K 
 
fclSlliP&l HIS Publication dedicated to 
 i^lBlJIiiiEi the Bankers of America by 
 
 >''"i'-''\/'\'>'''c^'v 
 
 
 
 
 Wells 
 Fargo & 
 Company. 
 
BANKING 
 
 Q) 
 
 Y\^V.>1--NTK;, ,^j. 
 
 "Wells 
 Fargo 
 & Co.s 
 Express 
 
ArU^ 
 
 BANKING 
 
 Ancient • and • Modern 
 
 <^ 
 
 Proflskln' Illustrated 
 
 Portraits of Men Prominent in Banking 
 
 AND en(;kavin(;s of some of the principal 
 
 r.ANKINC. LNSTriLTIONS OF AMERICA, 
 
 Intkrior and Exterior Views of U. S. Treasury Building, 
 together with full instructions as to the i5us1ness 
 
 METHODS OF THE TREASURY DEPARTMENT 
 AT WASHINOToN. D. C. 
 
 -1895 
 
 BY 
 
 WiLLARD Forester Warner 
 
 Tkf.asikv Dki'aktmkni , Washinc.ton. Y>. C. 
 
^G'^ 
 
 
 \>^ 
 
 1>1 
 
 FROM fHESS OF 
 
 Lanward Pub. Co. 
 
 Chicago 
 
JOHN G. CAULISJ,K, 
 Secretary of the Treasury of the United States, Wiisliiiiyton, 1). C 
 
 ii5(^>:>^j 
 
.lOHN J. VALENTINE. 
 Prtsi.Ii'iit Wills FargK A Co.'s liaiik, Kan Frniu'iseo, Cal. 
 President Wells Fiirj^o & Co.'h Express, Sun Fnincisco, Cal. 
 
BANKING 
 
 ANCIENT AND MODERN- 
 
 CHAPTER I. 
 
 ANCIENT BANKING. 
 
 BANKING is an outgrowth of commerce. In its most primi- 
 tive form — money changing — it assumed the first function of 
 banking deiiandeci by the times, and as commerce increased between man 
 
 and men and between 
 country and countries, 
 other functions devel- 
 oped as necessity re- 
 quired, until to-day 
 the business of bank- 
 ing occupies a proud 
 position among the 
 institutions which 
 have contributed to 
 the development of 
 the world. 
 
 The modern word 
 bank seems to have 
 been derived from the 
 (lerman word "banck," 
 which was introduced 
 into Italy by the dom- 
 inant Germans in the 
 twelfth century, and 
 became Italianized in- 
 to the word "banco," 
 which was used inter- 
 changeably with the 
 word "monte," to mean 
 a culltction of credit 
 oi" money. 
 
 The late Cieorge 
 .Smith, during his re- 
 searches among the 
 ruins of Babylon, 
 found tablets which 
 are the commercial instruments or checks and notes of a Babylonian 
 banking firm, trading under the name of the founder, I\gibi. The firm 
 appc:irs to h.^ve been practically, a national bank of Babylonia, and its 
 
 LViMAN J. GAGK. 
 I'resiclcnt First National I'ank, Chicago. 
 
 115G27 
 
lO 
 
 transactions were of the most extensive character, Mr. W. St. C. 
 Boscawen has studied these tablets closely and publishes the following 
 information concerning them: 
 
 "Sula, son of Zirukin, son of Egibi appears as contracting party in 
 the third year of Nebuchadnezzar, and continues to be at the head of the 
 firm until the twenty-third year of that monarch. In the fifteenth year of 
 this reign, his son Nabuakhi-idin, is taken into the firm and appears in 
 compan)- with his father as contracting party. 
 
 " The tablets give us a complete succession of annual transaction.-^ 
 
 from the first of 
 
 Nebuchadnezzar 
 
 to the thirty- 
 fifth of Darius. 
 There is one tab- 
 let dated in the 
 fourth year of 
 Nabupal u zar 
 (Nabopalassar); 
 tablets dated in 
 the reign of this 
 m o n a r c h a r e 
 very rare. By 
 means of a lunar 
 eclipse mention- 
 ed by Claudius 
 Ptolem a e u s as 
 taking place in 
 the fifth year of 
 Nab opalassar, 
 wc are enabled 
 to fix the date of 
 this year to B. C. 
 621; this gives- 
 B. C. 625 as the 
 first year of this 
 monarch, h^om 
 this date, for 
 more than a cen- 
 t u r\-, this bank- 
 appears to have 
 carried on its 
 business regularly, but in the month .\bb [the eleventh month, or July 
 of the Jews. — Ed.] 11 C. 516, the revolt ot Aracus, against Darius took 
 place, the firm of Kgibi was unable to transact any business owing to the 
 revolt at Babylon, and the iiistory of this remarkable bank cannot be 
 traced any further." 
 
 In Greece, moncN'-changers formed a distinct class of business men 
 as early as the fourth centur)- before Christ. It was their custom to re- 
 ceive money from depositors and to loan it to others at rates of interest 
 varying from ten to thirty-six per cent. A portion of their income was 
 derived (torn premiums received for exchanging coins which floated to 
 
 J. J. I'. <iJ)i:li,. 
 
 I'rcsideiil Union N.iti<in:il l!;ink, CliicuK". 
 
1 1 
 
 Greece from other countries. I^^roni Plutarch it is learned that discount 
 was kn >\vn to the Athenians, and the rate of discount was often made so 
 excessix-e as to brini^ some money-chani^ers into disrepute. This was 
 possible under the Attic law which permitted every lender to char<^e as 
 much interest as he chose. 
 
 Money-changers as a rule maintained a high credit and were so im- 
 plicitly trusted that transactions with them were often carried out without 
 witnesses. Of the best known of these primitive bankers was Pasion, 
 whose profit from his exchange bank was one hundred minas annually, 
 equivalent to $1,710. When Pasion died the bank was assumed b\- 
 Phormio, who paid an annual rental of $2,730 for the office and business. 
 
 Of forms of business more nearly approaching the state banks of 
 later times we are not without examples in Greece. At New Ilionabank 
 seems to have transacted the financial business of the state in the third 
 or second century before Christ, paying ten per cent interest on money 
 for public use. 
 
 There are also evidences that the authorities in charge of the temple 
 of Delos, and that at Delphi, loaned money belonging to them, but 
 there is no evidence that this money was that deposited for safe-keeping. 
 In Byzantium a precedent for giving one organization the entire control 
 of the banking business may be found, where, in a time of financial em- 
 barrassment, the money-changing business was farmed out to a single 
 bank, and a penalty was inflicted for buying or selling money elsewhere, 
 the penalty being no less severe than the forfeiture of the sums bought 
 or sold. 
 
 In Rome the Decemvirate made stringent laws against usury in the 
 year 449 B. C, and fixed the maximum rate of interest at ten per cent. 
 It is evident that such a law was called forth by the existence of the oc- 
 cupation of money-lending. In 346 B. C, the rate of interest was low- 
 ered to five per cent, and in 341 B. C,, the taking of interest was alto- 
 gether forbidden, but the law being inoperative, interest was about this 
 period established at one per cent per month. 
 
 The commerce which Rome had with the eastern and other coun- 
 tries, naturally created an influx of foreign coin, necessitating, as in 
 Greece, the class known as mone)'-changers, whose stone stalls were 
 located along both sides of the P^orum — the Exchange of Rome. While 
 the Romans seemed to have adopted the simple methods of moneyed 
 speculation from the Greeks, it is quite generally conceded that they en- 
 larged and perfected the system until it became something more similar 
 to modern banking than any system the Greeks had known. Indeed, 
 Macleod goes so far as to state that banking, as a technical business, was 
 invented b\- the Romans. In our judgement this is a wrong use of the 
 term, as such businesses as banking are but simple developments made 
 necessar\- by the increasing \'olume of financial transactions, and while 
 the Romans may have produced some business forms which were novel, 
 it is not correct to say that they "invented" banking. 
 
 No branch of Roman commerce was more vigorous!)- prosecuted, 
 according to Mommsen, than that of the money-lender and money-dealer 
 or banker, the practice of pkicing large sums of money with a banking 
 agent, who received and made payments, invested and borrowed, and 
 conducted financial business at home and abroad, being fully dexeloped 
 
12 
 
 in the time of Cato — 209-149 B. C. With the activity of commerce 
 which Rome enjoyed, bankers spreed rapidly throughout the provinces 
 and dependent states. 
 
 To the Htcrature of Rome we are indebted for contemporaneous 
 references which informs: us of the uses of banking terms still in use, such 
 as " checque," "drafts," etc. 
 
 In Italy the money-changers were established at a v^ery early period 
 of the middle ages, and the city of Florence became a recognized mone- 
 tary center. As early as as the first quarter of the eleventh century, 
 Florentine citizens loaned money to soverign princes. In 1265 the 
 
 money-changers of that 
 city formed themselves 
 into a guild. It is prob- 
 able that the business of 
 the money-changers even 
 at that early day was ap- 
 proaching the character- 
 istic feature of banking 
 — the dealing in credit, 
 as in 1300 the Mozzi 
 and the Spini families 
 are mentioned as being 
 the bankers of Popes, and 
 the last named as having 
 a branch at Rome under 
 the management of Nero 
 Cambi. By 1378 bank- 
 ing operations in Italy 
 had attained great im- 
 portance, due to the 
 necessary transmission 
 of money from distant 
 parts of Europe to the 
 Popes' court at Rome 
 and Avignon, and most 
 of the banking business 
 was in the hands of 
 Florentine citizens. The 
 Strozzi were in later 
 years, 15 13 to 1534, 
 bankers to Leo X and 
 Clement VII, accumula- 
 ting wealth by their sagacity which is still enjoyed b\' their descendants, 
 about the middle of the fourteenth century the famous banking house of 
 the Alberti had counters in Avignon, Bruges, Brussells, Paris, Siena, 
 Perugia, Rome, Naples, Barletta and Venice. Still greater than the 
 Alberti were the Peruzzi and their associates, the Bardi. In 1346 the 
 failure of ICdward III, of l^ngland, to pay 1,365,000 golden florins, bor- 
 rowed of the Morentine bankers, caused a bankruptcy which seriously 
 disturbed the entire commercial system of luu'ope. Later the Strozzi 
 suffered serious losses by the king of France and the popes, but' in spite 
 
 K. S. LACKN. 
 Presiilciit Hankers' National Hank, Chicago. 
 
13 
 
 of these losses the Florentine bankers regained their wealth through 
 their lucrative business. From 1414 to 1423 times were prosperous in 
 Florence, and at that period seventy-two banks could be counted in the 
 streets surrounding the Mercato Nuovo. From 1430 to 1433, seventy- 
 six bankers lent the State 4,865,000 gold florins, but, although there 
 were said to be eighty bankers in Florence at one time, there was no 
 public bank. 
 
 Mr. Henry Mann attributes the invention of bank notes to the re- 
 public of Carthage, but his testimony is not conclusive enough, being 
 based on this statement of .Eschines, the Socratic philosopher; "In a 
 
 small piece of leather is 
 wrapped a substance of 
 the size of a piece of four 
 drachms, but what this 
 substance is no one 
 knows except the maker. 
 After this it is sealed 
 and issued for circula- 
 tion; and he who pos- 
 sesses the most of this is 
 regarded as having the 
 most money and as be- 
 ing the wealthiest man." 
 Jevons shows that leather 
 was one of the earliest of 
 circulating mediums, and 
 was used without regard 
 to any system of banking. 
 As early as 807, A. 
 D., the Chinese are cred- 
 ited with the invention 
 of the bank note. In 
 that year the emperor 
 exchanged all the money 
 deposited in the public 
 treasur}' by merchants 
 and rich persons for 
 notes, termed "flying 
 money." It remained 
 in circulation but three 
 years in the capital, and 
 became current only in the provinces. 
 
 In 960, A. D., an emperor revived the practice of giving notes for 
 money deposited by merchants, and so great was the convenience of the 
 notes that their circulation increased rapidly. In 997, A. D., there had 
 been 1,700,000 ounces of silver exchanged for paper, while in 102 i the 
 paper in circulation had increased to the value of 2,830,000 ounces. A 
 companj- of sixteen rich merchants was then formed which was allowed 
 to issue notes, payable in three years. The company was bankrupt 
 upon the expiration of that time, and much suffering was caused by its 
 failure to pay. The emperor then abolished the notes of this company 
 
 HKR.MAN KOLNTZE. 
 President First National BanV:, Omaha, Nebraska 
 
'4 
 
 and prevented the formation of other joint-stock companies. After that 
 the government only possessed the power to issue notes, which were 
 made of the value of one ounce of silver. In 1032 these notes were 
 circulating to the value of 5,256,340 ounces. Banks of this nature were 
 subsequently established in every province, but the notes did not have 
 inter-provincal circulation. To these notes, exchangeable for, and con- 
 vertible into money, is given the credit for being the first on record. 
 
 CHAPTER II. 
 
 EARLY BANKING. 
 
 In 1401 the "Tabla de Cambi" (Table of Exchange), was estab- 
 lished at Barcelona, Spain. The city funds were its guarantee, and it 
 was established by the city authorities as an aid to commerce. Foreign 
 bills of exchange were negotiated in it, and a loan business was carried 
 on. It seems to hav^e been the result of the assumption by the city of 
 banking privileges which had been granted the cloth merchants in I360. 
 
 In 1 78 1 the bank of San Carlos was established at Madrid, as a 
 national bank on a plan advanced by the minister of finance. Its capital 
 cc'^'^isted of 300,000,000 reals, divided into 150,000 shares. Profitable 
 contract::, with the government were secured and enjoyed until 1785, 
 when they wc/? taken away. 
 
 Bills of exctiang,"'" followed what were termed "assignments." Au- 
 thorities differ as to the date of their first use. By some they are ascribed 
 to Lyons, France. Weber states that they were in use in 1171. Among 
 the earliest ones preserved to the present time, are those issued from 
 Milan on Lucca in 1325, from Bruges on Barcelona in 1404, and from 
 Bologna on Venice in 1381. To the Italians we are indebted for man}- 
 of the technical terms used in banking, such as drafts, remittances, cur- 
 rency, sight, usance and discount. 
 
 The first public bank in Italy was that established at Naples in i 565. 
 There had been sixty great bankers in Naples, but, notwithstanding they 
 were obliged to deposit 40,000 ducats with the government as security, 
 they frequently failed and caused great distress. On this account the 
 government decided to establish a public bank to be know n as the Banco 
 di A. G. P. et di Picta. Following this, several joint-banks were estab- 
 lished — as the Banco del Popolo, in 1589; the Banco dcllo San/o S/^irito, 
 in 1591; the Banco di S, Eligio, in 1596; the Banco di S. Giaconio, in 
 1597; the Banco delle Povere, in 1600, and the Banco dc SS. Saivatore, 
 in 1604. The private bankers were not able to withstand competition 
 with the joint-stock companies and none survived after the last named date. 
 
 l^'oUowing closely after the establishment and growth of banking in 
 Morence, the Bank of Venice was established. Nearly all writers place 
 the date of the organization of this famous institution at 1171, but 
 Macleod has pointed out that it was not organized until 1587. The con- 
 fusion has arisen because of the fact that in 1171, the X'enetian re- 
 public, to meet financial necessities, levied a forced loan, bearing four per 
 cent interest, with transferable stock, and managed b}' commissioners ap- 
 pointed in I 173. The loan was called the ni07ite vecchio, and two similar 
 
15 
 
 ones fallowing it. were termed uiontc niioj'o and inontc nuovissimo. The 
 word nioiitc has been translated bank, and thus these public debts have 
 been termed banks, while, as a matter of fact, the public debt commis- 
 sioners exercised no functions resembling banking. 
 
 The first bankers in Venice were two Jews who established them- 
 selves in 1400. Their success attracted other persons (particularly mem- 
 bers of the nobility,) into the business, but the usual failures followed 
 until in 1587 the senate prohibited the nobility from entering the busi- 
 ness, and established the Bank of Venice. 
 
 Merchants were invited to deposit their money in an office managed 
 be the commissioners of public debt, for which they received credit on 
 the bank's books. This credit was transferable and payable in bullion on 
 demand. An act was passed requiring all bills on Venice to be paid in 
 bank money, which gave it a premium of about nine percent. The bank 
 transacted no business on its own account, but the money in its vaults 
 was taken on various pretexts by the State, and in 1678, in 1691, and 
 again from 1717 to 1739, it suspended payments. An attempt was made 
 to raise a loan by creating credits on the bank's books, but the credits 
 fell to a discount of twenty per cent as compared with specie, and the 
 Government mortgaged a part of its revenue to collect a fund of "real 
 current specie" with which to purchase these transfer credits, b}' which 
 means their par value was restored. 
 
 The bank of St. George, in Genoa, occupied a most prominent posi- 
 tion among the early influences which aided commercial development. 
 As in the case of the Bank of Venice, however, most historians ascribe 
 its establishment to a much early date. 
 
