564

| Bushe.- o f w h ea t...

The number of bales
The total
LCwts ooff b acotton
con .........in 1859-60 was 206,307.
freight carried over the road in 1867-68 amounted to 101,238 tons.
The gros3 earnings from operations in the year 1859-60 and those for
the three yearsending July 31, 1868, compare as shown in the following
statement:
1859-60.
(200.0 in.)
Freight—eastward....................................... [$203,815 75
44 —w estward.......................................... 214,270 07
Passengers—th rou gh .....................................
86,642 83
44
—w a y ........................................... 142,557 47
United States m ails.........................................
2*,082 55
Miscellaneous
............................................
6,527 20
Total gross earnings.................................. $676,895 87

1865-66.
(187.5 m.)
$328,945 62
178,343 86
47,322 05
260,732 45

1866-67.
(193.0 m .)
$321,187 11
369.829 25
47,634 97
255,132 05
10,804 26
2,365 56

1867-68.
(207.5 m .)
$439,558 31
257,165 13
43,295 30
178,394 95
2,1S0 60

$856,845 60 $1,006,953 20

$920,544 29

41,501 62

Operating and other current expenses:
O p e n tin g e x p e n s e s ...................... ............. $291,883 58
Internal revenue ta x ............................................................
Annuity to city o f M acon.............................
1,250 00

$513,044 13
26,934 85
1,250 00

Ordinary expen ses.......................................... $293,133 58
E xtra ord in a ry.......................................................................

$541,228 98

E xpenses on all accounts.................- ..........

293,133 58

E arningsless exp en ses............................. $3S3,762 29

$535,454 55 )
23 763 68 ) $468,047 12
1,250 10
1,250 00
$560,468 23
37,525 71

$469,297 12
108,510 70

541,228 98

597,993 94

577,807 82

$315,616 62

$408,959 26

$342,736 47

The above figures, divided by the average number o f miles operated in
the years severally, give the following results :
Gross earnings per m il e ............................................. $3,384 48
$4,569 84
Ordinary expenses, per m ile...........................
3,465 67
2,886 55
Extraordinary 44
44
............................................................................
T otal
44
44
...................................... 1,465 67
2,886 55
Farr ings over ord. expenses, p .m .............................. 1,918 81
1,683 29
“ " over all expenses p. m ................................ 1,918 81
1,683 29
T otal expenses to e a r n u g s ........................................ 43.31 p.c. 63.16 p c.

$5,217 37
2,903 98
194 43
8,098 41
2,313 39
2,118 96
59.35 p .c .

$4,436 36
2,261 7 {
522 85
2,784 62
2,174 69
1,657 74
62 77 p .c

The Fort Gaines branch was only partially built and opened in 1859-60’
and was not in use in 1865-66, having been taken up during the war.
It was re-built in 1866-67. These acts account for the difference o f mileage
operated in the several years.
The total receipts and disbursements on all accounts for the years
above noted were as follows :
1859-60
'1S65-6S.
1866-67.
1567-68.
Gross earninss................................................. $616,895 87 $856,S45 60 $1,006,953 20 $920.M4 29
E xpenses (iacl. taxes, & c.) ........................... 293.13 S 58 541,228 98
597,993 94 577,807 82
Net e ’ rn in g s.. ............................................ $3S3,762 29 $315,616 62
Add premium & d iscount.................. ........
3,841 53
___
N ew bonds issued............................................
......
58,000 00

$408,959 26 $342,136 47
___
___
....
....

T otal re s o u rc e s .................... ....................... $387,603 82 $373,616 62

$408,959 26 $342,736 47




424

[December,

SOUTHWESTERN, G A ., RAILROAD.

Disposed of on the following accounts :
Interest on b o n d s ............................................ $57,632 50 $73,513 34
$34,160 00 $31,570 00
Ma on annuity ( 2 y ea rs).................................................
2,*00 00
.. .
___
Dividend—F eb ru a ry .......................................(4)93,424 00(4)127.936 00 (4)160,170 00(1)128,156 00
“
A ugu st..........................................(4)116,876 011
....
(4)128,156 00(4)128,436 00
“
extra (A u g.)............................... (5)146,095 00
___
___
Bonds paid to date............................................................
60,500 00
...
___
Construction, & c.....................................................................
77,462 20 70,000 00
39.644 10
Revenue tax, appropriation...................................................
....
6,407 80
6.759 79
3,576 32
31,705 08
10,065 46
3,170 5S
tiu rplns...............................................................
T otal disb u rsem en ts...................................$387,603 82 $373,C16 62

$408,959 26 $342,736 47

By reference to the statement of earnings, it will be seen that the east­
ward freight increased in 1867—68 $118,371 30, while the westward freight
decreased $112,664 12, and the passage, mail, and miscellaneous decreased
$92,115 99. The increase in eastward traffic is due principally to the
larger production o f cotton in the sections tributary to the road. The
down or westward traffic decreased chiefly in the fact that nearly half
a million bushels of corn less than in previous years was needed for
subsistence, evidencing the fact that the planters raised their own corn
instead of relying on the Northwest for supplies.
The falling off in
passage and down freight is attributable to this, as well as to the low
price of cotton last fall and winter, and the consequent scarcity of
money in the country to pay for goods and travel.
The financial condition of the company, as shown by the general account
o f August 1, of the years above noted, was s follows :
I860.
1866.
1867.
1868.
Capital s to c k ................................................ $2,921,9(10 00$3,203,400 00 $3,203,900 00$3,210,000 00
Bonds (20 years)............................................
250,000 00
321,000 00
328,000 00
324,000 00
(10 “ ) ...........................................
44,500 00
58,000 00
#8,000 00
65,00# 00
“
(20 “ ), endors.............................
102,003 00
51,000 00
51,000 00
61,000 00
Fare tick ets...................................................
....
21,020 00
6,579 65
4,337 60
T ranspoitation..............................................
836,360 96 990,709 98
942,760 09
D t e o t b e r r o a d s . .....................................
6,105 63
28,810 97
8,456 99
Unclaimed divideods...................................
111,550 00
113,3S6 00
3,239 00
Otber item s.................... . . ....................
....
66 00
___
147 90
Preurum and d isc o u n t..............................
1,093 57
3,237 67
3,381 93
Bill payab e ..................................................
....
12,532 04
632 77
Profit and Joss................................................
358,555 85
179 919 79
271,168 43
13',224 10
T otal...........................................................................

$4,808,552 99 $5,055,416 45 $4,734,047 61

Against which are charged the following accounts:
Construction, & c ...........
Transportation................
Interest on b o r .d s .........
jVlacon annuity................
Augnet dividends...........
Stocks and b on d s........... .
Susp nse a cco u n ts .........
Bills receivable...............
Transfe agent..................
Confs erate m oney .......
Cash on band A in bank
Total

$3,776,236 23 $3,761,978 44 $3,802,326
541,228 98
560,468
27,932 50
73,513 34
34,160
2,500 00
262^971 00
101,908 00
153,140
39,173 66
53,894
99,761 42
201,985
22^282 98
20,707 12
56,073
4,162 13
102,443 68
87,186 16
55,868 83
193,768

84 $3,719,813 26
23
517.S07 82
00
31,570 00
00
73
10
05

123is28 00
53,394 73

50

199,066 91

28,566 79

$4,808,552 99 $5,055,416 45 $4,734,047 51

All the bonds o f this company bear 7 per cent interest, and all, with
the exception of $45,000, are convertible into capital stock at par. The
bonds endorsed by the Central Railroad Company have been paid off onehalf since 1864-65.




1868]

LOUISVILLE AND NASHVILLE RAILROAD.

425

The twenty-year bonds are due, in various sums, in 1877, ’78, ’ 79, and
1880.
An act of the Georgia Legislature, approved March 4, 1866, authorized
the consolidation of the Muscogee into the South Western Railroad Com­
pany. This change is now in progress, the latter assuming the liabilities
of the Muscogee Company, and exchanging their stock for stock o f the
South Western, at 87£ per cent o f its face value. The Muscogee Railroad
extends from Butler to Columbus, and has a length o f 50 miles. It cost
about $1,000,000.
A detailed history o f the South W estern Company will be found in
H u n t ’ s M e r c h a n t s ’ M a g a z i n e of January, 1867.

LOUISVILLE AND NASHVILLE RAILROAD.
The Louisville and Nashville Railroad, commencing at Louisville, K y , on the
Ohio R iver, extends in a southern direction to Nashville, Tenn., a distance o f
185 miles. A b o u t 30 miles south from Louisville the Lebanon Branch diverges
easterly to Lebanon 37.3 miles, and thence is continued by the Lebanon Branch
or K noxville extension to Brodhead, a further distance o f 54 9 miles, the inten­
tion o f the company being to further extend the line to the Tennessee border in the
direction o f Knoxville. The Bardstown Branch, (formerly the Bards town and
Louisville Railroad,) which leaves the main stem about 10 miles north o f the Leb­
anon junction, extends to Bardstown 17.3 miles. The Memphis brauch leaves
the main stem about 164 miles from Louisville, and runs southwest to the State
line o f Tennessee, making connection with the Memphis, Clarkesville and Louis­
ville Railroad, which with the Memphis and Ohio Railroad (both now oper­
ated by the Louisville and Nashville Company,) forms a continuous line from
Louisvil e to Memphis.* There is also now being constructed a branch from the
K noxville extension at Sanford (75 miles from Lebanon Junction) to Richmond,
a distance o f 33 miles, of which at the close o f the year 1867-68, there was
open 71 miles.f

Thus it appears that, while the main stem pierces Tennessee

in the centre, and connects with other due south lines, its western arm reaches
the Mississippi at Memphis, and its eastern arm, destined to meet the roads now
being constructed in Tennessee, North and South Carolina, and already in oper­
ation in Georgia, will ultimately reach the Southern A tla n tic ports by lines
o f moderate length.

When these lines are completed, Louisville will be in the

great centre o f the trade o f the whole South aod attain many

commercial

advantages not yet enjoyed by any of the cities o f the Ohio V alley.

* The Memphis and Ohio Railroad (130X m iles) was leased in September, 1867, for a term
o f ten y ars, and bae since then been operated by the Louisville and Nashville Company,
The Memphis, Clarkesville and Louisville Railroad (82J£ miles) is in the hands o f a state
receiver, and ie operated by the Louisville and N a-hville Company as a^ent o f said receiver.
T he total distance from Louisville to Memphis is 367 miles,
t The Richm ond branch was expected to be com pleted and in operation N ovem ber 1 5 ,1S6S.




426

locisville and

Nashville

r ailroad .

[ December,

The following statement shows the length ol railroad and sidings on the main
stem and branches of the Louisville and Nashville Eailroad at the close of each
of the last four fiscal years (June 30) :

Main stem ...........................
Bardst’ n br’ c h ....................
Leb’ n on br’ ch ...................... . . . .
Leb. br. e x t e n ....................
Mem. branch....... .............. . . . .
Richm ond o r . . ..................

,— 1864-65— ,
SidRailroad. ing«.
17.16
87.30

1.49

46.00

2.67

Total road & s id in g s... ___ 285.60 21.32
Average miles operated..., . . . 285.60
....

.——1865-66— »
RailSidroad. ings.
185.00 18.83
0.69
17.30
37.30 |
47.70 j• 4.41
46.00 2.96

.— 1866-61— .
RailSidroad. ing*.
185.00 19.00
17.30 0.69
37.30 i
47.70j[■ 1.89
46.00 3.59

,— 1867-68— >
SidRailroad. ings.
185.00 19 81
17.30 0.89
37.30
54.90 !■ 8.83
46.00 3.55
7.75
0.67

333.30 26.95
303.10

333.3 ) 31.27
333.30

348.25
336.30

33.72

The motive and carrying power employed on the main stem and branch lines
July 1,1864, and at the close of the fiscal years, as above, is stated in the fol­
lowing tabulation:
July 1,
,— Close o f fisca7 years— .
1884. 1S64-5. 1365-6. 1866-?.’ 67-8.
60
65
66
66
42
42
45
( Passenger...............................
45
Passenger train cars. Baggage..................................
9
10
15
15
( E xpiess ................................
8
8
8
8
(H o u s e ...................................... .............257
295
307
364
362
j R a ck .......................................
104
98
98
110
Freight train cars... 1 iio i’d ola..................................
43
43
43
21
1.Platform .................................
119
107
119
186
( Stone and gravel..................
82
82
82
10
W reck in g...............................
Service cars.............
1
1
1
1
( bourdm g................................
12
11
11
u

Locomotive engines

Total o f all cars....

669

721

786

813

The business of the road, including the performance of engines and cars,
passenger and tonnage traffic, and the results yearly for the same years is epit.
omized in the following general statement:
Miles run by locomotives hauling trains:
Passenger trains.....................................................
Freight trains.........................................................
Distributing trains................................................
Trains o f all kinds.................................................

1864-65.
j-744,829
3 96,709
841,558

j
1

1865-66.
418,971
423.879
117,097
959,947

1866-67.
452,795
408,232
68,459
929,486

1867-68.
438,804
412,754
71,913
923,471

Passengers and ireight (tons) carried
Number o f passengers..........................................
Pas«ent»ers carried OLe m ile .. . ....................
Tons carried one m ile.................

....................

455,067
33,042,625

533,679
46,063,719
26,960,849

360,721
23,078,589
2/2,93?
27,504,811

365/46
21.4*20.217
243,918
29,321,009

Gross earnings, expenses and profits from operations:
1864-65.
1865-66.
1866-67.
Passenger earnings..................................... $2,703,775 04 $1,613,725 35 $877,264 71
Freight
1,311,342 42 1,426,890 44 1,152,477 35
Express
“
. .................................
121,828 49
12;, 192 56
8<,542 64
Mail seiv ice ...................... ................... ..
37,500 00
47,658 99
40,025 00
Miscellaneous sources...............................
140,094 10
37,122 13
5,504 86

1867-68.
$856,81889
1,215,70296
'9 0 586 57
40,025 00
25,47602

Earned by the main stem and branches, as follows .
Main stem ......................................
Lebanon branch and extension
Memphis branch.......................... .
Bardstown branch...................... .
Richm ond branch.. . ................
M iscellaneou s...............................

$3,986,154 12 $2,860,276 04 $1,790,19724 $1,823,763 33
87.482 68
121,295 85
189,108 53
185,895 64
88,078 32
104,901 95
15*,607 13
195,685 26
12,730 83
19,593 50
20,961 67
23,051 52
..............................................................
213 69
140,094 10
37,122 13
........................................

Total gross earnings............................ $4,314,540 05 $3,143,689 47 $2,158,874 57 $2,228 909 44
Operat’ g, includ’g ta x es............................ 2,142,024 63 1,557,134 70 1,348.405 90 1,309,514 83
N et earnings (profits)................................. $2 172.515 42 $ l,f 92 054 77
Interest a ccou nt..........................................
221,758 84
177,076 33

Balance




$1,950,756 58 $1,414,978 44

$810,468 67
182,912 71

$919,094 61
227,203 21

$627,555 90

$691,891 40

1868]

2

LOUISVILLE AND NASHVILLE KAILROAD,

A stock dividend o f 10 per cent was paid in April, 1864, on account of twentytw o months’ earnings up to June 30, 1863.
cash has been divided.

Since then 8 per cent per annum in

The following deductions show the average earnings and expenses per mile o f
road opeiated, the earning and expenses per train mile, and the relation o f ex­
penses to earnings lor the same four years
1864-65.
1865-66.
1866 67. 1867-68.
Gross earninjg per m ile o f roa d.................... ........... $15,106 93 $10,370 54 $0,477 27 $6,626 85
Operating: expenses
“
...................... .
7,500 OS
5,117 57 4,045 62 8,893 89
N ett earnings
“
.................................
7,606 85
6,252 57 2,431 65
2,732 90
Gross earnings per train m ile................................... . $5 12:68
$3 27:43 $2 32:26 $2 41:3*
Opeiating expenses
“
...................................
2 54:53
1 ai:59
1 4.:80
1 45:07
Netc earnings
“
...................... ..........
2 58:15
1 65:S4
0 87:19
0 99:53
E xpenses to earnings, per cent ............................... ►
49.64
62 46
58.76
49.35

The financial condition o f the company at the close o f each of the same years,
(being the whole period since the cocsolidation of the main stem and branch
accounts,) is shown in the following abstract o f the yearly balance sheets :
1865.
1SG6.
1867.
1868.
Capital s*ock (general)................................. $5,527,870 63 $5,490,106 48 $5,4^,63S 56'$7,869,186 37
Richm ond br —stock a c t .. ........................
...................................................... .......
369.410 30
Funded d e b t .................. ................. ............ 3,857,500 00 3,105,000 00 2,965,000 00 2,883,500 00
Bills p ayable...................................................
385,639 55
Notes and accounts ... .................................
7,298 27
5,621 63
5,361 88
3,596* 63
Back taxe .......................................................
17,504 67
Back interest...................................................
13,6i6 83
15,292 58
17,509 27
17,691 12
Second mortgage (funded interest) bonds
d u e ...............................................................
1,400 00
14,500 00
2,800 00
June bills and pay-rolls........... - ..................
243.490 24
107,011 12
148,331 67
138,S36 42
Back dividends..............................................„
162,2’ 6 09
88.989 00
87,895 83
67,6 9 34
Dividends payable Aug. 1 ...........................
221 114 82
219,604 2<f
233.105 59
219,705 54
Profit and loss................................................. 2 527 215 76 3,685,697 58 3,939,*S5 17 1,996^818 14
T otal............................. . ........................... 12,578,715 08 12,754,346 49 12,841,095 48 13,992,266 15

Per contra ; the charges which iollow :
Construction a cco u n t...................................

9,665,663 97
'
’

Lebanon b a n ch extension m ort b o n d s...
Lebanon branch ext n . Louis\ille bonds.
Tennessee state bonds. ................ ............
Sundry bonds and no es .................. . . . .
Memphis, Clark esville & Louisville Rail-

574.772 76
328,78 * 84
659,571 17

337,106 20
569,000 00
3&,47u 00

582.855 39 1,187,961 69
524,090 00
512,000 00
237,669 98
304,283 75
887,461 65

258,632 91
56,939 11
225,686 74

184,464 39
272,1‘, 6 60

31*1*970 93
131,893 00

30,962 55
888,654 77

90 150
373,07 3
29.032
408,808

121,562 50
Real estate ; tim ber and quarry la n d s ....
Shop ai d fuel s tock ......................................
U .S . 7-30 r asii'-y n otes.................... .
Cash on hand, June 3J .................................

33,294
557,941
580,648
278,142

13
87
19
15

31,040 87
555,114 52
119.500 0J
85,5^9 70

237,347 96

91
05
65
83

74,974 39

T o t a l .........................................................12,578,715 08 12,754,346 49 12,841,095 48 13,992,2i6 15

The Lebannon branch extension accounts, and also the Richmond branch
account?, are kept separately while under construction, and are as follows :
,--------Lebanon branch extension---------.R ichm ’ d br.
1806.
1867.
1868.
1868
Cost o f road to June 30.................................. $1,550,202 83 $1,808,659 16 $2,457,994 87 $412,124 44

Derived from the following sources :
L. & N. R R C o .; cash advanced...................
M o rtg .ce b onds...........................
Louisville loan b »• d s ............................. ..
Contracto s (retained per centage................
Sunary accounts................................................
T otal

$337,106 21
600,000 00
6; 0,000 00
13,096 62
.............

$*82 855 39 $1,1S7,9<T 69 $387,461 65
600,000 04
600.000 00
.............
600.0 0 00 t,00.000 00
.............
17,053 22
68,221 06 24,662 79
8,750 55
1,812 12
........... .

............................................................ $1,550 202 63 $1,8 j H,659 16 $2,457,994 87 $412,124 44

O f the mortgage bonds issued on the Lebanon branch extension account*
$76,000, and o f the Louisville loan bonds $295,711 25 have been sold, the




423

LOUISVILLE AND NASHVILLE RAILROAD,

[ December,

balance of the 8600,000 of each issue is held by the Louisville and Nashville
Railroad Company, and appears in the general account as part of their resources.
The funded debt of the Louisville and Nashville Railroad Company is des­
cribed as issued and as outstanding year’y in the following tabular statement:
Total am’ t
Outstandin g June 30,o f issues.
1865.
1866.
1867.
1868.
Main stem : 1st mort. 7 p. c. bonds, dated
July 1,1858, and due Jan 1866-77............. $2,000,000 $1,765,000 $1,656,000 $1,594,003 $1,515,000
Lebanon branch: in com e7 p. c. bonds, due
(various) 1862-1865........................................
175,000
21,000
1,000 ..........
..........
Memphis branch : 1st m ort. 7 p . c . bonds,
due M a y l, 1870-75.........................................
300,000
286,000
267,000
281,000
267,000
Bardstown & L ’ sville R R : 1st m ort. 7 p.
c. bonds, due Jan. 1, 1870............................
Lebanan branch e x t e n . : 1st m ort. 7 p . c.
bonds, due N ov . 16,1880-85........................

30,000

30,000

30,000

27,500

600,000

600,000

600,000

600,000

Tennessee 6 p. c. loan bonds, viz.:
Main stem in Tennessee, due January 1,
1892-9S ...........................................................

560,500

560,500

Louisville City 6 p. c. loan bonds, viz.:
Main ste m : due April and Oct. 15,1886-87. 1,000,000

1,000,000

912,000

849,000

849,000

225.000

225,000

225.000

225.000

225.000

600.000

600.000

600.000

Lebanon branch: due June 2 and N ov. 2,
1886...................................................................
Lebanon branch extension: due A u g . 15,
1893............................... ................................

600.000

..........

•••* ..........

Total funded d e b t ..................................... $5,490,500 $3,857,500 $4,305,030 $4,165,000 $4,083,500

In October, 1861, a sinking fund of $400,000 per annum was directed to
beset apart out of the net earnings ef the road to pay—first, the interest of the
debt, next, the amount necessary for the completion of the road, and then the
debt itself. The reduction of the debt yearly has been effected under the opera­
tions of this fund. The Tennessee State loan was paid off by the surrender of
bonds of that State owned by the company.
The company are now issuing a series of consolidated first mortgage 7 percent
thirty year bonds, with interest, payable in April and October, and to become
due April, 1898. The amount provided for is $8,060,000, of which $2,500,9CO
are to be set apart for the redemption of existing issues. In relation to these >
the President, in his report for 1868, says :
Under the amendment to our chatter, accepted b y the stockholders on the 31st o f
March, 1868, the board o f directors have m ade preparaation for the issuance and
sale o f the bonds contemplated b y the amendment, and have cau se! to be ex e­
cuted a mortgage upon the property o f the company to secure the payment o f
the bonds and interest, and are now offering for sale a limited amount o f the bonds
in N ew Y o ra and Louisville.
It was the purpose o f the retiring board to sell the bonds only as the proceeds were
needed, for the preservation o f the property, and the objects contemplated by the
amendment, and with this purpose steadily adhered to by our successors ihe wisdom
o f the amendment will very shortly be made practically obvious. The property cost
the company m ore than $18,000,000, and is now worth certainly over $15,000,000,
with a m ortgage debt upon it less than tw o millions and a h a lf; and by the pr per use
o f the proceeds o f the bonds issued under the amendment in the acquisition o f addi­
tional property, the debt o f the com pany will not certainly increase more rapidly than
w ill the property increase in amouut and value, and it is believed that much better
than this may be done for the com pany.
W e have made arrangements for the registration o f our bonds, and in such man­
ner as will protect the holders against loss by fire, theft, or other casualty, and all
persons w ho m ay desire a safe security for themselves or others depen ent upon
them, may accomplish this purpose by a purchase and proper registration o f our bonds.
Our company is a hom e institution o f growing prosperity and undoubted solvency
and permanency, and w ill continue to increase in value as the country continues to
d evelop and prosper.




1808]

AGRICULTURAL RETURNS OF GREAT BRITAIN,

429

RAILROAD EARNINGS FOR OCTOBER.
The gross earnings o f the under-specified railroads for the month
o f October, in 1867 and 1868, and for the first ten months o f each
year are exhibited in the subjoined statement;
R ailroads.
A tla n tic and G reat W estern .......
C hicago and A lto n ........................
C hicago and N orth w estern ........
C hicago, R ock Island & Pacific.
Illin o is C en tra l..............................
Marietta and Cincinnati...............
M ichigan C e n tra l........................
M ichigan South. & N orth. I n d ..
M ilwaukee and St. P a u l.............. .
O h io and M is s is s ip p i..................
Pittsburg, F .t W . & C h ica g o ...
St. Louie, A lton & Terre Haute,
T o le d o , W abash and W estern .
W estern U n io n .............................

...
...

.. ..
...
,...

,-------- Oct ober--------,
1868.
1867.
$456,886
480,212
1,574,905
659,900
901,631
823,901
125,065
142,823
511,820
532,061
1,037,434
283,329
842,114
784,801
230,340
210,473
430,766
406,766
97,599

,-------T en M[onths-------v
1867.
1868.
$4,296,988 $3,920,735
3,203,589
3,746,999
9,532,194 11,292,308
3,338,103
3,805,291
5,839,832
6,040,793
1,002,943
1,053,868
3,657,775
3.768,147
3,819.645
4,139,140
4,£59,733
5,518,789
2,85\200
2,455,542
5,977,802
6,595,464
1,812,336 - 1,620,800
3,124,113
3,303,032
640,807
662,351

$8,044,195

$53,637,060 $57,923,259

T o ta l..........................................

UNITED STATES ASSAY OFFICE FOR NOYEMBER,

Statement of business at the United States Assay Office at New York, for the
month ending November 20,1868 :
D E P O S IT S O P G O LD .

Foreign c o in ...................................................... -........ ........................................
F oreign bullion................................................................................ .................
United States b u llion.............................................................. ......................

$20,000 CO
10,000 00
545,U00 00
---------------- -- $515,000 00

D E P O S IT S O P S IL V E R , IN C L U D IN G P U R C H A S E S .

Foreign c o in ........................................................................................................ $27,000 00
Foreign b u llion .......................................................................
15,000 00
United States bullion (contained in g o ld ).....................................................
6,000 00
C olorado.............................................
5,000 00
Lake Superior......................................................................................................
4,000 00
N e v a d a ...............................................................................................................
60,000 00
------------------- $117,000
Total deposits, payable in b ars....................................................................... $500,000 00
T otal deposits, payable in co in s ..................................................................... 192,000 00
--------------------- $692,000
Gold bars stam ped...................................................................................................................
692,395
Transmitted to IJ. S. Mint, Fkiladelphia, for coin a ge.......................................................
98,659

09
00
87
49

AGRICULTURAL RETURNS OF GREAT BRITAIN.

The official reports of the agricultural condition of England, Wales, Scotland
and Ireland have just been completed and published. Prom these papers it
appears that in the whole kingdom of Great Britain there were 3,933,924 acres
under wheat in 1868, against 3,629,784 in 1807. Under barley there was less
than in the former year— 2,337,037 acres this year against 2,431,801 1867
Under oats there was an increase—4,452,060 acres in 1868, and 4,409,899 acres
in 1867. The total acreage of land under wheat, barley, and oats was 10,723.021 in 1868, against 10,471,284 in 1867. The number of acres devoted to the
cultivation of potatoes in 1868 was 1,549,196, against 1,496,762 in 1867. In
the entire kingdom there are 9,036,506 cattle, 35,508,424 sheep and 3,166,300
pigs. The number of cattle and sheep have greatly increased since last year ;
the number of pigs has decreased 22 per cent. The population of the United
Kingdom in 1867 was 30,157,473, and in 1863, 30,369,845. The population Of
Ireland in 1868 is set down at 5,532,343, and of Great Britain 24,637,502.




430

NATIONAL BANK RESERVES.
W e are indebted to the Comptroller o f the Currency for the following tables, showing the state of the lawful money
reserve of the National Banks on the first M onday o f October, 1868. The corresponding statement for the first Monday
o f July will be found in the M agazin e for September, 1868 (v o l. 59) page 205.

S T A T E S A N D T E R R I T O R IE S .

Amount
o f avail,
reserve
$2,686,114
1,703,947
3,776.830
12,771,975
4,0l8,4f0
6.493,542
17,617,509
5,915.143
10,485,927
656.289
1,046,605
29,029
1,145,450
928/07
334,029
427,156
1,382,114
204,181
18,109
502,121
326,247
651,818
975,945
6,411,881

Percent, o f
avail ble
reserve to
liab ilM e1.
22 7-10
25 6-10
21 1-10
23 2 10
20 9 10
21 4-10
22 5-10
24 5-10
22 8-10
23 6-10
24 2-10
20 8-10
19 3-10
19 9-10
23 3-1 e
81 6-10
84 1-10
34 7-10
44 7 10
39 8-10
36 8-10
23 2-10
21 4-10
211-10

[December,

,---------------------------- Item s o f reserve.-----------------------------,
Comp, inter. Amt. in redemp.
notes & 3 p. cities avail, for
Lethal
c. tem p.loan redem piion o f
tenders.
Specie.
cert ficates.
ci culat on.
$1,0 *0,129
$23,532
$80,350
$1,792,'23
45-,066
4,442
122,960
1,118.479
142,330
691,488
15,087
9 >7,925
4,213,071
7,638,472
188,482
731,950
1,412,1.25
25,982
28'*, 910
2,2-9,973
2,182,190
91,917
531,330
3,688,105
2,015,9-0
5,692 860
264,228
9,644.50!
491,020
• 1,89 ;,575
68,349
3,159,199
4,609,730
60,295
1,314.310
4,501.592
106,680
205,7! 3
4,773
339.123
551,721
79,850
42,517
372 517
322
250
14,392
14.065
66,920
576,903
83,106
418.521
440,909
S5,310
358,911
43,477
216,064
36,376
460
81.129
26,438
3,460
279,343
117.915
791.778
36,901
127,460
425,975
157,534
36,803
9,844
659
17,450
185,192
217,903
99,026
38,2' 9
85,611
2,427
6,482
248,185
3H 131
26,020
53,590
294,128
597,856
30,371
33,632
2,395,034
3,410,903
541,160

reserves.




Am ount
required
as reserve.
$1.972,5'5
997,522
1,262,151
8,'60,981
2,88‘\079
4,544,391
11,752 883
3,624,732
6,602,988
416,717
649.926
20,958
893,322
701,434
214,989
202,820
543,701
88 310
6,075
189,422
112,750
421,890
683,976
4,519,671

bank

Liabilities to
Num ber b e protect, b y
a reserve o f
o f banks
reporting.
35 per cent.
$13,150,366
M a in e... ..........................
6,650,149
N ew II »m psh ire.............
E,4'.4,33S
"Vermont............. ........... ........... 40
55,073 216
M assachusetts...............
19,240,527
Hti -de Island..................
30,295,938
C o n n e cticu t....................
78,352,-* 52
New Y ork ................... ........... 210
24,164,877
N ew J ersey ......... ..
. ........... 55
46.0)9,920
Pennsylvania..................
2,778,110
D ela w a re..........................
4,332,839
Maryland ........................ ........... 19
139,720
District o f Columbia — ...........
1
5,955,479
V ir g in ia ........................
......... 39
4.676,224
W est F ir g in ia ................. ........... 15
3,433,259
North Caro in a ................. ...........
6
1,352.131
South C a rolin a ............... ...........
3
3,6 4,672
G eorgia ............................. ...........
8
5'8.736
A la b a m a ........................... ...........
2
40,500
1
Mi si9= ippi...................... ...........
4
1,262,815
Iv x a s .................. ............. ...........
7 1.668
Arkansas ........................
2,812.581
Kentucky ......................... ........... 11
4,559,839
T en n e ss e e ........................
80,331,113
O h io ...................................

n a t io n a l

Table o f the state o f the lawful money reserve (required by sections 31 and 32 o f the national currency act) o f the National Banicing Association
o f the United States, as shown by the quarterly reports o f their condition on the morning o f the first Monday in October, 18G8, before the
commencement o f business.