 It was in I 1 48 that the Genoese Government incurred its first formal 
 debt. The creditors chose from their number a council to watch over 
 the debt due them and to secure its collection, the Gox-ernment having 
 conceded certain customs duties for a term of years in payment of the 
 debt. Each one hundred francs of the debt was a share, and each creditor 
 a share-holder. In this manner were numerous loans made by the Gov- 
 ernment, each loan being termed a "compera" and all the loans collec- 
 itvely bjing known as the "Compere of St. George." In 1252 these 
 loans bejane so numerous as to recjuire consolidation under one head, 
 with a chancellor in charge. In 1302, so great had become the national 
 debt, stringent regulations were enacted by which no future loan could 
 be effected without the consent of the representatives of the existing cred- 
 itors. In 1339 a popular revolution occurred at which all the old books 
 of the "compere" were burned, and a new regulation conmiission was 
 appointed. This has been mentioned as that of the origin of the bank, 
 but it was simph- a step further in consolidating the national debt. 
 
 In 1371 is recorded, in connection with the Bank of Genoa, the first 
 known instance of the compounding of intere.st. Francesco Vivaldi ga\e 
 his shares in the Compere of St. George to the compere, the interest on 
 them to be annually applied to the purchase of other shares, until a sum 
 should be collected in addition to the principal, which should be suffici- 
 ent to pay off one of the specific loans. This done, the process should 
 be repeated. Others followed in VHxaldi's steps, and the credit of the 
 compere grew apace. 
 
 In 1407 wars had so pressed the State into seeking money advances 
 
i6 
 
 tlwt an entire reorganization was decided upon. Nine men drew up a 
 plan on which all the shares were reunited, and the interest for all was 
 made seven per cent. New officers were selected and the organization 
 renamed the Bank of St, George. It possossed peculiar powers of self- 
 government entirely independent of the State, and in this year a new con- 
 stitution was given it, under the provisions of which eight "protectors" 
 were elected, each of whom was required to have an interest in the bank 
 of not less than one thousand florins. These directors were given the 
 offices of President, Treasurer- General, Superintender of the sale of shares, 
 three Judges and two Secretaries, each of whom remained in office one 
 
 year, Over these was 
 the General Council of 
 four hundred and eighty, 
 and to this every holder 
 of ten or more shares, 
 and over eighteen }'ears 
 of age, was eligible. In 
 return for money ad- 
 vanced by the bank to 
 the Government, various 
 colonies and provinces 
 were made over to the 
 bank as pledges for re- 
 pa}'ment. 
 
 In 1675 the directors 
 of the bank saw the ne- 
 cessity of adopting some 
 more convenient meth- 
 ods of doing business. 
 The old title of "com- 
 pere" then disappeared, 
 and the institution be- 
 came known strictl}- as 
 a bank. It is from this 
 year that Macleod as- 
 cribes the establishment 
 of the Bankof St. Cieorge, 
 because it first adopted 
 functions of modern 
 banking, such as the ne- 
 gotiation of loans and 
 the deposit and with- 
 drawing of uKMie}', but no history of banking would be complete which 
 failed to give an outline of the fiscal measures from whicli modern 
 banking grew. 
 
 In 1675 four branches were established in different parts of the city. 
 Later the invading Austrian army, in 1746, carried awa)' most of the 
 gold belonging to the bank, serioush- crippling it, but in a "monte of 
 preservation," established by the bank in I 750, a record of all suspended 
 payments was kept and they were paid after the Austrians left. After a 
 time the people came to see that the complex arrangement b\' which the 
 
 I'. M. CASADV. 
 I'resi<lent I>es Moines Savings Bank, Des Moinus, Ii 
 
17 
 
 public taxes were collected and retained by the directors of the bank, was 
 a species of tyranny, and the bank was obliged to surrender its privileges. 
 As these were its sole source of income, the bank notes were found value- 
 less, and the bank was ignominiously closed about 1798. I'Lfforts to re- 
 establish it were made in 1804 and 18 14, but they were entirely unsuc- 
 cessful. 
 
 In 1609 the Bank of Amsterdam was established under a guarantee 
 given by the city. The causes which led the creation of this bank were 
 far different rrom those which caused the establishment of the banks at 
 Venice and (jcnoa; which had their origin in forced loans by the Govern- 
 ments. The promi- 
 nent position occupied 
 by Amsterdam in in- 
 ternational commerce, 
 drew to its merchants 
 the coinage of all 
 countries, much ot 
 it worn and clipped. 
 So marked was this 
 influx of coin that the 
 currency of Amster- 
 dam was reduced 
 about nine per cent 
 below the value ot 
 newly-coined money, 
 and, although money 
 might be plenty in the 
 city, merchants were 
 frequently at a loss to 
 secure enough of par 
 value to pay their bills 
 of exchange, the value 
 of which, therefore, 
 became uncertain. 
 
 The bank accepted 
 all coin at its standard 
 value; deducting a 
 small amount for ex- 
 penses of coinage and 
 management, and 
 gave a credit on its 
 books for the amount. 
 It possessed a constant 
 
 ROBERT M. NIXON. 
 PresiJent Fifth National Bank, Cincinnati, Ohic 
 
 This credit was naturally termed bank-money 
 
 value and was worth more than money in actual circulation. 
 
 When the bank was created, it was ordained that bills drawn on 
 Amsterdam, or bills negotiated in Amsterdam, of the value of six hun- 
 dred guilders or more, shouhi be paid in bank-money. This gave a 
 uniform value to bills of exchange, and obliged every merchant to keep 
 an account with the bank, in order to pay his foreign bills of exchange. 
 
 Other conveniences of bank-money brought it to a premium ; the 
 safety of it seemed to be assured ; the city guaranteed its pa\ment on 
 
demand; pa\'ments made in it were in the most convenient form, and 
 the premium on it was lost if the deposit was withdrawn, The natural 
 result was that immense sums of money found their wa\' into the bank 
 vaults, where they were popularly supposed to remain. 
 
 Adam Smith published a statement made to him by Hope, the Am- 
 sterdam merchant, to the effect that the deposits of coin formed but a 
 small part of its capital, as the bank had been in the practice, for many 
 years, of giving credit for depositors of gold and silver bullion. For bul- 
 lion the bank gave a receipt, which permitted its removal at any time 
 within six months, on retransferring to the bank a sum of bank-money 
 equal to the credit given for the bullion. For the care of gold bullion 
 one-half per cent was charged, and for silver one-fourth per cent. If the 
 bullion was not removed on the expiration of six months, it reverted to 
 the bank at the price for which credit had been given on its deposit. The 
 effect of this was to stimulate trade in bullion. 
 
 There was no cause for distrusting the statement that the entire de- 
 posits made to the bank were kept intact until 1672, when the French 
 invasion as far as Utrecht occurred. A rush was made by depositors for 
 coin to the amount of their credits, and, in accordance with the principle 
 on which the bank was founded, the deposits were found to be complete, 
 and the bank met every demand. This run, and its successful weathering 
 by the bank, increased popular confidence in the institution and greatly 
 raised its credit. 
 
 For one hundred and eighteen years after this the bank performed 
 its functions with great efficiency, and solemn oaths were recorded with 
 regularity that the treasures were intact. No public investigation of the 
 bank was made in all this time, and the fact that the bank, contrary to 
 the statements of its officers, had been advancing money to the unfortu- 
 nate Fast India Company and to different provinces, was not publicly 
 known until in December, 1790. 
 
 When Mr, Hope wrote Adam Smith (about 1775). he stated that 
 there were about two thousand depositors, and that the bank possessed 
 ii^3,ooo,ooo. In 1790 it was discovered that most of the deposits in the 
 bank had disappeared fifty years before, and that there was then but a 
 small sum left. The bank, to save itself, suddenly announced that in the 
 future it would pay out silver only at a discount often per cent, and that 
 no deposits would be paid of less than 2,500 florins. This practical con- 
 fession of bankruptcy caused its receipts to fall from 105 to 50, and 
 created a run. The order was rescinded, after a short time, and credit 
 was re-established with the people, who had no knowledge of the bank's 
 real condition. 
 
 In 1794 the I'^-ench entered Amsterdam, and an examination of the 
 bank's aff.iirs showed that eleven millions of florins had been advanced by 
 the bank to the ICast India Company and to the provinces of Holland 
 and West i^'riesland. The disclosure of this breach of trust, and the in- 
 ability to recover the money, brought its credits down to sixteen per cent 
 below current coin, and the bank assigned its claims against the company 
 and the States to its depositors. 
 
 In 1619 the present bank of Hamburg was established — ten years 
 after the Bank of Amsterdam, and to remedy the same evils in Hamburg 
 as prevailed at Amsterdam — to receive debased coins of uncertain value. 
 
19 
 
 and circulate in their stead bank-credits of a pixsitive value "In a city of 
 the highest rank for commercial activity," saws Palgrave, "but greatly 
 circumscribed in territory, continually receiving payments for merchan- 
 dise in the coin of other countries, a ccniimon standard of \ahic was a 
 matter of primary necessity." 
 
 The bank received at first only the rix tloUars of the (jcrman ICm- 
 pire, a silver coin having a fixed standard. The German Government 
 soon coined a rix -dollar of light weight, and large numbers found their 
 way into the bank before the fraud was disco\ered. The confusion was 
 so great as to cause the closure of the bank for a short time. 
 
 A basis of value was adopted, midway between the standard and de- 
 based coins, on which settlements were effected in 1770. This basis ot 
 value was termed a "mark banco." and from that time the "mark banco" 
 was the unit of the money of account in the bank. Deposits were received 
 b\- weight (whether of coin or bullion), and credits were made on the 
 basis of "mark banco" for every 59^3 parts of a metrical pound of silver 
 of the fineness of {[j'co '^^^ over. For its services the bank charged one- 
 eighth percent to the seller of the silver. This system required the as- 
 saying of each quantity of silv^er received. The bank-money on this basis 
 was quite as permanent as any, Colwell saying of it in 1859 that it had 
 commanded a premium above the currenc}' of coins in general circulation 
 of from twenty to twenty- five per cent for a long period. 
 
 Payments made were merely transfers from one person's account at 
 the bank to that of another, and payers were obliged to appear person- 
 ally, or by attorneys, with checks with printed signatures. Only mer- 
 chants in Hamburg are allowed to keep accounts. In connection with 
 the bank there is a loan ofifice, in which advances equal to three- fourths 
 their value, are made on pledges of gold, silver or jewels. 
 
 The credit of the bank has been uniformly well sustained. In 1770, 
 as we have mentioned, the bank was affected by a depreciation of the 
 German rix-dollar. Again it overextended its loans on pledges, and 
 Napoleon's army once took its mone}-, but it was repaid, and the bank 
 resumed t)perations. 
 
 In 1853 it was found that the distinctive and altogether peculiar .sys- 
 tem of conducting the bank's business, based, as it was, on bar silver, 
 lacked convenience for modern business methods, as no facilities were 
 given for credits or discounts. On February 15, 1873, the German 
 Government rec[uiied all banking to be on a gold standard. The ancient 
 Bank of Hamburg was obliged to abolish its bar-sil\er standard and its 
 "mark banco," and use a monetar}- swstem, which is ri.x money in marks, 
 150 marks being equal to 100 marks banco. The bank is gcn'crned by 
 five directors, two counsellors, two treasurers, and two of the principal 
 city magistrates. 
 
 The first bank in Sweden was established by a Swede named Palm- 
 struck, in 1656, and in 1668 it became the bank of Sweden. To Sweden 
 is gi\en the credit of introducing the use of the bank-note in Europe, the 
 first one having been issued iu 1658. To Sweden is also given the credit 
 for great advances in methods of banking similar to our present methods. 
 The circulating medium of Sweden was copper, and large payments were 
 made with great inconxenience. To remed\' this, the bank received the 
 copper money and issued bank-notes against it, which passed current all 
 
20 
 
 over the country. Later on the bank did a loaning business, and nearly 
 suffered disaster in 1752. 
 
 CHAPTER III. 
 
 EARLY ENGLISH BANKING, AND THE BANK OF ENGLAND. 
 
 In England banking as now understood had no existence previous 
 to the sixteenth century. The first publi: institution of the nature ot 
 
 banking was 
 the Exchequer, 
 founded by 
 William I., 
 which is still in 
 existence, mod- 
 1 fied in form 
 from a reposi- 
 tory of cash to 
 an office of ac- 
 counts. In the 
 reign of Henr)- 
 III., 1216- 
 1272, we are 
 informed that 
 money-lending 
 bankers, chiefly 
 jews, were set- 
 lied at Oxford, 
 where shameful 
 practices were 
 carried out in 
 discounting for 
 students, fort\-- 
 h\e per cent 
 being a com- 
 mon discount. 
 On the ex- 
 pulsion of the 
 Jews from Eng- 
 land the busi- 
 ness of private 
 banking fell into the hands of the Lombards, sent to England b\- Pope 
 Gregory IX, some fifty }ears previously. Their business was undoubt- 
 edly much the same as is at present carried on under the sign which they 
 carried from Lombardy, the three golden balls. They gave wax- to the 
 goldsmiths, who afterwards became bankers proper. Collins states that 
 our "lumber" and "lumber- room" are from their name and method of 
 storing pledges in what were called "Lombard Rooms." It is well 
 known that Lombard Street, the banking center of London, took its 
 name from the custom of Lombards and f(M'cign merchants assembling 
 there twice each day. 
 
 I,. C. NELSON. 
 President St. Louis National Bank, St. Louis, 
 
 \ 
 
21 
 
 The custom of depositing money with goldsmiths, says a contem- 
 poraneous writer, grew out of the fact that servants could not be trusted 
 as cashiers. In the hands of goldsmiths, persons accustomed to handling 
 valuables, it was safe. The business of receiving and making payments, 
 of collecting rents, and of loaning money at interest, was a natural one, 
 and soon followed the first practice of acting simply as treasurers of de- 
 posits. Goldsmiths were well-respected members of the community, and 
 record of their holding high offices in London are found in the reigns of 
 Henry I., Richard I., and Edward I. In 1598 the houses in Goldsmith's 
 Row were spoken of as being very beautiful. These were destroyed by 
 
 the great fire of Lon- 
 don, after w^hich the 
 goldsmiths settled in 
 Lombard street. Their 
 surplus money was 
 placed for safety in 
 the Royal Mint in the 
 Tower of London, 
 from which Charles I. 
 took iJ'200.000, ruin- 
 ing many bankers and 
 forcing them all to 
 consider it a loan. It 
 was repaid in a few 
 months, but the mint 
 never recovered its 
 credit. 
 
 During the civil 
 war which marked 
 the reign of Ciiarles 
 I.; nearly all the sur- 
 plus money of the 
 country found its way 
 into the hands of 
 goldsmiths, many of 
 whom, encouraged by 
 their success in loan- 
 i n g mone}', s u b s e- 
 ( I u e n 1 1 y confined 
 themselves e x c 1 u - 
 sively to banking op- 
 erations. The first 
 "run" on a bank is recorded as occurring in 1667, the "run" being on a 
 banker named Backwell, and become general. The bankers adopted the 
 expedient of requiring twent\' days' notice, but suffered a shock to their 
 credit, which was entirely destroyed in 1672. 
 
 The custom of depositing surplus money in the mint had given way 
 after its robbery by Charles I., to that of its deposit in the Exchequer. 
 Once a week they withdrew this money, with which to meet the demands 
 of their customers. On Jan. 2, 1672, Charles II., needed money very 
 badly, on the advice of Sir Thomas Clifford, stopped the payment of the 
 
 H. W, CANNON. 
 President Chase National Bank, New York City 
 
money in the Exchetiucr beloni^in^ to the bankers, i'he suspension of 
 this weekly payment (there bein<; i?i,328.526 on deposit) involved the 
 bankers and customers in common ruin. 
 
 In an attempt to satisfy this debt Charles ga\'e letters patent to the 
 various robbed bankers, agreein<( to pay the principal with interest at 6 
 percent. A list of these creditors of tlie Kin*^ shows that Sir Robert 
 Vyner, Edward Backwell, Gilbert Whitehall, Joseph Horneby, Jeremiah 
 Snow, Bernard Turner, and Geort^e Sneli were the principal London 
 bankers of the time. The interest was paid a few years and then sus- 
 pended. The creditors were obliged to prosecute their claim to the 
 court of last resort, and a judgement against the Crown was secured. In 
 1699 an act was passed which provided that 3 per cent per annum should 
 be paid on the principal sum, but that the indebtedness might be cancel- 
 led by the payment of a moiet\' thereof, ^664,264. This indebtedness is 
 the first item of the present national debt of luigland, and interest is still 
 paid at 3 per cent on the whole amount. 
 
 Of the old London bankers whose business is still carried on ma\- 
 be mentioned Edward Blackwell, who was succeeded by Sir Josiah Child, 
 founder of the present house of Child & Co. In 1692 the business of 
 Middleton & Campbell, goldsmiths, came into the hands of James Coutts, 
 and the business still carried on by Coutts' bank was thus established. 
 We are told that the use of pass-books by banks originated with Mr. 
 Coggs, a goldsmith, in the Strand. Previous to their use it was cus- 
 tomary for depositors to call regularly and check up their accounts. 
 
 Although no public bank was established in England until 1699, 
 there had been proposals, petitions, and discussions looking to the estab- 
 lishment of a public bank, so that the organization of the Bank of Eng- 
 land was but the result of a growth of public sentiment, and the increas- 
 ing need that the public service should effect a large loan. Two 
 schemes devised by William Paterson for the establishment of a national 
 bank failed. In the third scheme, in which he was aided by Michael 
 Godfrey, he was successful, and an act inccirporating the Bank of Eng- 
 land received the royal assent from William III., on April 25, 1694. The 
 act provided that ^100,000 should be annually appropriated to persons 
 making a voluntary loan of i,"i, 200,000 for the purpose of carrying on 
 the war with France. Commissioners were appointed to receive the sub- 
 scrii:)tions before Aug. i, 1694. The stock was transferable, and the 
 stockholders were called collectively the (jovernor and Company of 
 the Bank of England. The Government retained the power to pay the 
 sum at twelve months' notice after Aug. i, 1705, upon which payment 
 the corporation should cease. The corporation was allowed to deal in 
 bills of exchange, to buy and sell bullion, gold and silver, to lend money 
 on security, and its bills of crctlit were made transferable. The corpora- 
 tion was forbidden to athance mone\' to the Crown without permission of 
 Parliament. 
 
 In ten days the whole sum of /'i, 200,000 was subscribed, and on 
 July 10 and 11, officers of the compan\- were elected. On January i, 
 1695, the bank began active operations at Grocers' Hall, Poultry. Notes 
 of ;^20 were issued, and the bank commenced discounting mercantile 
 bills of exchange. The bank was authorized to advance money on 
 pledges, but no very considerable business of this kind seems to ha\'e 
 
23 
 
 been done. At first the bank stood in hit^h credit with all hut usurers, 
 with whose business it seriously interfered. 
 
 Its first trouble came May 5, 1696. Coin had been clipped, filed, 
 and counterfeited to an enormous extent, so much so that gold guineas 
 of full weight passed current at thirty shillings. It had been the bank's 
 practice to receive degraded coin at its nominal value, and when the great 
 issue of new coin began the bank was obliged to pay its notes in full- 
 weighted coin, so that for every seven ounces it had received it was 
 obliged to pay twelve ounces. Of course, this caused a "run", on the 
 bank. Its enemies, the private bankers, improved this opportunity to the 
 full extent, and on the day mentioned they suddenly presented ^30,000 
 in notes and demanded payment. The bank suspended cash payments, 
 but it got through the trouble by good management and Government 
 assistance, but as a precautionary measure its capital stock was increased 
 by vote of Parliament on Feb. 3, 1697, new subscriptions to be paid in 
 exchequer tallies and bank notes. The life ofthe bank was prolonged 
 until twelve months after notice given Aug. i, 17 10, and the bank was 
 given a monopoly ofthe public banking business. 
 
 It should be noticed that a bank was chartered by the Government 
 just before this, its advance to the Government to be ^2,564,000, but it 
 had been impossible to secure subscriptions. 
 
 The Bank of England was authorized to issue bank notes to the ex- 
 tent of its new capital, payable on demand and secured by the Govern- 
 ment. The new subscriptions amounted to ^^"1,001, 17 i , los. 
 
 In 1707 the threat of invasion by Louis XIV. threw the country 
 into a panic, and the enemies ofthe bank again attempted to cause its 
 downfall, but it was reinforced by the queen and several nobles, and came 
 through the trouble safely. 
 
 In 1709, the Government being greatly embarrassed, the bank was 
 appealed to again, and an arrangement was made with it by which the 
 interest which the Government was pa}'ing on its original stock of 
 i." 1, 200,000, was reduced from 8 to 6 per cent, with an annual allowance 
 of ^^"4,000 for managing the debt, the bank was to advance ^400,- 
 000 more at 6 per cent interest; the capital stock of ^r2, 201,171, los, 
 was allowed to be doubled at a price of i i 5 for the new stock, upon 
 which the bank agreed to circulate iJ"2, 500,000 in Exchequer-bills, and 
 to receive an allowance of 6 j^er cent, one-half for interest and one-half 
 for repayment of the principal, and that no more Exchequer-bills should be 
 issued without the bank's consent. The life of the bank was further ex- 
 tended to August I, 1732. 
 
 The subscriptions to this new stock were paid in four hours after 
 the lists were opened. 
 
 Although the act of 1697 prevented the creation of another bank by 
 Paraliament, private joint-stock banks were formed, and any corporation 
 and company could {perform a banking business. To cut off these ad- 
 venturers an act was passed that during the life of the Bank of England 
 no more than six persons could be united to do a banking business. 
 The result was the prevention ofthe formation of an\' other joint- stock- 
 bank than the Bank of England. 
 
 In 171 3, upon loan to the Government of /," 100,000, secured by I^x- 
 chequer-bills, the life ofthe bank was prolonged to twelve months' notice 
 
24 
 
 to be given after August i, 1742, and the payment of ^1,600,000. In 
 1 7 16 the life of the b\nk was prolonged indefinitely until three annuities 
 of i^8 8,7 5 I, ;^ 1 00,000, and ^76,830, and other debts, upon which an 
 annual interest of 5 per cent was paid, were extinguished. In 1717 the 
 temporary victory and final collapse of the great South Sea company oc- 
 curred, resulting in a "run" on the Bank of P^ngland which was artfully 
 met and overcome. In 1722 the reserve fund known as the "rest" was 
 created. 
 
 As 1 742, the time when the life of the bank was to expire, drew 
 nigh, the bank advanced i^ 1,600,000 to the Government, and its capital 
 
 (enlarged in 1 720 to ^8,- 
 959,995 14s. 8d. by the 
 purchase of ^^4, 000,000 
 in South Sea company's 
 annuities) was inc eased 
 to ^,"9, 800,000; its life 
 was also prolonged until 
 twehe months' notice to 
 be given after August i, 
 1764. An attempt was 
 made to close up the 
 loose ends of the act of 
 1709 by an amendment 
 intended to make the 
 bank's monopoly more 
 exclusive. 
 
 In 1745 the rebellion 
 in Scotland was the cause 
 of a "run" on the bank, 
 and its notes fell to a 
 discount often per cent, 
 but one thousand six 
 hundred merchants 
 pledged themselves to 
 support the credit of the 
 bank notes, and the "run" 
 was stopped. In 1746 
 the bank's capital was 
 advanced by f u r t h e r 
 loans to the Government 
 to i^ I 0,780,000. In 
 1759 notes for ^15 and 
 for ^10 were first issued. 
 The charter of the bank expired in 1764, and it was renewed upon 
 the absolute gift of i^i io,ooo to the nation, and a loan of ^1,000,000 on 
 Kxchequer-bills for two years at 3 per cent, the renewal of the charter 
 being until twelve months' notice after August i, 1786. In 1781 the 
 charter was again renewed upon the advance of ^"2, 000,000 at 3 per cent 
 for three years, until twelve months' alter August 1, i8i2,and the pay- 
 ment of the public debt. In 1782 the capital was increa.sed to £1 1,642,- 
 400. 
 
 C. HOOD. 
 President Kmporia National Bank. Emporia, Kansas. 
 
 \ 
 
25 
 
 The London Clearin*^ Mouse was established in 1773, and occupied 
 its buildiuij^ in Lombard street in 1775, but it was many years before the 
 Hank of Entj^land joined it. 
 
 Up to this time the monopoh' of the bank was nearly complete. 
 Private bankers now began to give customers blank check-books, and 
 the use of them in London became universal, entireh- superseding the 
 use of bank-notes and circunnenting the monopoly of the liink of England. 
 During the period of unusual industrial activity which followed the 
 termination of the war of 17 13, England felt for the first time the great 
 need of reliable banks ot issue other than the Bank of England. Its 
 
 monopoly was com- 
 plete, and to provide a 
 currency small shop- 
 keepers and irrespon- 
 sible persons turned 
 bankers and inundat- 
 ed the country with a 
 miserable currency. In 
 1775 an act prohib- 
 ited bankers issuing 
 notes of less than 20 
 shillings. In 1777 
 the minimum value 
 was made £^. 
 
 In 1782 the exten- 
 sion of foreign com- 
 merce consequent on 
 the conclusion of the 
 war with the Ameri- 
 can colonies, led to 
 overtrading. The 
 Bank of England 
 made unwise issues. 
 Banks w h i ch had 
 sprung up like mush- 
 rooms all o\er the 
 country, in almost 
 every hamlet, issued 
 currency freely, and, 
 strange as it may ap- 
 Ky. pear, all was received 
 
 w i t h o u t liesitation. 
 The actual money at the command of the bankers became ridiculously 
 small for the magnitude of operations carried on. In the fall of 1792 
 the revulsion occurred, and bankruptcies were unusualh' frequent. The 
 declaration of war with the Government of France under the Convention 
 was the last blow to staggering credit, and the financial storm which 
 swept o\'er England carried down three hundred of the three hundred and 
 fifty bankers doing business. 
 
 The Bank of England refused to support credit by meeting the de- 
 mand for discounts. The Government came to the rescue, issued Ex- 
 
 J. H. LINUENBERGER. 
 President American National Bank, Louisville 
 
26 
 
 chequer-bills to the amount of ^,"5, 000,000, and freely loaned them to 
 strugglinL^ institutions. Credit was immediatel}- restored. 
 
 In 1797 a combination of untoward exents had the effect of with- 
 drawing large sums of specie from the bank: The danger of invasion by 
 the French became the cause of numerous "runs" on country banks, 
 which rapidly spread to London, and on February 26, 1797, the Bank 
 of England was directed to suspend cash payments until the opinion of 
 Parliament could be taken. The bank gave notice that its affairs were 
 most prosperous and its notes perfectly secure. Parliament continued 
 the suspension of cash payments until six months after a definitive treaty 
 of peace should have been concluded. The result of this action practi- 
 cally made the bank-notes legal tender, and for the first three years after 
 the passage of the restriction act they were on a par with gold or pos- 
 sessed a small premium. From 1800 to 18 10 the history of the bank- 
 notes was one of gradual depreciation, until m 18 10 the attention of Par- 
 hament was called to the subject and a committee of inquiry was ap- 
 pointed which reported that the depreciation was due to over-issue, and 
 recommended that the Bank of England resume specie payments within 
 two years. The recommendation was not adopted, and the over-issue 
 continued until in 18 14 the maximum depreciation was 25 per cent. 
 
 In 1813 the number of country banks had increased to 900, but in 
 the three years following 240 of them stopped payment, and, of course, 
 their paper was withdrawn from circulation, causing the Bank of Eng- 
 land's notes to rise nearly to par. The bank was directed to resume 
 specie payments in 1823, but in fact it did resume on May i, 1821. No 
 legislation was had to prevent the unwise issue of notes by country banks 
 however, and in 1823 such issues were greatly enlarged, and in 1825 the 
 amount in circulation was estimated to have been 60 per cent greater 
 than in 1823. Speculation became hazardous in the extreme, and when 
 exchange began to fall in 1824 trouble began. London currenc}' was 
 contracted in September, 1825, and country banks began to fail the mo- 
 ment they could not secure accommodations in London. In less than 
 six weeks more than seventy banks were carried down, and the demand 
 for gold at the Bank of England was so great as to have drained it of 
 about seven millions of bullion before the outflow could be stopped. 
 
 The crisis in London lasted one week, when the tide receded, and 
 the safety of the bank was assurred. The exchange turned to the favor 
 of luigland, and gold began to flow towards the country. The Bank of 
 England then issued notes with prodigal abundance, ^"5, 000,000 being 
 issued in three days. The next week uneasiness in the country was 
 again apparent, but it was stayed b\' the bank's issue of ^"500.000 in 
 ;^i -notes, and by the first of 1826 credit was entirely restored. 
 
 In 1826 the issue of less than i^5-notes was prohibited in I'jigiand. 
 In 1833 the charter of the bank was extended for ten years, and joint- 
 .stock banks of i.ssue defined and permitted. In 1839 the issue of the 
 Bank of h.ngland again became redundant, and but for assistance from 
 the Bank of h^-ance, the bank would have stopped pa\'ment. 
 
 lu 1844 and 1845 Sir Robert Peel introduced measures into Parlia- 
 ment, the pas.sage of which greatly imjjroved luigland's banking system. 
 The power to issue notes payable on demand was limited by making the 
 amount of such notes in circulation vary with the amount of bullion pos- 
 
-/ 
 
 sesscd by the issuer. The issuing and banking; departments t)f the Bank 
 of England were entirely separated, and over the first department the 
 Bank was oi\en no control. The issue of the Bank was made /" 14,000,- 
 000 on securities, and it was allowed to issue two-thirds of the amount of 
 notes which any country bank was authorized, but failed, to issue. Under 
 this provision the issue had increased to ;j^i 5,000,000 in 1875. Above 
 this sum its notes can only be issued upon the receipt of an equal amount 
 of coin or bullion. By this legislation its notes are made equal with gold. 
 
 The act of 1844 also provided that no new bank of issue should be 
 established in the United Kingdom, and that the maximum issue of notes 
 by the existing country English banks should be limited to the average 
 amount which tiiey had in circulation during the twelve weeks preceding 
 April 27, 1844. No other bank than the Bank of England was allowed 
 to issue notes in or within sixty-five miles of London. The charter of 
 the bank was extended until twelve months' notice after August i, 1855. 
 
 On three occasions, in 1847, 1857, and in 1866, it has been found 
 necessary to authorize the Bank to issue notes beyond the limits of the 
 act of 1844, in order to restore credit to the mercantile community. 
 
 Such, in brief, is the history of the Bank of England. \\ ith it is 
 closeh' connected the histor}- of banking in England. Branches of the 
 Bank have been established at Manchester, Liv^erpool, Birmingham, 
 Bristol, Leeds, Plymouth, Newcastle-on-Tyne, Hull, and Portsmouth: 
 The capital stock of the Bank is ^14,553,000. The "Rest" on October 
 26; 1887, was ^3,100,053. The dividends for the year ending October 
 5, 1887, were at the rate oi £g^/^ per cent. The price of bank stock on 
 October 26, 1887; was ^304. On that day there were ^,^24 210,255 in 
 circulation, and of its unemployed notes there were ^10,824,670. Of 
 gold and siKer coin and bullion there were ^20,092,263. 
 
 CHAPTER IV. 
 
 .MODERN EUROPEAN B.ANKINC. 
 
 The history of banks in England other than the Bank of England 
 can be sketched in a few words. The end of the war between France 
 aud England in 1815, was soon reflected in the brightening of commerce, 
 but it was a long time before the people paid attention to banking laws or 
 facilities, The Bank of England, together with private bankers, had been 
 able to meet all demands. The crisis of 1825 showed the weakness of 
 pri\ate banks, and the necessity of public banks. The legislation restrict- 
 ing the formation of joint-stock banks in order to protect the monopoly 
 of the Bank of luigland, has already been mentioned. In 1826 six joint- 
 stock banks were registered, and seven in 1828-9 and seven more in 
 1829-30. In 1833 legislation was had permitting joint-stock bani<s of 
 deposit in London. In 1834 the pro.spectus of the London and West- 
 minster Bank was promulgated by James William Gilbart. In 1836 the 
 London Joint-Stock Bank was organized, and in 1839 the Union Bank 
 of London was established. The act of 1833 did not permit the banks to 
 sue or be sued in the name of their officers, but a later Act of Parliament 
 corrected that defect. At present there are 173 joint-stock banks in the 
 I'nited Kingdom, the banker's license being ^30 annualU'. 
 
28 
 
 / 
 
 The restrictive legislation of 1708 against joint-stock banks in Eng- 
 land did not extend to Scotland. The Bank of Scotland was organized 
 in 1695, the year following the establishment of the Bank of England. 
 Its original capital was ^^loo.ooo, and it had a monopoly for twenty-five 
 years. In 1774 its capital was increased to ;^200,ooo, and at several 
 other times, until it now stands at ^^i, 500,000, of which ;^i, 000,000 is 
 paid-up. It is the only Scotch b^ink, established by Parliament. In 1696 
 it began to establish branches, and began to issue notes as early as 1704, 
 It was a bank of deposit at an early period — certainly before 1729 — and 
 interest on deposits was allowed. The Bank has branches in all im- 
 portant Scotch towns. 
 Of other joint-stock 
 banks in Scotland may 
 be mentioned: The Royal 
 Bank of Scotland; estab- 
 lished in 1727, and now 
 having a capital of^2,- 
 000,000, and numerous 
 branches; the British 
 Linen Company Bank, 
 established in 1746, with 
 a capital of ^1,000,000 ; 
 The Commercial Bank of 
 Scotland, limited; The 
 National Bank of Scot- 
 land, limited; The Union 
 Bank of Scotland, lim- 
 ited; and the Caledonian 
 Banking Company, lim- 
 ited. In Scotland the 
 system of giving cash- 
 credits in limited sums 
 upon personal and other 
 security, prevails. Fail- 
 ures in Scotch banks 
 ha\e been infrequent, 
 those of the Western 
 Bank and the City of 
 Glasgow Bank, being 
 notable instances. 
 
 The Bank of Ireland 
 dates from 1783. Previous to this a primitve system of private bank- 
 ing prevailed, goldsmith, tradesmen, and general dealers being the bank- 
 ers. The earliest reference to the sudject of Irish banking is an act of 
 the Irish ParliannMit in 1709. The business at that time was entircl}' un- 
 controlled, and any person could issue bank notes, silver or copper coin. 
 Upon the establishment of the Bank of Ireland, banking privileges were 
 much curtailed. In 1797 the suspension of cash payment by the Bank 
 of P^ngland was extended to Ireland, and the Bank of Ireland greatly in- 
 creased its issue of bank-notes. Private banks sprung up all over the 
 country, and they also swelled the currency until it became greatly de- 
 
 E. ROTAN. 
 
 President First National Bank. Waco. 
 