70
31
15

1
1

T o t a l...................

2,924,485
2,320.322
1,079,245
740. 81
1,498,158
572,469
408,642
81,428
317,197
38,005
39,271
169,189
20.534
31.803
12,3 ‘5

$114,776,428

$62,216,475

•

2,478,047
1,833,982
890.921
661,811
1,370,525
559,928
36 ,515
83,964
251,^9
16.165
67,761
192,994
32,500
32 COO
21,402

71,156
104,039
19,934
17,286
43,'25
11,992
51,125
1,155
26,232
51,593
1,598
50,390
16.200
1,013
237

193,980
152,250
79,830
61 510
35,540
10,950
17,620
3,260
6,240

1,293,872
1,712,510
803,320
396,610
737,406
314,799
261.9 2
71.922
975,572
13,163
19.413
168.709
6,612
2,420
8,596

4,042,055
3.8 02,781
1,794,005
1.140,247
2,186*996
897,6 9
691,212
160,301
1,269,833
80.921
73.777
38?,093
56,312
85.433
25,235

20 7-10
24 6-10
24 9-10
23 1-10
21 9-10
23 5-10
25 4-10
28 5-10
50 5-10
31 9-10
30 1-10
33 9-10
41 1-10
16 7-10
30 8-10

$39,034,570

$1,781,317

$7,376,020

$47,060,541

$95,252,418

22 9-10

$777,703
16.329
186,065
103,281
277,973
1S010
99,599
2.900
5,594
1,786
41,522
338
9,935
65,776
467

$6,345,010
944.490
7,485,220
900,570
1,356,410
655,730
55,870
609.290
427,2' 0
857 540
202,'MO
50,000
617,250
10,660

+$6,992,376
2,706,129
1,009,173
1,309,227
1,815,709
253,066
52,714
67,959
813,687
660,731
2,427,647
1,036,417
341,624
701»,684
127,594

$21,876,968
4,695.102
16,721,548
4,572,844
5,191,163
1,059,834
748.913
402.783
2,673,536
1,548,619
6,747,439
1,71 ,385
900,913
2,823,863
245,994

20 3-10
35 9-10
31 9-10
29 4-10
28 2-10
26 1-10
38 9-10
29 4-10
25 1-10
27 7-10
35 3-10
36 7-10
33 4-10
24 9-10
22 6-10

R E D E M P T IO N C IT IE S .

B oston ............................
A lb a n y...........................
Philadelphia.................
P itts b u rg ...................... ...............
B altim ore......................
W ash n g t o n ................. ...............
N e v Orleans................. ...............
Louisville ..................... ...............
C in cinnati....................
C lev ela n d ..................... ...............
Chicago ......................
D e t r o it .......................... ...............
Mi w auk ee.................... ...............
8t. Louis ...................... ...............
L e a v en w orth ...............

16
4
2
4
5
4
5
8

**72,159,413
13,073,716
52,395,965
35,548,966
18.423,410
4,060,082
1,927,261
1,370,396
10,644.031
5,581.144
19,' 89,87 4
4,657,-68
2,698,345
11,333,468
1,042,210

$18,039,853
3,268,429
13,098,991
3.837.2(2
4,605,853
1,015,021
481,015
342,599
2,061,003
1,395,286
4,772.469
1,161,367
674.586
2,833,367
200,553

$7,76!,879
1,028,154
7,951 090
2,259,766
2,241,071
133,028
596,600
276 054
1,244,' 65
478.812
3,420,730
471,720
499,354
1,450,155
107,273

T o t a l ......................

$234,005,749

« $58,501,489

$29,900,651

$1,597,231

$20 518,240

$19,904,737

$71,920,909

30 7-10

N ew Y o r k ....................

$200,164,901

$51,541,225

$23,518,254

$8,370,846

$35,693,470

$ .............

$6Y,58S,570

82 8 10

NATIONAL BANK

1

19,496,571
15,468,811
7,194,069
4,9 4,557
9,987,118
3,816 459
2,724,2S0
562,856
2,514,649
253,367
261.812
1,127, .‘■86
134,894
212,019
82,931

1868]

In d ia n a ......................
I l li n o is ...................... .................
M ich ig a n ........... . . .
W isco n sin ................. ...................
I o w a ............ ...............
M in n esota ........... .. ...................
M i s s o n i ....................
K a n s a s ......................
N eb ra sk a ....... ..........
N e v a d a ...................... ..................
Oregon ....................... ..................
C olorado.....................
Mom a n a ....................
U tah............................ ..................
I d a h o ....................

* Liabilities o f barks in cities to be protected bv a reserve o f twenty-five per cent o f the amount,
t Am ount in New Y ork city available for the redem ption o f circulation.




co

432

[.December,

PUBLIC DEBT OE THE UNITED STATES,

PUBLIC DEBT OF THE UNITED STATES.
A bstract statement, as appears from the books and Treasurer’s returns in the
Treasury Department, on the 1st o f November, and 1st o f December 1868 :
D E B T B E A R I N G C O IN I N T E R E S T .

1881......................................
283,677,300 00 283,677,300 00
(5-20’ s ) ............................... 1,602,312,250 00 1,602,570,400 00

N ovem ber 1.

December 1.

Increase.
$ ...........
.......
258,150 00

T o t a l................................................ 2,107,577,950 00 2,107,836,100 00

258,150 00

5 per cent, b on d s................................... $221,588,400 00 $221,588,400 00
6
6

“
“

Decrease*
$ .............
.............
.............

D E B T B E A R IN G CU R R E N C Y IN T E R E S T .

6 per ct. (lift.) b onds...........................
3 p. cent, certificates............................
Navy Pen. F*d 3 p .c ..............................
Total

$42,194,000 00
58,325,000 00
14,000,000 00

$44,337,000 00 $2,143,000 00
58,140,000 00
..
14,000,000 CO
..

114,519,000 00

116,477,000 00 1,958,000 00

$ .............

M ATU RED D EBT NOT PRESEN TED FO R PAYM EN T.

7-30 n.dne Ang. 15,’ 67, J ’ e & J ’ y 15, ’68
6 p. c. com p. int. notes matured June
10, July 15, Aug. 15 Oct. 15, Dec. 1 ,
1867, May 15, Ang. 1, Sep. 1 & 15,
and Oct. 1& 16 , 1868.
B’ ds o f Texas ind’ t y ...........................
Treasury notes (old).............................
B ’ ds o f Apr. 15, 1842, Jan. 28, 1847 &
Mar. 31,1848.......................................
Treas. n s o f Ma.3,63............................
Temporary loa n .....................................
Certifi. o f indebt’ ess...........................
T ota l.................................................

$2,956,950 00

$2,478,450 00

$478,500 00

5,128,310 00
256,0U0 00
151,611 64

4,224,920 00
256,000 00
149,361 64

903,390 00

487,500 00
445,492 00
314,860 00
13,000 00

435,500 00
445,492 00
243,160 00
13,000 00

52,000 00

8,245,883 64

$1,507,840 00

9,753,723 64

2*250 00

7i‘,706’66

D E B T B E A R IN G N O IN T E R E S T .

$356,021,073 00 $356,021,073 00
$ ..........
33,413,985 42
33,875,268 17
461,282 75
19,716,840 00
23,256,840 00 3,539,000 00

United States n otes.
Fractional cu rren cy ..
Gold certi. o f deposit.
Total

409,151,898 42

413,152,181 17 4,000,282 75

$...
$ .............

R E C A P IT U L A T IO N .

$
$
$
$
Bearing coin interest.......................
2,107,577,950 00 2,107,836,100 00
258,150 00
.............
Bearing cur'y interest................ ............ 114,519,000 00 116,477,000 00 1,958,000 00
.............
Matured debt .........................................
9,753,723 64
8,245 883 64
................. 1,507,840 00
Bearing no interest ............................... 409,151,898 42 413,152,181 17 4,000,282 75
.............
Aggregate........................... ................... 2,641,002.572 06 2,645,711,164 81 4,7C8,592 75
.................
Coin & cur. in T reas...............................
113,873,019 24 106,679,320 67
................. 7,193,698 57
Debt less coin and cu r........................... 2,527,129.552 82 2,539,031,844 14 11,902,291 32

.................

The following statement shows the amount o f coin and currency separately at
the dates in the foregoing table :
C O IN A N D C U R R E N C Y IN T R E A S U R Y .

C o i n ......................................................... $103,407,985 77 $88,425,374 54 $ .................$14,982,611 23
C u rre n cy ...............................................
10,465,033 47
18,253,946 13 7,788,912 6b
............. ....
T otal coin & curre’ y

113,373,019 24

106,579,320 67

................. 7,193,698 57

The annual interest payable on the debt, as existing October 1, and N ovem ­
ber i , 1868, exclusive o f interest on the compound interest notes), compares
as follow s:
ANN UAL IN T E R E ST P A Y A B L E

Coin—5 p e rce n ts ...................................
“
“

6 “
6 “

1881....................................
(5-20’ s ).............................

O N P U B L IC

DEBT.

November’l . December 1.
$11,079,420 00 $11,079,420 00
17,020,638 00 17,020,638 00
96,13S,735 00 96,154,224 00

Total coin in terest............................. $124,238,793 00 $124,254,282 00
$2,531,640 00 $2,660,220 00
“
a
“
........................
2,169,750 GO
2,164,200 00

Currency—6 per cen ts...........................
T otal currency inter11.




$4,701,390 00 $4,824,420 00

Increase.
Decrease
$ ................
$ ...........
.......................................
15,489 00
........... .
$15,489 00
128,580 00
.............
$123,030 00

$ ...............
...............
5,550 00

1868.]

DEPARTM ENT REPORTS.

DEPARTMENT

433

REPORTS.

REPORT OP TIIE SECRETARY OF THE TREASURY.
T reasury D epartment , D ecem ber 1,1868.
In com pliance -with the requirements o f law, tho Secretary o f the Treasury has the honor
to make to Congress tho following rep ort:
In his form er com m unications the Secretary has expressed so fully his view s upon the
great subjects o f the currency, the revenues, and the public debt, that it m ay be thought
quite unnecessary for him again to press them upon the attention o f Congress. These sub­
jects, however, have lost none o f their im portance; on the contrary, the public mind during
the past year lias beon turned to their consideration w ith m ore absorbing interest than at
any form er period. The Secretary will, therefore, he trusts, be pardoned for restating some
o f the view s heretofore presented b y him.
I f there is any question in finance or political econom y which can he pronounced settled
b y argument and trial, it is that inconvertible and depreciated paper m oney is injurious
to public and private interests, a positive political ana financial evil, for which there can
be but one jnstification or excuse, to w it : a tem porary necessity arising from unexpected
and pressing em ergency; and it follows, consequently, that such a circulation should only
be tolerated until, w ithout a financial shock, it can be withdrawn or made convertible into
specie. I f an irredeemable bank note circulation is no evidence o f bankrupt or badly man­
aged banking institutions, w hich should be deprived o f their franchises, o r com pelled to
husband and make available their resources in order that they m ay be prepared at the earliest
day practicable to take up their dishonored obligations, why should not an irredeemable
Governm ent currency bo regarded as an evidence o f bad m anagem entof the national finances,
i f not o f national bankruptcy ? A n d w hy should n ot such wise and equal revenue laws be
enacted, and such econom y in the use o f the public moneys be enforced, as w ill enable the
Governm ent either ju d iciou sly to fund, or prom ptly to redeem its broken prom ises? The
U nited States notes, although declared b y law to be lawful m oney, are, nevertheless, a
dishonored and disreputable currency. The fa ct that they are a legal tender, possessing such
attributes o f m oney as the statute can give them, adds nothing to their real value, but makes
them all the more dishonorable to the Governm ent, and subversive o f good morals. The
people are com pelled to take as m oney w'hat is n ot m o n e y ; and becom ing demoralized Jby
its constantly changing value, they are in danger o f losing that sense o f honor in their deal­
ings with the Governm ent and w ith each other w hich is necessary fo r the well-being o f
society. I t is vain to expect on the part o f the people a faithful fulfilment o f their duties to
the Governm ent as long as the G overnm ent is faithless to its own ob ligations; nor w ill those
w ho do not hesitate to defraud the p ublic revenues long continue to be scrupulous in their
private business. Justifiable and necessary as the measure was then regarded, it is now
apparent that an unfortunate step was taken when irredeemable promises were issued as
law ful m oney ; and especially when they were made a valid tender in paym ent o f debts con­
tracted when specie was the legal as well as the com m ercial standard o f value. The legalt3nder notes enabled debtors to pay their debts in a currency largely inferior to that w hich
was alone recognized as m oney at the tim e they w ere incurred, and thus the validity o f con­
tracts was virtually impaired. I f all creditors had been com pelled by law to pay into the
p u b lic treasury fi t y per c e n t , or ten per cent., or, indeed, any portion o f the amounts
received b y them from their debtors, such a law w ould have been condemned as unequal
and u n ju s t; and yet the effect o f it w ould have been to lessen, to the extent o f the receipts
from this source, tho necessity for other kinds o f taxation, and thus to relieve in some
measure the class unjustly, because unequally taxed. B y the legal-tender acts a portion o f
the property o f one class o f citizens was virtually confiscated for the benefit o f another, w ith­
out an increase thereby o f tho public revenues, and consequently w ithout any compe7isation
to tho injured class. There can be no doubt that these acts have tended to blunt and deaden
ti e public conscience, nor that they are chargeable, in no small degree, w ith the demoraliza­
tion which so generally prevails.
T he econom ical objections to these notes as law ful m oney—stated at length in previous
reports o f the Secretary—m ay be thus briefly restated. They increase immensely the cost o f
the war, and they have added largely to the expenses o f the Governm ent since the restora­
tion o f p *ace; they have caused instability in prices, unsteadiness in trade, and put a check
upon judicious enterprises; they have driven specie from circulation and made it merchan­
dise ; they have sent to foreign countries the product o f our mines, at the same tim e that
our European debt has been steadily increasing, and has now reached such m agnitude as to
be a heavy drain irpon the national resources, and a serious obstacle in the w ay o f a return
to specie paym ents; they have shaken the public credit b y raising dangerous questions in
regard to the paym ent o f the public d e b t ; in connection w ith high taxes (to the necessity
for w hich they have largely contributed) they are proventing ship building, and thereby the
restoration ot the com m erce which was destroyed b y the w ar; they are an excuse for (if
indeed they do not necessitate) protective tariffs, and y et fail, b y their fluctuating value, to
p rotect tho A m erican m anufacturer against his foreign com p etitor; they are filling the
coffers o f the rich, but, b y reason o f the high p rices which they create and sustain, they are
almost intolerable to persons o f limited incom es. The language o f one o f the greatest men
o f m odern times, so often, but not too often, quoted, is none too strong in its descriptions
o f the injustice and the evils o f an inconvertible currency :




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“ O f all the contrivances for cheating the laboring classes o f mankind, none has been more
effectual than that w hich deludes them w ith paper m oney. Ordinary tyranny, oppression,
excessive taxation—these bear lightly on the happiDess o f the mass ot the com m unity com ­
pared w ith a fraudulent currency and the robberies com m itted b y depreciated paper. Our
ow n history has recorded for our instruction enough, and m ore than enough, o f the demoral­
izing tendency, the injustice, and the intolerable oppression, on the virtuous and well dis­
posed. o f a degraded paper cu rrency authorized or in any w ay countenanced by Govern­
m ent.”
T h e experience o f all nations that have tried the experim ent o f inconvertible paper m oney
has proved the truth o f the eloquent words o f M r. W ebster. I f our country is in a measure
prosperous w ith such an incubus upon it, it is because it is so m agnificent in extent, so
diversified in clim ate, so rich in soil, so abundant in minerals, w ith a people so full o f energy,
that even a debased currency can only retard, but n ot p ut a stop to its progress.
The Secretary still adheres to the opinion so frequently expressed b y him, that a reduction
o f the paper circulation o f the country until it appreciated to the specie standard was the
true solution o f our financial problem! B ut as this policy was em phatically condem ned b y
Congress, and it is now too late to return to it, he recomm ends the follow ing measures as the
next best calculated to effect the desired result.
A greem ents for the paym ent o f coin seem to b e the only ones, not contrary to good morals,
the perform ance o f which cannot be enforced in the courts. “ Coin contracts” executed
before the passage o f the legal-tender acts, as w ell as those executed since, are satisfied in all
the States except California, b y the paym ent o f the amounts called for in depreciated notes.
This shackle upon commerce, this ch eck upon our national progress, this restriction upon
individual rights, should no longer be continued. I f it be admitted that the condition o f the
country during the war, and tor a tim e after its close, created a necessity fo r laws and
decisions making prom issory notes (fluctuating in value according to the result o f battles and
o f speculative com binations) the medium in which contracts should be discharged, this neces­
sity no longer exists. Steps should now bo taken to give stability to business and security
to en terp rise; and to this end specific contracts to be executed in coin should at once be legalized.
Perhaps no law could be passed which would be productive o f better results with so little
private or public inconvenience. Such a law would sim ply enable the citizen to do what the
Governm ent is doing in its receipts for customs, and in the paym ent o f its bonded d e b t; it
w ould m erely authorize the enforcement o f contracts voluntarily entered into, according to
their letter. The effect o f such a law would be to ch eck the outflow o f specie to other
countries, by creating a necessity for the use o f it at h om e; to encourage enterprises extend­
in g into the future, by rem oving all uncertainty in regard to the value o f the currency with
w h ich they are to b e carried on. Such a law w ould rem ove a form idable embarrassment in
our foreign trade, w ould familiarize our people again w ith specie as the standard o f value,
and show how groundless is the apprehension so generally existing, that a withdrawal o f
depreciated notes or the appreciation o f those notes to par, w ould produce a scarcity o f
m oney, by provin g that specie, expelled from the country b y an inferior circulating medium,
w ill return again when it is made the basis o f contracts, and is needed in their perform ­
ance. Business is now necessarily speculative because the basis is unreliable. Currency,
b y reason o f its uncertain future value, although usually plentiful in the cities, and readily
obtained there at low rates on short time, w ith ample collaterals, is com paratively scarce
and dear in the agricultural districts, where longer loans on com m ercial paper are required.
Prudent men hesitate both to lend or to borrow for any considerable period, b y reason o f
their inability to determine the value o f the medium in which the loans are to be paid.
W ith currency now worth seventy cents on the dollar, and which within six months m ay
advance to eighty, or decline to sixty, is it strange that the flow is to the business centres,
where it can be loaned “ on call,” leavingthe interior w ithout proper supplies, at reasonable
rates, for m ovin g the crops and conducting other legitimate business ? Is it strange that, in
such an unsettled condition o f the currency, gam bling is active while enterprise halts, trade
stagnates, and distrust and apprehension exist in regard to the future ? I t is not supposed
that such a measure as is recomm ended w ill cure the financial evils which now afflict tho
country, b u t it w ill be a decided m ovem ent in the right direction, and the Secretary indulges
the hope that it w ill receive the early and favorable consideration o f Congress.
The legal-tender acts were w ar measures. B y reference to the debates upon their passage,
i t w ill be p erceived that, b y all who advocated them, they were expected to be temporary
only. I t was feared that irredeemable Governm ent notes, in the unfortunate condition o f
the country, could only be saved from great depreciation b y being made a legal tender—
the great fact £not being sufficiently considered, that b y possessing this character, their
depreciation w ould not b e prevented, but m erely disguised. H ence it was declared that
th ey should be “ law ful m oney and a legal tender in paym ent o f all debts, public or private,
w ithin the U nited States, except duties on im ports and interest on the public debt.” T hey
w ere issued in an em ergency for which it then seemed that no other provision could bo
made. T h ey were, in fact, a forced loan, justified only by the condition o f the country, and
they w ere so recognized b y Congress and the people. J3y no member o f Congress and by no
p u b lic journal was |the issue| o f these notes as law ful m oney advocated o f any other ground
than that o f n ecess ity ; and the question arises, should they not now, or at an t a lly day, bo
divested o f the character w hich was conferred upon them in a condition o f the cou ntry so
different from the present. The Secretary believes that they should, and he therefore
recomm ends, in addition to the enactm ent b y w hich contracts for the paym ent o f coin
can be enforced, that it be declared, that after the first day o f January, eighteen hundred and

seventy, United States notes shall cease to be a legal tender in payment of all private debts subse­
quently contracted; and that after the first day o f January, eighteen hundred and seventy-one,
they shall cease to be a legal tender on any contract, or fo r any purpose whatever, except Gov­
ernment dues, fo r which they are now receivable. Tho law should also authorize the converei >n
o f these notes, at the pleasure o f the holders, into bonds, bearing such rate o f interest ■vs




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DEPARTM ENT REPORTS.

435

m ay be authorized b y Congress on the debt into which the present outstanding bonds may
b e funded. The period for which they w ould continue to be a legal tender w ould be suf­
ficient to enable the people and the banks to prepare for the contem plated change and the
privilege o f their conversion would save them from depreciation. W h a t has been said by
the Secretary in his previous reports on the pernicious effects upon business and the public
morals o f inconvertible legal tender notes, and what is said in this report upon the advan­
tages w hich w ould result from legalizing coin contracts, sustain this recomm endation. I t
m ay not be improper, however, to suggest another reason for divesting these notes o f
their legal tender character b y legislative action. A lthou gh the decisions o f the courts have
been generally favorable to the constitutionality o f the acts b y w hich they were authorized,
grave doubts are entertained by m any o f the ablest lawyers o f the cou ntry as to the correct­
ness o f these d ecision s; and it is to be borne in mind that they have not y e t been sustained
b y the Supreme Court o f the U nited States.
T he illustrious law yer and statesman, whose language upon the subject o f irredeemable
paper m oney has been quoted, in the Senate o f the U nited States, on the twenty-first day
o f December, eighteen hundred and thirty-six, expressed the follow ing o p in io n :
“ Most unquestionably there is no legal tender in this country, under the authority o f this
Governm ent or any other, but gold and silver, either the coinage o f our own m ints or
foreign coins, at rates regulated b y Congress. This is a constitutional principle, perfectly
plain, and o f the v ery highest importance.
The States are expressly prohibited from
m aking anything b u t gold and silver a legal tender in paym ent o f debts, and although no
such express prohibition is applied to Congress, yet, as Congress has no pow er granted to
it in this respect but to coki m oney and to regulate the value o f foreign coins, it clearly
has no power to substitute paper or anything else for coin as a tender in paym ent o f debts
and in discharge o f contracts. Congress lias exercised this pow er fu lly in both its branches.
I t has coined money, and still coins i t ; i t has regulated the value o f foreign coins, and still
regulates their value. The legal tender, therefore, the constitutional standard o f value, is
established, and cannot be overthrown. T o overthrow it w ould shake the whole system.
I t is b y no means certain that the Supremo Court w ill differ from Mr. W ebster upon
this question, and no one can fail to perceive how im portant it is that the legislation
recomm ended should precede a decision (from which there can be no appeal) that United
States note.s are not, under the Federal Constitution, a legal tender.
T he receipts from custom s for the last throe years have been as follow s :
F o r the fiscal year ending June 30, 1866...................................................................... $179,046,651 58
F o r the fiscal year ending June 30, 1867...................................................................... 176,417.810 88
F o r the fiscal year ending June 30, 1868..................................................................... 164,464,599 56
W h ile it appears from these figures that the custom s receipts since the com m encem ent
o f the fiscal year 1865 have been, in a revenue point o f view , entirely satisfactory, the ques­
tion naturally arises, what do these large receipts, under a high tariff* indicate in regard to
our foreign trade and to our financial relations w ith foreign nations.
I t is impossible to ascertain with precision the amount o f our securities held in Europe,
nor is there any perfectly reliable data for ascertaining, even, what amount has gone there
annually since the first bonds were issued for the prosecution o f the late war. In his report
o f 1866, the S mretary estimated the amount o f U nited States securities o f different kinds,
including railroad and other stocks, held in Europe, at $600,00
0. H e soon a fter became
satisfied that this estimate was too low, b y from ono hundred to one hundred and fifty m il­
lions. I t w ould be safe to put the amount so held at the present time, exclusive o f stocks,
at eight hundred and fifty millions o f dollars, o f w hich n ot less than six hundred m illions
are United States bonds, nearly all o f which have left the U nited States w ithin the last six
years. The amount is formidable, and little satisfaction is derived from the consideration
that these securities have been transferred in paym ent o f interest and for foreign com m odi­
tie s ; and ju s t as little from the consideration that probably not over five hundred m illions
o f dollars in gold values have been received for these eight hundred and fifty m illions o f
debt. In this estimate o f our foreign indebtedness, railroad and other stocks are not included,
as they are n ot a debt, but the evidence m erely o f the ownership o f property in the United
States. Fortunately, for some years past individual credits have been curtailed, and our
foreign and dom estic trade, in this particular, has not been unsatisfactory. In addition,
then, to the stocks referred to and the individual indebtedness, o f the amount o f which no
accurate estimate can be made, E urope holds not less than eight hundred and fifty millions
o f A m erican securities, on nearly all o f w hich interest, and on the greater part o f which
interest in gold, is being paid. N or, under the present revenue systems, and w ith a depre­
ciated paper currency, is the increase o f our foreign debt lik ely to be stayed. W ith an abun­
dant harvest, and a large surplus o f agricultural products o f all descriptions. U nited States
bonds are still creating, to no small extent, the exchange w ith which our foreign balances
are being adjusted. W e are even now increasing our debt to E urope at the rate o f six ty or
seventy m illions o f dollars per annum in the form o f gold-bearing bonds.
T he gold and silver product o f California and the Territories since 1848 has been upwards
o f thirteen hundred millions o f dollars. A llow in g that one hundred millions have been used
in m anufactures, and that the coin in the cou ntry has been increased to an equal amount,
the balance o f this immense sum—eleven hundred millions—has gone to other countries in
exchange for their productions. W ith in a period o f tw enty years, in addition to our agricul­
tural products, and to our m anufactures, w hich have lieen exported in large quantities,
w o have parted w ith eleven hundred m illions o f dollars o f the precious metals, and are,
nevertheless, confronted w ith a foreign debt o f some eight hundred and fifty millions, which
is steadily increasing; and all this has occurred under tariffs in a great degree framed w ith
the view o f p rotecting A m erican against foreign m anufacturers. B ut this is n ot all.
D uring the recent war, m ost o f our vessels engaged in the foreign trade were either destroyed
b y rebel cruisers or transferred to foreigners. Our exports, as well as our imports, are now




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DEPARTMENT REPORTS.

[J anu ary,

chiefly in foreign bottom s. The carrying trade betw een the U nited States and E urope is
almost literally in the handsof Europeans. W ere it not for the remnant o f ships still em­
ployed in the China trade, and the stand we are m aking by the establishment o f a line o f
steamers on the Pacific, the coastwise trade, which is retained b y the exclusion o f foreign
com petition, w ould seem to bo about all that can, under existing legislation, be relied upon
for the em ploym ent o f A m erican shipping.
There are m any intelligent persons w ho entertain the opinion that the country has been
benefitted b y the transfer o f our bonds to Europe, on the ground that capital lias been re­
ceived in exchange fo r them, w h ich has been profitably em ployed in the developm ent o f our
liatioaal resources; and that it matters little whether the interest upon the debt is received
b y our own people or by the people o f other countries. This opinion is the result o f m isap­
prehension o f facts, and is unsound in principle. I t is n ot to a large extent true that capi­
tal. which isbeing used iu developing the national resources, has been received in exchange
fo r the bonds w hich are held in Europe. W h ilo many articles, such as railroad iron, m a­
chinery, and raw materials, used in m anufacturing—the value o f w hich to the country i3
acknowledged—have been so received, a large proportion o f the receipts have been o f a
different description. Our bonds have been largely paid for in articles fo r which no nation
can afford to run iu debt— for articles w hich have neither stim ulated industry nor increased
the nro.ductive pow er o f the country, w hich have in fact added* nothing to the national
w'ealtb. A reference to the custom-house entries w ill substantiate the correctness o f these
statements. Two-thirds o f the im portations o f the U nited States consist ot articles which,
in econom ical times, w ould be pronounced luxuries. The w ar and a redundant currency
h iv e brought about unexampled extravagance, which can only bo satisfied b y the m ost
costly products o f foreign countries. N o exception could be taSen to such im portations,
i f they were paid for in our ow n productions. This, unfortunately, is not the fact, 'i hey
are annually swelling our foreign debt, w ithout increasing our ability to x>ay it. llo w dis­
astrous such a course o f trade, i f long continued, must he, it requires no spirit o f prophecy
to predict.
N or is it an unim portant m atter that the interest upon a large portion o f our -securities is
received b y citizens o f other countries instead o f our own. I f the interest upon a public debt
is paid out where the taxes to provide lor it are collected, the debt, all hough a burden upon
the ma84 o f tax-payers w ho are not holders o f securities, may be so managed as not to be a
severe burden upon the nation. The m oney which goes into the T reasury b y means o f taxes
w ill flow ou t again into the same com m unity in the paym ent o f in te re st; and were it not for
the expenses attending it, the process w ould not, in a purely econom ical view , bo an exhaust­
in g one. I f the bonds o f the U nited States were equally distributed among the people o f
the different States, there w ould be less com plaint o f the debt than is now heard. A nti-tax
parties w ill attain strength only in those States iu which few bonds are held. I f the people
o f the W est are m ore sensible o f the burdens o f Federal taxation than are those o f the East­
ern Stats?, it is because they are n ot holders to the same extent o f national securities. This
inequality cannot, o f course, be prevented b y legal or artificial processes.
The securities
w ill be m ost largely held where capital is the m ost abundant; and they w ill he m ore equally
distributed among the respective States—i f n ot among the people—as the new States aj proach the older ones in wealth.
Those m anifest truths indicate how important it is that the debt o f the U nited States
shoul i be a home debt, so that the m oney which is collected lor taxes may be paid to our own
p ;oplo in the w ay o f interest. In fact, a large national debt, to be tolerable, m ust o f necef s tv be a home debt. A nation that owes heavily must have its own people for creditors.
I f it does not, the debt w ill he a doad w eight upon its industry, and w ill be quite likely to
ft r e it eventually into bankruptcy. The U nited States are not only able to pay the in ­
ter e.-:t on their debt, but to set a good example to other nations by steadily and rapidly reduc­
ing that debt. W h a t is now required, as has been already intimated, are measures which
w ill tend not only to prevent further exportation o f our Donds, and in the regular course o f
trade to bring hack to the cou ntry those that have been exported, but which w ill also tend
to restore those im portant interests that are now languishing, as the result o f the war and
adverse legislation. The first and m ost im portant o f these measures are those which shall
brin g about, w ithout unnecessary delay, the restoratibn o f the specie standard. T he final
difficulties under which the country i: laboring m ay bo traced directly to the issue and con ­
tinuance in circulation o f irredeem able prom ises as law ful m oney. The country w ill not be
re illy and reliably prosperous until there is a return to specie paym ents. T he question o f
a solvent, convertible currency underlies all other financial and econom ical questions. I t
is, in fact, a fundamental q u estion ; and until it is settled, and settled in accordar.ca with
the teachings o f experience, all attem pts at other financial and econom ical reforms w ill either
fail absolutely or be but partially successful. A sound currency is the life-blood o f a com m er­
cial nation. I f this is debased, the whole current o f its com m ercial life must he dis n dered
and irregular. The starting point in reform atory legislation m ust he here. Our debased
onrrencym ust b e retired or raised to the par o f specie, or cease t o he law ful money, before
substantial progress can be made w ith other reforms.
.Next in importance to the subject o f the cu rrency is that o f the revenue. Taxes are in dispensable for the support o f the Governm ent, for the maintenance o f the p ublic credit
and the paym ent o f the p ublic debt. T o tax heavily, not only w ithout im poverishing the
people, but w ithout ch ecking enterprise or puttin g shackles upon industry, requires the
m ost careful study, n ot only o f the resources o f the country audits relations with other na­
tions, but also o f the character o f the people as affected b y the nature o f their institutions.
W h ile m uch m ay be learned b y the study o f the revenue system s o f European nations,
w n ich have been perfected b y years o f experience and the em ploym ent o f the highest talent, it
m ust be obvious that these systems must undergo very cunsiderable m odification sbelorethey
w ill b e fitted to the political and physical condition o f the U nited States. In a popular gov.
em inent like ours, wherethe people virtu ally assess the taxes, as w ell as pay them , the pop u.