29 
 
 predated. In 1804 there were fifty-seven banks in Ireland. In 18 19 
 but nineteen remained, and in 1827 there were but ten banks in all Ire- 
 land. In 1 82 1 a law was passed permitting joint-stock banks to be or- 
 ganized, but none were founded until additionnal legislation in 1824 made 
 the restrictions less objectionable. Then the Northern Bank of Belfast 
 was organized. In 1825 the Provincial Bank of Ireland was started with 
 a capital of ^^2, 000,000. In 1834 the Agricultural and Commercial Bank 
 oi Ireland was organized, but it went under in the crisis of 1836. In 
 1864 the Munster Bank at Cork was established. It has over forty 
 branches, and pays 12 per cent dividends. 
 
 On May 2 and 20, 
 1 7 16 the French Gov- 
 ernment granted a 
 concession to J o h n 
 Law, a Scotchman, 
 for the establishment 
 of a bank, of which he 
 was to be director and 
 the Regent its pro- 
 tector. Injune, 1716, 
 it began business with 
 a capital of 6,000,000 
 francs, and was author- 
 ized to issue notes pay- 
 able at sight and to 
 bearer, to discount pa- 
 per, to receive deposits, 
 to make collections 
 and payments, and do 
 a general banking bus- 
 iness. The success of 
 the bank was assured 
 until Law and his Cojh- 
 pagnie d' Occident 
 ruined it in one year. 
 It was fifty years later 
 before the country was 
 ready for another 
 credit establishment. 
 In 1776 M. Besnard 
 was authorized to es- 
 tablish in Paris a dis- 
 count bank, and, although of value to the business world, the Convention 
 suppressed it in 1793. So soon as the public quiet was restored, organ- 
 izations were founded which in 1800 resulted in the Bank of P"rance, with 
 a capital of 45,000,000 francs, which was increased to 90,000,000 francs 
 in 1806. It is a bank of deposit, discount, and circulation, and has the 
 sole power to issue notes. Its government consists of a governor and 
 two deputies, and a council-general of twenty members. Bills are dis- 
 counted within three months of maturity, guaranteed by two, or generally 
 three, approved signatures. The annual dividends are limited to 5 per 
 
 STEPHE.V liULI,. 
 President .Manufacturers' National Bank, Racine, Wis. 
 
30 
 
 cent. All other profits are invested in consolidated stock to be returned 
 to the stockholders upon the expiration of the charter in 1897. In 1848 
 the joint-stock banks which had been started in several large cities were 
 consolidated with the Bank of France as branches, and their issues of 
 notes suspended. Since then branches have been established in each de- 
 partment. In 1848 the bank suspended cash pa\-ments, but resumed 
 them in 185 1. The Government i.s largely interested in the Bank of 
 France and they are mutually helpful. In 1870 specie payment was 
 stopped, but through all the troublesome times which followed, the man- 
 agement of the bank has been prudent, and its credit is restored. 
 
 A few other joint-stock banks exist in France, but do not possess the 
 power to issue notes. 
 
 The Royal Bank of Prussia was established June 17, 1765. as an ex- 
 change and loan bank, with a capital of 400,000 thalers. 
 
 In several of the German States banks were founded under laws 
 peculiar to each one, and with local circulations, but the union of these 
 states into the Fmpire called for a national currency. On January 30, 
 1875, an act was passed which met this demand. The Royal Bank be- 
 came an Imperial Bank, which was established with an "uncovered" or 
 unsecured issue of 2 50,ooo;ooo of marks, with a right to increase this issue 
 if one-third the increase is represented by cash in hand and two-thirds by 
 bills not having more than three months to run. Thirty-two other banks 
 were permitted to have an "uncovered" issue to the extent of 135,000,000 
 of marks, and to exceed their authorized issues subject to the pa)'ment 
 of 5 per cent interest on the excess above the authorized limit, plus the 
 cash in hand. No note is issued less than 100 marks, and no new right 
 of issue can be conceded except by a law of the Empire. The State itself 
 has power to issue 120,000,000 of marks in state-notes of small denomi- 
 nations. There are but nineteen note-issuing banks in the Empire. The 
 Empire shares in the profits and superintends the conduct of the Imperial 
 Bank (Reichs Bank), and it is entitled to erect branch offices in an\- part 
 of the Empire. Its capital is about $30,000,000. 
 
 The Bank of the Netherlands, at Amsterdam, \\as first chartered in 
 1 8 14, with the Bank of England as a model, with a capital of 5,000,000 
 florins, which was increased to 10,000,000 in 1819. and to 15,000,000 in 
 183S. In 1863 it was re-chartered. It is a bank of deposit and issue. 
 
 In 1 8 14 the National Bank of Copenhagen took the place, and all 
 the debts, claims, rights and privileges of the Rigs Bank in Denmark, 
 upon the cession of Norway to Sweden. The bank was obliged to main- 
 tain the notes of the Rigs Bank at their par value, and to do this it was 
 required to collect and preserve silver coins, bars and banco mone\- suffici- 
 ent to redeem the notes when presented. The proportion of cash to out- 
 standing notes has usuall\- been from one-half to two-thirtls. The batik 
 also receives deposits and makes loans and discounts. It was required 
 to hold silver for oiij-hilf its notes in circulation, one-half of which siKer 
 must bj of the coin ige of Denmark, the other half to be in siK'er bars or 
 Hamburg banco. In 184S the b mk was permitted to substitute sterling 
 money for one-quartc.i of the bmjo In 1854 the bmk increased its 
 paper m )ney from ^2,222,000 to ^2,65o,000, the increase being secured 
 by an c(|ua! amount of sterling money (one-quarter), silver bars, (one- 
 half), and banco, (one-quarter). In 1859 it was allowed to increase its 
 
paper issue by the purchase of silver bars. From i<S53 3 per cent inter- 
 est was paid on money loaned to the b.mk, and from May i, i860, the 
 State surplus has been left with the b; nk. which pays interest upon it. 
 There are several prixate joint-stock banks in Copenhagen with no 
 peculiar features. 
 
 In 1830 the "hjiskilda" banks were first organized in Sweden. They 
 arc p;i\ate banks with large numbers of partners, and issue notes pa\'able 
 in siKer or in notes of the Riks Bank. 
 
 The notes issued are based on sound securities, the Government's 
 banking law being a model ot clearness and cautiou.^ness. In 1884 the 
 Post Office Sa\ings Banks were established in Sweden, to receive money 
 \nder guarantee of State, allow interest upon it, and by accumulating in- 
 terest and capital, hold it at the disposal of depositors. The rate of 
 interest is fixed by the King, and is added to the capital at the end of each 
 \-ear. The smallest amount received on deposit is one kron;i. All 
 funds are invested in the Bank of Sweden. 
 
 The National Bank of Austria was established in Vienna, in i860, 
 with a \icw to restoring the credit of the Government. It has the exclus- 
 i\e privilege of issue, and in return loaned the State 80,000,000 florins 
 without interest. It established numerous branches in different cities in 
 the Empire. On December 24, 1867, the Government established a forced 
 currency, and consolidated its debts to the National Bank into one loan of 
 $40,000,000, and re-organized that institution into the Austro-Hungarian 
 Bank, extending its charter to January i, 1888, and giving it the exclus- 
 ive right to issue notes. These notes are payable to beaier on demand, 
 in coin of the realm at Vienna and Buda-Pesth, where are located the head 
 offices of the bank. Should any of the notes be refused payment within 
 twenty-four hours after presentation, further issues are prohibited and the 
 bank's charter is forfeited. The^e notes are not issued for sums of less 
 than S5. and issues over Si 00,000,000 must be secured by gold or silver 
 coin or bullion. Notes issued on deposit accounts in excess of the amount 
 of the reserve of the bank must be covered by banking securities — dis- 
 counted bills and notes, loan on precious metals, convertible note<, redeem- 
 able obligations, or coupons of the Empire, or foreign bills of exchange. 
 The bank's affairs are administered by a governor nominated by the 
 ICmperor, two deputy governors, and a board of twelve directors. 
 
 The Bank of Norway was established in 18 16, its capital being a 
 forced loan raised by levying a tax on all landed property. Each tax- 
 payer became a shareholder in the bank to the extent of his payment, and 
 their shares soon came to a premium. All its securities, like bills or notes, 
 must be available at short notice. It loans its own notes' on land, the loan 
 being but two-thirds of the value of the security. The interest paid semi- 
 annually by borrowers is 4 per cent per annum, and 5 per cent of the 
 principal must be paid each year. The security is sold in case of non- 
 pa} nient. The bank has the exckr^ive privilege of issuing notes, which 
 are legal tender and pa)-able in gold on demand. 
 
 The oldest of the Belgium banks is the Socic'tc Generate, founded 
 August 28, 1822, with a capital of 50,000,000 florins. It did a discount 
 business and manage the Goverimient's finances until Belgium and Holland 
 separated, when that branch of business v\as resigned to the Bank of 
 Belgium of Brussels, which was chartered in 1835, with a capital of 20,- 
 
OOO.OOO francs. In 1838 the Bank of Belgium suspended payment, and 
 again in 1839, the Government coming to its assistance each time. In 
 1 84 1 its capital was increa.sed to 30,000,000 francs. In 1850 the man- 
 agement of the Goxernment's finances was relinguished to the National 
 Bank of Belgium, of Brussels, organized May 5, 1830 — a joint stock 
 bank — with a capital of 25,000,000 francs, of which the Socicte Gemrale 
 took 10,000,000 and the Bank of Belgium 15,000,000, both ceasing to 
 issue notes and agreeing to abandon their discount business. Its charter 
 was renewed in 1872 and its capital stock increased to 50,000,000 francs. 
 It pay 5 per cent dividends, and one-third of its profits above 6 per cent 
 
 goes to form a sink- 
 ing fund. Its has a 
 governor, six directors 
 and a council of cen- 
 sors, and the funds of 
 the State are kept on 
 deposit in its vaults. 
 The Bank of Bel- 
 gium now has a cap- 
 ital of 50,000,000 
 francs, and the Bank 
 of Flanders, in Ghent, 
 has a capital of 10,- 
 000,000 francs. 
 
 The earliest Swiss 
 bank of issue is that 
 of St. Gall, which dates 
 from 1836. At the 
 end of 1 869 there were 
 nineteen issuing banks 
 in the Swiss Confed- 
 eration. There are 
 now thirty-three legal- 
 itcd banks of issue. 
 In 1885 their average 
 circulation of notes 
 was $23,822,183. 
 There are 325 savings 
 banks, the deposits in 
 1882 being $47,547,- 
 428.85. There are 
 also 162 other banks 
 of dcp(jsil, n.iostly of a private nature. 
 
 Although the oldest exi.sting Italian bank dates from 1622 — the 
 Monte de i'ashi, in Siena — the National Bank of Italy has a history dating 
 only from 1850, it having been organized b\' consolidating the Bank of 
 Genoa, founded in 1844, and the Bank of Turin, founded in 1847. At 
 its organization a sum was to be paid for Ciovernment superintendence, and 
 it agreed to advance tt) the State a sum of not over 18,000,000 lire, secured 
 by a deposit of public stocks or treasury bonds bearing 3 per cent interest, 
 or less if the market rate was lower than that. Three bank seats and 
 
 LO(;.\N C. Ml KK\^ . 
 Vice-President American National Hank, Louisville, Ky. 
 
33 
 
 four biiinch banks were established, ami the capital, originally 40,000,000 
 lire, is now 200,000,000 lire. It has numerous branches, and its circula- 
 tion is national. In April, 1874. the Ciovernment restricted the right of 
 i.ssuini:^ bank-notes to six banks: The National Bank of Italy; the Nati- 
 «inal Tuscan Bank, or<^anized in 1857; the Roman Bank, 1850; the 
 Tuscan Bank of Credit, i860; the Bank of Naples, 1816, and the Bank 
 of Sicily, 1843. This law authorized the Bank of Naples to increase its 
 c.ipital, by 1885, to 48,750,000 lire, and the Bank of Sicily to 12,000,000. 
 The National Tuscan Bank had a capital of 30,000,000 lire; the Roman 
 Bank, 15,000.000, and the Tuscan Bank of Credit, 10,000,000. By this 
 
 law these six banks 
 were organized into 
 a union, which, if re- 
 quired, should furnish 
 the Government i , - 
 000,000,000 lire in 
 bank-notes, but by a 
 law passed April 7, 
 1 88 1, this union was 
 terminated. 
 
 There are also num- 
 bers of "People's 
 Banks," credit soci- 
 eties," Agrarian 
 Banks," friendly soci- 
 eties, etc., the People's 
 Banks increasing \ cry 
 rapidly. 
 
 The Imj:)erial Bank 
 of Russia was founded 
 in i860, to regulate 
 the issues of currency 
 and aid commerce. Its 
 capital is subscribed 
 by the Government, 
 and it is managed by a 
 committee of the treas- 
 ury. Its charter was 
 to run for twenty-eight 
 years. When founded, 
 its capital was ^11,- 
 875,000, and one of 
 its principal aims was to restore specie pajments. In 1864 the circulation 
 had a nominal value of $630,000,000, based on a specie reserve of but 
 $43,330,000. In 1877-78 the currency was greatly expanded because of 
 the Turkish war. The bank enjoys the sole privilege of issuing notes, 
 and it has numerous branches. There are more than two hundred 
 communal Russian banks. 
 
 Greece has two modern banks, the National of Athens, with a capital 
 of 5540,000, and the Ionian Bank, at Corfu. 
 
 Savings banks were known in I'Airope as early as 1765, at which 
 
 1. J. (ikOCK, 
 lirtsident ( lalvtslun National Hank, Galveston, I'l 
 
34 
 
 date there was one at Brunswick. In 1778 one was established at 
 Hamburg which still exists. In 1786 one was founded at Oldenburg, in 
 1790 one at Loire, in 1792 one at Basel, in 1794 one at Geneva, and in 
 1796 one at Kiel, in Holstein. In Tjigland the)' had, a rapid growth. 
 In 1799 Rev. Joseph Smith put into execution Jeremy Bentham's sug- 
 gestion by the establshment at Wendover of a "frugality bank." In 1801 
 Mrs. Priscilla Wakefield established a saxings bank in connection with a 
 friendly society, and others followed rapidly. In 181 7 so numerous had 
 they become. Parliament passed a law for their control. Penn)' banks 
 have lately been established in \'arious cities of Great Britain. Saxings 
 Banks for the army were established in 1842, and for the nav\- in 1854. 
 Several railway companies maintain savings banks for their employes. 
 In Norwa\- there were twenty-two savings banks in 1840. and 311 in 
 1880, of which 249 were rural. In Sweden the fir.st savings bank was 
 founded in 18 13, In 1840 there were fifty-eight, and in 1880 the num- 
 ber had increased to 340, of which 252 were rural. 
 
 CHAPTKR \'. 
 
 I'-AKIA' AMERICAN r..\NKlN(;. 
 
 The histor\- of banking in the American colonies before the rexolu- 
 tion is very obscure, and nearly ever}- earU' mention of "banks" is apt to 
 be misleading. The word "bank," as used by the colonists, meant simply 
 a batch of paper money, issued by one of the provinces, or in rare 
 instances, by a company or association of individuals more or less 
 directly authorized by law. The modern commercial bank of deposit 
 and discount, as we know it, did not exist, because there was no business 
 to support it. There was no equivalent for the "moneyed-class" of to-day. 
 The capitalist had not \'et come. With few excejitions. men in ea.sy cir- 
 cumstances were merchants or the large land owners then everywhere 
 called "planters." Men of property derived their wealth from commerce 
 or agriculture, and re-invested their gains in land or trade. The popula- 
 tion was widel\- scattered, and tlie number of those within reach of any- 
 one business center, having cash to keep, wa.s too few to make its custod\- 
 and handling a profitable business for any one. P^ach merchant or 
 planter kept his own cash in his own strong box at his own house. 
 When a note or draft was presented he counted out the "broad Joes," or 
 hard dollars, to pay it, if it were during one of the rare intcrxals at which 
 specie payments were in vogue. ( )ftener the paxnient was made in de- 
 preciated paper at the lluctuating rate of discount, at which it just then 
 happened to be current This discount varied, with time and place, from 
 a minimum of 8 to 10 per cent to a common rate of 2 to 10 for one. In 
 extreme cases this tk-prcciation reached i. 000 of the debased paper for 
 one of .specie. 
 
 This issue of a depreciated paper as an expedient for the relief of 
 every real or supposeti pecuniar)- distress, was a prominent feature of 
 colonial politics, especially in New ICngland and South Carolina. The 
 exigencies of Indian wars and numerous futile expediti(Mis for the con- 
 quest of Canada led to repeated issues of bills of credit by the Govern- 
 
35 
 
 ments of the several provinces. The prompt action necessary to be taken 
 in L^cttin^ up these expeditions, made it impracticable to wait for the lev)' 
 and collection of a tax, and the scarcety of capital made it difficult or im- 
 possible to borrow money through channels commonly resorted to in 
 older and wealthier States. Bills of credit, made legal tender, operated 
 as a forced loan without exciting the opposition and clamor which would 
 ha\e followed had the authorities adopted that plan without disguise, or 
 had they openly "pressed" or "requisitioned" the needed stores and ma- 
 teria! in kind. Wasteful and extravagant, if not actually ruinous, as such 
 measures al\\a\'S prove in the long run, the exigencies of the occasion 
 .seemed not only to justify, but imperatively to demand their adoption in 
 these cases. We of this generation haxe seen measures, which we now 
 perceive to be of at least equal foil}-, promoted and sanctioned by the 
 most trusted statesmen of the day as a "militar\' necessity." Even de- 
 preciation enhanced, in some respects, the popularity of these forced 
 issues, as it afforded debtors, always a large class, especially in a new 
 country, the "cheap money," which enables them to discharge their debts 
 at a discount; and the rise in prices, in proportion to the depreciation of 
 the currency, gave a fallacious appearance of general prosperity. The 
 "scarcity of money," or appreciation ot currency, which followed a re- 
 demption and withdrawal of a portion of the outstanding paper, was rep- 
 resented as a public calamit}-. This apprehension of countless imaginary 
 ills attendant upon any "contractions of the circulation," led to loan 
 schemes devised and sustained by that restless, unsettled class, numerous 
 in every age in a growing community, which arrogates to itself a special 
 claim to be called and esteemed "active business men," whose members, 
 under the guise of public spirit, strive to make the capital of the rich and 
 the labor of the poor alike subserxient to their own selfish schemes for 
 personal profit. 
 
 The earliest issue of paper money in North America was made by 
 the French Governor-General of Canada, in 1685. ^^t that time the 
 Indian tribes of Central New York — the redoubtable Iroquois, or Five 
 Nations — were the mo.st dangerous foes of New France. The English 
 colonies were not )-et strong enough to attack their French neighbors. 
 The Iroquois, h(^we\er, had made repeated incursions into Canada, cap- 
 turing and destroying Montreal, and threatening the French settlements 
 with complete extinction. In 1685 the Marquis de Denonxille, Governor- 
 General of Canada, set on foot an expediton against the Senecas, the most 
 westerly of the Five Nations, and to furnish funds for this enterprise 
 issued "card mone}', ' which was made redeemable in bills upon France. 
 In 1690 Massachusetts issued the first paper monej- emitted within the 
 present limits of the United States, of which we have authentic record. 
 In December of that year the expedition which Sir William Phipps had 
 lead against Quebec — the first serious attempt by the English colonies at 
 the conquest of Canada — returned to Boston, having made complete fiil- 
 ure. There was no money in the treasury to pay the troops, as the au- 
 thorities had relied upon the spoil which a successful expedition was ex- 
 pected to bring home, to meet all such charges. To proxide for this 
 emergency the General Court resolved: that, "Considering the present 
 po\"ert\' of the country, and, through the scarcity of mone\-, the want of 
 an adequate measure of commerce," bills of credit in notes of 5 shillings 
 
to is •should be issued "to be in value equal to money, and accepted m 
 all public payments" The first issue was fixed at £7^000 subsequently 
 increased to ^40,000. equal, as Massachusetts mone\' was then rated, to 
 $133 333 Before this limit was reached, however, the bills sank to a 
 discount of one-half To raise their credit they were made full legal 
 tender In 1691 /i 0.000 of this paper then remainmg m the treasury 
 was ordered to be burned. In 169? it was ordered that, in lieu of inter- 
 est the bills should be received by the treasury at a premium of 5 per 
 cent over coin. The.se measures, coupled with a promi.^e to redeem the 
 entire issue in twelve months, sufficed to bing this paper to par and to 
 
 maintain it in circula- 
 tion at that point for 
 twent)- years. 
 
 South Carolina was 
 the first to follow the 
 example of Massachu- 
 setts. In 1702, be- 
 ing then the most 
 southerly of the Eng- 
 lish colonies, this 
 province attempted to 
 wrest Florida from the 
 Spaniards. A d i s- 
 asterous siege of St. 
 Augustine ended the 
 invasion and leit the 
 province burdened 
 with debt. Pleading 
 the example "of great 
 ,ind rich countries," 
 ,iik1 confident that 
 "funds of credit have 
 fully answered the 
 ends of nionc}'. and 
 gi\-en the people a 
 quick circulation of 
 their trade and cash," 
 the colony issued bills 
 of credit to the amount 
 of ^'6,000. This was 
 to be paid off within 
 three years b}' a tax 
 and New Hampshire 
 
 .sidciil N.ili 
 
 J. S. CHICK. 
 iKil l!;iiik of Kiinsas Citv. Kalls;^^ C'it 
 
 (jn 
 
 and i)elti"ies. In 
 
 Kiuors and i)elti"ies. in 1707 Rhode Islaiu 
 issued their first bills of credit to provide means for taking part with 
 Massachusetts in tlie attempted concjuest of Acadia, or Nova Scotia from 
 the h'rench. New Nork, Connecticut and New Jersey made issues of 
 bills of cretiit for the first time in 1709 to equip their quotas of troops to 
 assist in another futile attcm])t at the conquest of Canada, and in 171 3 
 North Carolina "paid" witli l)ills of credit, tlic expenses of the war against 
 the Tuscaroras, which ended in the expulsion of that tribe from its old 
 home, to wonder north waril until it settled in western New \'ork as the 
 
37 
 
 sixth nation ot the Iroquois Confederacy. \'ir^inia issued no papc until 
 1755. when bills were emitted to equip the battalion of provincial «nilitia, 
 commanded by Washington, which accompanied Hraddock's disastrous 
 expedition acjainst the I'Vench on the Ohio. As will be related hereafter, 
 Pennsylvania and Mar\-land first authorized banks — issued paper money, 
 that is — to be loaned to their i)eople as currency. There is no record of 
 any considerable or authorized issue of paper in any form in Delaware or 
 Georgia until a later date. Thus it will be seen that of the eleven col- 
 onies which resorted to the issue of paper money, before the revolution, 
 in the case of nine of them it first appeared as an adjunct of military en- 
 terprise and of mili- 
 tary defeat and dis- 
 aster. 
 
 South Carolina had 
 issued bills of credit 
 in 1 702 to meet urg- 
 ent demands upon 
 the treasury, in a des- 
 perate emergency. In 
 1 7 1 2 this colony in- 
 vented a modification 
 of the original plan, 
 which was quickly 
 imitated by most of 
 the other provinces. 
 "To defray the ex- 
 pense of an expedition 
 against theTuscaroras 
 and to advance and 
 accommodate do- 
 mestic trade," the 
 Legislature establish- 
 ed a "public bank," 
 and issued ^48,000 
 in bills of credit, called 
 bank-bills, to be loan- 
 ed out at interest, to 
 individuals upon real 
 estate and personal 
 security. The loans 
 ran for twelve years, 
 to be repaid one- 
 twelfth each year. In this case the military necessity was used only as 
 a decent pretext, and when the next bank was authorized the cloak was 
 laid aside. Although made a legal tender, these bank-bills were early 
 discredited, and before the end of the \-earwere current only at a discount 
 of one-third of their nominal value. In 17 16 a .second "bank" of ^30,- 
 000 was ordered to be loaned out on the same terms as the first. This 
 was disallowed by the Lords' Proprietaries of the colony of England, in 
 part because among the taxes proxided for its redemption, a duty of i^io 
 per head was imposed on all negroes imported. This was the first and 
 
 K. I,. DIRII.V.M. 
 Vice-President Cummercial Nalinnal I'aiik. I'nrlhiiul, < )regon. 
 
38 
 
 principal cause of discontent witn the Proprietary <Tovernnient which led 
 to tumults and finally, in 17 19, to an open insurrection which ended in 
 the complete subversion of the Proprietary authorities. A rexolutionary 
 convention, chosen by the people, assumed the manai,^ement of affairs, 
 and appealed to the British home Government for relief. The English 
 ministry instituted proceedings to revoke the Proprietary charter, pro- 
 claimed South Carolina a crown colony, and, in 1721, appointed a royal 
 Governor, in 1722 a bill was introduced in the Assembly for adding/' 120.- 
 000 to the paper money of the colony. Twenty-eight of the principal 
 merchants of Charlestown protested against it, and in their remonstrance 
 alleged as the chief cause of the then excessive depreciation of paper money, 
 "that every legislative engagement for recalling the various emissions of 
 bills hrd been broken through by every Assembly." Provoked by this 
 plain statement of unpalatable truth, the as.sembly pronounced the mer- 
 chant's petition "a false and .scandalous libel," and sent the petitioners to 
 prison for a breach of privilege. The Governor not daring to interfere, 
 they were released only on payment of large sum by way ot fees. The 
 bill for the new bank, though pa.ssed by the Assembly, was disallowed by 
 the English Government, and the Governor "was strickly enjoined to 
 consent to no new law for creating a further paper currency, neither to 
 any act for diverting the sinking fund already established." At least a 
 l)art of these disallowed "banks" seems to have been issued, however, in 
 sj^ite of the prohibition, for, in 1725, the Assembly resolved that, 
 "Whereas, the circulating bank money is already reduced to ^87,000, 
 and is likely soon to be entirely paid off." there was grave occasion to 
 apprehend a scarcity of money. To escape this imminent disaster the 
 Assembh' tacked a rider on the annual revenue aud appropriation bill, 
 .stopping tho redemption and withdrawal of the bank paper. The Gov- 
 ernor and Council proposed to .strike out this provision; but the Assembly 
 denied their rights to amend mone\- bills, and left them to choo.'^e bet- 
 ween a breach of their instrnctions and a failure of supplies. Next \ear, 
 1726, this policy was followed up b\' a bill for the issue of another bank, 
 which the (jovernor's Council again refused to pass. The planters then 
 entered into a combination to pay no taxes, alleging their inability to do 
 so unless aided Ijy the issue of more bank bills. When, ni 1727. a cons- 
 picuous member of this association was arrested and imprisoned, the Chief 
 Justice denied him a writ of habeas corpus on the ground that his offense 
 amounted to high treason, and was not bailable. After an acrimonious 
 controversy in the Courts and in the .\ssembl\-, two hundred and fift\- 
 horsemen entered Charleston from the neighboring countr\- and compelled 
 his liberation. The As.sembly impeached the Chief Justice, because in- 
 voked in a violent cjuarrel with the Gcwernor and his Counc'l, adjourned 
 themselves of their own motion, and when again summoned, refused to 
 attend. This disortler lasted until 1730, when a new Ro\al Governor 
 came out, and a new council was appointed, from wliicli were omitted all 
 those who had been most strenuous for obexingtlie ro\al instructions for- 
 bidding further emissions of bills. The paper money part}' thus strength- 
 ened, the Assembl}' suspended tlie ledeniption of all outstanding bills, 
 and voted another issue of ^'104,000, both of which measures seem to 
 have obtained the (ioxernor's assent. In ^J^^C) still another bank of 
 /. 100,000 was anthori/xd. to be loaned out at S percent \'\kv the prexious 
 
39 
 
 issues. Before the time the bank-bills had steadily depeeiated until they 
 reached a discount of seven of paper for one of specie, at which the cur- 
 rency of South Carolina remained, almost without variation, until the eve 
 of the revolution/'^ The case of South Carolina is perhaps the only ins- 
 tance in which the never-ending controversy between tne advocates of 
 expansion and those who favor a contraction of the currency led to a 
 complete and radical change in the form of government. 
 
 As South Carolina was the first to follow the example of Massachu- 
 setts in issuing bills of credit to meet demands upon the public treasury, so 
 Massachusetts was the first to adopt the plan devised in South Carolina 
 of manufacturing paper money to be loaned out for the promotion of trade. 
 As we have seen, the earliest issue of bills of credit was made by Massa- 
 chusetts in 1690 to meet the cost of Phipps' futile attempt on Quebec. 
 The next resort to the same device in this province was in 171 1, when 
 bills, amounting to ^40,000, were issued and paid out directly by the 
 Cio\ernment to equip the New England troops attached to the even-more 
 disastrous expedition led by the English Admiral, Sir Hovenden Walker, 
 against the same forteress. In 1714a very general agreement had grown 
 up in Massachusetts in favor of the loan system of issuing paper, but 
 differences arose as to the precise method of carrying it out. The more 
 achenturous and sj^eculative element proposed a private bank, to be in- 
 corporated by the (leneral Court, to issue bills on its own credit and res- 
 ponsibilit}-. (3thers preferred the indorsement of the colony and proposed 
 to issue colony bills, as heretofore, to be loaned on landed security for a term 
 of years, the interest and one-twentieth of the principal to be paid annually. 
 If this scheme was adhere to, the whole debt would be paid of and the en- 
 tire issue of paper redeemed and retired in twenty years. In the meantime 
 the interest would reduce, b\- so much, the amount necessar)- to be raised 
 by taxation for the current expense of the colony. An inconsiderable 
 party opposed all bills of credit, and argued in favor of a specie currency 
 and a real bank of deposit and discount; but these were stigmatized as 
 "capitalits" and "money princes," and, finding the drift of public sentiment 
 almost wholl)- in favor of an issue of paper money of some sort, were soon 
 compelled to come to the support of the provincial issue, called the "public 
 bank," as the least objectionable ot the two plans most in favor. According to 
 Hutchinson, the party favoring the "private bank" was composed generally 
 of persons in difficult or involved circumstances, or such as were possessed 
 of land, but had no command of ready money, or men of no substance at 
 all. They proposed to issue bills which all the members of the company 
 promised to receive as "money," but at no fixed \alue as com])ared with 
 gold or silver. The Assembly rather favored this plan owing to the sup- 
 port given it by the Bo.ston members, but, after a long struggle, the party 
 for the "public bank" prevailed in the General Court for a loan of ^50,000 
 in bills of credit, which were put into the hands of five tru.stees. to be 
 loaned for five years only, to the inhabitants of the several towns in the 
 latio of their taxes, in sums of ^^50 to ;^500, on real estate mortgage, at 
 5 per cent interest, one-fifth of the principal to be paid each year.f 
 
 Certainly no .scheme for the emission of bills of credit ever was more 
 careful devised or more scrupulously guarded. But having thus, once 
 for all, demon.strated their prudence and caution, the people and author- 
 ities of Mas.sachu. setts proceded to give full suing to their conviction that 
 
40 
 
 it was impossible, in a state of colonial dependence, to maintain a metallic 
 currency, and that it was the duty of Government to provide a currency 
 made and kept equal to the requirements of trade and commerce. New 
 issues of bills of credit were made for the payment of ordinary, current 
 expenses, and to supply deficiencies of inadequate tax levies. Provisions 
 made for the payment of old issues were repealed or ignored and new 
 issues made with no present purpose of redemption. The efforts of the 
 Governor and Council to restrain these issues were unavailing, the Gov- 
 ernor's consent, or connivance in disobedience of his instructions, being 
 extorted by withholding his salary. In 1733 there was a general com- 
 plaint throughout the 
 four New England co- 
 lonies of the unusual 
 scarcity of m o n e }'. 
 There was as large a 
 sum current in bills of 
 credit as e\er, but the 
 bills having deprecia- 
 ted, they answered the 
 purpose of money so 
 much the less in pro- 
 portion. Massachu- 
 setts and New Hamp- 
 shire, restrained by the 
 instructions of their 
 RoN'al Go\ernors, had 
 not issued bills to so 
 great an amount as 
 Rhode Island. Con- 
 necticut, being an agri- 
 cultural colony, with 
 fewer traders, did not 
 so nuich feel the want 
 of mone}^ The people 
 of Massachusetts 
 complained bitterly 
 that Rhode Island 
 hills should circulate 
 among them to take 
 away their substance 
 to be employed in the 
 trade of the sister co- 
 lon)-, and mail)' wi^lud to sec the hills of cich colon}' forbidtien to circu- 
 late outside the limits of that h)- which the\- were issued. In the mi-dst 
 of this discontent an act was passed in Rhode Island for a new issue of 
 ^100,000, to be loaned to its peopK' for twenty years, who, it was argued, 
 would thus have it in their power to add that sum to their wealth, by 
 purchases of horses, sheep, lumber, fish, etc., from the people of Massa- 
 chusetts. The merchants of Boston thereupon confederated ami mutualh- 
 pronused and engaged not to receive an\- Rhode Island bills of this new 
 emission. Then, to prt)\ide a currenc\- to fill the \-oid in the circulation. 
 