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DEPARTMENT REPORTS.

437

lar will, i f not the popular prejudice, m ust he listened to in the preparation o f revenue laws.
J u stice must, in some instances, yield to expediency; and some legitm ate sources o f revenue
m ay bo unavailable because a resort to them m ight be odious to a m ajority o f tax-payers.
The people o f the United States are enterprising aud self-reliant.
M ost o f them are the
‘ architects o f their ow n f o r t u n e s l e w the inheritors o f wealth. E ngaged in various en­
terprises, w ith constantly varying results,and in sharp com petition w ith each other, they
subm it reluctantly to inquisitions o f tax-gatherers, which m ight not be obnoxious to people
less independent, and livin g under less liberal institutions. Then, too, the U nited States
are a new country, o f large extent and diversified interests; w ith great natural resources,
in the early process o f developm ent. N ot on ly m ay systems o f revenue w hich are suited to
England, or Germany, or France, be unsuited to this country, but careful and jud iciou s ob ­
servation and study are indispensable to the preparation ot tax bills suited to the peculiar
interests o f its different sections. I t was w ith a view o f supplying Congress w ith such in­
form ation as was needed to secure the passage o f equal and wise excise and tariff laws,
which would yield the largest revenue w ith the least oppression and inconvenience to the
people, that a revenue commission was created in 1865. The creation o f this com m ission
was the first practical m ovem ent towards a careful exam ination o f the business and re ­
sources o f the country, w ith a view to the adoption o f a judicious revenue system. T he re­
ports o f this commission w ere interesting and valuable, and they exhibited so clearly the
necessity for further and more com plete investigations, that b y the act o f J u ly 13,
1866, the Secretary o f the Treasury was authorized to appoint an officer in his depart­
ment, to be styled the special com m issioner o f revenue, whose duty it should be “ to inquire
into all the sources o f national revenue, and the best m ethod o f collecting the re v e n u e ; the
relation o f foreign trade to dom estic industry; the mutual adjustment o f the system s o f
taxation b y custom s and excise, w ith a view o f insuring the requisite revenue w ith the
least disturbance or inconvenience to the progress o f industry, and the developm ent o f the
resources o f the country, etc. U nder this act Mr. D avid A . W ells was appointed special
com m issioner o f the revenue. W ith what energy and ability he has undertaken the very
difficult duties devolved upon him has been m anifested b y the reports w h ich he has already
subm itted to Congress. That which accompanies, or w ill soon follow this com m unication,
w ill prove more fu lly than those w hich have preceded it have done, the im portance o f the in­
vestigations in which he is engaged, and tno judicious labor w hich he is bestow ing upon
them. The facts which he presents, and the recomm endations based upon them, are en­
titled to the most careful consideration o f Congress. These reports o f the Commissioner are
so com plete that they relieve the Secretary from discussing elaborately the questions o f
w hich they treat. H is remarks, therefore, upon the internal revenues and the tariff w ill
be general and brief.
The follow ing is a statement o f receipts from internal revenues for the last three fiscal
yea rs:
F o r the year ending June 30, 1866..........................................................................................$309,226,81342
F o r the year ending June 30, 1867......................................................................................... 266,027,53743
F or the year ending June 30, 1868......................................................................................... 191,087,58941
I t thus appears that the internal revenue receipts for the year ending June 30, 1867, fell b e­
low the receipts for the year ending June 30,1866, $13,199,275 99, and that the receipts for the
year ending June 30, 1868, fell short o f the receipts for 1867, $74,939,948 02. T he receipts
io r th e first four m onths o f the present fiscal year were $48,736,348 33. I f the receipts for
these m onths are an index o f those for the rem aining eight, the receipts for the present
fiscal year w ill be $146,209,044.
This large reduction o f internal revenue receipts is attributable both to inefficient col
lections and to a reduction o f taxes. I t is quite obvious that the receipts from custom s
cannot b e maintained w ithout an increase o f exports or of our foreign debt. I f the receipts
from custom s should be diminished, even w ith a largo reduction o f the expenses o f the
Governm ent, our internal revenues-must necessarily oe increased. The first thing to be
done is to introduce econom y into all branches o f the public service, not by reducea appro­
priations to bo made good b y ‘ ‘ deficiency bills,” but b y putting a stop to all unnecessary de­
mands upon the Treasury. There is no department o f the Governm ent which is conducted
w ith proper econom y. The habits form ed during the war are still strong, and w ill only yield
to the requirem ents o f inexorable law . The average expenses o f the n ext ten years for the
civ il service ought n ot to exceed forty m illions o f dollars per annum. Those o f the W a r
Departm ent, after the bounties are paid, should be brought down to thirty-five millions o f
dollars, and those o f the N avy to tw enty millions. The outlays for pensions and Indians
cannot for some vears be considerably reduced, b u t they can doubtless be brought w ithin
thirty millions. The interest on the public debt when the whole debt shall be funded, at an
average rate o f interest o f five per cent., w ill amount to one hundred and twenty-five m il­
lions, w h ich w ill be reduced w ith the annual reduction o f the principal.
W hen the internal revenue and tariff laws shall b e revised so as to be made to harmonize
w ith each other, it is supposed that three hundred m illions can annually b e realized from
these sources, w ithout burdensom e taxation. H ow m uch shall be raised from each can be de­
term ined when the whole subject o f revenue shall be thoroughly investigated b y Congress,
w ith the ligh t shed upon it b y Commissioner W ells in his exnhastive report o f the present
year. The Secretary does not doubt, however, that the best interests o f the cou ntry w ill be
subserved b y a reduction o f the tariff and an increase o f excise duties.
A ccord in g to this estimate, the account w ould stand as fo llo w s :




438

DEPARTM ENT REPORTS.

[January,

R eceipts from customs and internal revenues...................................................................$300,000,000
E xpenditures for the civ il service.................................................. i .................................... $40,000,000
E xpenditures b y the W a r Departm ent................................................................................ 35,000,000
E xpenditures by the N a vy D epartm ent.............................................................................. 20,000,000
E xpenditures for pensions and Indians............................................................................... 30,000,000
E xpenditures fo r interest on the p ublic d e b t................................................................... 125,000,000
T otal.................................................................................................................... |230,000,CCO
Leaving, as an excess o f receipts, $50,000,000 to be applied to the paym ent o f the p rincipal o f
the debt. I f the growth of the cou ntry should make an increase o f expenditures neces­
sary, this increase 'will, b y the same cause, be provided for by increased receipts under
the same rate o f tax a tion ; and, as it is to be hoped that the regular increase o f the revenues
w ithout an increase o f taxation, resulting from the advance o f the cou ntry in wealth and p o p ­
ulation, w ill be greater than the necessary increase o f expenses, there w ill be a constantly
increasing amount, in addition to that arising from a decrease o f interest, to be annually
applied to the paym ent o f tbe debt. I f large additional expenditures should be unavoid­
able,(they should at once be provided fo r b y additional taxes. W hat is required, then, at
the present time, is a positive lim itation o f the annual outlays to. three hundred m illions o f
dollars, including fifty millions to be applied to the payment o f the principal o f tho debt,
and such m odifications o f the revenue laws w ill secure this amount, w ithout unwise r e ­
strictions upon commerce, and with the least possible oppression and inconvenience to tho
tax-payers. In the foregoing estimates o f resources, m iscellaneous receipts and receipts from
sales oil public lands are om itted. The miscellaneous receipts heretofore have been derived
from sales o f gold and o f property purchased by the W a r and N avy Departm ents during the
war, and no longer needed. On a return to specie payments, there w ill be no premiums on
coin, v ery little G overnm ent property w ill hereafter be sold, and under the homestead law,
and w ith liberal donations o f the public domain, which are likely to be made as heretofore,
no considerable amount can be expected from lands. W hatever may be received from these
sources w ill doubtless be covered b y m iscellaneous expenses, o f w hich no estimate can be
made.
The A c t o f M arch 31, 1868, exem pting from taxes nearly all the m anufactures o f the
cou ntry other than distilled spirits, ferm ented liquors, and tobacco, was sudden and u n ­
expected. I t not only deprived tho Treasury o f an immense revenue, but the reduction was
so great as to leave an impression on the public mind that it w ould b e only temporary, and
that a tax in some degree equivalent to that which was rem oved would o f necessity soon be
resorted to. I t is, perhaps, for this reason that this measure has failed to give re lie f to the
p u b lic by a diminution o f prices, and has benefited m anufacturers rather than consumers.
Tho frequent and im portant changes which have been made in the internal revenue laws, tho
ease w ith w hich exem ptions from taxation have been obtained, and the suddenness w ith
w hich taxes have been greatly augmented or reduced, have constituted ono o f the
greatest evils o f the system. Sudden changes in the revenue laws are not only destructive
o f all business calculations, but they excite—not unreasonably—a feeling o f discontent and
a sense o f injustice among the people, most unfavorable to an efficient collection o f taxes.
W h ile it is admitted that, in a new and grow ing country like ours, modifications o f the
taxes w ill be frequently necessary, some definite policy should at once be inaugurated in r e ­
gard to our internal revenues, the general principles o f w hich should b e regarded rs
finally established.
Assum ing that the receipts from custom s w ill be reduced b y a reduction o f duties, or b y
the effects o f a return to specie paym ents upon importations under the present tariff, and
that, consequently, there m ust b e an increase o f internal taxes, there are three source j o f
revenue which are lik ely to be considered.
First. A n increase o f taxes upon distilled spirits.
T h o idea o f deriving the bulk o f the revenue from this article is a very popular o n e ;
and even our unfortunate experience has only partially convinced the public o f its im pos­
sibility. The late exorbitant tax on distilled spirits, intended, perhaps, not m erely as a
revenue measure, b u t as an encuuragement to temperance, proved to be the m ost demoral­
izin g tax ever im posed b y Congress, corrupting both the m anufacturers and the revenue
officers, and familiarizing the people w ith stupendous violations o f the law. The restoration
o f it, or any considerable increase o f the present tax, would lead to a repetition o f tho
frauds w h ich have brought the internal revenue system into such utter disgrace.
Second. A restoration o f the ta x on m anufacturers abolished in M arch last.
T he objections to the restoration o f this tax are, that it would indicate vacillation on the
part o f Congress, and that this tax, principally on account o f numerous exem ptions, was p u t ’ftl and unjust. I t is also apparent that, i f restored, it w ould fail t o be perm anent by reason
o f the persistent and united hostility o f a class o f citizens influential and powerful, and
whose influence and pow er are rapidly increasing.
Third. A n increased and uniform tax on sales; and this the Secretary respectfully
recommends.
U nder the present law. wholesale and retail dealers in goods, wares, and m erchandise o f
foreign or dom estic production, wholesale and retail dealers rn liquors, and dealers in tobaco \
are subject to a similar hu t unequal tax upon sales. This inequality should be rem oved, aud
a tax levied upon all sale i sufficient, with the revenues from other sources, to m eet the wants
o f the Governm ent. The reasons in favor o f a tax upon sales are, that it |could be levied
generally throughout the country, and w ould n ot be liable to the im putation o f class legisla­
tion ; that it would be so equally distributed as not to bear so oppressively as other taxes upon
individuals or section s; and that no depression o f one branch o f industry, w hich did n o t
injuriously affect the business o f the entire country, could greatly lessen its'productiveness.




1868.]

DEPARTMENT REPORTS.

439

A s has been already stated, the receipts from custom s for the fiscal year, ending Juno 30.
1866, were. $179,046,601 58; for the year ending June 30, 1867. $176,417,810 88; and for the last
fiscal year. $164,464,599 56. The.se figures show that the tariff has produced large revenues,
although it is in no ju s t sense a revenue tariff. In this respect it has exceeded the^xpectations o f its friends, if, indeed, it has not disappointed them. I t has not checked importations
and com plaint is made that it has not given the anticipated protection to home m anufac­
tu res—not because it was not skillfully framed to this end. but because an inflated currency—
the effect o f which upon im portations was not fully comprehended—has, in a measure, defeated
its object. I t has advanced the prices o f dutiable articles, and, by adding to the cost o f living,
has been oppressive to consumers w ithout being o f decided benefit to those industries in
whose interest it is regarded as having been prepared. In his last report, the Secretary
recommended the extension o f specific duties, but did not recomm end a com plete revision o f
the tariff, on the ground that this work could not be intelligently done as long as business was
subject to constant derangement b y an irredeemable currency. T he same difficulty still
exists, but as decided action upon the subject fo the currency ought not to bo longer postthe present m ay not bean unfavorable tim e for a thorough examination o f the tariff.
Ftoned.
is obvious that a revision o f it is required, n ot only to relieve it o f incongruities and
obscurity, and to narmonize it with excise taxes and with our agricultural and com m ercial
interests, but also to adapt it to the very decided change which m ust take place in the b usi­
ness o f the cou ntry upon the restoration o f the specie standard. Large revenues are now
derived from customs, because a redundant currency produces extravagance, which stim u­
lates importations. I f the currency were convertible, and business were regular and healthy,
the tariff would be severely protective, i f not in mauy instances prohibitory. Indeed, o f some
valuable articles it is prohibitory already.
There will b e in the future, as there have been in the past, w idely different opinions upon
this long vexed and very important su b ject; but the indications are decided that the more
enlightened sentiment o f the country demands that the tariff shall hereafter be a tariff for
revenue and not for protection, and that the levenues to be derived from it shall be no larger
than, in connection with those received from other sources, w ill be required fo i the econom i­
cal administration o f the Government, the maintenance o f the public faith, and the gradual
extinguishm ent o f the public debt W hile the cou ntry is n ot at present, and m ay not be for
m any years to come, prepared for the abrogation o f all restrictions upon foreign commerce,
it is unquestionably prepared for a revenue tariff. The public debt is an incumbrance upon
the property o f the nation, and the taxes, the necessity for which it creates, b y whatever
m ode and from whatever sources collected, arefat last a charge upon the consumers. Taxes
should not, therefore, be increased, nor w ill the tax payers perm it them to b e permanently
increased, for the benefit o f any interest or soction Fortunately, or unfortunately, as the
question m ay be regarded from different standpoints, the necessities o f the Governm ent w ill
b e such for many years that large revenues m ust bo derived from customs, so that a strictly
revenue tariff must incidently benefit our homo manufactures. A ccord in g to the estimate
made by the Secretary, an annual revenue o f three hundred millions w ill be required to meet
the necessary demands upon the Treasury, and for a satisfactory reduction o f [the public
debt. How m uch o f this amount shall be derived from customs it w ill be fo r Con gress to de­
termine. In exam ining this difficult question, the m agnitude o f our foreign debt, and the
necessity not only o f preventing its increase, but o f rapidly reducing it, m ust be kept steadily
in view . It im y be necessary that a large portion o f our bofids now held in Europe be taken
up w ith bonds bearing a low er rate o f interest, payable in some European city, in order that
they may be less likely to be returned to the United States at unpropitious times. W hether
this is accom plished or not, it is o f the last importance that our t i x laws, and especially the
ta' iff, should be so framed as to encourage exports and enlarge our com m erce with fo eign
nations, so that balances m ay be in our favor, and the interest, and in due time the8p>incipal,
o f our foreign debt m ay be paid b y our surplus productions. Many o f the investigations o f
the Kevenue Commissioner have been made with the view o f furnishing Congress with the
data necessary for a thorough examination and a wise determination o f this most important
question, and it is fortunate that the subsidence o f political excitem ent rem oves m auy o f the
difliculties heretofore in the way o f an impartial consideration o f it.
1 he public debt on the 1st day o f November, J867, amounted to $2,491,504,459, and consisted
o f the follow ing item s:
D eb t bearing coin interest..............................................................................................$1,778,110,991 8)
D e b t bearing currency interest.....................................................................................
426,768.64) on
Matured debt not presented for paym ent..................................................................
18,237,538 83
D eb t bearing no interest................................................................................................
402,385,677 39
T o ta l...................
Cash in the Treasury.

$2,625,502,848 C2
133.998,398 12

A m ou nt o f debt less cash in the Treasury................................................................. $2,491,504,459 00
On;the first day o f N ovem ber, 1868, it amounted to $2,527,129,552.82, and consisted o f the
follow ing item s:
D ebt bearing coin interest.............................................................................................. $2,197,577,950 00
D ebt hearing currency interest.....................................................................................
114 519,00' 00
M atured debt not presented for paym ent..................................................................
9,753,723 64
D eb t bearing no interest.................................................................................................
409,151.898 42
T otal......................................................................................................................... $2,641,0' 2,572 86
Cash in the T reasury.......................................................................................................
113,873,019 J4
A m ou nt o f debt less cash in the T reasury................................................................. $2,527,129,552 82




440

DEPARTMENT REPORTS.

[<January,

B y a comparison o f these statements it appears that the debt, betw een the first day o f N o­
vem ber, 1867, and the first day o f N ovem ber, 1868, increased $35,625,102 82. O f this increase,
$24,152,000 is chargeable to the Pacific railroads, and $7,200,000 to the purchase o f Russian
A m erica. W ith in the same period there was paid for bounties $44,060,515, and at least
$4,000,000 for interest on com pound and seven three-tenth notes, which had accrued prior to
the first o f Novem ber, 1867. I f these extraordinary advances and paym ents had not been
made, the receipts would have exceeded the expenditures $43,787,412 18. Considering the
heavy reduction o f internal taxes made at the last session o f Congress, and the large expendi­
tures which have attended the m ilitary operations against the Indians on the frontier, and
the maintenance o f large forces at expensive points in the Southern States, this statement o f
the amount o f the debt cannot be regarded an unsatisfactory one. The bounties will, it is
expected, be entirely paid within the next three months, and very little interest, excep t that
w hich accrues upon the funded debt, is hereafter to be provided for. Should there be hence­
forth no extraordinary expenditures, and no further donations o f p ublic m oneys in the form
o f bounties or o f additional subsidies to railroad companies—w ith proper econom y in the
administration o f the General Government, and with judicious amendments o f the revenue
laws, and proper enforcem ent thereof, the public debt, w ithout oppressive taxation, can b e
rapidly diminished, and easily extinguished w ithin the period heretofore named by the Sec­
retary.
The ability o f the U nited States to maintain their integrity against insurrection, as well
as against a foreign enem y,can no longer be doubted. The question o f their ability, under
dem ocratic institutions, to sustain a large national debt is still to be decided. That this
question should be affirmatively settled, it is, in the opinion o f the Secretary, o f the highest
im portance that the tax-paying voters should be encouraged b y the fact that the debt is in
the progress o f rapid extinguishment, and is not to be a permanent burden upon them and
their posterity. I f it be understood that this debt is to be a perpetual incumbrance upon the
property and industry o f the nation, it is certainly to be feared that the collection o f taxes
necessary to pay the interest upon it m ay require the exercise o f pow er b y the Central G ov­
ernment, inconsistent with republicanism, and dangerous to the liberties o f the people. T he
debt must be paid. D irect repudiation is an im possibility; indirect repudiation, bv further
issues o f lemil-tender|notes. w ould be madness. T o insure its paym ent w ithout a cnangefin
the essential character o f the Governm ent every year should witness a reduction o f its amount
and a diminution o f its burdens. The Secretary is confident that he expressed the sentiments
o f the intelligent tax-payers o f the country when he said in his report o f 1865:
“ The debt is large, b u t i f k ep t at home, as it is desirable it should be, with a judicious
system o f taxation, it need not be oppressive. I t is, how ever, a debt. W h ile it is capital to
the holders o f the securities, it is still a national debt, and an encum brance upon the national
estate. N either its advantages nor its burdens are or can be shared or borne equally b y the
people. Its influences are anti-republican. I t adds to the p ow er o f the E xecu tive by increas­
in g Federal patronage ; it m ust be distasteful to the people, becauseit fills the country w ith
inform ers and tax-gatherers. I t is dangerous to the public virtue, because it involves the
collection and disbursement o f vast sums o f money, and renders rigid national econom y
almost impracticable. I t is, in a word, a national burden, and the w ork o f rem oving it, no
m atter how desirable it m ay be for individual investment, should not long be postponed.
“ A s all true men desire to leave to their heirs unincum bered estates, so should it be the
ambition o f the people o f the U nited States to relieve theirjdescendants o f this national m ort­
gage. W e need not be anxious that future generations shall share the burden w ith us. W ars
are not at an end, and posterity w ill have enough to do to take care o f the debts o f their own
creation, %
“ The Secretary respectfully suggests that on this subject the expression o f Congress should
be decided and emphatic. I t is o f the greatest im portance in the management o f a m atter
o f so surpassing interest that the right start should be made. N othing but revenue w ill
sustain the national credit, and nothing less than a fixed policy for the reduction o f the public
debt w ill be likely to prevent its increase.”
A n d in his report o f 1867, when he rem arked:
“ Old debts are hard debts to p a y ; the longer they are continued, the more odious they b e ­
com e. I f the present generation should throw the burden ofthis debt on the next, it will be
quite likely to be handed down from one generation to another, a perpetual, i f not a constantly
increasing burden upon the people. Our country is full o f enterprise and resources. The
debt w ill be lightened every year with great rapidity b y the increase o f wealth and popula­
tion. W ith a proper reduction in the expenses o f "the Governm ent, w ith a revenue system
adapted to the industry o f the country, and not oppressing it, the debt m ay be paid before
the expiration o f the present century. T h e wisdom o f a policy w hich shall bring about such
a result is vindicated in advance by the history o f nations w hose people are burdened with
inherited debts, and with no prospect o f relief for themselves or Iheir posterity.”
In his last report, the Secretary referred to the condition o f the Treasury at the close o f the
war, and at some subsequent periods, alluding especially to the em ergency in the spring o f
1865, arising from the v ery large requisitions which were w aiting for payment, and the still
larger requisitions that were to be provided for to enable the W a r Departm ent to pay arrear­
ages due to the army, and other expenses which had already been incurred in the suppression
o f the rebellion. In briefly review ing the administration o f theTreasury, from A pril, 1865,
he did not think it necessary to state now m uch o f the large revenue receipts had been ex­
pended in the paym ent o f debts incurred during the war ; and he w ould not undertake to
do it now, did not misapprehension exist in the public mind in regard to the expenditures o f
the G overnm ent since the conclusion o f hostilities, prejudicial to both the law-m aking and
the law-executing branches o f the Government.
The war was virtually closed in A pril, 1865. On the first day o f that month the public!debt
amounted, according to the books and accounts o f the department, to $2,366,955,077.34. On the
first day o f September follow ing it amounted to $2,757,689,571,43, having increased in four




1868.]

DEPARTMENT REPORTS.

441

m onths $390,734,494.09. From that period it continued to decline until N ovem ber 1, 1867. when
it had f allen to $2,491,504,450. On the first day o f N ovem ber last, it had risen to $2,527,129,552.82.
B y this statement it appears that between the first day o f A pril, 1865.{and the first day o f Sep­
tem ber o f the same year, the debt increased $390,734,494.09, andfthat between the first d a yjof
September, 1865, and the first day o f N ovem ber, 1868, it decreased $23 ‘,500,018.61 ; and that
on the last day mentioned it was $160,174,475.48 larger than it was on the first day o f A pril,
1865. Since then the Treasurer’s receipts from all sources o f revenue have been as fo llo w s :
F o r A p ril, May, and June, 1865.....................................................................................
$83,519,164 13
F o r the year euding June 30, 1866................................................................................
558,032,620 06
F or the year ending June 30, 1867................................................................................
490,634,010 27
F o r the year ending June 30, 1868................................................................................
4^5,638.083 32
June 3u to N ovem ber 1, 1868.........................................................................................
124,652,184 42
Total o f receip ts..................................................................................................... $1,662,476,062 20
T o which should be added the increase o f the debt betw een the first day o f
A p ril, 1865, and the first day o f Novem ber,
1868....................................................................................................................................
160,174,475 48
T otal.......................................................................................................................... $1,822,650,537 68
This exhibit|shows that the average sum o f $1,822,650,537.68 was expended in the paym ent
o f the interest and o f other demands upon the Treasury in three years and seven m onths,
being an average annual expenditure o f $568,646,061.68.
I f the statement o f the public debt on the 1st day o f A p ril, 1865, had included all debts due
at that time, and $1,822,650,537.68 had really been expended in paym ent o f the interest on the
public debt, and the current expenses o f the Governm ent betw een that day and the first day
o f N ovem ber last, there w ould have been a profligacy and a recklessness in the expenditures
o f the public m oneys discreditable to the Governm ent and disheartening to tax-payers. F o r­
tunately this is not the fact. That statement (as is true o f all other m onthly statements o f
the Treasury) exhibited only the adjusted debt, according to the books o f the Treasury, and
did not,?and could not, include the large sums due to the soldiers o f the great Union army
(num bering at that tim e little less than a m illion o f men) fo r “ pay” and lor “ bounties,” or
on claims o f various kinds which m ust o f necessity have been unsettled. F or the purpose o f
puttin g this m atter right, the Secretary has endeavored to ascertain from the W a r and N avy
Departm ents how m uch o f their respective disbursements, since the close o f the war, has
been in paym ent o f debts properly chargeable to the expenses o f the war. T he follow ing is
the result o f his in q u iries:
B y the W a r Departm ent.................................................................................................... $595,431,125 90
B y the N avy Departm ent................................................................................................... 35,000,000 00
I t has been impossible to obtain an exact statement o f the amount o f such debts paid b y
the N avy Department, but sufiicient information has been received to ju stify the Secretary
in estim ating in round numbers at thirty-five millions, which is probably an under rather
than over estimate. The expenditures o f the W a r Departm ent have been furnished in
detail, and are believed to be substantially correct.
These figures show that the m oney expended b y the W a r and N avy Departments, be­
tw een the first day o f A p ril, 1865, and the first day o f N ovem ber, 1868, on claims ju stly
chargeable to the expenses o f the war amounted to ................................................ $630,431,125 90
T o which should be added amount advanced to the Pacific roads........................ 42,194,000 00
A m ou nt paid for A laska...................................................................................................
7,200,000 00
T otal................................................................................................................................. $679,825,125 93
Deducting this sum from the amount o f the revenues, $1,662,476,062 2 and $160,174,475 48,
the increase o f the public debt—the remainder, $1,142,825,411 78, or an average o f $318,928,021 89 per annum, is the amount actually expended in the paym ent o f current expenses and
interest.
I t is thus shown that w ithin a period o f three years and seven m onths, the revenues or the
receipts fr om all sources o f revenue reached the enormous sum o f $1,662,496,< 62 20, and
that $630,431,125 90 were paid on debts which were actually due at the close o f the war,
and fo r bounties which, like the pay o f the army, were a part o f the expenses o f the war.
A d din g the amount thus paid to the debt, as exhibited b y the books o f the Treasury on the
first day o f A p ril, 1865, it appears that tho debt o f the U uited States at that tim e was
$2,997,386,203 24, and that the actual reduction has been $470,256,650 42; and but for the
advances to the Pacific roads, and the amount paid for A laska, would have been $519,65j ,650 42.
N oth ing can better exhibit the greatness o f the resources o f this young nation than this
statement, or show m ore clearly its ability to make “ short w ork” o f the extinguishm ent
o f the public debt. I t w ill be borne in m ind that these immense revenues have been
collected, while one-third part o f the country was in a state o f great destitution, resulting
from its terrible struggle to separate itself from the Union, with its political condition un­
settled, and its industry in a great degree p aralyzed ; and while, also, the other two-thirds
were slow ly recovering from tliejjdrain upon their productive labor and resources—a neces­
sary accom paniment o f a gigantic and protracted war.
T he Secretary has noticed with deep regret indications o f a grow ing sentiment in Con­
gress—notwithstanding the favorable exhibits which have been made from tim e to tim e o f
tho debt-paying pow er o f the country— in favor o f a postponem ent o f the paym ent o f any
part o f the principal o f the debt until the national resources shall be so increased as to make
the paym ent o f it more easy. I f this sentiment shall so prevail as to give direction to the
a ction ’ o f the Governm ent he w ould feel that a v ery great error had been com m itted, which




442

DEPARTMENT REPORTS.