 M. W . l-l.Ol KNOV. 
 ViL-c-l'icsi<l.-iil I'iisl N;iliiiii;il II. ink. .\1Iuiihh.-i-.hr- 
 
41 
 
 w hich.it seemed to be universally agreed this action would occasion, a large 
 number of Boston merchants formed themselves into a company, entered 
 into covenants in co-partnershij), etc., chose directors, anj issued ^,'i lO,- 
 ooo in their own bills, redeemable in ten years in sjiver at nineteen 
 shillings to the ounce, the then current rate, but being about three times 
 the true or specie value, according to Massachusetts standard, or in gold 
 in the same proportion, one-tenth part annually. About the .same time 
 the Massachusetts treasury, which had long been closg^^ ^vas opened and 
 the debts of several years were paid at one time in bJUg of credit. To 
 this was added the ordinary emissions of bills from ^Q-^y Hampshire and 
 
 Connecticut. Then 
 some of the Boston 
 merchants, tempted 
 by the opportunity, 
 broke their engage- 
 ment and received the 
 Rhode Island bills, an 
 example which all the 
 rest were speedily 
 forced to follow. All 
 these issues made a 
 flood of paper money, 
 before which silver — 
 then standing nomi- 
 nally at nineteen shil- 
 lings to the ounce — 
 rose to twenty-seven 
 shillings to the ounce, 
 or, rather the paper 
 which stood at about 
 three to one for specie, 
 sank to a discount of 
 four and one-half of 
 paper for one of specie, 
 livery creditor was 
 thus defrauded of 
 nearly one-half of his 
 just dues. As soon 
 as silver rose to 
 
 i. N 
 
 l'r<;>ident Nittional K: 
 
 SIMPSON. 
 I halite I'.an'k. 
 
 Dull 
 
 ,xas. twenty-seven shillings 
 
 the ounce, the notes 
 
 issued by the Merchants' Association, paj'able at nineteen shillings to 
 
 the ounce, were hoarded up as too valuable for e\er\'-day serxice, and no 
 
 longer used for the purposes of money. 
 
 As early as 1732 the English Government began to in.struct the 
 Royal Governor of Massachusetts to consent to no further issue of bills 
 of credit to remain current longer than the time fixed for the redemption 
 of that already in circulation, the last of which would mature in 1741. 
 It would have been easy to raise each year, by taxation, a sum sufficient 
 to pay the current expenses, and to redeem all the paper maturing during 
 that year. Instead of pursuing this cour.se, the wisdom of which so 
 
42 
 
 plainly appears, the revenue from taxation was allowed to fall below the 
 necessar\- and inevitable expenditure, so that not only were the bills ma- 
 turin<^ allowed to go unredeemed, but new paper, to fall due in 1741, 
 was each year emitted. As the time for the pa}-ment of this great mass 
 of paper drew near, and as hope grew fainter that the policy against new- 
 issues would be relaxed and the promised pa>ment of the bills in some 
 way evaded, a great clamor arose against the Governor, who, in spite ot 
 all attempts to starve him into compliance by witholding his salary, ad- 
 hered resolutely to his instructions. In 1 740 it became apparent that it 
 was impossible to levy in one year a tax sufficient to discharge all these 
 accumulations. A general dread of the further depreciation or entire 
 withdrawal of the currency took possession of nearly the whole people. 
 Hutchinson, the historian of Massachusetts, did, indeed, propose to the 
 General Court to borrow in England a sum in silver equal to the bills 
 then extant, and therewith to redeem those bills and thus furnish 
 the colony with a sound currency ; the repayment of the loan to be 
 spread over several years so as to escape burdensome taxation in 
 any one. Hut this plan was rejected in favor of what was called the 
 land bank, or manufactory scheme. It being held that the royal instruc- 
 tions against bills of credit were no bar to private action, the projector 
 and chief advocate of the "private bank" of i/ 14, hereinbefore mentioned, 
 "put himself at the head of some seven or eight hundred persons, some 
 tew of rank and good estate, but generally of low condition, of small 
 estate, and many of them insolvent. This notable company were to give 
 credit to /' 150,000 lawful money, to be issued in bills, each person to 
 mortgage land in proportion to the sum he subscribed and took out, or 
 to give bond with two sureties, but personal security was not to be taken 
 for more than ;^ioo from an\' one person." Ten directors and a treas- 
 urer were to be chosen by the compan)-. Kveiy subscriber or partner 
 was to pay 3 per cent interest on the sum taken out, and 5 per cent an- 
 nually of the principal. He that did not pay his dues in provincial bills 
 might pay in the produce and manufacture of the province, at such rates 
 as the directors should fix from time to time, and as they should com- 
 monly i^ass for lawful money. It was claimed by its friends, that by thus 
 providing a medium and currency for trade, not onl}- would the people 
 be better able to procure provincial bills to pa\- their taxes, but trade, 
 both foreign and inland, would revive and flourish. The principal mer- 
 chants refused to receive the bills, though they had a large currency 
 among the smaller sho])-keepers, mechanics and farmers. To lessen the 
 temptation to receive the.se bills of the land bank, a number of leading- 
 merchants agreed to issue their own notes, or bills, payable in siKer at 
 the end of fifteen years, much like the private bank of 1733, and dubbed 
 their scheme the "siKer bank." The Governor issued a proclamation 
 forbidding either of these companies to issue bills. Hut both did make 
 large emissions in defiance of the prohibition. The (io\ernor and Coun- 
 cil then applied to the English Parliament, which, early in 1741, declared 
 that the law commonly called the Bubble Act, passed twenty \'ears before 
 on the breaking of the South Sea bubble, which prohibited the formation 
 of unincorporated joint-stock companies with more than six members, 
 applied to all the American Colonics. This declaratory legislation, giving 
 retroactive effect to an old statute, was at the same time cautiously cited 
 
43 
 
 as "an instance of the transcendent power of Parliament." It was. in 
 substance if not in form, ex post facto legislation of a specially dangerous 
 and pro\'oking type, and became, in the end, one of the strongest induce- 
 ments to the prohibition of such laws which, not many years later, was 
 incorporated in express terms in every American Constitution. Both the 
 banks, or companies, were dissohed. The members or partners were 
 held individually liable for the entire mass of their notes, not at the de- 
 preciated rates at which they had been issued, but at par wath accrued 
 interest, The nianufactor\' or land bank scheme especially, the affairs of 
 w hich remained unsettled and in the utmost confusion for several years, 
 pro\ed extremely ruinous to all such jiersons concerned in it as had an\-- 
 thing to lose, l^arnest efforts on behalf of these unfortunate speculators, 
 of whom his father was one, first introduced into politics Samuel Adams, 
 afterward so celebrated, then a young man, a recent graduate of Harvard, 
 designed for the ministry but compelled by his father's ruin and shortly 
 ensuing death, to adopt a more active life. In 1741 a new royal Gov- 
 ernor was appointed who construed his instructions as aimed only at pre- 
 venting a further emission of depreciated currency or a further deprecia- 
 tion of that already afloat. Holding that it did not matter how large a 
 sum in bills was current if only their value was secured, and that neither 
 the spirit of his instructions required, nor the circumstances of the case 
 permitted, the literal obser\ance of that proportion of them which directed 
 the redemption of all outstanding paper in that one year, a scheme was 
 patched up which seemed to promise at least a brief postponement of the 
 evil da)-. The General Court passed and the Governor, after obtaining 
 at least the tacit approval of the English Ministry, assented to an act in- 
 tended to establish an ideal measure af value in all trade and dealings, 
 let the instrument of exchange be what it would. This declared that all 
 contracts should be understood to be payable in siKer at 6s. 8d. per 
 ounce. The true value of silver at that time was about 5s, 2d. sterling 
 per ounce, but the old Pine Tree coinage of Massachusetts had been 
 light weight and 6s. 8d, of that currency had been coined from an ounce 
 of silver, so the standard now fixed was that which had obtained before 
 the first issue of paper and, to that extent, was an honest one. Rills of 
 a new form were issued which bore on their face a promise to pa\- three 
 ounces of silver for every twenty shillings of their nominal value. These 
 were made a legal tender for all dues, public and private. It was also 
 ])rovided that in case they should depreciate in value an addition should 
 be made in all debts equal to the depreciation of the currency from the 
 time of contract to that of payment. How to ascertain the depreciation 
 from time to time was the great difficulty in framing the act. To leave 
 it to a common jury never would do, nor could the impartial integrity of 
 the House of Representatives be trusted. At length it w.is agreed that 
 the eldest member from each county, ot the Council, a body answering 
 in some measure to our present State Senates, should meet together once 
 a year and ascertain and declare the depreciation. But the measure af- 
 forded no real relief The counselors appointed to estimate the deprecia- 
 tion seldom had the firmness to make the full allowance as there was a 
 popular outcry against every addition made to the fixed discount. No 
 effectual steps were taken for the redemption and withdrawal of either 
 the new issue or any of its predece.ssor's, save those made b\' the prixate 
 
44 
 
 companies. Things went from bad to worse. The confusion of the cur- 
 rcncx' was such as seriously to cripple foreigh and domestic trade. The 
 depreciation increased and financial chaos seemed to be near at hand. 
 
 The authorities of Massachusetts .seemed now to be possessed of a 
 spirit near akin to desperation. For the operations which resulted in the 
 capture of Louisberg and conquest of Cape Breton in 1745, and for the 
 .several attempts at the reduction of the other French Colonies made in 
 1746 and 1747, this province issued new bills of credit to the nominal 
 value of more than ^^2,000,000. These were paid out by the treasur}^ 
 at an average discount of eleven or twelve of paper for one of specie. It 
 
 becoming apparent 
 that either redemption 
 or repudiation must 
 be faced in the near 
 future, the General 
 Court was, though 
 with difficulty, per- 
 suaded to le\}' taxes 
 sufficient to retire a 
 considerable portion 
 of the redundant pa- 
 per, In 1747, on the 
 application of the 
 agent of the province, 
 the English Govern- 
 ment granted Massa- 
 chusetts an allowance 
 of ;^i 80,000 for the 
 partial reimbursement 
 of the expenses of the 
 conquest of Caj^e 
 IJreton. This sum 
 would become availa- 
 ble, in specie, in 1749. 
 Thomas H utchinson, 
 the historian, who was 
 then speaker of the 
 Hou.se of Representa- 
 tives, who also was 
 warmly supjiorted by 
 Ciovernor Shirly, per- 
 ceived in this a favor- 
 able (jpportunity for abplishing the bills-of-credit .sy.stem and substitute a 
 .stable currency of silver and gold for the future. About £2,200,000 in 
 bills would be outstanding in the year 1 749. At eleven for one — although 
 the current rate was twelve for one — ^' 1 80,000 sterling would redeem 
 ^* 1, 980,000, which would lea\e but /:220,ooo outstanding. It was there- 
 fore proposed that the sum thus granted by Parliament should be ship- 
 ped to the province in Spanish milled dollars, and applied to the redemp- 
 tion of the bills, so far as it would serve, and that the remainder of the 
 bills should be drawn in by a tax for the year 1749. This would dispo.se 
 
 JACOB lURTH. 
 
 I'rcsidcnt I'linci Sdiiiul National Hank and Peoples Savings Bank, 
 
 Seattle, Washinnlon. 
 
45 
 
 of the bills. For the future, silver of sterling fineness at 6s. (Sd. the ounce 
 if paid in bullion, or in milled dollars at 6s. each, should be the lawful 
 money of the colony, and no person within the province should receive 
 or pay bills of credit of any of the other English Colonies. When it be- 
 came known that a bill for an act on these lines had been introduced in 
 the Provincial House of Representatixes, a great clamor was raised 
 against it. It was said that the greater part of the people were no suf- 
 ferers from a depreciating currency, as the number af deJDtors was always 
 greater than that of creditors. Even those who were for a stable cur- 
 renc)' were divided. Some argued that the paper might be so reduced 
 
 volume as to be fixed 
 and stable in value, 
 and therefore were for 
 redeeming only so 
 many bills as should 
 be agreed to be super- 
 fluous. Others, in- 
 cluding many of good 
 standing and good 
 sense, were for finish- 
 ing the bills, but in a 
 gradual way, other- 
 wise, they said, a fatal 
 shock would be gi\'en 
 to business. The bills, it 
 was said, had sunk 
 g r a d u a 1 1 }' to o n e - 
 twelfth their original 
 value, and as by 
 this means creditors 
 had been defrauded, 
 it was but reasonable 
 that they should rise 
 gradually that justice 
 might be done. To 
 this it was answered 
 that the creditors and 
 the debtors would not 
 be the same, so, that 
 instead of righting one 
 wrong, another injust- 
 ice would be done; the 
 injury being the same when one is obliged to i)ay more, as when he is forced 
 to receiv^e less, than is justly due. Others were for exchanging the bills for 
 silverata higher rate, the Boston representatives favoring a ratio ofaboutfive 
 to one, which would have given an exorbitant profit upon that redeemed, 
 and would have left more tlian half the volume outstanding. These were 
 the objections urged by the most reasonable and most intelligent. The 
 strongest opposition came from the ignorant and the interested who 
 strove to impress the people with the contradictor)- ideas, first, that no 
 redemption should be made because if there were no other money than 
 
 J. II. .\I<GR.A\V. 
 
 President of First National Bank, Seattle, Washington, 
 < Jovernor of the State of Washington. 
 
46 
 
 silver it would be engrossed and hoarded by the rich, and that the poor 
 would get no share of so precious a commodity; and second, that if the 
 bills were redeemed at all it should be at their nominal and not at their 
 actual value. After debating the bill for many weeks the Assembl}- reached 
 a vote upon the proposition as a whole, and, after once rejecting the bill, 
 finally passed it. After this fa\orable action the measure speedily re- 
 ceived the sanction of the other branche-; of the General Court and 
 became a law early in 1750. 
 
 The indemnity money having arrived in .specie, the paper, amid much 
 public gloom and doubt, was redeemed at a rate about one-fifth less than 
 the current value; and for the next quarter of a century Massachusetts 
 enjoyed the blessing of a sound currency. Re.solved to drive the other 
 New England colonies into the same measure she, in the redemption 
 legi.slation of 1750, prohibited the circulation of their paper within her 
 limits. Connecticut called in and retired her bills of credit, but Rhode 
 Island, the most persistently given to inflation of any of the old colonies, 
 refused to follow the lead of her more conservative neighbors. Forget- 
 ting former constitutional scruples as to the extent of parliamentary right 
 to interfere with the domestic affairs of the colonies. Massachusetts, in 
 1 75 I, applied for, and obtained an Act of Parliament prohibiting the New 
 England Assemblies, except in case of war or invasion, to issue any bills 
 of credit, for the redemption of which, within the year, provision was not 
 made at the time of issue, and expressly forbidding that any such bills 
 should, in any case, be made a legal tender. 
 
 The experience of the other colonies issuing paper money, was, on 
 the whole, very like that of Massachusetts and South Carolina. In some 
 of them matters came to a worse pass, in others the trouble never reached 
 so grave a stage. The expansion and depreciation and attendant disorder 
 were greatest in Rhode Island and least in PennsyKania. We have 
 already noted the circumstances under which Rhode Island, in 1707, first 
 issued bills of credit. In 171 5 this colony authorized its first "bank," on 
 the plan of South Carolina and Massachusetts, for ^^30,000 to be loaned 
 out for ten years. In 1728 the time forpaj^mcnt was extended to thirteen 
 years, and then ten y-ears more were allowed, without interest beyond the 
 were issued for currentpublic expenditures which should have been me first 
 thirteen )-ears. In 1721 a second bank of ^40,000, was issued and loanen 
 out for fi\e \ears, which term in 1728 was also extended to thirteen \-ears, 
 and, at the same time the interest madejxiyable in hemp or flax. In 1733 
 a new bank of ^,'100,000 was struck off and loaned out. Rills of credit 
 by taxation, and loan banks were authorized on any and e\er\- pretext. 
 Those who took loans after the expiration of a portion of the period for 
 which each bank was lent out, complained that thc\- were compelled to 
 pay back within a time shorter than that for w hich those u ho borro\\ed 
 when the bank or loan was new were allowed to enjoy- the use of the 
 money. These and other applicants for loans clamored for new banks on 
 the ground of "justice" and "equally." All who hatl recci\ed loans were 
 heartily in fa\or of new banks as the currency tlepreciated with each issue 
 and they were thus the more easily able to pay back. Hut repayment of 
 these loans was tiie exception rather than the rule. Titles to mortgaged 
 estates were found to be in such confusion that little could be made from 
 tliein. The K-gisl.itnre was composed too largely of men who were 
 
47 
 
 themselves boiTO\vcr.s to allow any effectual measures for collection to be 
 taken. Foreclosures were rare and did not pa)' expenses of the jjroceed- 
 iuL^s. In 1750 the ninth loan bank was authorized to pay a bounty on 
 manufactures of wool and on the cod and whale fisheries. The several 
 issues were then at \arious stages of depreciation, "old tenor" standing at 
 about eight or nine of paper for one of specie. The Act of Parliament of 
 175 I, forbidding further issues of paper save under the restrictions noted 
 in the account gi\en abo\-e, of affairs in Massachusetts, stopped further 
 issues for a time. But the quantity of paper in circulation was so large 
 that the shrinkrage continued, and when, in 1763, the courts fixed a scale 
 of depreciation for the settlement of old debts, it put the Spanish milled 
 dollar, worth 4s. 6d. sterling; at £'/ in notes, a ratio of about thirt}- of 
 paper for one of specie. Although some pretense at redemption was 
 made. Rhode Island managed her financial affairs wildly and recklessly 
 to the end of the colonial period. Her policy throughout was so far the 
 reverse of business like, honest or honorable that her relations with her 
 sister colonies were least amicable of the thirteen, and her bills of credit 
 were so debased as to be little better than a pest to herself and her 
 neighbors. 
 