[January,

could hardly|fail to be a severe m isfortune to the country. T h e people o f the U nited States
w ill never b e so w illing to be taxed for the purpose o f reduciug the debt as at the present
time. Now, the necessity for its creation is better understood and appreciated than it can
b e at a future day. N ow it is regarded by a large m ajority o f tax-payers as a part o f the
great price paid for the m iiatenance o f the Government, and, therefore, a sacrod debt.
The longer the reduction o f it is postponed, the greater w ill be the difficulties in the w ay o f
accom plishing it, and the more intolerable w ill seem to b e the burden o f taxation. T h e Secletary, therefore, renews the recomm endations made in his first report, that a certain d e f i­
nite sum be annually applied to the paym ent o f the interest and the principal o f the
debt. The amount suggested was two hundred m illions o f dollars. A s the debt is con­
siderably smaller than its maximum was estimated at, the amount to be so applied annu­
ally m ight now safely bo fix. d at one hundred and seventy-five millions o f dollars, according
to the estimate air ady made in this repoit.
The subject o f the currency in which the five-twenty bonds m ay be paid—cg'tated fo r some
tim e past—was freely discussed during the recent political canvass, and made a question
upon w hich parties, to some extent, were divided. The premature and unfortunate agi­
tation and discussion o f thisquosti sn have been damaging to the credit o f the Governm ent,
b oth at home and abroad, b y exciting apprehensions that the good faith o f the nation
m ight n ot bo maintained, and have thus prevented our bonds from advancing n price, as th< y
otherw ise would have advanced, a fter it was perceived that the maximum o f the debt h a i
been reached, and have rendered funding at a low rate o f interest too unprom ising to b e un­
dertaken. In his report in 1865, the Secretary ueod the follow ing language :
“ Before concluding his remarks upon the national debt, the Secretary w ould suggest
that the credit o f the five-twenty bonds issued under the acts o f F tbn iary 25, 1862, and
June 30, 18G4, would be improved in Europe, and, consequently, tlieir market value advanced
at home, i f Congress should de clare that the principal as w eli as the interest o f these bonds
is to be paid in coin. The policy o f the Governm ent in regard to its funded debt is w ell
understood in the U nited States, but the absence o f a provision in these acts that the prin­
cipal o f the bonds issued under them should be paid in coin, while such a provision is
contained in the act under which the ten-forties were issued, has created some apprehen­
sion in E urope that the five-tw enty bonds m ight he called in at the expiration o f five y e ir s,
and paid in United States notes. A lth ou gh it is not desirable that our seem it^s should bo
held ou t o f the U nited States, it is desirable that they should be o f good credit in foreign
markets, on account o f the influence w hich these m arkets exert upon our own. I t is, there­
fore, im poitant that all misapprehensions on these points should be rem oved b y an exp li it declaration o f Congress that these bonds are to b e paid in coin .”
W ith out intending to criticise the inaction o f Congress in regard to a m atter o f so
great importance, the Secretary does not hesitate to say that, i f his recomm endations had
been adopted, the public debt would have been m uch less than it is, and that the reduction
o f the rato o f interest w ould ere this have been in rapid progress. T he Secretary does not
think it necessary to discuss the question in this report. H isopinions upon it are well know n
t > Congress and the people. T h ey were definitely presented in his report fo r 1867, and they
rem ain unchanged. H e begs leave m erely to suggest, as lie has substantially done before,
that alleviationof the burden o f the public debt is to bo obtained—not in a decrial o f the
national cred it; not in threats o f repudiation; not iu a further issue o f irredeemable n otes;
n ot in arguments addressed to the lours o f the bondholders; but in a clear and exp licit dee1 r.tio n by Congress that the national faith, in letter and spirit, shall he inviolably maintained;
t h it the bonds o f the U aited States, intended to be negotiated abroad, as well as at home,
are to be paid—when th e time o f paym ent arrives—in that currency w hich is alone recog­
nized as m oney iu the dealings o f nation with nation. L e t Congress say this prom ptly,
and there can be but little doubt that the credit o f the Governm ent w ill so advance that
w ithin the next tw o years the interest ou the larger portion o f the debt can be reduced to a
satisfactory rate. lie , therefore, earnestly recommends that it b e declared, w ithout delay,
by jo in t resolution, that the principal o f all bonds o f the United States is to be ^>aid in coin.
I t is also recomm ended that the Secretary be authorized to issue #500,' 0 \0 Uot bonds, #50,f'O’,000 o f which sh ill mature annu ally; the first $50,nou,"o0 to be payable, principal and
interest, in lawful m oney—the principal and interest o f the rest in coiu ; and also such fu r­
ther amount of bonds a-» m ay lie necessary to take up the outstanding six per cents and the
non-interest bearing debt, payable in coin thirty days after date, and redeemable a t any
tim e after ten years at the pleasure o f the Governm ent—the interest to be paid semi-annu­
ally in coin, and in no case to exceed the rate o f five per c e n t.; provided that the Secretary
m ay, in his discretion, make the principal and interest o f #500,000,0« 0 o f these bouds payable
a t such c ity or cities in E urope as lie may deem best.
T h e fact that, according to the recomm endation, #50,000,000 o f the bonds to be issued are
to becom e due each year for ten consecutive years (at the expiration o f which time all o f the
bonds would be under the con trol o f the Governm ent) would ensure an annual reduction o f
$50,(y0 ',0 mi o f the public debt, and imnart a credit to the other bonds w hich w ould ensure the
negotiation o f them on favorable terms.
O f th e expediency o f an issue o f boixls corresponding, to some extent, in amount with
those held in E urope—the interest and principal o f w h ich shall be paid in the countries
where they are to be negotiated—there can be but little doubt. On this point, tho Secre­
tary used the follow ing language in his report o f I860:
“ The question now to be considered is not how shall our bonds be prevented from going
abroad—for a large amount has already gone, and others w ill follow as long as our credit is
good, and we continue to b u y m ore than we can pay for in any other w ay—b u t how shall
they be prevented from being throw n upon the home market, to thw art our efforts in re­
storing the specie standard 1 The Secretary sees no practicable m ethod o f doing this at an
early day, but by substituting for them bonds, which being payable, principal and interest,
in Europe, w ill be less lik ely to be returned when their return is the least to be desired.




1 8 6 8 .]

443

DEPARTM ENT REPORTS.

The holders o f oa r securities in E urope are now subject to great inconvenience, and not a
little expense in collecting their cou p on s: and it is supposed that five per cent., or, per­
haps, four-and-a-half per cent, bonds, payable in London or Frankfort, could be substituted
f j r o u r six per cents, w ithout any other expense to the United States than the trifling
commission s to the agents through whom the exchanges m ight bo made. T he saving o f in ­
terest to be thus effected w ould bo no inconsiderable item ; and the advantages o f baying
our bonds in E urope placed in the hands o f actual investors is too important to be disre­
garded.’
T he Secretary has nothing further to say on this point than that careful reflection has
only strengthened his convictions o f the correctness o f the view s expressed in the forego­
in g extract.
In recomm ending the issue o f bonds bearing a low er rate o f interest, to be exchanged
for the outstanding six per cents, the Secretary must not be understood as haying changed
his opinion in regard to the expediency or the wisdom o f the recomm endation in his last re ­
port :
“ That the act o f March 3,1865, b e so amended as to author’ ze the Secretary o f the T reasury
to issue six per cent, gold-bearing bonds, to be know n ns the consolidated debt o f the U nit­
ed States, having tw enty years to run, and redeemable, i f it m ay be thought advisable, at
an earlier day, to be exchanged at par for any and all other obligations o f the ^Government,
one-sixth part o f the interest on which, in lieu o f all other taxes, at, each semi-annual pay­
ment, shall be reserved by the Government, and paid over to the States according to
population.”
H e refers to what ho then said in advocacy o f that recommendation, as an expression o f
his well-considered opinions at the present time, and he is only prevented from repeating
the recomm endation b y the fact that it met with little approval at he tlast, session, and
has not grown into favor since. H o sincerely hopes that the future history o f the debt w ill
vindicate the wisdom o f those w ho are unable to approve the proposition.
T he follow ing is a statement o f the public debt o f the 1st o f July, 868:
D E B T B E A R IN G COIN IN TEREST.

5 per cent bonds..................................................................................... $221,588,400 00
6,803.441 80
6 per cent bonds o f 1867 and 1868......................................................
6 per cent bonds, 1881.......................................................................... 2a3,677.200 00
6 per cent 5-20 bonds............................................................................ 1,557,844,600 00
12 , 000,000 00
N avy pension fu n d .............................................................................. .
_______________$2,083,003,641 80
D E B T B E A R IN G C U RREN CY IN TEREST.

6 per cent bond s......................................................... ..........................
3 year com pound interest notes........................................................
3-year 7-30 notes...................................................................................
3 per cent certificates..........................................................................

$29,089,000
21,604,890
25.534.900
50,000,000

00
00
00
00

126,228,790 00

M A T U R E D D E B T N O T PR E S E N TE D F O R PA Y M E N T.

3-year 7-30 notes, due A u gu st 15, 1867, and June 15, and
J u ly 15, 1868.......................................................................................
Compound interest notes, m atured June 10, J u ly 15, A u ­
gust 15, October 15, and Decem ber 15, 1867, and M ay 15,
1368...................................................................................................
Bonds, Texas indem nity.....................................................................
T reasury notes acts J u ly 17, 1861, and prior thereto.............
Bonds, A p ril 15, 1842............................................................................
Treasury notes, M arch 3, 1863...........................................................
Tem porary loan.....................................................................................
Certificates o f indebtedness.............................................................

$12,182,750 00
6,556,920 00
256.000 00
155,111 64
6,000 00

555,492 00
797.029 00
18,000 00

20,527,302 64

D 3 B T 1 E \ .R I* 5 NO INT3THIST.

U nited States notes............................................................................
Fractional C urrency............................................................................
Cold certificates o f deposit................................................................
T otal d eb t................................
A m ou nt in Treasury, coin ..........
A m ou n t in Treasury, currency.

$356,141,723 00
32.626,951 75
17,678,640 00

$2,505,200,516 94

A m ou nt o f debt, less cash in Treasury.
T he follow ing is a statement o f receipts and expenditures for the fiscal
30, 1868:
R eceipts from custom s.......................................................................
164.464.599
R eceipts from lands............................................................................
1,318,715
R eceipts from direct ta x ....................................................................
1,788,145
R eceipts from internal revenue......................................................
191,087,589
R eceipts from miscellaneous sources (of which amount there
was received for prem ium on bonds sold to redeom Treas­
u ry notes, the sum o f $7,078,203 42)...........................................
46,949,033
T otal receipts, exclusive o f loans.




406,447,314 75

........................ $2,636,2)7,049 19
$100,500,561 28
30,505,970 97
_______________ 131,066,532 25

year ending June
66
41
85
41
09

444

[January,

DEPARTMENT REPORTS.

Expenditures fo r the civil service (o f w hich amount there
was paid for premium on purchase o f Treasury notes prior
to m aturity, $7,001,151 004)................................... ....................
E xpenditures for pensions and Indians.........................................
E xpenditures b y W a r D ep artm en t............................................
E xpenditures b y N a vy D epartm ent..............................................
Expenditures for interest on the public debt...............................

$60,011,018
27,883,069
123.246,648
25,775,502
140,424,045

71
10
62
72
71

Total expenditures, exclusive o f principal o f p ublic debt.............................. $377,340,284 86
^ The follow ing is a statement o f receipts and expenditures fo r the quarter ending SeptemThe receipts from custom s.................................................................
The receipts from la n d s .....................................................................
The receipts from direct ta x.............................................................
The receipts from internal revenue................................................
The receipts from miscellaneous sources (o f which amount
there was received from premium on bonds sold to re­
deem Treasury notes the sum o f $587,725 12)..........................

$49,676,594
714,895
15,536
38,735,863

67
03
02
08

6,249,979 97

T otal receipts, exclusive o f loans..........................................................................
E xpenditures for the civ il service (o f which amount there
was paid, as premium on purchase o f Treasury notes prior
to m aturity, $300,000)..................................................................... $21,227,106 33
Expenditures for—
Pensions and Indians........................................................
12,358,647 70
W a r Departm ent...............................................................
27.219,117 02
N avy Departm ent.............................................................
5,604,785 33
Interest on public d eb t....................................................
38,742,814 37

$95,392,868 77

Total expenditures, exclusive o f principal o f p ublic debt............................. $105,152,470 75
The Secretary estimates that, under existing laws, the receipts and expenditures fo r the
three quarters ending June 30,1869, w ill be as follow s:
F rom Custom s....................................................................................... $125,000,000 00
L a n d s ...........................................................................................
1,000,000 ( 0
Internal revenue....................................................................... 100,000,000 00
M iscellaneous sources..............................................................
20,000,010 00
R eceip ts.....................................................................................................
$246,000,000 00
A n d that the expenditures for the same period, i f there be no reduction o f the army,
w ill b e:
F or the civ il service............................................................................ $40,000,000 00
Pensions and Indians.................................................................
18,000,000 00
W a r Department, including $6,000,000 bounties...............
66,000,000 00
N avy Departm ent........................................................................
16,000,000 00
Interest on p u b lic d eb t...............................................................
91,000,000 00
E xpenditures.................................................................................................... $231,000,000 00
The receipts and expenditures under existin g laws for the fiscal year ending June 30, 1870,
are estimated as fo llo w s :
From Custom s.........................................................................................$160,000,000 00
Internal revenue....................................................................... 140,000,000 00
Lands............................................................................................
2,000,000 00
M iscellaneous sources.............................................................
25,000,000 00
R eceipts..................................................................................................................... $327,000,000 00
The expenditures for the same period, i f the expenses o f the arm y should be k e p t up to
about the present average, w ill be as fo llo w s :
F or the civ il service.............................................................................. $50,000,00000
Pensions and Indians.................................................................
30,000,000 00
W a r D epartm ent.............................................................................
75,000,00000
N a vy D epartm ent............................................................................
20,000,00000
Interest on public debt................................................................. 128,000,00000
E xpenditures.................................................................................................... $3' 3,000,000 00
The accom panying report o f the Comm issioner o f Internal R evenue gives the necessary
inform ation in regard to the bureau, and contains m any v ery judicious recommendations
and suggestions, which are w orthy the careful consideration o f Congress.
The internal branch o f the revenue service is the one in w hich the people feel the deepest
interest. The custom s duties are collected at a few points, and although paid eventually
b y the consumers, they are felt only by the great mass o f the people in the increased cost
ot' the articles consum ed. N ot so with the internal taxes. These are collected in every part
o f the Union ; and their burdens fall, to a large extent, directly upon the tax-payers. A s ­
sessors, collectors, inspectors, detectives — necessary instrum ents in the collection o f
the revenues— are found in every part o f the country. There is no village or rural district
where their faces are n ot seen, and where collections are not made. The eyes o f the whole
people are therefore directed to this system, and it is o f the greatest im portance that
its administration should be such as to entitle it to p ublic respect. U nfortunately this is




%

1868.]

DEPARTMENT REPORTS,

445

not the case. Its demoralization is a d m itted ; and the question arises, where is the rem ed y!
The Secretary is o f opinion that it is to he found in suchamendments to the act as w ill
equalize the burdens o f taxation, and in an elevation o f the standard o f qualification for
revenue ofiices.
U pon the subject o f internal taxes the Secretary has already spoken. In regard to the
character o f the revenue officers, he has only to say that there must be a decided change
for the better in this respect, i f the system is to b e rescued from its dem oralized con di­
tion .
A fte r careful reflection the Secretary has com e to the conclusion that this change
would follow the passage o f the bill reported b y Mr. Jenckes, from the Joint Comm ittee
on R etrenchm ent and Reform , on the 14th o f M ay last, entitled *'A bill to regulate the
civil service and prom ote the efficiency th e re o f/’ The Secretary gives to this bill his hearty
approval, and refers to the search w hich was made upon its introduction, b y the gentle­
man who reported it, for an able and lucid exposition o f its provisions, and for a
truthful and graphic description o f the evils o f the present system o f appointments to
office.
On the 5th day o f October last, the day for their regular quarterly reports, the number
o f national banks was sixteen hundred and forty-four, soyenteen ox which were in volunt­
ary liquidation.
T heir
T heir
Their
Their

capital was........................................................................................................................ $420,034,51100
discounts............................................................................................................................. 055,875,27735
circulation................................................................................................................... 295,084.214 ( 0
deposits.............................................................................................................................. 601,830,21840

In no other countryfwas so large a capital ever invested in banking, under asingle system,
as is b o w invested in the national banks ; never before were the interests o f a people so
interw oven with a system o f banking as are the interests o f the people o f the U nited States
w ith their national banking system . I t is not strange, therefore, that the condition and
management o f the national banks should be, to them and to their representatives, a m atter
o f the deepest concern, That the national banking system is a perfect one is not asserted
b y its frie n d s ; that it is a v e ry decided im provem ent, as far as circulation is regarded,
upon the system s w hich it has superseded, m ust he admitted b y its opponents. B efore it
was established, the several States, whether in con form ity with the Constitution or not—
join tly with the General Government, during the existence o f the charter o f the U. S. Bank,
and solely after the expiration o f that charter—exercised the pow er o f issuing bids o f
credit, in the form o f hank notes, through institutions o f their own creation, and thus con ­
trolled the paper mouey, and thereby, in no small degree, the business and com m erce ot
the country. In M ay, 1863, when the National Currency Bureau was established in
W ashington, some fifteen hundred banks, organized under State laws, furnished the people
o f the U nited States with a hank note currency. In some o f the States the hanks were com ­
pelled to protect, partially at least, the holders o f their notes against loss, b y deposits
o f securities w ith the proper authorities. In other States, the capital o f the banks ^tnat
capital being w holly under the control o f their managers) was the only security for the
redem ption o f their notes. In some States there was no lim it to the amount o f notes tLac
might be issued, i f secured according to the requirem ents o f their statutes, nor any necessary
relation o f circulation to capital. In others, while notes could bo issued only in certain
proportions to capital, there was no restriction upon the number o f banks that m ight fee
organized. The no es o f a few banks, bein '; payable or redeemable at com m ercial centres,
were current in m ost o f the States, while the notes o f other banks (perhaps ju st as solvent)
were uncurrent beyond the lim its o f the States by whose authority they were issued.
H ow valuetess were the notes o f m any o f the State banks is still keenly remem bered by
the thousands who suffered by their insolvency. The d irect losses sustained by the people
b y an unsecured bank-note circulation, and the indirect losses to the cou ntry resulting from
deranged exchanges, caused b y a local currency constantly subject to the m anipulations o f
m oney-changers, and from the utter unsuitableness of* such a currency to the circum stances
o f the country, can be counted b y m illions. I t is only necessary to compare the circulation
o f the State banks w ith that furnished by the national banks, to vindicate tho superi­
ority o f the present system. U nder the national banking system, the Government, which
authorizes the issue o f hank notes, and compels the people to receive them as m oney,
assumes its ju s t responsibility, and guarantees their paym ent. This is the feature w hich
especially distinguishes it from others, and gives to it its greatest value.
T he ob ject o f the Secretary, however, in referring to the national hanks, is not to extol
them, hut to call the attention o f Congress to the accom panying instructive report o f the
Comptroller o f the Currency, especially to that part o f it which exhibits the condition and
management o f the banks in the com m ercial m etropolis, and t o the amendments proposed
b y him to the act.
On tho fifth day o f October last, the loans or discounts o f the hanks in the City o f N ew
Y o r k amounted to $163,634070 23 only $90,000,000 o f which consisted o f commercial paper,
the balance, being chiefly made up o f what are know n as loans on call—that is to say, o f
loans on collaterals, subject to be called in at the pleasure o f the bauks. M erchants or man­
ufacturers cannot, o f course, borrow on such terms, and it is understood that these loans
are confined m ainly to persons dealing, or rather speculating, in stocks or coin.
This
statement shows to what extent the business o f the hanks in N ew Y o rk has been diverted
from legitim ate channels, and how deeply involved the hanks have becom e in the un­
certain and pangerous speculations o f the street.
The deposits o f these institutions on the day m entioned amounted to $226,645,655 80,
and o f their assets, $113,332,688 20, consisted o f certain cash items which were in fact
m ainly certified checks, which had been passed to the credit o f depositors, and con sti­
tuted a part o f the $226,645,655 80 o f deposits, although the hanks always deduct such checks
from their deposits in m aking up their statement for the paym ent o f interest, and




446

departm ent

reports.

[January,

their estimates for reserves. I t is understood to bo the practice o f a number o f the
banks (perhaps the p ractice exists to a lim ited extent in all) to certify the ch ecks o f
their customers in advance o f the deposits out o f w hich they are expected to be p a id ; in
other words, to certify checks to b e good, under an agreem ent between the banks and the
drawers, that the m oney to protect them shall be deposited during the day, or at least before
the checks, w hich go through the clearing-house, can be presented for paym ent. The
Secre tary has learned w ith great surprise that a num ber o f banks—generally regarded as
being under judicious management—certify in a single day the checks o f stock and gold
brokers to m any tim es the amount o f their capitals, w ith no'm oney actually on deposit for
the protection o f the checks at the tim e o f their certification. A more dangerous practice,
or one m ore inconsistent w ith prudent, not to say honest banking, cannot b e conceived.
I t is unauthorized b y the act, and should b e prohibited b y severe penalties.
A sid e
from the risk incurred b y this reckless m ethod o f banking, the effect o f such practice is to
foster speculation by creating inflation. I t is in fact part and parcel o f that fictitious
credit which is so injurious to the regular business o f the city, and to the business o f
all parts o f the country, w hich feel and are affected b y the pulsations o f the com m ercial
centre. I t is this very dangeroue practice, com bined w ith the m ore general practice o f
m aking loans “ on ca ll,” which leads to unsafe extensions o f credits, and m akes m any o f the
banks in N ew Y ork helpless when the m oney m arket is stringent. Can anything be m ore
discreditable to the banks o f the great emporium o f the country, or afford m ore conclusive
evidence o f their imprudent management, than the fact, that w ith a capital—including their
surplus and their undivided profits—o f one hundred m illions o f dollars, the withdrawal
from circulation o f ten or fifteen m illions o f legal-tender notes, b y com binations for specu­
lative purposes, can create a m oney stringency, b y which not only the stock m arket is
broken down, but the entire business o f the city and to some extent the business o f the
country is injuriously affected. I f the banks were no more extended than they ought to be,
or had "proper control over theircustom ers. no such com binations w ould be likely to bo
formed, or i f form ed, they w ould utterly fail o f their object.
These remarks do not. o f course, apply to all the banks in N ew Y o rk , for some o f them
are strictly com m ercial institutions, and are under the control o f men who are distinguished
alike lor their talents and their conservatism. T hey are, however, applicable to them as a
class, and they undoubtedly apply in some measure to m any banks in other cities.
The recommendation o f the Comptroller, that all national banks be p rohibited b y law
from certifyin g checks which are not drawn upon deposits actually existing at the tim e
the checks are*certified to be good, is heartily concurred in.
The Secretary has long entertained the opinion that the p ractice o f paying interest on
deposits—tending, as it does, to keep the banks constantly extended in their discounts—is
injudicious and unsafe H e therefore approves o f the recomm endation o f the Comptroller,
that national banks be prohibited from paying interest on bank or individual balances.
The Secretary also agrees w ith the Comptroller in his recom m endation that authority
be given to him to call upon the banks for reports on days to be fixed b y him self. I f a
reserve is necessary, it should be kept constantly on hand, and the business o f the cou ntry
ought not to be disturbed by the preparation o f the banks fo r the quarterly reports.
The view s o f the Secretary in regard to the necessity o f a central redeem ing agency for
the national banks have been frequently presented, and it is not necessary for him to
repeat them.
There are other suggestions in the C om ptroller’s report deserving the attention o f Con­
gress, which the Secretary lacks the tim e to consider. There is one subject, however, not
discussed b y the Comptroller, to w h ich the Secretary invites special attention.
A lthough the national banking system should be relieved from the lim itation now imposed
upon the aggregate amount o f notes that m ay be issued, this cannot safely be done as lon g as
the suspension o f specie paym ents continues.
Nevertheless, measures should at once be
adopted to rem edy, as far as practicable, the inequality w hich exists in the distribution o f
the circulation. A s the G overnm ent has, b y the tax upon the notes o f State banks, deprived
the States o f the pow er o f furnishing facilities to their citizens, it is obviously ju st that
those States, w hich are thus deprived o f these facilities, or w hich do n ot share equally
w ith other States in the benefits o f the national banking system, should bo supplied w ith
b oth banks and notes. There are tw o m odes b y w hich this m ay be accom plished. One b y
reducing the circulation o f the banks o f large capital o n ly ; the other b y lim iting the amount
o f notes to be furnished to all the banks—say, to seventy per cent, o f their respective capi­
tals. The latter m ode is preferable, as b y it no discrim ination would be made betw een
the banks, and all would be strengthened b y a reduction o f their liabilities, and b y a
release o f a part o f their means now deposited w ith the Treasurer, w hich would b e o f
m aterial service to them in the preparation they m ust make for a return to specie paym ents.
I f a redeem ing agency should be established, the reduction o f the circulation o f the existin g
banks could be effected as rapidly as new banks can b e organized in the W estern ana
Southern States, where they are needed.
The new Territory o f Alaska has been the ob ject o f m uch attention during the past year,
b u t its distance, and the uncertainty and infrequency o f com m unication w ith it, and our
im perfect know ledge o f its condition, have somewhat embarrassed the department in organ­
izing therein a satisfactory reyenue system.
U nder the authority o f the act o f the last session, the administration, by special a gency
(which in the absence o f the regular m achinery was o f necessity resorted to) has been
superseded b y the appointm ent o f a collector to reside at Sitka, w ho le ft fo r his p ost in
Septem ber last, and lias probably, ere this, entered upon the discharge o f his duties.
A gentleman from this department accompanied him, to assist in establishing the collec­
tion service on a proper foundation, and in p erfectin g arrangements fo r the prevention o f
smuggling.




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DEPARTM ENT REPORTS.

447

R ecogn izing also the vast im portance o f reliable inform ation on m atters n ot imm e­
diately connected w ith these objects, b u t having nevertheless a m ost im portant bearing
upon them, more or less direct, another agent, long familiar w ith that country, was, a t the
same tim e, dispatched w ith directions to apply him self to the ascertainm ent o f its natural
resources, the inducements and probable channels o f trade, and the needs o f com m erce in
the w ay o f lights and other aids to navigation. H e was also particularly entrusted w ith a
supervision o f the fur interests and the enforcem ent o f the law prohibiting the killing o f
the m ost valuable fur-bearing animals.
The existence o f coal at numerous points has been know n for years, and some o f the
beds w ere worked b y the Russians w ith indifferent su ccess; none, however, has been
hitherto procured on the N orth A m erican Pacific coast equal to that from the Nanaimo
mines, on V an couver’s Island ; and this, though raised from a considerable depth, is not
o f superior quality. The officers o f the cutters were therefore instructed to explore the
coast as far as practicable, for the purpose o f ascertaining the supply and the qualit y o f coal
in the T erritory. A num ber o f localities producing coal were visited, including the aband­
oned Russian mines, b u t at none did the outcroppings exhibit any flattering promise,
except on the coast o f C ook ’s inlet. There, near P ort K enay, about seven hundred miles
from Sitka, were found upon the cliffs numerous parallel veins extending m any miles
along the shore. Some o f the coal taken from them proved to bo superior to that from the
Nanaimo mines. The indications are that the supply is abundant and the quality fair.
T he protection o f the fur-bearing animals is a m atter o f importance hardly to b e overrated.
In consequence o f in formation received last spring, the captain o f the W ayanda was directed
to visit, as early in the season as practicable, the islands in Behring’s Sea. where the fur
seal chiefly abounds. On his arrival at St. Paul’s and St. George’s Islands, he found
there several large parties engaged in hunting the animals indiscrim inately, and in traffic
w ith the natives in ardent spirits and other forbidden articles. Quarrels had arisen, and
the natives complained that the reckless an d _unskilful m ovem ents o f the new hunters
had already driven the animals from some o f their usual haunts. The captain o f the cutter
in stitu ted ’s uch measures as he felt authorized to institute for the maintenance o f the peace,
and the protection o f the animals from indiscriminate slaughter.
T he preservation o f these animals, by the observance o f strict regulations in hunting
them, is n ot only a m atter o f the highest im portance in an econom ical view , but a m at­
ter o f life or death to the natives. Hitherto, seals have been hunted under the supervision
o f the Russian Company, and exclusively b y the natives, who are trained from children to
that occupation, and derive from it their clothing and subsistence. T hey have been gov­
erned b y exact and stringent rules as to the tim e o f hunting, and the number and kind o f
seals to b eta k en . I t is recomm ended that these rules be continued b y legal enactment,
and that the existing law prohibiting absolutely the killin g o f the fur seal and sea otter be
repealed, as starvation o f the people w ould result from its strict enforcement. The natives
(w ith the exception o f the Indians in the southern part o f the territory, who are fierce and
warlike) aie a gentle, harmless race, easy to govern, but o f great enterprise and daring in
the pursuit o f gam e—m any o f them passing annually in their skin canoes from the m ain­
land and A leutian Islands to the Islands o f St. Paul and St. George, a distance o f about
one hundred and fifty miles, through a strong sea, and returning w ith the proceeds o f their
hunt.
T h e seals are extrem ely tim id and cautious. They approach their accustom ed grounds
each year with the greatest circum spection, sending advance parties to reconnoitre, and at
once forsaking places where they are alarmed b y unusual or unwelcom e visitors. T h ey have
been in this way driven from point to point, and have taken refuge in these rem ote islands,
whence, i f they are now driven, they must resort to the A siatic coast. There can be no doubt
that, w ithout proper regulations for hunting these valuable animals, and the m ore valuable
but less numerous sea otters, a v ery profitable trade w ill soon be entirely destroyed.
T he U nited States cannot, o f course, administer such a trade as a Governm ent m onopoly,
and the only alternative seems to bo to grant the exclusive privilege o f taking these ani­
mals to a responsible com pany for a series o f years, lim iting the number o f skins to bo
taken annually b y stringent provisions. A royalty or tax m ight be imposed upon each
skin taken, and a revenue b e thus secured sufficient to pay a large part o f the expenses o f
the T erritory.
Our relations w ith the H udson Bay Company and the regulation o f the transit o f m er­
chandise between their interior trading posts and the sea-coast, by way o f Stikine river, w ill
doubtless require early attention, but at present the Secretary is not sufficiently advised to
offer any recomm endations upon the subject.
T he recent political changes in Spain, and the indications o f a m ore liberal com m ercial
policy on her part before the revolution took place, adds force to the rem arks and recom ­
mendation o f the Secretary in his last report, in regard to our com m ercial relations with that
country, H e again strongly recommends the repeal o f the acts o f J u ly 13. 1832, and June
30, 1834, so that Spanish vessels m ay be subject to our general laws, which are ample to
afford protection against unfriendly Spanish legislation, and are free from the innumerable
difficulties o f administration which exist under these special enactments.
T he Secretary asks attention to the necessity o f m ore exact and stringent laws respecting
the carriage o f passengers, and also o f such legislation as shall settle, so far as they can
be settled in this manner, some o f the vexed questions arising under steamboat laws.
I t is necessary m erely to repeat what has been at other tim es stated in regard to the in­
sufficiency o f the ta x fund to m eet the necessary expenses o f the marine hospitals, not­
withstanding the econom y which, during the past year, has reduced the expenditures m ore
than $12,000. I t is impossible to ignore the fact that these hospitals are, and m ust bo, unless
the rate o f ta x is greatly increased, a constant drain upon the Treasury.




448

DEPARTMENT REPORTS.

[ J anu ary,

The revenue cutter service now comprises twenty-five steamers and seventeen sailing ves­
sels. O f the six steamers on the lakes, all but one are at present, agreeably to the view s
o f Congress, out o f commission, the Sherman alone being in active service.
F ive o f the steamers on the sea-coast are small tugs, from forty to six ty tons burden, the
utility and efficiency o f which at the leading ports—as substitutes for ordinary row boats
on the one hand, aiid for the light cutters ou the other, both in the harbor duties o f in­
spection and police, and in the prevention and detection o f sm uggling—have been so thor­
oughly tested by experience that it is thought they should b e em ployed still m ore extensively
them they now arc. Upon the lakes in particular they would be o f the greatest value,
and they should bo substituted for the large steamers how there, which should, with one
exception, be sold, as they are depreciating in value and are a useless expense. The excep ­
tion is the S. P. Chase, which is o f such dimensions that she m ight be brought to the seacoast, where she could be used to advantage. This would probably be preferable to a sale
o f her where she lies. The schooner Black, being old and not fit fo r further service, has
been sold. The Morris, also, is about to b e disposed o f for the same reason. T he steamer
IS'emaha, stationed at N orfolk, has been destroyed by accidental fire.
On the P acific coast are the W ayauda, in Alaska, and the L incoln, at San Francisco, b oth
in excellent con d ition ; the schooner Reliance, recently ordered to Sitka, is also in good
order. The schooner Lane, at Puget Sound, is old and unfit for the requirem ents o f that
station.
The addition o f several thousand miles o f soa-coast, by the purchase o f Alaska, renders
the cutter force in the Pacific inadequate for even the ordinary duties pertaining to the
service, w ithout regard to the additional demands upon it for the "protection o f the fur-hear­
in g animals.
The recomm endation heretofore made that tw o first-class steamers be
b uilt or purchased for the W estern coast is therefore renewed. A steam-cutter is also
needed for Charleston, andoue for the coast o f Texas.
Iu his report for the vear 186(5, the Secretary called the attention o f Congress especially to
the condition o f the shipping interest o f the United States. In his report o f last year, ho
again referred to it in the follow ing la n gu age:
“ The shipping interest o f the U nited States, to a great degree prostrated b y the war, has
not revived during the past year. Our shipyards are, w ith rare exceptions, inactive. Our
surplus products are being chiefly transported to foreign countries in foreign vessels. The
Secretary is still forced to admit, in the language o f his last report, ‘ that w ith unequaled
facilities lor obtaining the materials, and w ith acknowledged skill in shipbuilding, w ith
thousands o f miles o f sea-coast, indented with the finest harbors in the world, with surplus
products that require in their transportatiou a large and increasing tonnage, we can n ei­
ther profitably build ships, nor successfully com pete w ith English ships in the transportation
o f our own p roductions/
“ N o change for the better has taken place since that report was made. On the contrary,
the indications are that the great shipbuilding interest o f the Eastern and M iddle
States has been steadily declining, and that, consequently, the U nited States is gradually
ceasing to be a great m aritime power. A return to specie paym ents w ill do m uch, but w ill
n ot be sufficient, to avert this declension and give activity to our shipyards. T he m ate­
rials which enter into the construction o f vessels should be relieved from taxation b y means
o f d ra w b a ck s; or i f this m ay bo regarded as impracticable, subsidies m ight be allow ed as
an offset to taxation. I f subsidies are objectionable, then it is recommended that all restric­
tions upon the registration o f loreign-built vessels be rem oved, so that the people o f the
U nited States, who cannot profitably build vessels, m ay bo perm itted to purchase them in
the cheapest market. I t is certainly unwise to retain upon the statute books a law restrict­
ive upon com m erce when it no longer accom plishes the ob ject for which it was enacted.”
W h a t was said b y the Secretary in 1866 and 1867 upon this subject is true at the present
t i m e , and he therefore feels it his duty to repeat his recommendations.
The shipping in­
terest was not only prostrated b y the war, b u t its continued depression is attributable to
the financial legislation, and the high taxes consequent upon the war. T he honor and the
w elfare o f the country demand its restoration.
A ccom panying this report there is a very accurate and instructive chart, prenared b y
M r. S. Nimino, Jr., a clerk in this department, which presents, in a condensed form, the
progress o f shipbuilding in the U nited States from 1817 to 1868.
Since the abrogation o f the treaty o f June 4, 1854, betw een the U nited States and Canada,
no favorable opportunity for a reconsideration o f the com m ercial relations o f the tw o
countries has been presented. Canada has yet to consolidate a p olitical confederation with
the other English colonies and possessions on this continent, amt until the hostility o f N ova
Scotia to that measure is rem oved, and the concurrence o f N orthwest British A m erica is s< cured, the authorities at Ottawa are in no situation to make an adequate proposition to the
U nited States, in exchange for the great concession o f an exceptional tariff, on our northern
frontier, in favor o f the leading Canadian staples. On the other hand, until the United States
shall have fully matured a satisfactory system o f duties, external as w ell as internal, the
Secretary would he indisposed to favor any special arrangement which w ould rem ove any
material branch o f the revenue system from legislative control. Meanwhile, a Canadian
p olicy fo r the enlargement o f the W elland and St. Lawrence Canals to dimensions adequate
to pass vessels o f one thousand tons burden from the U pper Lakes to the A tlantic, w ill doubt­
less be regarded as indispensable to any substantial renewal, b y treaty o r legislation, o f the
form er arrangement. The discussions and experience o f the last tw elve m onths are regarded
b y the Secretary as warranting an authoritative com parison o f view s betw een the "repre­
sentatives o f Great Britain and Canada and the Governm ent o f the U nited States; and in
that event this department w ill cheerfully contribute, b y all appropriate means, to com pre­
hensive measures which shall assimilate the revenue system s o f the respective countries,
make their m arkets m utually available, and, for all com m ercial or social purposes, render




1869.]

DEPARTMENT REPO RTS.

449

the frontier as nearly an imaginary line as possible. There certainly seems no ju s t reason
w h y all the com m unities on the A m erican continent m ight not imitate the exam ple o f the
Z oll Y erien o f the German States.
The progress o f the coast survey has been satisfactory, and commensurate w ith the appro­
priations, as w ill be seen from the annual report o f the superintendent o f that w ork. D u r­
in g the past year surveys have been in progress in the follow ing localities, named in g e o ­
graphical order, v i z : On the coast o f Maine, in Penobscot bay and on the islands lyin g w ithin
its entrance; on the shores o f St. G eorge’s and M edonick riv ers; in Muscougus b a y ;
on the estuaries o f Quolog bay, and in the v icin ity o f P ortland; com pleting all the
in-sliore w ork betw een the Penobscot and Cape Elizabeth. In Massachusetts, betw een the
Barnstable and M onomay, com pleting the survey o f Cape Cod. In Rhode Island, on the
western part o f N arragansett bay. In N ew Y ork, at Eondout and in tbe bay o f N ew Y ork.
In N ew Jersey, on the coast near the head o f Barnegat bay. In M aryland and Virginia,
on the Potom ac river and the southern part o f Chesapeake bay. In N orth Carolina, in Pam ­
lico sound and on its western shore, including Neuse and Bay rivers, and o f the coast north
o f Hatteras. In South Carolina, on the estuaries o f P ort R oyal sound. In Georgia, on St.
Catherine’s, D obcy, and St. A n d rew ’s sou n d s; in the Florida straits and in the bay betw een
the keys and main shore o f Florida. On the coast betw een Pensacola and M obile entrances.
A t the passes o f the Mississippi, and in Galveston, Matagorda and Corpus Christi bays, on
the coast o f Texas. In California surveying parties have been at w ork on the coast betw een
Buenaventura and Santa Barbara, at P oin t Sal, and on the peninsula o f San Francisco. In
Oregon, on Yaquinna bay, Columbia and Uehaleur rivers. I n W ashington T erritory, on F uca
straits and in P uget sound.
In the Coast Survey Office, forty-eight charts have been entirely or partially engraved dur­
in g the year, o f w hich nineteen have been published. R egular observations o f the tides at
seven principal stations have been kept up, and tide tables for all parts o f the U nited States,
fo r the ensuing year, have been published. A new edition o f the D irectory or Coast P ilot
for the western coast has been prepared, and a prelim inary guide for the navigation o f the
north-western coast has been compiled.
This b rie f glance at the operation o f the Coast Survey during the past year shows the great
scope o f that work, which has ju stly earned a large measure o f public favor. Its im portance
to the com m erce and navigation ot the cou ntry are now w ell understood, nor can its in ci­
dental contributions to science fail to b e appreciated b y the representatives o f the people.
T he w ork should be pressed steadily forward, w ith means sufficient for the m ost effective
w orking o f the existin g organization, so that it m ay embrace, at no distant period, the whole
o f our extended coast line w ithin its operations, including the principal harbors in our new ly
acquired Territory o f Alaska.
T he report o f the Lighthouse Board is, as usual, an interesting one. N o bureau o f the
T reasury Departm ent is conducted w ith m ore ability, or w ith a m ore strict regard to the
p ublic interests than this.
In view o f the extension o f the lighthouse system consequent upon the increase o f the
com m erce o f the cou ntry and the acquisition o f sea-coast territory, it is respectfully sub­
m itted that some authoritative definition o f the lim it to which aids to navigation shall bo
extended b y the General Governm ent should b o established.
I t m ay w ell be doubted whether the General G overnm ent should .be called upon to do
m ore than to thoroughly provide the sea and lake coasts w ith lights o f high order, b oth
stationary and floating, and so to place lights o f inferior ord er as to enable vessels to reach
secure anchorages at any season ot the year.
The act o f Congress approved A u gu st 31, 1852, establishing the Lighthouse Board, directs
that the coasts o f the U nited States shall be divided into twelve districts. I t is recomm ended
that authority be given to increase the number o f d istricts to fourteen.
T he business o f the bureau w ould be facilitated i f Congress should con fer the franking
p rivilege upon the Lighthouse Board, in the same manner and upon the same term s as it
is now exercised b y the several bureaus o f the Treasury Departm ent.
T he attention o f Congress is called to the annual report o f the D irector o f the M int, w hich
contains the usual statistics o f the coinage o f the country, and various suggestions and
recomm endations, which are w orthy o f consideration.
T he total value ot' the bullion deposited at the m int and branches during the fiscal year
was $27,166,318 70, o f w hich $25,472,894 82 was in gold, and $1,693,423 88 in silver. Deductionthe redeposit, the amount o f actual deposit was $24,591,325 84.
T he coinage fo r the year w a s: In gold coin, $18,114,425; gold bars, $6,026,810 06silver coin, ©1,136,750; silver bars. $456,236 40; nickel, copper, and bronze coinage, (one*
two, three and five-cent pieces,) $1,713,385; total coinage, $20,964,560; total bars stamped’
$6,483,046 54.
’
T he gold deposits o f dom estic production w e r e : A t Philadelphia, $1,300,338 53; at San
F r a n c i s c o , $14,850,117 84; at N ew Y ork , $5,409,996 55; at Denver, $357,935 11. The silver
deposits w ere: A t Philadelphia, $67,700 78; at San Francisco, $651,239 05; at N ew Y ork
$262,313 06; at D enver, $5,082 67.
T he gold and silver deposits o f foreign p roduction were $1,686,602 35. The a m o u n t o f
coined at Philadelphia was $3,864,425; at San Francisco, $14,979,558 52; o f silver at
f old
hiladelphia, $314,750; at 8an Francisco, $822,000; o f nickel, copper, and bronze at P hila­
delphia, $1,713,385. Total number o f pieces struck, $49,735,840.
T he branch mint at D enver has n ever coined money, and its expenses are entirely ou t o f
proportion to its business. The law under w h ich it was organized should b e repealed
and the institution reorganized as an assay office.
D uring the past year the branch m int buildin g at Carson City, Nevada, has been com pleted
and the necessary m achinery and fixtures have been forwarded. I t w ill be ready fo r work
early next season.




450

DEPARTMENT

REPORTS.

[ December,

T h e m int at Philadelphia and the branch m int at San Francisco have the confidence o f
the people and o f the Governm ent, and -when the new m int building in San F rancisco is
erected, these m ints w ill be o f ample capacity to supply coinage for the w hole country. The
business o f coinage requires large and expensive establishments, under charge o f m en o f
science and undoubted in te g rity ; and such can be successfully maintained only at com ­
m ercial centres, where bullion o f different degrees o f fineness is continually offered for
manipulation. The establishment o f additional branch m ints is, therefore, unnecessary,
and w ould be injudicious.
The entire deposits at the branch m in t in San Francisco were form erly in unparted bul­
lion ; now nearly two-thirds o f the amount is deposited in bars, refined b y private establish­
ments. The law requires that the parting charge shall equal the actual cost o f the process:
b u t the experience o f the past four years shows that not less than th irty thousand dollars an­
nually m ay b e saved to the Governm ent b y discontinuing the business o f refining upon the
Pacific coast, and it is, therefore, recomm ended that the Secretary be authorized to exchange
the unparted bullion deposited at the m int for refined bars, w henever in his opinion it m ay
b e for the p ublic interest to do so.
I t is also recomm ended that authority be given fo r the redem ption o f the one and twocen t pieces b y the Treasurer, under such rules and regulations as m ay be prescribed by the
department.
On the first day o f A p ril last M r. R . W . Raym ond was appointed Commissioner o f M ining
Statistics, in place o f M r. J. Ross Browne, now Commissioner t o China.
Mr. Raym ond was instructed to continue the w ork so ably com m enced b y his predecessor,
and his report w ill show w ith what diligence and ability he is perform ing the duties as­
signed to him. The Secretary invites the attention o f Congress to this report, and asks for the
recommendations which it contains due consideration.
T he follow ing extract, from the Secretary’s report o f 1867, presents, in language w hich
he cannot m ake m ore explicit, his present v ie w s :
“ The Secretary respectfully recomm ends the reorganization o f the accounting offices
o f the Treasury Department, so as to place this branch o f the public service under one
responsible head, according to what seems to have been designed in the original organiza­
tion o f the department, and followed until the increase o f business led to the creation o f
the office o f Second Comptroller, and subsequently to that o f Commissioner o f Customs.
There are now three officers controlling the settlem ent o f accounts, each independent o f the
others, and, as a consequence, the rules and decisions are not uniform where the same or
lik e questions arise. In the judgm ent o f the Secretary, the concentration o f the ac­
cou ntin g offices under one head w ould secure greater efficiency, as well as greater uniform ­
ity o f practice, than can be expected under a divided supervision. I t is believed, also, that
it w ould be advantageous to relieve the Commissioner o f Customs o f the duty o f settling ac­
counts, and to confine his labors to the supervision o f the revenue from customs, now suffi­
ciently large to demand his whole tim e. I t is therefore recomm ended that the office o f C hief
Com ptroller be created, having general supervision o f the accounting officers, and appellate
ju risd iction from their d ecision s: to w hich should be transferred the duty o f exam ining
and countersigning warrants on the Treasury, and o f collecting debts due the Governm ent,
n ow constituting a part o f the duties o f the F irst C om ptroller; and that the adjustment
o f accounts pertaining to the custom s b e restored to the latter office.
“ The Secretary also renews the recom m endation contained in his last annual report,
o f a reorganization o f the bureaus o f the department, and most respectfully and earnest­
l y solicits for it the favorable action o f Congress. The com pensation now paid is inade­
quate to the services perform ed, and simple ju stice to gentlem en o f the ability and character
o f those em ployed in the department requires a liberal addition to their present com pensa­
tion. Since the rates o f com pensation now allowed w ere established, the duties, labors,
and responsibilities o f the bureaus have been largely increased, and the necessary e x­
penses o f livin g in W ashington have been m ore than doubled.”
The Secretary, also, again recom m ends that a change be made in regard to the adjustment
and settlement o f accounts in the office o f the T hird A u d ito r ; that a period be fixed w ithin
w hich war claims shall be presented, and that measures be adopted to perpetuate testim ony
in ca ses o f claims that aredi:allow ed.
The able rep ort o f the Treasurer gives a detailed account o f the operations o f the T reasury
during the last fiscal year, and contains m any valuable suggestions for the consideration o f
Congress.
The report of the Supervising Architect gives full and detailed accounts o f the progress that
has been made in the construction o f public buildings.
The reports o f the heads of all the respective bureaus will he found to he o f unusual interest—
containing, as they do, accurate information in regard to the affairs o f the Government in this
interesting period o f its history.
Mr. S. M. Clark having resigned the office of Superintendent of the Bureau o f Engraving and
Printing, Mr. G. B. McCartee has been placed temporarily in charge of it. As the past management
and present condition of this bureau are now under investigation by the Joint Committee on Re­
trenchment and Reform, the Secretary feels at liberty on.v to say. at this time, that, from the
examinations which lie has caused to be made by officers and clerks o f this department, be feels
justified in remarking that the reports which have been at various times put in circulation in
regard to over issues o f notes or securities, and o f dishonesty in the administration o f the bureau,
are uufounded.
A systematic effort is being made to reduce the expenses o f the administration o f the customs
service, and with considerable success. The process is necessarily slow and beset with difficul­
ties; but material reduction has been already made, and still greater is in progress.
During the war the business o f the Treasury Department was so largely and rapidly increased,
and so many inexperienced men necessarily employed, that perfect order ana system could
not be enforced. Many accounts were unsettled, and some branchess o f business had fallen into
confusion. Much attention has been given by the Secretary “ to straightening up ” the affairs o f
the Department. He is now gratified in being able to say, that order and system have been
ntroduced where they were found to be needed; that the bureaus are in good working order, and




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D E P A R T M E N T R EPO RTS.

451

that the ‘ ‘ machinery” of the department is in as satisfactory condition as perhaps it can he, under
existing laws. The result of the examinations which he has caused to he made has excited his
admiration o f the wisdom displayed hy Mr. Hamilton in the system of accounting which he intro­
duced, and most favorably impressed him with the value o? the services o f the men who, poorlypaid, and little known beyond the walls of the Treasury Building, have for years conducted, with
unfaltering fidelity, the details of a business larger and more complicated than was ever devolved
upon a single department by any Government in the world.
In concluding this communication, it may not be inappropriate for the Secretary, in a few brief
words, to review some points in the general policy of the administration o f the Treasury for the
past four years.
The following statement—published in the last Treasury report—exhibits the condition o f the
Treasury on the 1st of April, 1865:
Funded debt.................................................
$1,100,361,241 80
Matured debt........................................................................................................................
340,420 09
Temporary loan certificates................................................................................................
52,452,328 29
Certificates of indebtedness........................................................................
171,790,000 00
Interest bearing notes.........................................................................................................
526.812.800 00
Suspended or unpaid requisitions.......................................................................................
114,256,548 93
United States notes, legal tenders.....................................................................................
433,160,569 00
Fractional currency..............................................................................................................
24,254,094 07
Cash in the Treasury............................................................................................................

$2,423,437,002 18
56,481,924 84

Total...................................... •................................................................................$2,366,955,077 34
By this statement it appears that, with $56,481,924 84 in the Treasury, there were requisitions
waiting for payment (the delay in the payment o f which was greatly discrediting the Govern­
ment) to the amount of $114,256,548 93; that there were $52,452,328 29 o f temporary-loan certifi­
cates liable to be presented in from ten to thirty days’ notice, and $171,790,000 o f certificates of
indebtedness, which had been issued to contractors, for want o f the money to pay the requisitions
in their favor, and which were maturing daily. At the same time, the efforts to negotiate securi­
ties were not being attended with the usual success, while the expenses o f the war were not less
than two millions o f dollars per day. The vouchers issued to contractors for the necessary sup­
plies o f the array and navy—payable one-lialf in certificates o f indebtedness and the other half m
money—were being sold at a discount of from ten to twenty per cent., indicating by their depre­
ciation how low was the credit of the Government, and how uncertain was the time o f payment.
The fall o f Richmond and the surrender of the army of Virginia under General Lee (which vir­
tually closed the war), had not the eifect of relieving the Treasury. On the contrary, its embar­
rassments were increased thereby, inasmuch as it seemed to leave the Government without
excuse for not paying its debts, at the same time that popular appeals for subscriptions to the
public loans were divested o f much of their strength. As long as the Government was in danger
by the continuation o f hostilities, the patriotism of the people could be successfully appealed to for
the purpose of raising money and sustaining the public credit, without which the war could
not be vigorously prosecuted. When hostilities ceased, and the safety and unity o f the Govern­
ment were assured, self-interest became again the controlling power. It will be remembered that
it was then generally supposed that the country was already fully supplied with securities, and
that there was also throughout the Union a prevailing apprehension that financial disaster
would speedily follow the termination of the war. The greatness of the emergency gave the Secre­
tary no time to try experiments for borrowing on a new security o f long time ana lower interest,
and removed from his mind all doubts or hesitation in regard to the course to be pursued. It was
estimated that at least seven hundred millions o f dollars should be raised, in addition to the rev­
enue receipts, for the payment of the requisitions already drawn, and those that must soon follow
—preparatory to the disbandment of the great Union army—and of other demands upon the
Treasury. The anxious inquiries then were, by what means can this large amount o f money
be raised ? and not what will be the cost o f raising it. How can the so-ldiers be paid, and the
army be disbanded, so that the extraordinary expenses o f the War Department may be stopped?
and not what rate o f interest shall be paid lor the money. These were the inquiries pressed
upon the Secretary. He answered them by calling to his aid the well-tried agent who had been
employed by his immediate predecessors and by offering the seven and three-tenths notes—the
most popular loan ever offered to the people—in every city and village, and by securing the advo­
cacy of the press, throughout the length and breadth o f the land. In less than four months from
the time the work o f obtaining subscriptions was actively commenced the Treasury was in a con­
dition to meet every demand upon it. But while the Treasury was thus relieved, the character
o f the debt was by ho means satisfactory. On the first day of September it consisted of the fol­
lowing items:
unded debt..............................................................
$1,109,563,191 80
Matured debt................................................................................... *.....................................
92
Certificates of indebtedness.......................................................................................................
85,093,00000
Five-per cent, legal tender notes..............................................................................................
33.954,23000
Compound interest legal tender notes....................................................................................
217,024,16000
Seven-thirty n
o
t
e
s
.
830, 000, 000 00
United States notes, legal tenders.......................................................................................
2?
Fractional currency.................. ...........................................................................................
o’ l i f ’Ada
Suspended requisitions uncalled for...................................................................................
2, 111,ouo uo
............................................................................................................................................. $2,845,907,62656
Deduct cash in 'treasury...................................................................................................
88,218,05513
Balance............................................................................................................................... $2,757,689,57143
From this statement it will be perceived that $1,276,834,123.25 of the public debt consisted of
various forms o f temporary securities, $433,160,569 of the United States notes—the excess o f which
over $400,000,000 having been put into circulation in payment of temporary loans—and $26,344,742
o f fractional currency. ' Portions of this temporary debt were maturing daily, and all of it, includ­
in'* $18 415 000 of the funded debt, was to be provided for within a period of three years. The
seven-thirty notes were, by law and the terms o f the loan, convertible at maturity, at the will
o f the holder, into five-twenty bonds, or payable, like the rest o f these temporary obligations, to
lawful money.




452

DEPARTMENT REPORTS.

[December,

Ifc was, o f course, necessary to make provision for the daily maturing debt, and also for taking
up from time to time such portions of it as could be advantageously converted into bonds or paid
in currency before maturity, for the purpose o f avoiding the necessity o f accumulating large
sums o f money, and o f relieving the Treasury from the danger it would be exposed to if a very con­
siderable portion of the debt were permitted to mature, with no other means for paying it than
that afforded by sales o f bonds in a market too uncertain to be confidently relied upon in an emer­
gency. In addition to the temporary loan, payment of which could be demanded on so short a
notice as to make it virtually a debt payable on demand, the certificates o f indebtedness, which
were maturing at the rate o f from fifteen to twenty millions per month; the five per cent, notes
which matured in January following, and the compound interest notes, which were payable at
various times within a period of three years, there were $830,000,000 o f seven-thirty notes which
would become due as follows, viz.:
August 15, 1867...............................................................................................................................$300,000,000
June 15, 1868................................................................................................................................... 300,000,000
July 15, 1868................................................................................................................................... 230.000,000
As the option of conversion was with the holders o f these notes, it depended upon the condition o f
the market whether they would be presented for payment in lawful money, or to be exchanged
for bonds. No prudent man, intrusted with the care o f the nation’s interest and credit, would per­
mit two or three hundred millions o f debt to mature without making provision for its paym ent;
nor would he, if it could be avoided, accumulate large sums o f money in the Treasury which
would not be called for, if the price of bonds should be such as to make the conversion o f the notes
preferable to their payment in lawful money. The policy of the Secretary was, therefore, as he
remarked in a former report, determined by the condition o f the Treasury and the country, and
by the character o f the debt. It was simply, first, to put and keep the Treasury in such "condi­
tion as not only to be prepared to pay all claims upon presentation, but also to be strong enough
to prevent the success of any combinations that might be formed to control its management; and,
second, to take up quietly, in advance o f their maturity, by payment or conversion, such portions
o f the temporary debt as would obviate the necessity of accumulating large currency balances in
the Treasury, and at the same time relieve it from the danger o f being forced to a further issue
o f legal-tender notes, or to a sale o f bonds, at whatever price they might command. In carrying
out this policy, it seemed also to be the duty of the Secretary to have due regard to the interests
o f the people, aud to prevent, as far as possible, the work of funding from disturbing legitimate
business. As financial trouble has almost invariably followed closely upon the termination of
protracted wars, it was generally feared, as has been already remarked, that such trouble
would be unavoidable, at the close of the great and expensive war in which the United States
had been for four years engaged. This, o f course, it was important to avoid, as its occurreneo
might not only render funding difficult, but might prostrate those great interests upon which the
Government depended for its revenues. It was, and constantly has been, therefore, the aim o f the
Secretary so to administer the Treasury, while borrowing money and funding the temporary obligatious, as to prevent a commercial crisis, and to keep the business o f the country as steady as was
possible on the basis of an irredeemable and constantly fluctuating currency. Whether his efforts
have contributed to that end or not, he does not undertake to say; but the fact is unquestioned that
a great war has been closed, large loans have been effected, heavy revenues have been collected, and
some thirteen hundred millions of dollars of temporary obligations have been paid or funded, and a
great debt brought into manageable shape, not only without a financial crisis, but without any
disturbance to the ordinary business o f the country. To accomplish these things successfully,
the Secretary deemed it necessary, as has been before stated, that the Treasury should be. kept con­
stantly in a strong condition, with power to prevent the credit o f the Government and the great
interests of the people from being placed at the mercy o f adverse influences. Notwithstanding
the magnitude and character of the debt, this power the Treasury has for the last three years pos­
sessed ; and it has been the well-known existence, rather than the exercise o f it, which has in repeat­
ed instances saved the country from panic and disaster. The gold reserve, the maintenance o f
which has subjected the Secretary to constant and bitter criticism, has given a confidence to the
holders of our securities at home and abroad, by the constant evidence which it exhibited o f the abil­
ity of the Government, withont depending upon purchases in the market, to pay the interest upon
the public debt, and a steadiness to trade, by preventing violent fluctuations"in the convertible
value o f the currency, which have been a more than ample compensation to the country for any
loss of interest that may have been sustained thereby. I f the gold in the Treasury had been sold
down to what was absolutely needed for the payment of the interest on the public debt, not only
would the public credit have been endangered, but the currency; and, consequently, the entire
business o f the country would have been constantly subject to the dangerous power o f speculative
combinations.
Of the unavailing effort that was made by the Secretary to contract the currency, with the view
o f appreciating it to the specie standard, he forbears to speak. His action in respect to contrac­
tion, although authorized, and for a time sustained, was subsequently disapproved (as he thinks,
unwisely) by Congress. This is a question, however, that can be better determined hereafter
than now.
Complaint has been made that in the administration o f the Treasury Department since the
war there has been too much of interference with the stock and money market. This complaint,
when honestly made, has been the result o f a want of reflection, or o f imperfect knowledge o f the
financial condition of the Government. The transactions of the Treasury have, from necessity,
been connected with the stock and money market o f New York. If the debt after the close o f the
war had been a funded debt, with nothing to be done in relation to it but to pay the accruing
interest, or if business had been conducted on a specie basis, and consequently been free from
the constant changes to which it has been and must lie subject—as long as there'is any consider­
able difference between the legal and commercial standard of value—the Treasury could' have been
managed with entire independence of the stock exchange or the gold room. Such, however, was
not tne fact. More than one-lialf o f the national debt, according to the foregoing exhibits, con­
sisted o f temporary obligations, which were to be paid in lawful money, or converted into bonds,
and there was in circulation a large amount of irredeemable promises constantly changing in their
convertible value. The Secretary, therefore, could not be indifferent to the condition of the mar­
ket, nor avoid connection with it, for it was, in fact, with the market ho had to deal. He would
have been happy had it been otherwise. I f bonds were to be sold to provide the means for paying
thedebts that were payable in lawful money, it was a matter o f great imporance to the Treasury
that the price of bonds should not be depressed by artificial processes. If the seven-thirty notes
were to be convertedinto five-twenty bonus, it was equally important that they should sustain such
relations to each other, in regard to prices, that conversions would be effected. If bonds were at
a discount, the notes would be presented for payment in legal tenders; and these could only be
obtained by further issues, or the sale o f some kind o f securities. For three years, therefore,




1869,]

453

DEPARTMENT REPORTS.

the state of the market has heen a matter of deep solicitude to the Secretary. I f he had heen
indifferent to it, or failed carefully to study the influences that controlled it, or had hesitated to
exercise the power with which Congress had clothed him for successfully funding the
temporary debt by conversions or sales, he would have been false to his trust. The
task o f converting a thousand millions of temporary obligations into a funded debt, on a
market constantly subject to natural and artificial fluctuations, without depressing the prices
o f bonds, and without disturbing the business of the country, however it may be regarded
now, when the work has been accomplished, was, while" it was being performed, an
exceedingly delicate one. It is but simple justice to say. that its successful accomplishment is
in a great measure attributable to the judicious action of the Assistant Treasurer at New York,
Mr. Van Dyck.
Similar complaint has also been made of the manner in which gold and bonds have been
disposed of, by what has been styled “ secret sales;” and yet precisely the same course has been
pursued in these sales that careful and prudent men pursue, who sell on their own account. The
sales have been made when currency was needed, and prices were satisfactory. It was not
considered wise or prudent to advise the dcalsrs precisely when and to what amount sales were
to be made (no sane man operating on his own account would have done this), but all sales o f gold
have been made in the open market, .and of bonds by agents or the Assistant Treasurer in New
York, in the ordinary way, with a view o f obtaining the very best prices, and with the least
possible disturbance of business. In the large transactions o f the Treasury, agents have been in
dispensable, but none have been employed when the work could be done equally well by the
officers of the department. Whether done by agents or officers, the Secretary has no reason to
suppose that it has not been done skillfully and honestly, as well as economically. He is now
gratified in being able to say, that unless a very stringent market, such as was produced a few
weeks ago by powerful combinations in New York, should send to the Treasury large amounts
o f the t hree per cent, certificates for redemption, no further sales o f bonds are likely to be
necessary. Until, however, the receipts from internal revenues are increased, the necessities
o f the Government will require that the sales of gold shall be continued. These sales are now
being made by advertisements for sealed bids, instead of the agencies heretofore employed.
The result, so far, has not been entirely satisfactory, but a proper respect for what, according to
the tone of the press, appeared to be the public sentiment, seemed to require it. The new mode
will be fairly tested, and continued, if it can be, without a sacrifice of the public interest.
The Secretary has thus referred to a few points in his administration o f the Treasury, for the
purpose of explaining some things which may have been imperfectly understood, and not for the
purpose of defending his own action. Deeply sensible of the responsibilities resting upon him, but
neither appalled nor disheartened by them, he has performed the duties o f his office according to
the best or his judgment and the lights that were before him, without deprecating criticism; and
plainly and earnestly presented his own views without seeking popular favor. It has been his
good fortune to have had for his immediate predecessors two o f the ablest men in the country, to
whose judicious labors he has been greatly indebted for any success that may have attended his
administration of the Treasury. Nor is he under less obligation to his associates, the officers and
leading cierks of the department, whose ability and whose devotion to the public service have
commanded his respect and admiration.
hugh

McCulloch ,

Secretary o f the Treasury,

H on . S ch uyler C olfax ,

Speaker o f the House of Representatives.

REPORT OF THE COMPTROLLER OF THE CURRENCY.
O ffice

of t h e

C omptroller

of t h e

C u rrenc y ,

Washington, November 10, 1868.
Si r : In compliance with the provisions o f section 61 of the national currency act. I have the
honor to present, through you, to the Congress o f the United States, the following report:
Since the last annual report 12 national banks have been organized, o f which five are new
associations. One was organized to take the place of an existing State bank, and six were
organized to take the place of national banks previously organized, but now in liquidation and
winding up, making the total number organized upto October, 1685.

Table exhibiting the number o f banks, with the amount o f capital, bonds de­
posited, and circulation, in each State and Territory, September 30, 1868.
States and
Territories.

.-------------- organization . ------------\

Closed or In opOrganized, closing, oration.

Maine.....................
New Hampshire...
V erm ont................
Massachusetts.......
Rhode Island.........
Connecticut..........
New' York..............
New Jersey............
Pennsylvania.........
Maryland................
Delaware................
Dist. of Columbia..
Virginia..................
West Virginia........
Ohio.......................




61
40
40
209
62
83
314
55
205
32
11
6
20
15
137

61

2
2
15
1
8
2
2
4

40
40
207
62
81
299
54
197
32
11
4
18
15
133

Capital
paid in.
$9,085,000 00
4,785,000 00
6.560,012 50
80.032,000 00
20,364,800 00
24,684,220 00
116,544,941 00
11,583,350 00
50,247,390 00
12,790,202 50
1.428,185 00
1.550,000 00
2,500,000 00
2,216,400 00
22,404,700 00

Bonds on Circulation
deposit.
issued.

In actual
circulation.