 Pennsylvania, as we hax^e said, suffered least of all the colonies which 
 adopted the loan-bank system. In the rare instances in which this 
 colony issued bills of credit to meet demands on the treasur}-, the sums 
 were insignificant and the bills so emitted were promptly redeemed. The 
 loan banks were also small in proportion to the wealth and population ot 
 the proxince and were strictly managed. The first issue was made in 
 1722, of iJ"i 5,000, to be loaned on the security of real estate mortgages 
 or upon gold or siher plate deposited in the loan office. The loan was 
 to run for eight years at five per cent, the interest and one-eighth the 
 principal to be paid annually. Loan offices were established in each 
 county. The smallest loan made was ^lo los. and the largest ;{, 100, 
 unless bills la}' in the office six months without borrowers, in which case 
 /,2oo might be lent one person. The bills were a legal tender and the 
 penalty for refusing to receive them was confiscation of the debt or forfeit- 
 ure of the commodity. A proportionate penalty was imposed on anyone 
 who ba''gained or sold any article for a less sum if paid in specie than for 
 paper. In 1723 £'30,000 more in bills were issued to be lent upon the 
 same terms. In 1730, when the time arrived for the redemption of these 
 issues, an Act was passed increasing the amount to £"75,000, and pro- 
 viding for reissues sufficient to keep that sum in constant circulation. 
 This was consented to by the l^nglish proprietaries only on condition that 
 they should receive an ecjuivalent for any loss on their ([uit rents b)' the 
 depreciation of this paper, aiul that their Governors should be strictly in- 
 structed to consent to no further issue on any terms. Benjamin Franklin 
 wrote an essay, published in 1729, advocating this measure, in which, 
 from a just and clear view of the utility and effects of banks of deposit, 
 he deduces an argument in fa\or of the radicall}' dissimilar loan bank 
 then in vogue; overlooking the fundamental truth that the value of a 
 paper promise to pa\' depends fully as much on the certainty and reason- 
 able nearness ot the time at which it is to be paid, as upon the sum 
 named or the credit of the promisor. The quantity of paper issued being 
 thus rigoroush' limited, the Penns\'l\ania bills kept their value so well 
 
48 
 
 that they were commonly used as bills of cxchany,e between the other 
 colonies. This prudent reserve, imitated in Maryland and enforced by 
 royal instructions in New Jersey and New York, saved the paper cur- 
 rency of the middle colonies from that excessive depreciation by which 
 New England and the Carolinas was impoverished and disgraced. But 
 the average di.scount on the bills of even these provinces was from twenty 
 to thirty-three per cent. There was not a single colony in which paper 
 money stood at par. 
 
 Virginia appears to have issued no loan bank, nor is there an)^ 
 record of the use of bills of credit until 1755, and then for a comparatively 
 
 moderate sum only. 
 Maryland's first and 
 only loan bank was 
 issued in 1733. Con- 
 necticut first author- 
 ized the issue of pa- 
 per to be loaned in 
 the same year, and in 
 175 I followed the ex- 
 ample of Massachu- 
 setts in retiring its 
 paper. New York 
 suffered but little from 
 the loan bank craze, 
 but its government 
 made repeated and 
 scandalous issues of 
 bills of credit for the 
 payment of trumped- 
 up and fictitious claims 
 upon the treasury. 
 New Jersey, in 1721, 
 created a loan bank ot 
 ^40.000 to be lent 
 out in small sums. 
 Another was author- 
 ized for ^ 20,000, in 
 1728. These, with a 
 few emissions of bills 
 of credit to meet tem- 
 porary deficiencies, 
 and for the eciuipment 
 of troops to take part in the wars with the French in Canada, seemed to 
 have been the limit of the issues of paper in this province, and the com- 
 mon rate of (l(.j)reciation was about two of bills for one of specie. 
 
 II. H MDIKAT. 
 President First Nalion.il HanU, DeiivL-r, Colo 
 
 ciiArri'.k \'i. 
 
 illl': KKVOI.LTIoNAKN' I'lCKIOO. 
 
 lianking, in an\- sense- in which the wortl is now understood, had its 
 birth in America during the rc\olulionar\- peiiod lasting from 1775 to 
 
49 
 
 the adoption of the Federal Constitution in 1788. Yet the financial pol- 
 icy of the Confederation, while directed by the Continental Congress, as 
 well as that of nearly every one of the thirteen states during the same 
 time, was so far a repetition of the worst sins of the colonial i)eriod as to 
 make legitimate private banking impossible for the greater part of this 
 term and difficult or unprofitable for the remainder. Until the constitu- 
 tional prohibition of bills of credit and of legal-tender paper came into 
 force there was no room for the modern bank. 
 
 It was estimated that just before the war of the revolution broke out, 
 the whole "circulating cash" of the thirteen colonies was equal in value 
 
 to about $ 1 2,000,000, 
 
 or perhaps not more 
 than S 1 0,000,000, in 
 hard money, and that 
 the proportion of pa- 
 per included in this 
 total was from one- 
 half to three-fifths of 
 the whole. So the 
 total of specie may 
 have been anywhere 
 from 54,000,000 to 
 $6,000,000. Great as 
 was the nominal ex- 
 pense of that war it is 
 altogether probable 
 that this sum in specie, 
 together w i t h what 
 would have come 
 from abroad, or even 
 with what actually 
 did flow in from French 
 and Dutch loans and 
 from sums paid out in 
 the country for the 
 support of the British 
 and French armies, 
 would have been am- 
 l)le for every occasion. 
 The people of the 
 thirteen colonies were 
 then, in proportion to 
 their numbers more opulent than those of France, and, had they possessed 
 the inclination and the means of organizing their resources, easily could 
 ha\'e paid the price of their independence without resorting to a disastrous 
 and demoralizing issue of paper. 
 
 The most pressing necessity which confronted the second Continental 
 Congress when it convened May 10, 1775, was that of pro\'iding mone\' 
 to carry on the war, which, with the battle of Lexington, fought the 
 month before, was now flagrant. Having no authority to levy taxes di- 
 rectly, and unwilling to await the slow process of a call upon the states 
 
 JOSHUA S. RAVNOLDS. 
 
 President First National Bank, El Paso. 
 
 President First National Bank, Albuquerque, New Mexico. 
 
50 
 
 for money, on June 23, in conformity with the suggestion of the New 
 York Provincial Congress, it was voted to issue S2,ooo,oooin continental 
 bills of credit. The new paper did not get into circulation until the next 
 August. Other issues followed rapidly. For about one year, and until 
 the paper in circulation exceeded $9,000,000, the bills were freely re- 
 ceived at their nominal value, no distinction being made in ordinary- 
 transactions between continental money and gold. The liability for the 
 bills was distributed among the colonies, subject to future revision in the 
 ratio of the supposed "number of their inhabitants, of all ages, including 
 negroes and mulattoes;" and were to be redeemed in four annual install- 
 ments, to commence at the end of four years. With successive issues 
 the time for the commencement of redemption was extended, first to eight 
 years and finally to eighteen years for the latest issues. In February, 
 1776, the first issue of continental notes of less denomination than one 
 dollar was authorized. In 1777, when continental bills had sunk to one- 
 half their nominal x'.ilue. Congress denounced every person who would 
 not receive them at par as a public enemy, liable to forfeit whatever he 
 offered for sale ; and requested the States to declare the notes a lawful 
 tender. Massachusetts had already made them legal tender and this ex- 
 ample was at once followed throughout the Union. The several States 
 were at the s.mie time invited to cancel their respective quotas of conti- 
 nental bills. They all had irredeemable currencies of their own, and, as 
 they possessed nearly all the real powers of government, under the Con- 
 federation, their bills were less insecure than the continental currenc}-. 
 Congress, therefore, urgentl}' needed the exclusi\e right to issue paper 
 mone)-, if by bills of credit the war was to be prosecuted, and to that end 
 recommended the States to call in their bills and to issue no more. This 
 request was often rene^ved but never heeded; so the notes of each one of 
 the thirteen states continued to compete for circulation with those of the 
 Continental Congress, The value of the continental currenc}' was further 
 impaired in 1776 by the ignoble stratagem of the British Government, 
 under whose authority Lord Dunmore and others put into circulation in 
 Virginia and other States a large number of counterfeit bills manufactured 
 for that purpose in England. In 1779 this counterfeit money had become 
 so largely circulated b)' the agents making purchases for the British army, 
 who were regularly supplied with it, that Congress was compelled to re- 
 call, for other paper, two entire emissions of $5,000,000 each. The ex- 
 cessive issue was, however, the principal and all-sufficient occasion of its 
 depreciation. As we have seen about $9,000,000 of it circulated at par 
 with gold. No very marked sign of depreciation appeared until S20,000,- 
 000 had been issued, or until about January, 1777. The ratio of depreci- 
 ation was then one and one-fourth of paper for one of specie. Before the 
 end of that year it became four for one. At the end of 1778 it reached 
 ten for one. When, in September, 1779, the ratio had fallen to twent}' 
 for one, Congress determined that the total issue should not exceed 
 $200,000,000, renewed the declaration that this currency should be re- 
 deemed in full, and went into a lengthy argument to prove that the 
 States had the abilit)' to do so. but did not stick to its resolution to re- 
 strict the issue. In March, 17.S0, these issues had so depreciated that 
 their value as compared with specie was as forty to one. Congress now 
 recjuired the wliole to be brought in for redcnijition at its market value 
 
51 
 
 in coin, and authorized the emission of new notes bearing interest at five 
 per cent, and payable in six years from date in silver and gold. These 
 were to be exchanged in proportion of one dollar of the new for twenty 
 of the old. During 1780 the bills sank to one hundred for one. By 
 May 31, 1 78 1, the\' had flillen to five hundred for one, or two-tenthts of 
 a cent on the dollar, after which they ceased to circulate as money. They 
 continued to be bought on speculation at ratios varying from four hundred 
 for one to one thousand for one of specie. Massachusetts, Rhode Island 
 and New Hampshire redeemed their quotas of continental currency b)- 
 receiving it for taxes at the rate of forty for one. Connecticut, Delaware, 
 the Carolinas and Georgia took up none. The other states redeemed 
 parts of the quotas assigned to them at the same rate as Massachusetts. 
 The estimates of the total issues of continental currency vary astonishingly, 
 as authorities of seemingly equal credit reach amounts as widely apart as 
 3200,000,000 and $350,000,000. The last figure seems to be nearest the 
 truth, although it is probable that no more than ;^200,Ooo,ooo of it was 
 in circulation at any one time. 
 
 Besides the continental paper issued by Congress, all of the States 
 put out bills of their own. In some States, as Massachusetts and Penn- 
 sylvannia, these bills were ultimatel)^ called in and funded at their nominal 
 value. In others, especially at the South, they were partially redeemed 
 b\' the issue of land warrants. The remainder shared the fate of the con- 
 tinental currency, being either repudiated outright or funded at an immense 
 depreciation. No State made such profuse issues as Virginia, and such 
 of her bills as were not paid in for land »varrants — and enough of these 
 bills could be bought for five dollars in specie to purchase a warrant for 
 seven hundred acres of land — were finally funded at the rate of one 
 thousand for one. The total issue of these State bills of credit from 1774 
 to 1783 was upward of ;^2 10,000,000. The benefits which the Continental 
 and State governments derived from all these issues were in no way 
 commLMisurate with the burdens which they entailed upon the people. 
 According to the estimate of Mr. Woodbury, secretary of the treasury 
 from 1834 to 1 84 1, the depreciation and subsequent repudiation of the 
 continental currency entailed upon the country an aggregate loss of 
 $196,000,000, mo.st of which fell upon the friends of the revolutionar)- 
 cause, as the Tories either declined to receive that paper or parted with 
 it as soon as possible. Pelatiah Webster, writing in 1780, declared that 
 the country suffered more from this depreciated currncy than from ever)- 
 other cause of calamity; that it killed more men, did more to corrupt our 
 choisest interest*^, and worked greater inju.stice than all the armies and 
 artifices of our enemies. 
 
 "Shay's Rebellion" which broke out in New England in 1785 and 
 1786 was an in-;urection of debtors who were suffering from the collapse 
 of the currency and return to .specie values. They were clamorous for 
 paper money. Although no concessions were made to the rioters in that 
 particular, Massachusetts did pass a law dela}ing the collection of debts. 
 In Rhode Island this movement was not riotus, but took the form of a 
 new political party. The payer-money party carried the elections in 1786, 
 and then began a new period of this mania. Bills amounting to ^^loo,- 
 000 (there was )et no federal monetary system or coinage) were issued, 
 by the vote of the rural towns against the cities, and loaned on mortgage 
 
52 
 
 of land for fourteen \ears. They were made a legal tender and depre- 
 ciated at once. Merchants refused to receive them and closed their shops. 
 The farmer retaliated by refusing to bring food into the cities, and a 
 ridiculous struggle followed which brought business to a stand-still. The 
 paper-monc>- party met and petitioned the authorities to enforce the penal 
 laws against tho.se refusing to receive the bills. By these laws cases in- 
 volving a legal tender took precedence of all others and must be tried 
 within three days after complaint made, without a jury, and without a 
 right of appeal. The fine for a fir.st offence was from £6 to ^30, and 
 greater for a .second. In a case brought against a butcher for refusing 
 
 bank paper, five judges 
 agreed the act was un- 
 constitutional. A special 
 session of the Assembly 
 was called and the judges 
 were summoned to assign 
 the reasons and grounds 
 of their decision, and sub- 
 sequentl)-, four of them 
 were removed. A law 
 was proposed which dis- 
 franchised any one who 
 refused to receive the 
 paper on an equality with 
 specie, but this failed to 
 receive the sanction of the 
 towns. Land rents were 
 paid in produce. The 
 State debt, incurred dur- 
 ing the revolution, was 
 paidoffin the depreciated 
 currenc}-. The question 
 of the ratification of the 
 new federal constitution 
 c<Miiing up at tiiis time, 
 the papcr-nmnc}' part)' 
 was strong eni)ug]i to 
 procure its rejection and 
 keej) Rlunle Island out 
 of the Union for three 
 years. When, in 17S7, 
 numerous suits were brought in the courts for the redemption of 
 estates from mortg.iges, "the suitors came prepared with paper monc}- in 
 handkerchiefs and pillow cases to redeem their lantls." The mone\- con- 
 tinued to dcprtciale until 1 7.S9, when the legal tender laws were suspended 
 and the depreciation '[^^^:(\ h\ law at eighteen for one. The people of 
 Rhode Island were, at that time, thoroughly imbued with the belief that 
 money is something whicli derives its valve from the authority of go\ern- 
 ment. They gave to fiat j)aper moi^ey all the coutenance and support 
 which pnblic opinion, public favor and the most stringent laws in its aid 
 could afford. TIk' result was wiile-spread peciuiiar\- disaster and financial 
 
 Jl I I'KRSON K.A\ iNOl.DS. 
 President of I'irst Naiioii.il Bank, Las Vegas. New .Mexico 
 
53 
 
 and moral disgrace to the people, while the State came dangcrousl)- near 
 to extinction through partition and annexation to Massachusetts and 
 Connecticut. 
 
 In May, 1780, Robert Morris, George Clymer and other leading 
 citizens of Philadelphir associated themsehes under the name of the Bank 
 of Pennsyhania, and having subscribed a small capital in hard money, 
 commenced the issue, as a joint-stock bank, of promissorj- notes, which 
 were employed without profit to themselves in the purchase of supplies 
 for the arm)'. Congress deposited with the bank a considerable sum in 
 bills of exchange drawn upon John Jay, then negotiating a loan in Spain, 
 
 as a support to their 
 credit and indemnity in 
 case of loss. This bank 
 was of very considerable 
 service in procuring and 
 forwarding supplies. It 
 continued in existence 
 until after the end of the 
 war, finally closing its 
 affairs towards the end of 
 the year 1784. 
 
 On May 17, 1781. a 
 plan for a national bank 
 was submitted to Con- 
 gress by Robert Morris, 
 the principal provisions 
 ol which were as follows: 
 The capital was to be 
 $400,000 in shares of 
 S400 each ; each share to 
 have one vote for direc- 
 tors; the directors to be 
 twelve in number, chosen 
 from the stockholders, 
 who at their first meeting 
 were to choose a presi- 
 dent from themselves ; 
 the directors to meet 
 quarterly; the board to 
 be empowered from time 
 to time to open new sub- 
 scriptions for the increase 
 of the capital stock; regular statements of its condition to be made to the 
 continental superintendent of finance, and it to be at all times subject to 
 his examination; the notes of the bank to be j)ayable on demand over its 
 counter and to be made by law receivable for taxes and duties in every 
 State, and from the several States by the treasury of the United States. 
 On May 26 Congress adopted a resolution approving this plan, promising 
 to promote and support the same by such ways and means, from time to 
 time, as should appear necessary for the institution and consistent with 
 the public good, and providing "that the subscribers to said bank shall 
 
 JOHN W. ZOLLARS. 
 
 President Sierra County Bank, Hillsborough, New Mexico. 
 
 Vice-President First National Bank, Las Vegas, New Mexico. 
 