$8,407,250 $7,569,166 $7,510,066
4,281,695
4,839,000 4,328,195
6,517,000
5.802.960
5,737,560
64.718,400 58,561,030 57,084,640
14,185,600 12,676.630 12,491,480
19,768,000 17,800,625 17,443,793
79,442,500 73,823.505 68,853,726
10,678,650
9,520,485
9,397,985
44,303,350 39,940,700 38,772,102
9.150,800
8,904,800
10,065,750
1,348,200
2,117,225
1,198,825
1,398,000
1,278,000
1,137,700
2,429,800
2,157.930
2,146,670
2,020,350
2,243,250
1,988,550
20,768,800 18,667,750 18,410,425

454

departm ent

Indiana..................
Illinois....................
Michigan................
Wisconsin..............
Minnesota.............
Missouri.................
Kentucky...............
Tennessee.............
Louisiana..............
Mississippi.............
Nebraska...............
Colorado.................
Georgia..................
North Carolina......
South Carolina......
Alabama................
Nevada...................
Oregon....................
T exa s.....................
Arkansas................
U tah.......................
Montana.................
Idaho......................

71
83
43
37
48
16
5
20
15
13
3
2
4
3
9
6
3
3
1
1
4
2
1
1
1

Total.................... 1,685

3
i
3
4
1
2
1
1
2
i
*1

56

REPORTS.

[December,

4
3
8
6
3
2
1
1
4
2
1
1
1

12,867,000 00 12,532,500 11,169,055 11,018,735
9,648,150
12,070,000 00 11,047,950
9,777,650
3,826,455
5,210,010 00
4,357,700
3,872,955
2,541,410
2,960,000 00
2,768,050
2,583,950
3,252,223
3,349,805
4,057,000 00
3,713,750
1,476,800
1,710,000 00
1,712,200
1,501,900
382,000
354,600
341,000
400,000 00
4,724,050
4,129,310
1,305,550
7,810,300 00
2,338,620
2,835,000 00
2,665,900
2,367,270
1,204,755
1,492,700
1,270,220
2,025,300 00
1,131,415
1,800,000 00
1,308,000
1,245,000
66,000
64,035
150,000 00
75,000
170,000
235,000
170,000
350,000 00
254,500
350,000 00
297,000
254,000
1,234,000
1,600,000 00
1,383,500
1,235,400
316,000
653,300 00
399,500
317,600
153,000
135,000
685,000 00
204,000
304,900
353,025
500,000 00
370,500
131,700
131,700
155,000 00
155,000
100,000
88,500
88,500
100,000 00
407,535
417,635
525,000 00 ' 472,100
179,500
179,500
200,000 00
200,000
150,000
135,500
135,000
150,000 00
36,000
100,000 00
40,000
36,000
63,500
100,000 00
75,000
63,500

1,629

426,189,111 00 342,619,950 309,915,166 299,806,565

68
83
42
34
44
15
5
18
15
12
2

From the number of banks organized, heretofore
leaving the number in active operation 1,629.
The banka to be excluded are the following:

stated to be 1,685, should be deducted 56

NEVER COMPLETED TH EIR ORGANIZATION SO AS TO COMMENCE BUSINESS.

The
The
The
The

First National Bank o f Lansing, Michigan, No. 232.
First National Bank of Penn Tan, New York, No. 169.
Second National Bank o f Canton, Ohio, No. 463.
Second National Bank of Ottumwa, Iowa, No. 195.
SUPERSEDED BY SUBSEQUENT ORGANIZATION WITH THE SAME TITLES.

The First National Bank o f Norwich, Connecticut, original No. 65, present No. 458.
The First National Bank o f Utica, New York, original No. 120; present No. 1,395.
IN VOLUNTARY LIQUIDATION.

The First National Bank of Columbia, Missouri.
The First National Bank of Carondelet, Missouri.
The National Union Bankjof Rochester, New York.
The National Bank o f the Metropolis, Washington. D. C.
The First National Bank of Leonardsville. New York.
The Farmers’ National Bank of Richmond, Virginia.
The Farmers’ National Bank o f Waukesha, Wisconsin.
The City National Bank o f Savannah. Georgia.
The National Bank of Crawford County, MeadviUe, Pennsylvania*
The First National Bank of Elkhart, Indiana.
The First National Bank o f New Ulm, Minnesota.
The PittBton National Bank, Pennsylvania.
The Berkshire National Bank of Adams, Massachusetts.
The Fourth National Bank of Indianapolis, Indiana.
The Kittanning National Bank, Kittanning, Pennsylvania.
The First National Bank of Providence, Pennsylvania.
The National State Bank of Dubuque, Iowa.
The Ohio National Bank o f Cincinnati, Ohio.
Since October 1. 1867:
The First National Bank o f Kingston, New York.
The First National Bank o f Bluffton, Indiana.
The First National Bank o f Skaneateles, New York.
The First National Bank of Jackson, Mississippi.
The First National Bank o f Downingtown, Pennsylvania.
The National Exchange Bank of Richmond, Virginia.
The Appleton National Bank, Appleton, Wisconsin.
The National Bank of Whitestown, New York.
The First National Bank o f New Brunswick, New Jersey.
The First National Bank of Titusville, Pennsylvania.
The First National Bank of Cuyahoga Falls, Ohio.
The First National Bank of Cedarburg, Wisconsin.
The Commercial National Bank of Cincinnati, Ohio.
The Seoond National Bank of Watertown, New York.
The Second National Bank o f Des Moines, Iowa.
The First National Bank o f South Worcester, New York.
The National Mechanics and Farmers’ Bank of Albany, New York.
The First National Bank of Plumer, Pennsylvania.
Of the banks in liquidation, the following are winding up for the purpose o< consolidating
with other banks:
The Pittston National Bank, Pittston, Pennsylvania, with the First National Bank o f Pittston.
The Berkshire National Bank of Adams, Massachusetts, with the First National Bank o f Berk­
shire.
The Fourth National Bank o f Indianapolis} Indiana, with the Citizens’ National Bank o f Indian
apolis.




1869.]

DEPARTM EN T

455

REPO RTS.

The Kittanning National Bank, Kittanning, Pennsylvania, -with the First National Bank o f Kittan­
ning.
The First National Bank o f Providence, Pennsylvania, with the Second National Bank o f Scran­
ton. Pennsylvania.
The National State Bank of Dubuque, Iowa, with the First National Bank o f Dubuque.
The Ohio National Bank of Cincinnati, Ohio, with the Merchants’ National Bank, o f Cincinnati.
The First National Bank of Titusville, Pennsylvania, with the Second National Bank o f Titus­
ville.
The National Exchange Bank of Richmond, Virginia, with the First National Bank o f Richmond.
The Second National Bank at Watertown, New York, with the first National Bank o f Watertown
The following banks in liquidation are succeeded by new organizations, which are to take thei
circulation as fast as it is redeemed; this being the only process by which a change o f location can
be effected.
The First National Bank of Downington, Pennsylvania, succeeded by the First National Bank o f
Honeybrook. Pennsylvania.
The First National Bank o f New Brunswick New Jersey, succeeded by the Princeton National
Bank, Princeton, New Jersey.
The Second National Bank o f Des Moines, Iowa, succeeded by the Pacific National Bank o f Council
Bluffs, Iowa.
The First National Bank of Plumer, Pennsylvania, succeeded by the First National Bank o f Sharon,
Pennsylvania.

Statement showing the national hanks in liquidation for the purpose of closing up and going out of existence,
their capital bonds, deposited to secure circulation, circulation delivered, circulation redeemed, and circuation outstanding, October 1,1868.
_____ - -n .
Name of Bank.

Legal
Circulation Circulat’n
r w ifo i R- S. bonds Tenders Circulation returned outstandCapital. oa deposit> deposited, delivered, and deing.
stroyed.

$90,000
First Nat. Bk. Columbia, Mo........ $100,000
30,000
25,500
First Nat. Bk. Carondelet, Mo....
Nat. Un. Bk. Rochester, N. Y..........
400,000 $220,000
202,000
Nat. Bk. Metropolis, Wash’u D. C... 200,000
50,000
50,500
First Nat. Bk. Leonardsville, N. Y.
100.000
100,000
Farmers’ Nat. Bk. Richmond, Va..
90,000
Farmers’ Nat. Bk. Waukesha, Wis. 100,000
100,000
300,000
Nat. Bk. CrawfdCo.,Meadville,Pa
100,000
100,000
First Nat. Bk. Elkhart, Ind............
60,000
60,000
First Nat. Bk. New Ulm, M inn.....
200,000
First Nat. Bk. Kingston, N. Y.........
200,000
50,000
First Nat. Bk. Bluffton, Ind...........
50,000
153,000
150,000
First Nat. Bk. Skaneateles, N. Y...
45,000
100,000
First Nat. Bk. Jackson, Miss..........
50.000
50,000
Appleton Nat. Bk., Appleton, Wis.
50,000
120,000
Nat. Bk. Whitestown, N. Y.............
50,000
50.000
First Nat.Bk.Cuyahoga Falls,Ohio.
100,000
80,000
First Nat. Cedarburg, Wis.............
407.000
Commercial Nat. Bk. Cin., Ohio... 500,000
177,700
First Nat.Bk.SouthWorcester,N.Y. 175.000
350,000
Nat.Mech. &. Farmers’ Bk.Alb.,N.Y. 350,000
* No circulation.

$90,000
25,500
192,500
180,000
45.000
85.000
90.000
(*)
88,150
54,000
180,000
45,000
135,000
40,500
45,000
44.500
45,000
90,000
345,950
157,400
314,950

$6,910
16,640

140
1,000

18,000
3,520

$83,090
8.360
192,500
180,000
45,000
85,000
89,860
87,150
54,000
180,000
45,000
135,000
40,500
45,000
44,500
45,000
72,000
345,950
157,400
311,430

Statement showing the national banks in liquidation for the purpose of consolidating with other banks, their
capital, bonds, and circulation.
„
„_ ,
Lame of Bank.
The Pittston N. B’k, Pittston, Pa........
The Berkshire N. B’k o f Adams, Mass.
The Fourth N. B’k of Indianapolis, Ind
The First N. B’k o f Providence, P a ....
The Kittanning N. B’k, Kittanning. Pa.
The Ohio N. B’k o f Cincinnati, Ohio...
The N. S. B’k of Dubuque, Iowa..........
The N. Ex. B’k of Richmond, Va..........
The First N. B’k of Titusville, Pa........
The Second N. B'k, Watertown, N. Y..
STATEM EN T

The
The
The
The

^
.
capital.

Circulation Circulat’n
U. S. bonds Circulation returned outstand0n deposit, delivered.
and
ing.
destroyed.

$200,000
100,000
100,000
$94,000
100,000
101,550
200,000
530,000
500,000
146,000
150,000
206,300
200,000
100,000
100,000
100,000
100,000
No circulation

P

$85,700
90,000
(*)
450,000
127,500
180,000
86.750
90,000

$1,100
1,000

$84,600
89,000

2,500
3,400

447,500
124,100
180,000
85,245
90,000

1,505

S H O W IN G T H E N A T I O N A L B A N K S I V L IQ U ID A T IO N F O R T H E PU R PO S E O F
IN G T H E I R L O C A T IO N , T H E I R C A P I T A L , B O N D S , A N D C IR C U L A T IO N .

CHANG­

CirC lrcuculation lation.
Circulareturn’d
out> a m e o f Bank.
U . S.
bonds on tion« e- and des- etandCapital, deposit. livered. troyed. ing.
First National Bank o f Dow n ngtown, Pa — $:u0,0(;0 jl00,0<>0 $89,500 $1,400 $&*,100
500 89,5'JO
First National B&rk o f N ew Brunswick, N . J 100,000 100,000 90,000
42.500
....
42,500
Second National Bank o f Des Moines, Iow a .
?0,000
50,‘ 00
87.500
.
.
..
87,520
First National Bank o f Plumer, P a ............. 100,000 10J,000




456

[December,

DEPARTMENT REPORTS.

N A T IO N A L B A N K S W H IC H H A V E F A I L E D TO R E D E E M T H E IR C IR C U L A T IN G N O TES, A N D F O R W H CH
R E C E IV E R S H A V E B E E N A P P O IN T E D .

The First National Bank o f Att ca, N ew Y ork, Leonida8 Doty, receiver.
'J he Venango N ational 3ank o f Franklin, Pennsylvania, Harvey Henderson, receiver.
The Merchants’ National Bank o f Washington, D. C ., James O. Kennedy, receiver.
The Firs. N ational Bank o f Medina, New York, Edwin P . Healey, receiver.
The Tennessee National Bank o f Memphis, Tennessee, W illiam A H 11, receiver.
The First Aationa Bank o f Newton, NewtoLville, Massachusetts, D Wayland Jones, re­
ce iv e d
The F rst National Bank o f Selma, A ’ abama, Cornelius Cadle, j r ., receiver.
The First National Bank o f New Orleans, Louisiana, Charles Care, receiver.
The .National Unadilla Bank, Uuadi la. N ew York, Lewis Kingsley, receiver.
The Farmers and Ci iz e ts ’ National Bank o f Brooklyn, New York, r rederick A . Platt, receiver
The Croton National Bank o f the city o f N ew York, C. P Baiiey, receiver.
The National Bank o f "VicKsburg, Mississippi, Edwin F . B iow n, receiver.
Tne F tsi National Bank o f K eokuk, Iowa, H. W . Sample, receiver.
The First National Bank o f Bethel, Connecticut, E . S. Tweedy, r« ceiver.
The affairs o f the First Nalioual Bank o f Att ca have been finahy closed, and a dividend i aid
to the creditors o f forty-eight per cent.
The affairs o the F ir-t National Ha k o f Newt n ha e been finally closed . The government
claims w ere paid in full, and a dividend o f forty per <ent paid to the general creditors.
A partial oividend has been declared to the creditors <-f the ‘ aimers anc* Citizens’ National
Bank o f Biooklyn, New Y rk, o f fifty five percent, and to the creditors o f the Crot n National
Bank o f the city o f New Y ork o f fifty per cent upon all claims approved or adjudicated.
S T A T E M E N T SH O W IN G T H E N A T IO N A L
A M O U N T O F U N IT E D S T A T E S B O N D S
C U L A T IO N D E L IV E R E D , T H E A M O l N f
U N IT E D S T A T E S , A N D T H E A M O U N T

{B A N K S IN T H E H A N D S O F R E C E IV E R S, T H E IR C A P IT A L ,
D E P O S IT E D T J SECU RE C IR C U L A T IO N , A M O U N T O F C IR ­
O F C IR C U L A T IO N R E D E E M E D A
T H E T R E A S U R Y OF T H E
O U T S T A N D IN G ON T H E 1 8 T D A Y O F OC TO B E R , 1 8 6 8 .

T he First Nat. onal Bank o f Attica. N .Y
T he Venango National Bank o f Frank­
lin, P a ........................................................
TheMerchants’ national Bk o f W ashing­
t o n ^ . C ................................. ....................
T he Fir.-tNational Ba’ k o f Newt’ n, M ss
The First National Bank o f Medina, m. Y
The Tennessee Nat’ nal B ’k o f Memphis,
T e n n ......... ............................................
The FirstN alional Bank ot Selma, A la.
The First National Ba’ K o f inew Orleans,
L a ..............................................................
The National Unndilla Bank, Unadilla,
CM. Y ............. ...........................................
T he Farmers and Cit zens N at.Bank o f
B ’ k ly n ,N .Y ..............................................
The Croton N at. B ’ k o f the city o f N .
Y o rk ,N Y ...................................................
T he F i.s t National B’ k o f Bethel, Conn
T he First National B ’ k o f K eokuk, Iowa
The First Nat onal B’ k oi V icksbu-g,
M is s ......................... .................................
The follow ing statement exhibits the
outstanding, October 5 , 18t8:

Legal Tenders
on deposit,
U. S.
realized Circulabonds on from sale tion deCapital. de osit. o f bonds. livered.
$50,000 s ....... $44,000 00 $44,000
300,000

40,0)0

61,871 CO

Circa
lation
Circulaouttio m e - standdeemed. ing.
$32,750 $11,250

85,000

64.030

20,970

200,000 SO,000 127,741 00 18C,000 125,800 54,200
130,010
150,000 146,000
6,504 123,500
50,000 20,000 27,329,.25 40,0dU 26,210 13,790
53,372 oo
41,241 20

90,000
85,000

59,465
48,125

30,535
36,875

600,000 ICO,000 104,742 00 180,000

113,585

60,415

53,183 50 100,000

64,880

35,120

100,000
100,000

120,00)

50,000
60,000

61,200

3oO,OCO 185,500 100,504 10 253,900
200,000 142,000
60.000 3-,( 00
100,000 100,000

137,923 115,9S0

72,181 90 180,000 105,111
26,300
2,020
90,000 28,78*1

74,899
24,/ 80
61,220

25,500
1,965 23,535
50 COO f0,0C0
number and amount o f notes issued, redeemed and
Ones.

Notes.
8,8%,576
254,754

$S,S96,576
254,754

8,641,822

8,641,822

Issu ed ......................
R ed eem ed .............

2,978,160
73,176

$5,956,320
146,352

Outstanding,

2,004 984

5,809,068

23,106,728
482,132

$115,533,640
2,410.660

22,624,596

113,122,980

7,915,914
142,851

$79,159,140
1,423,590

7,773,555

77,735,05

Issued ......................................................... ..................................................
R e d e e m e d .........................................................................................................
Outstanding

1W08.

Fives.
Issued.................................................................................
R ed eem ed .........................................................................
Outstanding.

lens.
Issued....................

R eteem ed............
Outstanding.




a

1869.]

DEPARTMENT REPORTS.

4£7

Tw enties.

Issu ed .....................
R ed eem ed.............

2,219,322
36,355

Outstanding

2,182,9^7

F ifties.

I s s u e d ......... ..........
R edeem ed...............

44,386,440
727,110
43,659,340

355,181
17,256

Outstanding

$17,759,050
862,S00

337,925

16,896,250

267,350
15,5S2

$26,785,000
1,558,300

One Hundreds.

Issued ....................
R e d eem ed .............
Outstanding

251,767

25,.76,700

13,486
1,759

$6,743,0*0
879,500

F ive Hundreds.

I s s u e d ...................
R e d eem ed .............
Outstanding

11,727

5,863,500

4,746
1,846

$4,746,000
1,846,000

O utstanding............................................ ..............................................
2,900
Total o f all denominations outstanding on the first M onday o f October, 1868..
A dd for fragments o f notes outstanding, lost or destroyed, tortiou s o f which
have been redeemed .............................. ........................................................................

2,900,000
$299,806,110

One Ihousard».

Issued ....................
R ed eem ed .............

455
$2-9,806,565

(W e here omit tables showing "the lawful money reserves o f the banks each
quarter o f the year, they having already appeared in the C h ron ic le . See p a g e
712 o f this V olu m e.)
ST A T E M E N T O F C A P IT A L L O A N S A N D

DISCOUNTS
TIO N S,

States and
Territories.
M a in e ................................
N ew Hampshire...............
V e r m o n t............................
Massachuse t s ..................
Rhode Is a n d ....................
Connecticut ....................
New Y o r k ..........................
N ew J e r s e y ......................
Pe-nsylvaiiia .................
Delaw a r e ........................
Maryland
....................
D iet, o f Columbia.............
V irgin ia ..............................
■Wet V ir g in ia ..................
North C a io lin a ................
G e o r g ia .............................
Alabama............................. .
Texas .................................
* rkansas.............................
Kentucky ............................
'• enne^see...................... . ,
O h io.................................... .
Indiana.................................
I ll’n o i s ................................
M ichigan.............................
W isconsin ..........................
M innesota...........................
I o w a ....................................
M issouri.............................
K a n s a s ............. ................
Nebraska.............................
O r e g o n .................................
Colorado T e r r t’ y ..............
I tah Territory.................. .
Montana T e n it’ y ..............
Idaho Territory..................
L o u is ia n a ..................
T o ta l..............................

MADE

BY

N A T IO N A L

BANK

IN G

A S SO C IA ­

1867.

A v. time
n < m i t N u m b e r o f Aggregate
Av. amo’ t o f each
v/apiuu. distinct loans amount o f o f each loan loan and
& discounts, l’ ns & disc. & di cou n '.d is.-d a ys
95
00
37,838 $50,703,349 37 $1,340 09
95
00
13,329
11,030,942 20
827 00
69
50
30,652
623 00
19,085,570 ^0
2,153 00
(X)
00 182,300 392,562,183 16
1C2
00
2,477 00
27,058
67,036,311 10
86
83,200 105,467.506 31
00
1,268 00
8,(59 00
52
00 545,322 1,668,141,362 30
75
752 00
00 111,S30
84,098,828 11
71
1,284 00
(0
274,-82 352,138,245 20
7HH 00
72
00
13,439
10,258,133 14
54
45,396
50
59,094,941 92
1,303 00
64
00
7,814
1.689,302 09
600 00
66
0)
18.757,303 36
793 00
23,667
77
00
9,363
834 00
7,810,086 91
5t
00
4,169
3,967,136 21
951 00
J9
00
8,174
2,221 00
18,156,271 47
2,250 00
60
00
728
1,638,463 50
851
50
0)
1,615.071 89
1,898 00
49
00
1.765
1,795,7S2 11
1,»17 00
1,606 (X)
91
00
7,114
11,4271829 62
00
50
7,810
14,116.503 32
1,807 00
75,454 147,287,568 46
l,95i 00
00
70
1,109 •0
74
00
43,880
48,674,671 07
00
1,615 0)
65
65,395 105,645,384 90
65
946 (X)
00
35,518
33,606,901 10
742 00
00
30,279
62
22,491,388 40
00
13,810
9 906,349 58
717 00
66
74
00
29,008
751 50
21,785,700 45
2,704 00
14,669
39,660.096 85
00
72
00
1,471,809 63
892 00
65
1,650
(10
2,737,775 >5
842 00
3,251
70
00
178.659 31
70.8 00
252
72
00
89
1,755
2,715,399 94
977 O)
<0
2,694 00
220
592,275 30
90
00
85
240,646 00
2 831 00
to
90
76
96,327 19
1.482 00
55
00
3,991
11,322,588 36
2,837 00
60
00 1,755,283 3,351,004,865 08

1,909 00

71

The banks in Mississippi, (2,) South Carolina, (2,) and Nevada, (1,) in all five banks,
not having reported, are not included in above.
N o t e .—




458
S T A T E M E N T S H O W IN G T H E
OF

\Decembtr

DEPARTMENT KEPOKTS.

THE

AM O U N T ANT* R A T E O F T A X A T IO N

N A T IO N A L B A N K IN G

ASSO C IA TIO N S

States and
Ter^ itories.
M a in e .............................. .........
N . Hampshire..................
V e rm o n t..........................
Massachns’ s ....................
R . Island.........................
Connecticut.....................
N ew Y o rk ........................
N ew Jersey.. ................. ..........
Pennsylvania................... ........
Maryland . ..................... .........
Delaware..........................
D is. o f Col’ b 'a .................
V ir g in ia .............. ...........
W . Virginia.................... .........
O hio...................................
Indiana.............................
Illin ois .............................
M ich igan......................... .........
W iscon sin........................
I o w a ..................................
Minnesota........................
K ansas.............................
M is so u r i..........................
K e n tu c k y ........................
Tennessee........................
L ou isia n a ........................
Nebraska.........................
C o lo r a d o ........................ ...........
Georgia ..........................
North Carol’ a .................
Alabama ......................
.........
Texas ..............................
A rk a n sa s........................
U t a h ................................
M on ta n a ........................
Idaho .............................

TREASU RER
N O TE S O F

OF THE

THE

TH E

(U N IT E D

Y E A R E N D IN G

STATES

A N D S T A T E ),

DECEM BER

31, 1867.

Rate per Am ount o f
Total am’ t Rate
cent o f taxes paid
o f tax’ s p’ d p.e. o f
1Amount o f United
to & ass’ d Rate per to theU .S U S . &
taxes pa’ d States
by State ct. o f State & State S. tax n
U. Sta*es. ta.Nat’ n.
author’ s. taxation. author’ s. <on cap.
$ iso,n n oo
.02
$141,225 64
.035
.015
$321,344 6t
.019
.038
.019
93.178 83
181,951 73
.019
.041
144,163 50
.022
266,377 07
.0202 1,562,128 10
.02
3,178,952 60
.0402
.025
.015
195,355 32
.01
520,199 57
.017
387,146 26
.016
821,586 61
.033
.0261 4,058,706 11
.0348 7,088,361 27
.0609
253,359 31
.022
.02
476,465 59
.042
223,106 28
.0392
1,243 037 40
.0247 278,368 04
.0055 1,520,305 44
.0206
260.261 25
166,054 11 . .0131
426,3 5 36
.0337
.0008
.0236
.0228
33,881 29
1,260 61
.0161
.0133
3,285 94
.0028
18,615 39
62,270 47
13,925 68
.0055
.024^
.0193
.044
46,966 34
.021
51,457 38
.023
98,423 72
.0229 520,951 20
.0232 1,035,632 66
.0461
479,169 89
.0371
.0155
.0216 200,372 29
.02
553,323 24
.0476
.0276 231,917 00
.0354
111,789 26
.022
68,061 41
.0134
179,850 97
.021
.0261
138,594 76
.0471
62,011 51
.0221
.0487
.0266
88,281 27
194,630 61
29,522 20
.013
6:,654 63
.02
.033
.02
1H,030 31
.043
025
7.801 08
322,389 46
.02
.034
014
189,247 69
.021
.106
77,282 78
17,4^6 77
.027
.014
80,434 62
.041
27.974 80
.027
55,935 86
.0154
.043
.0276
2! >,041 58
.0429
17,749 06
.0709
7,014 39
.028
11,316 72
9.701 72
1,615 CO
.0046
.0323
.0277
.025
.004
46,895 21
.029
6,050 46
14,193 02
5,144 31
.0083
.0155
.0243
.0175
12,592 01
.027
3,829 49
.0095
.024
1,623 86
.024
1,623 86
9,014 70
.0119
2,149 34
.0037
.0156
.0068
7.096 37
.0355
.02S7
1,350 99
2,984 42
.0125
1,097 00
.CO 3
.0193
.0083
560 00
.0056
1,397 31
.0139
.014
1,884 01
1,405 36
.0047
.0187

T otal............................. .......... 9,525,607 31
S T A T E M E N T S H O W IN G

FOR

AM O U N TS

2*

AND

U N IT E D S T A T E S

N A T IO N A L B A N K S ON T H E

TO

8,813,126 92

K IN D S O F U N IT E D
SECURE TH E

30TH

DAY

18,338.734 23

4.332

BY TH E

R E D E M P T IO N O F T H E C IR C U L A T IN G

OF S E P T E M B E R ,

D script’ cn o f securities.
Registered|bonds—A ct o f J une 14,1858............................... .
“
“
“
“
22,1860................................
“
“
“
Feb. 8,1861........................ .
Coupon
“
“
“
8,1861..................................
“
41
“
March 2,1861.................................
Registered 44Acts o f July 17 and August 5,
1861 . . . .
C oupon
“
“
“
17 “
“
5, 1861.......
Registered bonds— Act o f Feb. 25, 1882.................................
Coupon bonds—Acts o f F eb. 25, 1862.............«... ..............
Registered bonds—A ct o f March 3,1863...............................
“
“
“
“
3, 1864, 5 per c e n t...........
Coupon
44
“
“
3, 186t, 5
44
...........
Registered “
44 June 3 0 ,1S64...............................
44
44
A cts o f July 1, 1862, and July 2,1864.
“
44
A ct o f March 3, 1864, 6 per ce n t..........
“
44
“
“
3,1865, first series.........
“
“
44
“ 3,1865, second series...
44
‘4
44
“ 3, 1865, third t-eries.........
“
44
M
“ 3,1865, fourth s e rie s ....
Total

2.082

S T A T E S BON DS H E L D

1868.
Am ounts.
$805,000
59.000
3.487.000
1,000
16.0 0
58,611,000
9.000
6,506,330
4,20('0
34,142 050
S8,596,150

10.000

38,045,'>00
9.263.000
3,503,500
27.218.100
10.714.100
2,287,550
185,000
$342,019,950

REPORTS.

T he national currency act requires every association to make a report, exhibi­
ting in detail its resources and liabilities on the first Monday o f January, A pril. Jul^
and October, o f each year. In addition to this, every association is required on the




I860.]

DEPARTMENT REPORTS.

459

first Tuesday o f each month to make a statement, exhibiting the average amount o f
loans and discounts, specie and other lawful money eposits, and circulation ; and
banks not located in the cities named in section 31 o f the act are required also to
return the amount due them available for the redemption o f their circulation.
The quarterly reports coming, as they do, upon a certain specified day, known in
advance, and for which the amplest preparation may be made, can hardly be e pected to present the a c u a l working condition o f the banks. They a r e ,« f course,
careful to exhibit the full amount o f reserve required, and otherwise a full compliance
with all the important provisions o f the law. but itia in the large cities, especially
in N ew Y ork, that this plan proves most objectionable. Gold and stock speculators,
knowing that at certain time the banks w ill make it a p< int to have a full supply o f
lawful money in their vaults, get up combinations for the purp. se o f producing a
scarcity o f legal-tender notes, and a stringent money market, so as to depress the
m arket for g vernment, State, railroad, tind other securities. National banks, held
firm ly to the requirements o f the law, are seriously embarraesed by such trickery.
Their necessities com pel them to have the lawful money at any hazard. Besides the
damage resulting from an unnecessary and forced depression o f public securities,
regular commercial transactions are impeded, suspended, or forced to be arried on
at ruinous rates, owing to the artificial stringency thus produced. It is becoming
m ore manifest, as one quarter succeeds another, that the evil ia becom ing m re and
m ore intolerable. Honest industry, regular trade, and legitimate business o f every
kind, which depend upon the banks for their usual facilities, are subjected to great
inconvenience, har Jship, and loss, through the abuses thus practiced.
This state o f things calls for a prompt and efficient remedy. This may be found
in an amendment to section 34 o f the act, authorizing the Comptroller o f the Currency
to call upon the banks for five detailed statements or reports during each year, fixing
upon some day that is past for the date o f the report. In this way the condition o f
the banks may be ascertained at irregular intervals, without previous preparation on
their p art; and the precise period when the reports will be called for being unknown
to the public, outside operators w ill be prevented from conspiring against the banks
and the honest trade o f the country.

This subject is commended to the early attention o f Congress.
BANKS IN VOLUNTARY LIQUIDATION.

Section 42 o f the currency act provides that any association may go into liquida­
tion and be closed by a vote o f shareholders owning two-thirds o f its stock ; that
due notice o f such action shall be published, <tc. ; an i at any time after the expiration
o f one year from the publication o f 6uch notice, the said association may pay over to
the Treasurer o f the United States the amount o f its outstanding notes in lawful
m oney o f the United States, and take up the bonds which it has on Jep s t with
the Treasurer as security for such circulating notes— leaving it optional with the
bank or its representatives to take up the bonds, or not.
Under this provision a bank may go into liquidation, pay off its depositors and
other creditors, do no business, have no existence as a bank o f discount and deposit,
and y et reap all the benefits o f a circulation guarantied by the government. In some
cases the ownership has been concentrated in the hands o f two or three individuals,
who continue to do business as private bankers, avoid taxation, evade the require­
ments o f the currency act, and still retain the most profitable feature o f a nati nal
bank.
T o correct abuse o f this kind, it is suggested that national banking associations
which go into voluntary liquidation be required to provide for their outstanding <irculation in 1 wful money, and take up their bonds within three or six months ; in
default o f which, the Comptroller shall have pow er to sell their bonds at public
auction in New Y ork City, and, after paying to the Treasurer the amount of the out­
standing circulation o f the bank in lawful money, to pay over any excess realized from
the sale o f the bonds to the association <r its legal representatives.
Banks that are winding up for the purpose o f consolidating with other banks, or for
the purpose o f reorganizing at some other aud more desirable points, should be ex­
cepted from the foregoing requirements.
A CENTRAL REDEEMING AGENCY.

The op’nion was expressed in the last anuual report from this office that it was




460

departm ent

reports.

[December,

important that a system o f redemptions for national bank notes should be established
as ear y as practicable, by means c f which they should be made convertible into the
lawful money o f the country, whether it be paper or gold, at the principal centre o f
trade. W ithout repeating the argument then made, the conviction is again expressed
that only by rigi I, unfailing re eruptions at a central point can the b a n ; currency
o f the country be kept at a uniform par value.
A prevalent objection to this doctrine is, that it would re der the oountry banks
tributary to New Y ork. W hile there is strong reason to believe this objection would
prove to be unfounded, j e t it may be entirely removed by authorizing the national
banks o f the country to take the whole matter into their own hands. I f Congress
eh >uld provide by law for the organization o f a uational bank in New Y ork City,
without circulation, in which every national bank should be required to become a
stockholder in proportion to its surplus fund, a bank with a capital o f from ten to
fifteen or twenty millions could be established, which w uld becom e the redeeming
agency f the whole country, an Ithe clearing-house o f all national bin k notes in cir­
culation. It wou'd be owned, controlled, and managed by the tanks themselves for
the;r benefit, and in their interest. It should have one department dev ted exclu­
sively to redempti ns and exchange-? o f currency, and another department devoted
to a general b inking busin ss. The latter department could be made to pay all the
* x enses o f the redemptions and exchanges, an 1 yield a revenue to the stockholdesr
in a id iti n, which woul i be so much interest on their surplus funds thus invested,
t^uch an institution would prove o f incalculable benefit to the banking, commercial
an 1 industrial interests o f the country. It would place the bank circulation o f the
country at once upon the soundest footing, and demonstrate practic lly the fact that
the banks stand ready to make their issues not only redeemable, but actually con­
vertible at all times in the great markets o f the Union.
Moreover, such an sg’en y , by becoming a p’ a e o f d posit for that portion o f the
reserves kept in New York, would remedy the evils adverted to in my la t report,
growing out o f the payment o f interest on the balances o the country banks, and their
consequent u-.e by the Nt-w Y ork City banks. The reserves, instead o f being lo ned
on call to speculators and brokers, as is largely done at present, would be hel i exactly
where they would be needed,, and would be applied to just the purpose for which they
were intended. They would be actual rese. ves, and at all times available as su ch ;
thus adding >o tbe safety and the credit c f the currency o f the country, and carrying
into practical operation the spirit and intent o f the law on this subject.
Thi9 suggestion is earnestly commended to the consideration ot Congress, as tend­
ing to reconcile the interests o f all sections on the question o f redempt:ons.
THE PERIODICAL STRINGENCY IN NEW YORK CITY.

A careful study o f the bark statements o f New Y ork taken separately, and the ap­
plication o f the facts so obtained to the a gregate statement or abstract o f the
wh< ie, affords valuable and instructive information.
The abstract shows the total o f loans to be $ 1 63,634,0°0.
An examination o f the statements in detail seows the character o f the loan to bs
substantially as fol'ow s :
Commercial or business puper................................................................................................. $90,000,000
Demand loans................ . * ...............................................................
- ................................ 68,500,'O '

Accommodation loans......................................................................................................

3,500,0(;0

{8u°peuied loans.........................................................................................................................

1,5> 0,000

T ota l....................................................................................................................................... 163,500,010

N iie sixteenths, or rather more than half the loan, is legitimate bus ness pap* r ; the
balance is upon call, or for accommodation. Tbe amount loaned on call for commercial
purp ses is not stated ; but reliable information leads to the belief that it i- very
small. The customs and necessities o f trade are o f such a character as to preclude
loans o f this kind. The merchant, w th I is capital invested in trade, must know
when his labilities are to mature, in order that he may he prepare 1 to meet them.
It would be unssle for him to use money in his business which he is liable to be called
on to pay at any m< ment. Consequently, merchants and others in business where the
profits are legular and legitimate, yielding a fair return to kill and industry,cannot
afford to borrow money on call. Dealers in money, stocks and gold constitute almost
the only class o f business men whose transactions are o f such a nature as t > make
call loans desirable or profitable ; and it is scarcely possible to avoid the inference




1 8 6 9 .]

DEPARTMENT

REPORTS.

461

that nearly one-half o f the available resources o f the national banka in the city o f
New Y ork are used in the operations o f the stock and gold exchange ; that they are
loaned upon the securitj o f stocks which are bought and sold largely on speculation,
and whicl are manipulated by cliques and and combinations,according as the bulls or
bears are, for the moment, in the ascendancy.
In addition to this direct loan o f $70,000,000, they furnish facilities by means o f cer­
tified checks to the same class o f operators to an amount ranging from $110,000,00 0
to $120,000,' 0 0 daily, (on the 6 th o f October the amount was $ ; 2,800,000;, arid these
checks are made to swell the amount o f individual deposits. They ate credited to de­
positors as money, and are circulated and treated as money by t e banks and by their
custom ers; yet, when ascertaining the amount o f deposits upon which they must hold
a reserve, or upon which they must pay taxes, the banks invariably deduct all such
checks on hand. For instance, on the 1st Monday o f October they reported:
Individual deposits.. . . .....
..................................................................................... $524,170,000
But deducting checks on hahd...............................................................................................
They had actual deposits o t.........................................................................................

1 2,800,000
$111,310,000

Taking the call leans and the certified checks tcge'her, the somewhat startling fact
is developed, that the New Y ork National Banks furnish $70,000,000 o f capital an 1
$112 000,000 o f credit for speculation.
The use o f certified checks is a direct inflation to that ex ten t; which stimulates the
stork market, and keeps the price o f a large class o f miscellaneous securi ies much
above their actual value, so that the market is feverish and fluctuating,and a slight
stringency reduces the prices. Taking advantage o f an active demand fir money to
m ove the crops, west and south, shrewd' operators form their combinations to depresr
the market by '• locking up” money— withdrawing all they can control or borrow
from the common fu n d : money becomes scarce, the rate o f interest advances, and
stocks decline. Tiie legitimate demand for money continues ; and, fearful o f trench
ing on their reserve, the banks are straitened (or means. They dare not call in their
demand loans for that would compel their customers to sell securities on a falling mar­
ket, which would make matters wo$$e. Habitually lending their means to the utmost
limit o f prudence, and their credit much beyond that limit, to brokers and speculators,
they are powerless to afford relief. Their customers, by the forceof circumstances,
beiotne their masters. The banks cannot hold back or withdraw from the dilemma
in which their mode o f doing business has placed them. They must carry the load io
Bave their margins. A panic, which should greatly reduce the price o f securities,
would occasion serious i f not fatal results to the banks most extensively engaged in
such operations, and would pr. duce a feeling o f insecurity which would be very dan
gerous to the entire banking interest o f the cou try.
The fact that a banking interest with capital and surplus o f $100.0 0,000 can be,
and has been repeated y placed at the mercy o f a few shrewd, though bold and
unscrupulous men, is evidence o f some inherent defect in its management, and the
foregoing statement may serve in si me d gree to show where the error lies :
1st. In demand or ca l loans to hrnkeis and speculators,on collateral security, by
w h i-b nearly one-half the a'tiv e resources o f the banks are used directly to foster and
prom ote speculative operations.
2d. CeriiSed checks or loans o f credit to the same class o f men. w hereby slocks
are inflated and immense operations are carried on daily upon ctitious capital.
8d. The p a jm en t o f interest on bank balances; which, being payable on demand,
must be loaned i n call in order to avoid loss.
The necessity for making call li ans is, in part, ow ing to the fact that a large fund,
belonging to country banks, is held by the N ew Y ork City hanks, subject to the p a y ­
ment o f ’ interest. This fund is liable to De demanded at any time. But, bearing
interest, it cannot be suffered to lie unemployed, and so m u s t be loaned on call. I t
may be m erely a coincidence ; but cn the first M nday c f October, the bank deposits
held by the N ew Y ork City banks were $68,529,417, and the call loans reported w ere
$68,f 00,CO1. These loans, as before stated, are made to brokers, stock and gold
operators, on collateral security, and constitute a large portion o f the capital used in
speculation. Thus, b y a vicious practice, tne reserve fund o f the country is banded
over to the tender mercies o f W all street and its purlieus.
N ot content with the $70,0! 0,000 so absorbed, a fictitious capital o f $120,000,000
is created by means o f cert fied checks, which, by an ingenious arrangement, after




402

DEPARTMENT REPORTS.

[ December,

being traded on the street, are finally traded back to the banks that issue them,
without materially increasing or diminishing the cash deposits. Many o f the largest
and best manage i national banks in New Y ork deprecate the practice herein set
forth, and look with anxie'y and alarm toward the final issue; but they are all in
voived in the danger. The failure o f one or more institutions, through reckless
management would endanger the whole. I f all bankers were wise and prudent,
no- law would be required to restrain them ; but they are in the position o f trustees
— trustees for their stockholders, trustees for their depositors, and trustees for the
public.
I f they habitu dly engage in practices dangerous to stockholders, dep eitors
an t the public the law may be invoked to provide a remedy. It is not becoming
that institutions organized under an act o f Congress for the public good, should
n far pervert their corporate powers and privileges as to work detriment to
the public interests.
If they regard legislative interference as arbitrary and
tyrannical, they may h a"e the opti n o f conforming ito the requirements o f law,
or o f withdrawing from a system to which they add no strength.
A re'urn to specie payment-* would be the best remedy for speculation ; as every
departure from specie value is the signal and incentive for its rise and reign. As a
present corrective, however, it is recrmmended that national banks be prohibited by
law from paying interest on bank balances, and also from certifying checks to be g (d
which ate not drawn against actually existing cosh deposits standing to tbe cre< it o f
the drawer when the checks are made and presented.
PANICS

N twithstanding the fact, however, that the troubles to which the banking interest
is liable are caused primarily by the disregard o f sound principles on the part o f
the banks themselves, it is never heless true that they do recur from time to time,
and that they are usua ly lhe cause o f wide-spread disaster— disaster reaching far
beyond the immediate circle in which the trouble originated, and extending into
eve y branch o f trade, and in 'o every sect on o f the country.
When money is abundant, the temptation is very great to find em ploym ent
for it as much as possible ; and though the danger o f too great extension is palpable,
and has been demonstrated by experience, yet the majority o f bankers are prone to
g o on, carrying full sad, until they find themselves in the breakers, repealing the same
mistakes and differing the same retributions which they themselves, or their pre­
decessors, have before ma e and suffered. The factsmust be taken as they are found
to exist. Panics come ; and while it wuuld be wise to learn lessons o f wisdom from
experience, so as to avoid their recurrence, the fact that we are, and will probably
continue to be, liable to panics as long as men make mistakes, cr act in reckless
disregard o f established principles, should be duly considered.
Recognizing this
fact, it may not be without profit to ascertain the nature o f the trouble that prevails
in a time o f financial pressure.
I f banks habitually lend 11 their available mean when times are easy, or when
there is no extraneous demand for money, it is evident that when an extra demand
arises, it can be met only by withdrawing or calling in loans previously mad-*. For
instance, during the Summer months there is but little demand for money throughout
the country generally, be on the ordinary wants o f regular trade, and a lartje sur­
plus is accumulated in the large cities, principally in N ew 'Y ork . The bants m New
Y ork, with them coffers full to overflowing, seek em ployment for their money, and
loan freely as far as they can tind ho rowers, and at low rates. Their funds are thus
absorbed, and to a considerable extent form the basis upon which a large amount o f
business is transicted.
Abundance o f money at low rates stimulates and builds up
a ceitain kind o f business, which comes to depend upon the banks for its activity and
support. Meantime the grain crops o f the '■* e9t, and the cotton crops of the South,
are gathered, and are made ready or shipment to market. Both are prime nece sities to the country at large. They must go forward, and money is required to buv
them and to m ove them. The de-> and is paramount and must be answered ; but it
can be met only by withdrawing money that has bee i absorbed and become the very
life blood o f a business built up and supported b y its use.
The banks contract their loans, and murmurs are heard o f stringency.
The crops
require all the m oney in the Icountry to pay for them ; b u t ; W all street demands its
share, insisting, and not without reason, that the banks encouraged its speculative
operations b y tendering means in abundance, and now to withdraw the accustomed




1869.]

DEPARTM EN T

EEPO ETS.

463

Bupport 'will be ruinous to its interests. The banks, interested so argely in the
operations o f their customers, cannot afford to call in their loans, or to cut off sup­
plies ; their own safety is at stake, and they m u-t carry their customers through, or
suffer with them the consequences o f a dangerous convulsion, possibly o f a fatal
co la p se .
This is substantially the history o f a panic under the present order o f things.
I ossibly it might be prevented by a proper onservatism exercised in season ; b t
prudence is not the meet distinguishing trait o f the times. The importar.nt question,
therefore, is how to relieve the public ? There is not money enough in the country to
meet all the demands at once. A suspicion that a financial institution is unable to
respond to all demands, is aim 'at fatal to its stability; and when confidence is
unsettled, judgm ent loses its sway, and unreasoning panic follows.
THE REMEDY.

I f the Treasury o f the United States could bold in reserve a ceitain amount o f
legal tender Dotes in excess o f the amount, o f m oney in regular circulation, to be
advanced to banking institutions at a specified rate o f interest upon the deposit o f
United States bonds as collateral s curity, a source o f relief would l e established
which would effectually prevent a monetary pressure from being canied to any
ruimns extent.
I b is proposition is not anomalous or without precedent. In time of severe pres­
sure, the Bank o f England has been authorized by the Chancellor o f the Exchequer to
issue it- notes in excess o f the limitations ]) escribed in its charter.
I his was done
in viola tion ,'r without authority, o f law, upon the pledge by the Government o f an
act o f indemnity. In our government no pow er to make such pledges exi ts ; and
therefore, any extraordinary provision o f the character suggested must be authorized
by law.
The measure is one o f relief an I protection to the interests o f the public at large,
and therefore justifiable. I f the consequences o f overtrading, speculation, aud other­
wise reckless conduct could be confined to the parties or institutions so overtrading or
speculating, they might w ell be left 1 1 their own resources ; but immense interests are
involve i w hich are in no way responsible for the trout le. A financial panic generally
extends to commercial circles, and in several instances has damaged the t ade and
industry o f the country to such an extent that its effects have b en felt for years.
A ny measure that would mitigate or prevent such calamities would be a measure o f
national impoitance and a proper subject for Congressional legislation.
SPECIE PAYMENTS.

The subject o f specie payments natu ally comes up whenever the currency question
i3 discussed, and much ingenuity has been exercised in devising plans for an early
resumption.
The principle obstacle to specie payments m a y b e found in the stat ment o f tbe
public debt o f tbe United States for the 1st o f October, 18C8, under the head o f
“ Debt bearing no interest,” as foll.w s ;
United States otes.................................................................................................. $3T6 021,073 00
lfractio ai currency ................................................................................................... 32,933,814 17
Making together .............................................................................................. 388,954,687 17
o f Government notes circulating as money, and designed to take the place t f gold
and silver by being made “ a legal tender for all debts, public and private, except
duties on imports” and interest on the bonded debt. A s long as the people prefer an
inferior currency— inferior because irredeemable and inconvertible except at a heavy
discount— they will have it to the entire exclusion o f the precious metals. W henever
the people conclude that it is m ore economical to conduct the business of the country
on a specie basis, they can ordain specie payments by making provision through
their representatives in Congress for the payment or withdrawal o f the present
depreciated paper currency issued and kept in circulation by the Government. A nd
whenever tbe people wish to restore the credit o f the nation, they can do it through
their representatives in Congress, by removing the only embarrassment that stands in
tbe w ay— by directing that provision shall be made for the payment o f a floating
ndebtedness amounting to $388,000,000, consisting o f promises to pay that are never




464

DEPARTMENT REPOSTS.

[December,

paid— and so establish the fact that the United States is a solvent debtor, able and
willing to pay every debt as it becomes due. Specie payments and the restoration
o f public credit are within the reach, and depend upon the will, o f the people o f the
United -States.
FREE BANKING.

W henever Congress sha 1 inaugurate measures looking to the appreciation o f United
Stales n tes to a gol i standard, the effect o f such measures will [ robably be to
diminish the volum e 'o f such notes in circulation. To what extent the reduction
would have to be carried in order to place them permanently on a specie basis,
would at present be mere matter o f speculation. Doubtless a large amount might be
carried, with profit to the Government and with benefit to the public.
A s soon as the effect o f such measures becomes apparent, by the gradual
approach o f legal tender notes to a par w th gold, the restrictions itripos-d upon the
issue o f circulating notes by national banks may be safely removed, provided the
establishment o f a central redeeming agency in the city o f N ew York, at which all
national bank notes are redeemable at par, shall be tequired by law. A ny inconve­
nience res lting from a reduction o f legal tenders mav thus be remedied, and the
remedy will be in the lands o f the only competent ju d ge o f the necessities o f the
case— the business public o f the United States.
Respectfully submitted,
H . R . 11r LBURO,
Comptroller o f the Currency.
Hon. H ugh M cC ulloch ,
Secretaiy o f the Treasury.
THE MINES OF AUSTRALIA,

The Melbourne A u s tr a lia n says ; Some interesting statistics just issued from
the Mining Department show a decrease iu the number o f miners employed in
1867. as compared with 1866, and an increase in their average earniugs. Indeed
it is satisfactory to observe that these have been steadily ' n the rise for the laat
six years ; while we must not lose sight o f tLe fact that the yield of gold does
not represent the who e o f the mine s’ earnings; inasmuch as these are supple­
mented by the tens o f thousands o f p unds expended in unsuccessful ventures by
capitalists in Melbourne and elsewhere. The meau number o f miners employed
in 1867 was 65,857, o f whom about three-fourths were engaged in alluv a!
operations.

Their average earnings per man were £ 6 7 10s. 7&d., and tho?e

o f the quarlz miners £ 158 11s. 8 d jd . per head per annum.
The michinery
two millions sterling; the estimated value o f all claims, £7,41.1,212 ; the length
o f water races, 2,300 miles; and the quantity o f gold exported duting the past
year was. 1,433,687 ounces, of which 560,527 ounces were obtained from quartz
veins, and 873,160 ounces from alluvial workings. W e subjoin an estimate o f
the value o f the metals and minerals raised in the colony from the first discovery
of the sold field-' to the 31st December, 1867 :
Gold, 33,910,952% ounces
£135,6-13,311
Silver, 12,591 o z , at 5s. 6d, per o z ......................................................................................
3,462
T i n ...............................................................................................................
10,01s
C opper.................................
.......................—...................................................................
4,673
30,426
■Mnumony............. .............................................................................................
Coal, 1,993 tous, at £11 0 per to n ..........................................................................................
2,899
Lignite, 233 tons, at 17s 6d. per t o n . . . .............................................................................
205
Kaolin, 1,757 tons, at £ 4 per ton ............................................................................................
7,028

Flagging..........................................................................................................................

18,603

S la tes............................
IVlagi-eslte, 6% tons, at £ 2 per t o n ..................................................
Diamonds, about 80 carats, at an average of, say, £1 per carat....................................
Sapphires, numbers cannot bo estimated, s a y ..................................................................

50S
12
80
150

Total................................................................................................ ...................... £135,906,96




1868]

COMMERCIAL

CHRONICLE AND

465

R E V IE W .

COMMERCIAL CHRONICLE AND REVIEW.
Derangement o f M onetary affai s—Statement o f the N ew Y ork Banks—Rates o f Loans and
D iscounts—The S tock M arket- Bonds sold at the N ew Y o r k S to ck ExchangfeBoard—Brices
o f Governm ent Securities at N ew Y ork—Course o f Coasois and Am erican Secuilties at
London—Railway and Miscellaneous Securities at N ew Y o ik —General Movement o f Coin
and Bullion at N ew Y o rk —Course o f Gold at N ew Y ork —Course o f F oreign Exchange at
N ow York.

November lias been remarkable chiefly for derangements in monetary affairs,
produced by the operations o f sp-culative combinations in Erie stock. E xtraord­
inary issues o f shares have been made by the managers of that Company, and the
proceeds hoarded for about three weeks.

I t is estimated that not less than

SLo,000,000 o f legal tenders were in 'this way taken out o f the banks. This
sudden movement, coming immediately after the withdrawal of large amounts
o f money to the W est, bad the tff ct o f reducing the legal tenders in the Clear­
ing-House banks, in the week endi g November 7th. to £47,100,000.

This,

o f course, necessitated a violent contraction of loans, and compelled borrowers
on stock collaterals to p iy , for a time, rates o f interest rang ng from 7 per cent
in gold to i per cent per day. A b ou t the middle o f the month, the Erie party
became large buyers o f their s tock ; and in that way the funds for some time
held out o f circulation jwer

again returned into the banks, with the result

o f a m irked ease in money an 1 a fall in the rate o f interest to 5 @ 7 per cent.
The wide fluctuations in banking movements will be apparent from the follow­
ing compar son of items on November 7th and 2 1 s t:
N ov. 7,
$256,600,000
16.400.000
34,300,010
175,500,000
47.100.000

Loans and discounts,
Specie
.................
C ircu la tion ...............
D eposits......................
Legal tender*.............

N ov. 21.
$251,000,000
17.300.000
34.100.000
184,100,000
63,500,' 00

The extreme scarcity of money materially interfered with discounting oper
ations, and caused muen inconvenience to m erchan t'; but, within the last tw o
weeks, the accumulation of paper has been worked off and rates have declined
2 @ 3 per cent, the rate for prime merchants paper, at the close, being 7 @ 9
per cent. The success with which the tying up o f money has thus been carried
on has produced a strong impression of the evils arising from the lack o f elasticity
in our currency, which will probably find expression in an appeal to Congress
for the adoption o f measures promotive o f a more effective redemption o f bank
circulation.

The Sub-Treasury found it necessary at to reduce one period o f

the month, its currency balance to abo t £8,500,000 in redeeming 3 per cent
Certificates sent in by the bunks to procure legal tenders; and, as a means o f
staying the panicky feeling, the Secretary o f the Treasury announced that, during
the continuance o f the pressure, rather than sell bonds or gold to supply himself
with currency, he would, if necessary, reissue legal tender notes which had been
redeemed but not cancelled. Fortunately, the necessity for this extreme resort
did not o c c u r ; and, since the return of ease, the Treasury has again sold gold,,
to the amount of about £ l,000,000.




5

466

commercial

cnRONicLE

and

REVIEW.

[December,

The following comparison shows the totals o f the statements o f the N ew
Y o r k banks at the close o f each week in October and at the close o f October

1867 :
N ov. 7.

N ov. 14.

N ov. 21.

Loans and discounts... $250,612,191 $249,119,539 $251, 091,063
16.44(5,741
16,155 003
Specie ..............................
17,333,153
34 249,564
34,353,637
34,195,063
Circulation..................
175.556,7i'8
Depos ts.......................
175.150,589
1S4,110.340
Legal Tenders.............
47,167,207
51,466,693
58,599,914

N ov. 28.
N ov. 80, ’ 67.
$254,388,057 $247,815,509
15,786,271
16,572,890
31,284,563
34,080,792
187,418,.335
175,6S0,233
62,440,206
52,098,132

T i e following are the rates o f Loans and Discounts for■ the month o f O ctcb er:
RATES

OF

LOANS

DISCOUNTS.

AND

N ov. 6.

C all l o a n s ......................
Loans on Bonds and M o r t g a g e . .
A 1, endorsed bills, 2 m o s . . . .
G ood endorsed bills, 3 tfc 4 m o s ,
<i
it
sin gle name! 9 . . . .
L ow er g r a d e s ................

N ov. 13.

Nov. 20.
6

k
bfl

bO
a>
C

' £

The stock market during the first half

o f the

@

-@
8
9
10
12

7

N ov 27.
5 @ 7

7

— @

@10
@ 2
@ 12
@15

7
8
9
12

7

@ 8
@10
@11
@ 15

m nth was excited and

panicky, in sympathy with the condition o f the money market and the ecceu’ ric
movements in Erie shares. A very sharp “ corner ’ ’ in Erie was devel p^d, under
which the price advancjd to 54. D arin? this process it is supposed the Erie
combination succeeded in placing a large amount o f st'-ck upon the street. The
subsequent litigation caused the sto k

to

be who! y neglected, and the price

declined to 3 5 f closing at 40. The pressure in money caused the failure o f a
Urge operator in the Milwaukee and St. Paul’s stocks, with the result o f a
break in the common shares from 9 7 f to 61.

N iw Y o ik

< entral declined

from 129J to 115, and Hudson River from 138 to 120. A ll other stocks also
declined very heavily; but upon the return of the “ tied up ” currency into cir­
culation there was a rapid upward movement in prices, and at the close of the
n onth the m rket was generally strong. The transactions at both boards of bro­
kers, for the month, have been as fol o w s :
Classes.
1867.
1869.
B ank s h a re s ................................................................
3,221
2,345
R ailroad “ ..................................................................... 1,0* 2,516 1,539,212
C oal
“ ......................................................................
3,se«
11.6 9
M ining
“ ......................................................................
13,600
28,750
Im prov’ n t " .........................................................................
57,120
11,200
Telegraph “ .........................................................................
79,514
26,151
Steam ship11 ........................................................................
117,719
43,926
E x p r’ ss& c1* ........................................................................
121,672
45,874
T otal—Novem ber
............................................ 1,359,168 1,(13,627
“ —since January 1 ............................................ 19,510,315 18,619,672

Increase.
........
534,696
7.86!
15,1.0

...
354,459
........

D ec
876
........
........
5,970
63,363
68.798
76,298
890,643

United States bonds have fluctuated very widely, in sympathy with ihe de­
rangements in the money market, and with the efforts o f combinations to depress
prices, harly in the month Five-Twenties o f 1862 fell to li 6$. but sub-equently
recovered to 1 1 3 f ; this extreme rise, however, was due part ally to speculation,
and the price stood at the close at 11 I f . Sixty-Seven- fell to lO '-f, but recov­
ered to 11 I f , and closed at I T f . E xeepiing Si ty Twos, the range o' fluctu­
ations has been 2f(g»3 per cent.

The nion'h c os d with a healthy demand from

investors, and with a generally st ong feeling am ng dealers, based upon the
understanding that measures will b- early introduced into Congress with a
view to closing up all outstanding gold-oearing loans, and declaring the prin­
cipal of all United States bonds payable in coin.




W e see, however, little prub-

1868]

COMMERCIAL

CHRONICLE AND

467

REVIEW,

abi’ ity o f this latter measure passing the lower House. The amount o f trans­
actions at the board for the month has been $29,600,000 against $15,800,000
for the sa ne period o f 1867
The transactions in bonds registe ed at the Stock
Exchange compare as follows :
BONDS SOLD AT THE N. Y . STOCK EXCHANGE BOARD.

Classes.
1867.
L .S . b o u d s ................ ....................................... $10,306,500
U . S. notes
......................................................
1,203,150
S t’ c & city b’ d s ..................................................
3,454,500
Company b ’ d s ..................... ............................
827,500

1888.
$23,065,900
.........
5,416,000
1,181,700

In c.
$12,669,400
.........
1,961.500
354,200

D ec.
$ ...........
1,203,150
............
...........

T otal—N ovem ber.......... ..........................$15,881,650 $29,663,600 $13,781,950
“ —since Jan. 1 ................................... 193,391,380 225,184,690
31,793,310

The daily closing prices o f the principal Government securities at the New
Y o rk Stock Exchange Board in the month o f November, as represented by
the latest sa.e officially reported, are shown in the following statem ent:
PRICES OP GOVERNMENT SECURITIES AT NEW YORK.

Day o f
r-6 ’ 8 ,1881.—.,------------- 6’ s, (5-20 yrs.) C ou p on ------------. 5 ’ s,10-4m onth.
Coup. Reg. 1862. 1864. 1865. new . 1867. 1868. yrs.C’ pn.
2 ............................ . ................. 115%
109%
108
107% ........ 110% 110% 106
3 ..............................................
114
.......... 109% 107% 107% 110% 110% 110% 106
4 ............... .................................. 115
....
108% 106% 106% 109% 109?4 110% 105%
5 ................................................ . 112% ......... 106% 106
105% 1*8% 108%
10)
104
« ...................................................... 112% 112
197% 106% 106% 108% 108% 108%
... .
7 ....................................................... 112% 112% 107% 106% 106% ln9% 108% 109% 101%
9 .................................................... 114% 112% 107
107% 1C7% 110% 110
110% 104%
10 ................................................
113% 112% 108% 106% 107
199% 109% 110% 105%
11 ................................................. 113% 112% 108% 106% 107
109% 109% 110% 105
1 2 . . . ...................................................... 113
108% 106% 106% 109% 109% 110% 105
13 .................................... ....................................... 108% 106% 106% 109% 109% 109% . . . .
14 .................................................. 113% 112% 108% 106% 106% 1 9 % 109% 110
104%
16...................................................... 114
113
109% 107% 107% 110% 110% 110% 105%
1 7 . . . , ............................ ........... 114% ......... 109% 106% 107% 109% 110
11'% 105
18 .................................................. 114% 113% 110
107% 107% 110
110% H0%
105
1 9 .................................................. 114% 113% 109% 107% ......... 109% 110% 110%
105
20 .................................................... 114
114% 110% 107% 107% 110% 110% 110%
105%
21 .................................................. 114% 114% 111% 107% 108
110% 110%
..... 105%
23 .................................................. 115
115
112% 107% 108% 110% 110% 111
105%
24 .................................................. 115% 115
118% 108% 108% 110% 111%
..... 106%
25 .................................................. 115% ......... 113% 108
108% 110% 110%
..... 106%
26 ..................................................
(Thanksgiving D ay.)
27 ................................................. 115% 114% 112% 107% 103
110% 110%
..... 106%
2 3 . ................................................... 115
. 111% 107% 107% 110% 110% 110%
1U>
3 ) ................................................................... 114% 111% .......... 107% 110% lh '% .......................
F irs t................................................... 115%
L o w e s t .............................................. 112%
H ig h e st............................................. 115%
R a n g e ................................................
3
L ast.................................................. 115

112
112
115
3
114%

109%
106%
113%
6%
111%

108
106
108%
2%
107%

107% 110% 110% 110%
105% 108% 108% 108%
108% 110% 111% 110%
2%
2%
2%
2%
107% 110% 110% 110%

106
104
106%
2%
106

The prices o f bonds at London and Frankfort h ive remained remarkably
steady through the wide fluctuations in the home market, as will appear from
the following daily quotations :
COURSE OF CONSOLS AND AMERICAN SECURITIES AT LONDON.

Cons Am . ecuri ties.
for U. S. Ill.C. Erie
mon. 5-20s sh’ s. shs.

Date.
M o n d a y .........
T u ’ sday...........
W ed n esd a y ....
T hu rsday........
F riday . . . . . ..
Saturday.........
M o n d iy ...........
T u e s d a y ........
W ed ney..........
T h u rs .............
F rid a y............
Saturday . . . .
M on d a y..........
T u esd a y.........
W ednesday ..
h n rsd a y ___
rid a y ............

2
3
4
5
6
7
9
U

94%
94%
94*
9 4*
94*
94*
94*
94*
94*
•13| 9 4 *
•14| 9 4 *
•16 9 4*
.17| 94
.181 94
.191 9 4 *




Holi day.
74* 9 7 *
74% 97*
74* 97*
74
97
7 3 * 97
7 3 * 9 6*
74* 9 6*
74
96*
74* 96*
71* 96
7 4* 96
73* 93*
73% 95%
74% 96'
7 4 * 96
74% 96

Date.

Saturday .............
27* M on d a y.............. .. ..2 3
T u e s d a y ............
28
27* W ednesday.........
2 7* T h u rsd a y........... ....2 6
27% F rid a y ................
27* Saturday............
27* M onday............. ......... 30
2 6*
2 5 * L ow est................
23* H igh est..............
26
R an ge.................
30*
32%
H ii. L H d ...............
30
30
R n g l S o S .........
30% | Last
...........

Cons Am . secur itiee.
for U.S. Ill.C. Erie
mon. 5-20s sh’ s. eb’ s.
94*
9 4*
91*
94*
9 4*
94%
94
94*

74*
74*
71*
75
74*
741.
74*
74%

94
94*
*

73*
75

91%
96%
4*
94*

70%
75
4*
7 4*

ix

96
96
96
96
96
96
96
96
—
95*
97*
1*
—
84%
102
17*
96

29*
23*
29
26*
27
27
27
27*
23%
32*
9
------23%
50%
26*
27*

463

c o m m e r c ia l

c h r o n ic l e

r e v ie w .

and

The closing prices o f Five-Tw enties at Frankfort

[ D ecem b er ,

;ieb week endi> g with

Thursday, were as follows :
No*'. 5.
79#® 79#

N *v. 2.
78#

N ov. 19.
79

> ov

Month.
78#© 79#

56.

*9#

The following table will how the opening, highest, lowest and closing prices

of all the railway and miscellaneous securities quoted ;>t ihe New Y ork Stock
Exchange during the months of October Hand November, 18(58 :
/----------- October.Open. High. L w.
Railroad S tock s45
40
A lton & Terre H a n t ...................... ........... 4 2 *
do
do
pref.................
B oston, Hartford & E rie.......................
23
23
Chicago & A lton ............. ............
155* 150
156
152
do
do p r e f .................... ........... 153
171
Chicago, B url.& Q uincy............................ 170
168
do
& G t . Eastern................ ............ 40 If
40*
40
do
& Northwest’ ll...............
88*
01*
OS*
do
do pref.................
S3
do
& R ock Island................ ............ 102* 100* 102
80
Cleve., C ol., Cin. & I n d ................
75
01*
do & P ittsb u rg......................... ............ 8 4 *
84*
106#
101*
d o & T o l e d o ............................. .............101*
Del., Lack & W estern.................. ............. 121* 122
121*
101
Dubuque & Sioux c i t y ................
95
95
do
cio p re f..............
95
E r i e ................................................. .
88*
40*
71
b5
do p ref............................................
Hannibal & St. J o s e p h ...............
do
do p ref................
89*
87
139
Hudson R iv e r ............................... .
131*
do
do scrip...........
Illinois C entral.................
141 # 143
50
50
50
In d . & Cin< in n a ti...........
96
96
90
Joliet & Chicago...............
45
Long Island.......................
45
45
99
Lake S h o r e .....................
102# 9 8 #
Mar. & Cincin., 1st p re f..
25#
2 3#
25#
do
2d pref..
9
10
Michigan C entral........................................ 119
119
118#
go
S. & N .I n d .................................. 8 3 #
83#
91
M il.& P r. duC h’ n .lM p f.....................................
*93*
Milwaukee & St. P anl............................... 9 5 # i i i*
tio
do p ref........... ............... 93
112
93
65#
Mori is & E ssex ............................................ 6 5 #
06
134
12U#
N ew J e r s e y ................................................. 134
do
C en tra l....................................... 122# 122 # 119
N ew Y ork Central....................................... 126# 130# 123#
do
& N . H aven.............................. 141# 142
141#
N orw ich & W orcester....................
32*
28*
28*
79
do
p ref .
73
78
do
345
345
330
108* 117# 108*
Pittsb., Ft. W . & C hica ...
R e a d in g ...............................
93*
9 3 * 100#
R om e & W atertow n.........
Stom ngton..........................
58*
T oledo, W ab. & W estern,
59
67
7S
do
do
d o p i e t . ..
78
73*
M iscellaneous—
33
36
33
1 28 * 130* 128
Del. & Hud. Canal Coal.
210
210
220
Pennsylvania C oal.........
40
40
40
Spring Mountain C eal..
no
130# 110
Pacific M a il----—
15*
18*
15*
47
51*
47
C a n ton .................
, 9
9
Brunswick City.
12*
5
5
8*
24,#
13*
do
p r e f.
13*
27*
21*
21*
230
230
230
33
3!
31*
E xpress—
45*
49
43
52*
49*
52*
50
47
49
United States...............
21
23*
23*
Merchant’ s U nion . . .
28*
30*
31*




......

Clos.
40

N ovem ber.----------- ,
Open. high . L ow . C los.
41
60
27*
151
150
170

41
62
27*
151
150
170

40
69
27*
134
105
169

27*
151*
156
170
40*
92
73
00*
90*
92*
91
77*
91*
11 <■'* 101* 109* 101
78
77
78
75
88*
87
89*
81*
102
95
103
103
132
130
130
126
10 »
95
54
40
35*
4 1*
65
65
65
59
90
90
90
89
so
02*
86
137* 137* 138
120
90
90
90
145
144
144
141
50
96
'95*
'95*
*95
45
100# 99# 100
96
23#
25
25
25
10
119
ii§*
lie '
iii*
9i
so
87
85
105
105
105
61
102 #
97#
95
9 8#
102#
96#
76
66

40
62
27*
147
147
170
e-6
87*
108*
75*
88#
100*
129*
40
60
90
92*
131
90
143#
95**

100
117#
89#
105
70#
88#

121
134
120# 120#
126# 125#
142
143
90
30*
3 .*
79
79
330
3 0
114# 112*
97*
93*
1H
85
64
6 *
74
73*

134'
121
129#
143
90
31*
70
330
113*
99#
1!4
85
62
73*

131# 133
116
115
140
9)
28*
79
330
105*
92
114
S5
54
70

116
129#

35
129*
220
40
125*
IS
48*
12*
8
23*
24
2:J0
36*

35
130
220

41
133*
220

34
127
*20

40#
132*
220

121*

124*
15*
5 1*
12
5*
22*
25
225
37*

112*
14*
4o*
11
6
18*
20
225
33*

118*
15*
51
It

46*
50*
47
21*
28*

46

49
50
50

41
46

48
50
50
19#
27

15*
47
12
«*
2-’ *
22*
2*5
36

49*
48

21*
28*

21*
29*

44*
18*
25

l4u

90
31#
79
330
H I#
99#
114
85
58#
71

6

21#
23#
226

37

1868]

469

COMMERCIAL CHRONICLE AND REVIEW.

Gold baa fluctuated between 132 and 137. Thi-> wide range o f quotations
has be n due richer to fpeculative operations attributed to the Erie combination
than to any legitimate causes uffec'in* tire premium.

Early in the n.ont , large

amounts o f gold w-re withdrawn Iron the market,and t1e “ short” i terest being
quite large, borrowers o f coin were c tnpelled to pay, for one day’s use o f it,
from i @ l per cent.
The market has a very s'eady undertone, owing to
anticipations among foreign houses that, within a le “ weeks, a considerable
amount ol coin w 11 have to be exported. The ample supply o f cotton bills,
together with some exports o f bonds, have obviated the necessity o f shipping
gol i itr connection with remittances against the coupons o f foreign holders of our
bonds.
The fallowing formula will show the movement o f coin and bullion during the
month o f November, 1867 and 1868, respectively:
GENERAL MOVEMENT OF COIN AND BULLION AT NEW YORK.

1S67.
1S68.
Increase. Decrease
$6,1«1,164 $16,446,741 $10,285,577 $ ...........
513,8 5
1,200,760
686,005
.............
201,600
201,825
......... .
275
16,969,514 16,483,908
.............
483,606
.............
32,200
32,200
.............

In banks, near fi r s t ...................
Receipts from California.........
Im ports o f com and b u llio n ...
C oin interest paid.......................
Redem ption o f loan of1847-’ 48
T otal reported supply.

$23,846,133 $34,366,834 $10,520,701 $

E xports o f coin and b u llion........
Customs d u t ie s .............................
T otal w ith d ra w n ....................

$388,016

$1,569,100
7,304,934

$1,181,084
7,638,888

' 333,954

$8,874,034

$8,81S,972

$ ...........

$54,062

$ 4,972,099 $25,546,902 $10,574,803 $ ........
625,449
16,411,726 15,786,277
.............

E xcess o f reported supply...........
Specie in banks at en d ..................

$1,439,627

Derived from nnreported sources

$9,760,625 $8,320,998

$ .......

The following exhibits the fluctuations of the N ew Y ork gold market in the
month o f N ovem ber, 1868:

H igh’ st.
i

Date.

L o w est

Openi’g

Closing.

H igh’ st.

Lowest.

Date.

Opcni’g

COURSE OF GOLD AT NEW YORK.

M o n d a y ...............
T uesday............... . . . . 3
W ednesday......... . . . . 4
Thursday............. . . . . 5
F rid a y ................. . ...
Saturday .............
M onday................
Tuesdfiy............... .. .10
W ednesday......... ....1 1
Thursday............. ... 12
F r i d a v .................
Saturday .............
M onday................
T uesd ay........... .. ....1 7
W ednesday......... ....1 8
Thursday............. . . . 1 9
F rid a y .................. . . .20
Saturday............. . ..21

133)4
1334$
133)4
1321,
132*
134 tv

133 133*
133* 133*
133 133%
132% 1132%
1'32 132%
13 % 1-4%
13)% 134%
l-j'% 134% 1- o%
133% 133* 134%
134* 133% 134%
133* 133% 133%
134V 134V 135
135*1135* 137
13b* 134% 136%
131% 133% 135%
134% 134% 135
134% 134% 134%
m x 134% 134*

133%
133*
133
132%
138%
134%
134%
134%
134%
133%
133*
134 %
136%
134%
1-5%
134%
134%
13-4%

134%
134%
134%
(Tha
135%
134*
30 135%

134
134%
134%
i k tg
135
134*
135*

134%
131%
135%
iving
135%
1- 5%
135*

134%
134%
135%
Day)
135%
135%
135%

N o v .... 1868...............
“
1867...............
“
1866..............
“
1865..............
“
1864..............
“
1863 .............
“
1862..............
“
1861 .............

133%
140*
146%
145%
238%
146
129*
ICO

132
137%
138%
145%
210
148
129
100

137
141%
14%
148%
V60
154
133%
100

135%
138
141%
147%
230
148%
129
100

S’ ce January 1, 1868

133% 132

150

135%

M onday.. ................
T u esd a y................ .
Weduesday ..............
T h u rsd a y..................
Friday ......................
Saturday ...................
Monday ....................

23
24
25
26
27

fch

a

*«
o
O

The follow ing exhibits the quotations at N ew Y ork for bankers 60 days




470

jo u r n a l

or

b a n k in g ,

CURRENCY,

and

FINANCE.

[ D ecem b er,

bills on the principal European markets daily in the month ot November.

1868 :
O U R S E O F F O R E IG N E X C H A N G E (6 0

Days.
a ...............................
3 ...............................
* ...............................
5
..........................
6
..................
7
..........................
9 ...............................
10 .............................
11
........................
12
..........................
13 ...........................
14 .............................
16
..........................
1 7 ....••••..............
18
........... .........
19
..........................
SO...............................
21..........
23
..........................
24
..........................
25
..........................
2 6 ..
27 ..............................
28
..........................
3 0 ..
......................
N ot ., 1867...............
N ot.. 1868...............

DATS) AT N E W TORK.

London.
cents for
54 pence.
HW X@ . . . .
1 0 '* @ 1 0 9 *
109*® lO 9X
10HX@KC.1X
109 @ 1 0 9 *
109 @ 1 0 9 *
0 3 X 0 1 41
109X O 109*
1 0 9 X 01 0 9 *
1 0 9 * @ lo 9 *
109*0109*
109 X 01 0 9 *
109 @ 1 0 9 *
103 @ 1 0 9 *
109 @ 1 0 9 *
1 0 9 *@ 1 0 9 *
1 0 9 *@ 1 0 9 *
1 09 *@ 10 4 *
1 0 9 *@ 1 0 9 *
1 0 9 *@ 1 0 9 *
1 0 9 *@ 1 0 9 *

Paris.
Amsterdam. Bremen.
centim es
cents for
cents for
for dollar.
florin.
rix daler.
5 1 4 X 0 5 1 3 * 41 @ 4 1 * 7 9 * @ 7 9 *
513
514* 41 @ 4 1 * 7 9 X 0 7 9 X
515 @ 5 1 4 *
41 @ 4 1 * 7 9 * @ 7 9 *
51«*® 515
41 @ 4 * 7 9 * ® : » *
5 18*0.516*
41 @ 4 1 * 79 @ 1 9 *
51 '* @ 5 1 6 *
41 @ 41X 79 @ 7 9 *
5 1 8 '.@ 5 1 6 *
41 @ 4 1 * 79 @ 7 9 *
5 1 7 *@ 5 1 6 *
41 @ 4 1 * 7 9 * @ 7 9 *
5 1 7 *@ 5 1 6 *
41 @ 4 1 * 7 9 * @ 7 9 X
5 1 7 *@ 5 1 6 *
41 @ 4 * 7 9 * @ 7 9 X
5 1 7 *@ 5 1 6 *
41 @ 4 1 * 7 9 * @ 7 9 *
5 1 7 *@ 5 1 6 *
41 @ 4 1 * 7 9 * @ 7 9 *
517*@ 516X
41 @ 4 1 * 7 8 * @ 7 8 X
517*@ 516X 41 @ 4 1 * 7 8 * @ 7 6 *
5 17 *@ 51 6 *
41 @ 4 1 * 7 8 * @ 7 8 X
5 1 7 *@ 5 1 6 *
41 @ 4 1 * 7 8 * @ 7 8 *
5 1 7 * @ o lb *
41 @ 4 1 * 7 8 * @ 7 8 *
6 1 7 *@ 5 1 6 *
41 @ 4 1 * 7 8 X @ 7 8 *
5 1 7 *@ 5 1 6 *
41 @ 4 1 * 7 8 * @ 7 8 *
517)4@516*
41 @ 4 1 * 7 8 * @ 7 8 *
5 1 7 *@ 5 1 6 *
41 @ 4 1 * 7 8 * @ 7 8 *
(Tnanksgiying Day.)
1 09 *@ 10 9 * B 17*@ 516*
41 @ 4 1 * 7 8 * @ 7 8 *
1 0 9 *@ 1 0 9 * 5 1 7 * @ 5 I6 *
41 @ 4 1 * 7 8 * @ 7 S *
1 0 9 *@ 1 0 9 * 5 1 7 *@ 5 1 6 *
41 @ 4 1 * 7 S * @ 7 8 *

H amburg.
cents for
M . banco.
36 @ 3 6 *
36 @ 3 6 *
36 @ 3 6 *
36 @ 3 3 *
,35X@36
35X@36
3 5X 036
36 @ 3 6 *
36 @ 3 6 *
36 @ 3 6 *
36 @ 3 6 *
36 @ 3 6 *
36 @ . . . .
36 @ . . . .
36 @ . . . .
36 @ . . . .
36 @ . . . .
36 @ . . .
36 @ . . . .
36
36

B erlin.
cents for
thaler.
71X 071*
7 I X @ 7 !*
71X © 71*
71X @ 71*
71 * @ 7 2
71*@ 7 2
71*075
11*@ 71*
71*071*
71*071*
71*@ 71*
71*@ 71*
71*@ 71*
71*@ 71*
71*@ 71*
71*@ 71*
71*@ 71*
71', @ 7 1 *
71*@ 71*
71*@ 71*
71*@ 71*

36 @ . . .
36 @ . . . .
36 @ . . . .

71*@ 71*
71*@ 71*
71*@ 71*

109 @ 1 0 9 *
109 @ 1 0 9 *

35*@ 36*
35*@ 36*

71*@ 7»
71*@ 72*

.*

618*@ 513*
517*@ 513*

41 @ 4 1 *
40*@ 41*

78*@ 79*
@79

JOURNAL OF BANKING, CURRENCY, AND FINANCE.
Returns o f the N ew Y ork, P h ila d elp h ia and Boston Banks.

Below we give the returns of the Banks of the three cities since Jan. 1 :
NEW YORK CITY BANK RETURNS.

Losns.
Date.
January 4 . . f $249,741,297
J anuary 11. , 251,170,723
January 18
. 256,033,938
January 2a .. . 258.392,101
February 1 .. . 266,415 613
February 8 .. . 270,555,356
February 15.. . 271,015,970
February 21.. . 267.763,643
February 29 . . 267,240,6»8
March 7 ......... 269,156,636
March 14.......... 266,816,034
March 21............261,416,900
March 28
.. 257,378,247
April 4 ........... 254,287,891
April 11........
252,936,725
A p iil 18............ 254,817,936
A pril 25........... 252,314,617
May 2 ........... 257,623,672
May 9 ........... 265,755,883
May 16........... 267,724,783
May 23........... 267,381,279
May 30........... 268,117,490
June 6 ........... 273,792,367
June 13 ........... 275,142,024
June 20 .......... 274,117,608
June 27............ 276,504. 36
July 3 ........... 281,945,931
July 11 .......... 281,147,708
July 1 8........... 282,912,490
July 25........... 280,345,255




Circul tion.
Specie.
$12,724,614 $34,134,391
19,222,856
34,094,137
34,071,004
23,191.867
25,106,800
34,0-2,762
23,955,320
44,062,521
31,096,834
22.823.372
24,192,955
34,043,296
34,100,023
22,513,937
22,091,642
34,0 6,223
34,153 957
20,714,233
34,218,381
19,744,70!
34,212,571
17.944.308
^4.190,803
17,323,367
17,077,299
34,227,108
34,194,272
16,343,150
16,776,542
34,218,581
34,227,624
14,943,547
16.166.373
34,114,843
21 286,910
34.205,409
20,939,142
34,193,249
20,479,947
34,183.038
17,861,088
34,145,606
14,328,531
34,188.159
11,193,631
34,166,846
9,124,830
34,119,120
7,753,300
34,018,721
34,03-,466
11,954,7 <0
19,235,318
34,068,202
34,004,111
20,399,031
20,804,101
33,963,373

Deposits.
$187,070,786
194,8:35,525
205,883 143
210,093,084
213.330,524
217,844,518
216,759,828
209,095,351
208,651,578
207,737,080
201,188,470
191,191,526
186,525,128
280,956,846
179.S51,880
181,832,523
180,307,489
191.206,135
199,276,568
201,311,305
202,507,550
20" ,746,964
209,089,655
210,670,765
211.484,387
214,302,207
221,050.806
224,320,141
228,180,749
226,761,662

L. Tend’ s. A g. c’ ear’gg.
$62,111,201 $483,266,304
64,753,116
553,834,525
66,155,241
619,797,369
67,154,161
528,503.223
65,197,153
637.449.923
55,846,259
597,242,595
63,471,762
550,521,185
60,868,930
452,421,592
58,553,607
705.109 784
57,1*17,044
619,219,598
54,738.866
691,277,641
52,261,086
649,482,341
52.123,078
557.843.908
51,709,706
567,783,138
51,982,609
493,371,451
50,^33,660
623.713.923
53,866,757
6 2,784,154
57,863,599
688,717,802
57,541^27
597,028,567
57.613,095
480.186.908
62,233,002
488,735,142
65,633,964
602,118,248
68,822,023
640,663,329
69.202.840
530,328,197
72.567.582
553,9-3,817
73,853,303
516,726.075
72.125,933
525,646,693
68,531,542
691,756,395
71.847,545
605,462,464
72.235.583
487,169,337

1868]

47 [

JOURNAL OF BANKING, CURRENCY, AND FINANCE.

Date.
L oan3.
August 1 . . . . 279,811,657
August 8 . . . . 279,705,786
August 15 . . . . 277,808,(520
August 22 . . . . 275,345,781
August 29 . . . . 271,780,726
September 5 271,830,696
September 12. 272,055,690
September 19. 271,252,096
Sep'em ber 26. 271,273,541
October 3 . . . . 269,5 3,868
O ctobe 1 0 .... 265,595.582
October 17 . . . 564.644,(35
October 2 4 .... 263579,133
October 3 1 .... 262,365,569
N ovem ber 7.. 556,612.191
Novem ber 14 . 249.119,539
N ovem ber 21.. 251,091,063
N ovem ber 28.. 254,386,057

Specie.
Circulation.
20,502,737
33,957,305
24,784,427
31,074,374
22,953.85)
34,1(4,087
19 768,681
84,137,627
16,949,108
34,112,139
16,815,778
34,170,419
16,150,942
34,139 926
14,665,742
34,044,693
12,603,483
34,050,771
11,757,335
34,154, (“06
9,346,097
34,188,103
9,186,620
34,213,918
9.553,583
34,193,938
10,620,526
34,2'3,210
16,446,741
34,35^,637
16 155,' 08
34.249,5‘ 4
17,333,153
3 *,195,068
15,786,277
34,284,563

Deposits.
228,10l?e67
23' 716,4«>2
223,561,687
216,435,405
210,334,646
207.854,341
265,489,070
202,824,583
202,068,334
194,919.177
189,053,997
188,886,586
186,05 ,847
181,948,547
175,556,718
.75,150,589
184,110.340
187,418,835

L. Tend’ a. A g. clear’ gs.
73,638/61
409/34,169
74.051,518
587 004,381
72 9:5,481
482,533,952
69,757,645
610.308.551
67,757,376
480,785,665
65,983,773
470,036.175
63,429,337
493,191,072
63,772,700
518.471.552
63,587,576
620,105,094
60,2 0,4 7
747.618,516
60/05,086
657,958,155
58,626,857
635,516,454
56.7H,434
850,584,443
51.590,9 8
809.152.543
47,167,207
876,571.604
51.466,693
807.806.543
63,599,944
865,111.990
G2,44J,206
512,952,800

PHILADELPHIA BANK RETURNS.

Legal Tenders.
Date.
January 4 ........... ......... $16,782,432
January 11...........
January 18...........
January 25........... .......... 16,836,937
February 1 ...........
February 8 . . . . . . .
February 15........... .......... 16,949,944
February 22...........
February 29...........
March i ................. ......... 17,157,954
Man h 14................. . . . . 16,662,299
March 21 ...............
March 28................. ......... 14,348,391
A ptil 4 ...............
April 11.. ............. . . . . . . 14.191,385
April 20................
April 27 ............... .. .. 14,951.106
Mav
4 .................
May 11........... ...
Mav 18.................
May 25.................
June 1.................
June 8 .................
June 15 ...............
June 22.................
June 29 ............... ......... 16,414,877
July
6 ...............
July 13............. .
July 20................
Juiy 57 ...............
August 8 ..............
August 10........... ...
A ugust 1 7 .............
A u_ust24...............
A ugust 31.............. ........ 17/16.825
September 7 ......... ......... 16.875,409
Sept n her 14........ ......... 16,310,565
September 21........
September 28....... ......... 16,038,854
October 5 ............. ......... 15,677,539
October 1 2 .... . . . ......... 15,082,008
Octt ber 19.............
Oct ber 26
....
N ovem ber 2 .. . .......... 13,802,798
N ovem b r 9 ........
N ovem oer 1 6 ........ ......... 12 57"/78
Novem ber 2 3 ....... .......... 12,685,593
Novern ,er 30 . . . .

Loans.
$52.00 ;,30*
52,593,707
53,013,196
52,325,599
52,604,916
52.672/48
52,532,946
52/23,166
52,459.757
53/81,665
53,367,611
53.617,387
53,450,878
52,209,234 ‘
52,256,949
52,989,780
52,812 6 3
53,333,740
53,771,794
53/91,583
5.:,- 63,225
53,562/49
53/91 364
53,122,521
53,381,820
53,072,878
53,653,471
53,791,5*. 6
53,994,618
54,024,355
54,341,163
5*,592/115
54.674,758
55,151,724
5 \ 255/74
55.684,008
55 646,740
55,620,710
65/68,286
55,248,512
55,373,834
55/01,115
51,964/88
54,731.616
53,957,647
53,323/60
52,350,530
52,386,066

Specie.
$235,912
400,615
320,973
279,393
248,673
287,878
263,157
204.929
211,365
232.180
251.051
229.513
192 858
215,835
230,240
222/'29
204,699
314,366
397,7i8
3 3,525
280,302
239,371
226,581
175,308
182.711
198,563
233,996
182,524
1S3,252
195,8S6
187,231
184 007
196,530
185,1S6
181,2.8
222,900
209,053
197,207
234,552
195,689
161,282
200/98
176/95
222,901
387,221
335,012
298,754
249,154

C irculation.
$10,639,000
10,639,096
10,641,752
10,645,226
10,638,927
1*',635‘ 926
10,663,328
10,632,495
10,6134,484
10.633,713
10,631,399
10,613,613
10,643,606
10.642,670
10 640,932
10,640.479
10,640,312
10.631/*41
10,629.0 5
10,632,665
10,661,276
30,626,937
10,630 945
10,630,979
10,631/2:0
10,630,307
10,625.426
10,626,214
10,647.852
10,622,247
10,623 646
10,622,751
10,624,772
10,623.360
10.622,581
30,622,316
10,613,974
10,620,531
10,607,940
10,608,33 *
10,607,413
10.610,700
10,609,359
30,612,512
10.611,086
10,609,645
10,605,97-)
10,603,153

Deposits*
$36,841.27;*
37,131,83”
37,157,08“
37,312,54“
S7,!)22,S87
37.8110,653
37,010,520
36,453,46*
35,798,31*
31,S26,8fil
94,543,550
33,836,99*
33,428,390
31,278,119
32,355 67*
33,950,95*
34,767,190
35.109.931
3i).017,5Sl6
36.030.063
36.000. 491
36,574.451
42,910,490
43,016.968
43,243,562
43,936,629
44,824,398
45,156,620
45,637,975
45,583,220
47 205,861
45.04.. 718
46,636,371
45,985,616
46,063,150
45,279,109
44,730,328
43,955,531
44,227,127
43.525,479
42,713,623
42,616,626
41,698,881
41 107,463
59,343,970
89.377.931
37,136,444
3 ,176,990

BOSTON BANK RETURNS.

(Capital Jan. 1, 1S66, $41,900,000.)
Date.
Janu ly 3
January 13
January 20
January 27
February 3
February 10
February 17

Loans.
$31,960,249
97,800/239
97,433/63
97,433,435
96, S'-'5,260
97,973,9 6
98,218,828




Specie.
$1,466/246
1,276,987
926,942
811/96
777,627
652,939
605,140

tJ X s.

$15,543,169
15.56* ',965
15,832,769
16,319,637
16,738,229
16,497.643
16.561 4 1

D eposits.
$40,856,022
41,496,320
41,904,161
43,991, 70
42,891,128
42,752,0* .7
41 502,550

•------ Circulation------- ,
N ational.
$24,636,559
24,757,965
24,70i',00l
14,564,' 06
24,628,103
24.850,926
24,850,055

State.
$228,730
227,953
217,372
226,258
221/60
221,700
220,452

472
Date.
February 2 4.
March 2.......
March 9........
March 16.......
March 23... .
March 30. . . .
April 0 ........
April 13.......
April 20........
April 21 ___
May
4 .....
May 1 1 . . ;
May 18........
May 25. . . .
June 1........
June 8 . . . . .
June 15.......
June 2 2 ... .
June 29
.J u ly
6 .........
July 13.........
Ju y 20.......
July 2 ? .........
August 3 ---A ugust 10. ..
A ugust 17----August 24 .. .
Aug us 31 —
Se^1ember 7.,
{September 14
September 21
September 28
Oetob r 5 ...
October 12 ...
October 19___
October 2 6 ...
Novem ber 2
Noverjihei. 9
N .'v fm tw
NoVenr er
Novpfiibcr 30

jo u r n a l

o f b a n k in g ,

Loans,.
.......... 97,469,436
.......... 100,243,692
......... 101,659.361
. . . . . . 101,499,611
......... 100,109,595
-------- 99,132,268
......... 97,020.925
. . . . . . 97,850,230
......... 98,906,805
. . . . 98,002.343
; ........ 97,624,197
......... 97,332,283
......... 96,938,524
. . . . . . 97,041,720
......... 97,45s,997
......... 98116,632
......... 99,513.988
......... 99,389.6S 2
......... 99,477,074
......... 100,110.830
......... 101.493.516
_____ 1*2,430,433
......... 102,408,771
......... 102,: 80.658
......... 103,860,6S6
......... 103,956,603
......... 103,6-4,691
......... 103.550,020
......... 103,853,110
......... 102,921,733
......... 102,472,936
......... 101,021,744
......... 99.562,844
......... 100,839,722
......... 1<2,595,177
101,595,576
99,720,762
99,77'*, 134
98 688,779
97,354,999
97,612,382

CURRENCY,

Specie. Leg.Tenders.
616,953
16,309,501
633,832
16,304,846
867,174
15,556,696
918.485
14,582,342
798,606
13,712,560
685,034
13,736,032
731,5 JO
13,004,924
873,487
12,522,035
805.486
11,905,603
577, 63
12,2'.‘8.545
815,469
12,656,190
U 33,668
11,962,368
1,186,881
12,199,422
1,018,809
12,848,141
14,188,806
631,149
14,368,900
561,990
14,373,575
476,433
14,564,614
436,699
15,195,550
1,617,638
15,Si 7,307
1,198.529
15,743,211
1,521,3931
15,469,406
785,641
15,837.7:8
7." 6,254
15,796,059
634,963
15,753,958
Hi 4,696
15,554,530
779,1! 2
16,310,323
r. 7.8 9
15,843,796
833.063
14,975,841
748,714
13,771,830
642.793
13,466,258
642.829
l',0 . 2,447
618,428
13,928,894
505,805
13.691,864
501,003
13,009,829
481,755
11,915,788
729.830
11,701,307
1,2-9,781
11,120,415
1,242,* 85
10,961.899
1,196,09-!
10,931,225
1,030,427
11,129,836

and

f in a n c e .

Deposits.
40,387,614
40,954,936
39,770.418
39,276,514
37,022,546
36,184,640
36,008,157
36,422,929
36,417,890
36,259,946
37,635,406
87,358,776
37.844,742
£8,398,141
40,811,569
41,470,376
41,738,706
42.583,871
42,506,316
43,458,654
43,116,765
43,876,300
43,580,894
43,389,523
41,962,26#
43,702,501
42,360,049
41,211,607
40,891,745
40,610,820
39,712,168
39,127,659
39,215,433
38,801.454
38,686.314
37,872,e.97
37.710,824
37,3 55,519
31,970,223
35,114,.->17
36,615,167

[ December,

-C irculation .State.
24,686,212
216,490
24,876,089
2 5,214
210,162
24,9S7,700
25,062,418
197,720
197.289
25,094,253
197,079
24,983,417
168,023
25,175,194
24,213,014
167,013
24,231.058
166,862
161,331
25,231,973
25.203.234
160,385
25,225,173
145,248
25.234
465 160,241
160,151
25,210,660
159,560
25,204,939
25,194,114
159,3! 3
159.150
25,190,565
25,197,317
158,908
25.182,920
158,812
144,689
25.214,100
141,538
25,216,181
1.35,799
25,218,727
25,254,906
142,450
25,016,492
25,197,164
25,182,658
25,214,5 6
25,190.091
25,196,084
25,183,876
25,184,048
25, IT0,081
25,143,5^7
25,282.:- 82
25,267,095
25,168.348
25,243 470
25,21.7,9 9
25,230,679
25,201,845
25,092,423

National.

-7 ^ 7

PECIAL

NOTICE.

W e take pleasure in calling the attention o f our numerous reavlers to
the card of the Mercantile Library Association, which will be found on
the outside cover of this edition. This institution has now some 100,000
volumes, comprising the works of all the standard authors, and is con­
stantly adding the newest publications. The low price of membership
places it within the reach of all, and we would especially recommend young
men who are not already members o f the Library to join it at once, assur­
ing them that it will be a step never to be regretted.




i