54 
 
 be incorporated agreeabh' to the principles and terms of the plan, under 
 the name of 'The President, Directors and Company of the Bank of North 
 America,' so soon as the subscription shall be filled, the directors and 
 president chosen, and application for that purpose made to Congress by 
 the president and directors elected." On December 31, following. Con- 
 gress passed "an ordinance to incorporate the subscribers to the Bank of 
 North America." The first president was Thomas Willing. The bank- 
 opened for business at Philadelphia on January 7, 1782. Its success was 
 immediate and complete. Its issues which at first circulated in the east- 
 ern States only, at a discount of ten to fifteen per cent, speedily rose to 
 par and were sustained at that point without further difficulty. It was of 
 great and timely service to both the F"ederal and State Governments. Of 
 its original capital of §400,000 which it might increase to $10,000,000, 
 the P'ederal Government subscribed $254,000. In April, 1782, Penn- 
 syhania granted its first State charter, an example followed by several 
 other States. In 1783 and 1784 it declared dividends averaging fourteen 
 per cent. In this last year the directors were warmly urged to increase 
 the capital stock in order to allow new subscribers to share in the busi- 
 ness, and on their refusal an application was made to the Legislature ot 
 that State to charter a rival concern to be called the Bank of Pennsyl- 
 \'ania. The Assembly was "plagued with long arguments on both sides" 
 and endless evils were prophesied in case two banks attempted to do busi- 
 ness in opposition to each other. But "all at once the thing was hushed 
 up and accommodated." The directors consented to increase the capital 
 to $2,000,000 and to allow the projectors of the new enterprise to be- 
 come stockholders in the old. In 1785 a new party arose in Pennsyl- 
 vania which demanded the issue of more paper money by the State on the 
 plan of the colonial land-loan schemes. The credit of that State being 
 manifestly too bad to float such a currency, it was demanded of the bank 
 that it should give its credit to the proposed issue. As the directors 
 were both unable and unwilling to do this, and as it had prudentl}' limited 
 its own issues of notes, the bank was regarded as the opponent of the 
 paper-money scheme, the friends of which were powerful enough to ob- 
 tain by way of revenge, a repeal ol its Penns)-l\ania charter in Septem- 
 ber, 1785. Although this action did in some measure shake the confi- 
 dence of the ])ublic in the bank, the stock of which fell to a discount of 
 five per cent, it continued to do business under its continental charter and 
 charters granted it by other States. It was even j^roposed to remo\e the 
 bank to Wilmington or to New Castle, in Delaware, by which State one 
 of its charters was granted. In 1787, after several efforts to procure 
 from Pennsylvania a renewal of its charter, the Legislature of that State 
 granted a new one, though cjuilc unlike' the first. In 1789, when the 
 present I^Y-deral (iovernnient went into operation, its charter from the 
 congress of the confederation w, is held to have lapsed, and, though the 
 bank was invited to take a national charter, it preferretl to remain a State 
 institution under the laws of Pennsylvania. Passing through many vicis- 
 situdes, it was rechartered from time to time by that State until, on March 
 3, 1864, it was converted into a national bank. It is still doing business 
 under the nation. il banking system, with a capital of S i ,000,000 and a 
 surplus in excess of its capital. 
 
 The success of the Bank of North .America induced the organization 
 
55 
 
 of the Bank of Massachusetts, in Boston. This bank received its charter 
 from the State of Massachusetts on February./, 17*^4. Its original cap- 
 ital was $300,000, and the charter "allowed three dollars ot currency for 
 one dollar of metallic deposit." The restrictions placed upon its officers 
 did not permit the lending of more than "S3,000 to any individual at one 
 time, and but $5,000 in the aggregate to any one borrower." Loans 
 could be granted for no more than sixty days upon the pledge of mer- 
 chandise, bullion, or other securities as collateral, and for thirty days only 
 on i^ersonal obligations with two sufficient sureties, "without the privilege 
 of renewal on any terms." It continued as a State bank until 1864, when 
 it reorganized under the national banking law, and is now doing business 
 as the Massachusetts National Bank of Boston, with a capital of $800,000. 
 
 The mt rchants of New York were but a few days behind those of 
 Boston in following the lead of their competitors in Philadelphia. The 
 success of the Bank of North .America stirred up the speculative element 
 in New York, and, on February 12, 1784, a proposal was advertised in 
 the Packet new.spaper for the establishment of an institution to be called 
 the Bank of the State of New York, with a capital of $750,000, in shares 
 of $1,000 each. The management was to be in the hands of a governor 
 and six directors, who were to serve without pay until the first dividend 
 was declared. Two of the directors and the governor were to attend 
 constantly at the bank, and no money was to be paid out without their 
 consent. The subscribers were to pay one-third their subscriptions in 
 "cash," and for the other two-thirds "landed security" was to be given by 
 mortgage or deed of trust. No lands outside New York and New Jersey 
 were to be accepted, and all lands were to be appraised at not more than 
 two-thirds their value. The directors could borrow "to the extent of 
 one-third of the value of the lands" in case they found it necessary to in- 
 crease the cash resources of the bank, but no further. The folly and 
 danger of this scheme, which was nothing but the old land bank with 
 little more than a semblance of disguise, was quickly perceived; but it 
 served to hasten the action of those who desired a reall\' sound banking 
 institution in that city. 
 
 After several meetings had been held, a number of leading business 
 men, on February 26, 1784, agreed upon a plan for creating a bank, to 
 be called the Bank of New York, under which an organization was 
 speedily effected. This provided for a capital stock of $500,000 in silver 
 or gold, 10 be divided into one thousand shares of $500 each; that as 
 soon as five hundred shares should be subscribed a meeting of the .sub- 
 scribers should be held to elect a president and twelve directors; that at 
 all meetings of subscribers or share-holders every subscriber or .stock- 
 holder should have one vote for each share of stock held b)' him to the 
 number of four; the holder of .six sha-'cs to have five votes, for eight 
 shares six votes, and for ten .shares seven votes ; but no stockholder 
 should have more than seven votes, be the number of his shares ever so 
 great. This last provision was afterward amended to allow one vote for 
 every five shares in excess often. A dividend was to be made at the 
 end of the first year, and semi-annually thereafter. To encourage trade, 
 the proprietors of the bank fiixed the rate of discount at six per cent. 
 Sufficient stock having been subscribed, officers were elected March 15, 
 1784. Alexander Hamilton was among those chosen on the first board 
 
56 
 
 of directors; and the "constitution" under which it commenced operations 
 was written by him. As none of the newly-selected ofificiers, nor any 
 other trustworthy person in New York, was familiar with the methods of 
 banking busines>^. the cashier, Mr, Seaton, was dispatched to Philadelphia 
 with a letter of introduction from Hamilton, to procure the desired in- 
 formation from the Bank of North America and to purchase such material 
 as could not be had in New York. On May 22 "the president and 
 directors qualified before His Worship the Mayor as required by the 
 the constitution" of the bank. On June 7, the subscriptions having been 
 paid in, and some deposits having been made, notice was given that the 
 
 bank would formally 
 commence business 
 on Wednesday, June 
 9, 1784; and that 
 applications for dis- 
 counts would be re- 
 ceived on the succeed- 
 ing Wednesday. The 
 following rules, to be 
 observed in transact- 
 ing business with the 
 bank, were also pub- 
 lished. 
 
 "The bank will be 
 open e\er}- da}' in the 
 year except Sundays, 
 Christmas-day, New- 
 \'ear's-day, Good Fri- 
 day, the Fourth of 
 Jul)', and general holi- 
 days appointed by 
 legal authority. 
 
 "The hours of busi- 
 ness \\\\\ be from ten 
 to one o'clock in the 
 forenoon, and from 
 three to fi\e o'clock 
 in the afternoon. 
 
 "Discounts will be 
 done on Thursda}' in 
 every week, and bills 
 and notes bi ought for 
 discount must be left at the bank on Wednesday morning, under a seal 
 cover, directed to William Seaton, Cashier. The rate of discount is at 
 present fixed at si.x per cent per annum ; but no discounts will be made 
 for longer than thirty da)'s, nor will any note or bill be discounted to pay 
 a former one. Payments must b(.' made in bank notes or specie. Three 
 days of grace being allowed ujx)!! all bills, the disc(nuit will be taken for 
 the same. 
 
 "Money lodged at the bank may be redrawn at pleasure, free of 
 expense, but no draft will be paid beyond the balance of the account. 
 
 I.. 11. HERSHFIKLD. 
 I'residenl of Mcrch.ints National Bank, Helena, Montana, 
 
57 
 
 "Bills or notes left witli the bank will be presented for acceptance, 
 and the money collected free of expense; in case of non-payment and 
 protest, the charge of protest must be borne by the party lodging the bill. 
 
 " Payments made at the bank .nust be examined at the time, as no 
 deficiency suggested afterward will be admitted. 
 
 " Gold coin is received and paid at the Bank of New York at the 
 followingf rates: 
 
 A Johannes . - . . 
 
 Weigh'g 
 
 1 8 dwt. 
 
 
 $i6.oo 
 
 A half Johannes - 
 
 " 
 
 9 
 
 
 
 8.00 
 
 A Spanish doubloon 
 
 " 
 
 I? 
 
 
 
 15 .00 
 
 A double Spanish Pistole 
 
 " 
 
 8 
 
 
 12 gr. 
 
 7-48 
 
 A Spanish Pistole 
 
 
 4 
 
 
 6 " 
 
 372 
 
 A British Guinea 
 
 '< 
 
 5 
 
 
 6 " 
 
 4.64 
 
 A British half Guinea 
 
 " 
 
 2 
 
 
 15 " 
 
 2.32 
 
 A French Guinea 
 
 " 
 
 5 
 
 
 4 " 
 
 452 
 
 A Moidore - . . 
 
 " 
 
 6 
 
 
 i8 " 
 
 6.00 
 
 A Caroline 
 
 " 
 
 6 
 
 
 8 " 
 
 4.72 
 
 A Chequin 
 
 " 
 
 2 
 
 
 4 " 
 
 1.78 
 
 "An allowance is made on all gold exceeding the abov^e standard at 
 the rate of three pence per grain; on all gold short of the above weight 
 
 four pence per grain 
 is deducted. 
 
 " By Order of the 
 Board of Directors. 
 "Ale.\. McDougall, 
 Pres't." 
 
 Both the Johannes 
 and the Moidore were 
 gold coins of Portugal; 
 the Johannes being so 
 called from the figure 
 of King John which 
 it bore. The Caroline 
 was a German coin, 
 and the Pistole was ot 
 the same value as the 
 Louis d ' o r . The 
 Chequin, also written 
 zeechin, zechin, and 
 sequin, was a gold 
 coin deriving its name 
 from La Zeche, that 
 quarter in the city of 
 Venice where the mint 
 was situated. The clip- 
 ping and the sweating 
 of the gold coin in cir- 
 lation had long been 
 practiced in the colo- 
 
 GEORGE F. COPE. • t ,_ . , t^t 
 
 nies. In 1 770 the New 
 
 CJashier First National Kank, Helena, Montana. Y O r k Chamber O f 
 
5S 
 
 Coniniercc sti<^mati/.cd it as "an evil aiul scandalous practice," and 
 passed a resolution to take no light coin except at a discount of 
 four pence for each grain it fell short of just weight. The bank ex- 
 perienced much trouble from this source. The practice was to 
 weigh it in quantities on receiving and paying out gold, a course attended 
 with many difficulties where the variety of coins were so numerous, but 
 for which, in the absence of a national coinage, it was not easy to find a 
 substitute. The paper currency of Penn.sylvania and New Jersey, which 
 circulated largel}- in New York, was a cause of endless trouble and 
 vexation to the bank and to its customers. 
 
 Aj^plication had been made to the Legislature of New York for a 
 charter incorporating the bank before it began bu>iness; but this was 
 delayed and operations were begun without it. As in Pennsylvania, a 
 paper-money party existed in New York which persistently opposed the 
 efforts of the bank to obtain a charter. The direst evils were predicted 
 from the establishment of the bank, and it was maintained that the only 
 remedy for existing and threatened evils was to be found in an emission 
 of legal-tender paper by the State. The directors were popularly charged 
 with working in the interest of British capitalists and traders, and with 
 refusing discounts a few days before the sailing of the European packet 
 that the)-, personally, might profit by the distress thus occasioned. The 
 bank, it was contended, had destroyed private credit as well as that 
 confidence, forbearance and compassion formerly shown by creditors to 
 their debtors. The enforcing the payment of notes at maturity by lodging 
 them at the bank was especially disliked. 
 
 A strong pressure was now brought upon the Legislature in favor 
 of an emission by the State of paper money, to be made a legal tender. 
 The merchants of New York, as a body, opposed the scheme, and the 
 Chamber of Commerce forwarded a memorial remonstrating against the 
 passage of any bill to that effect, and setting forth the evils which would 
 result from such an issue. Rut outside the city there was a general 
 belief that financial relief and permanent prosperity would only come 
 with an abundance of paper money. The experience of the past had not 
 deterred people from this conviction, and several of the States had recently 
 issued bills of credit. The Legislature passed a bill in 1786, authorizing 
 the emission of ^200,000, to be loaned out at five per cent, "for the 
 purpose of increasing the currency," and to be a legal tender of all dues, 
 j)ublic and j^rivate. Thus was the last issue of bills of credit by New York. 
 In June, i/S/, the paper money issued by the State having then obtained 
 a considerable circulation and being largely dejjreciated, the Bank of New 
 York decided to open accounts and make discounts and pajmients in this 
 currency, distinct from those in .specie or the bills of the bank. This was 
 continued for several years, discounts in i)aper being done on Tuesda\'S 
 and in specie on Thursdays. The 1 791 the bank obtained its first charter 
 from the State, and on May 2, of that year the directors named in the Act 
 of the incorporation formally accepted the charter, assumed all the exist- 
 ing liabilities of the former company, and re-elected the former officers. 
 Its paid-up capital was then S3 18,250, with tleposits amounting to $yy2)r 
 709, and discounts $845,940. The circulating notes outstanding were 
 5181,254. The business flourished and semi-annual dividends were 
 segularly declared; that for the first half year under the charter being 
 
59 
 
 seven per cent. During the same six months, May to November 1791, 
 the discounts were $10,558,669, and the total cash received was ^42,661,- 
 664. These figures will illustrate the extent of mercantile tranactions in 
 the City of New York at that time. 
 
 The Bank of New York enjoyed a substantial monopoly of the 
 banking business in that city for fifteen years. From 1 784 to 1 799 it had 
 no competitor nor rival, save the branch of the Bank of the United States 
 which during this time did but little business. It had obtained its charter 
 with great difficult}- and those interested in its prosperity could scarceh- 
 be expected to look with complacency on any attempt to establish an 
 institution to compete with it. " Neither," says its historian, "did the 
 public desire any additional banking facilities." Had any open attempt 
 been made to obtain a State charter for a rival concern, the older bank 
 undoubtedly would have opposed it to the bitter end. But suddenly and 
 without premonition a formidable corporation made its appearance as a 
 bank of deposit, discount and issue in New York. This was the result 
 of the craft and sagacity of Aaron Burr. In the spring of 1799 a petition 
 was presented to the Legislature asking for a charter for a compan)- with 
 a capital of $2,000,000 for the purpose of introducing a supply of pure 
 water into the City of New York. The prevalence of yellow fever during 
 the summer before had been largely ascribed to the use of contaminated 
 water, and had created an alarm which made the passage of an\' bill to 
 improve the sanitar)- condition of that city an easy matter. Toward the 
 end of the session the bill incorporating the Manhattan Company was 
 accordingh' passed by the Legislature, without a suspicion on the part 
 of the great majority of those who voted for it that it contained a grant 
 of banking pri\eleges or indeed anything else but a franchise for the 
 distribution of pure water. But the real purpose of the scheme was soon 
 made manifest. While the bill had been on passage throug the committee 
 stage it had been suggested that the whole of the new corporation's 
 S2,ooo,ooo capital might not be needed at once in constructing water- 
 works, and a clause was added pro\'iding that the surplus capital might 
 be "employed in the purchase of public or other stocks, or in any other 
 moneyed transactions or operations not inconsistent with the laws and 
 constitution of the State of New York." No sooner had the bill become 
 a law and the stock fully subscribed, than the persons interested proceeded 
 to carry out their plans by giving notice that the new corporation would 
 begin banking operations in September with a capital o( 5500,000. The 
 discovery that so broad a franchise had been so incautiously granted 
 occasioned no little excitement and indignation. It was charged that the 
 Legislature had been cheated and tricked in order to allow Burr and his 
 friends to obtain control of a majority of .stock of the company and power 
 to use its capital for their own purposes. But it was too late. The Man- 
 hattan Company continues to this day to be the leading state bank of 
 New York, as distinguished from the national banks, and, under the same 
 broad clause of its charter has organized life and fire insurance companies 
 and conducted a great \yriet}' of other enterprises. 
 
 On July 6, 1865, the Bank of New York re-organi/,ed under the 
 national banking act, taking the title of "The Bank of New York National 
 Banking Association," which it still retains, with a capital of S2, 000,000. 
 During the first hundred years of its existence it paid to its stockholders 
 
6o 
 
 dividends amounting, m the aggregate, to gioy^ per cent, and never 
 passed a dividend except in 1837 when it was compelled by law to do so. 
 
 CHAPTER VII. 
 
 THE FIRST AND SECOND BANKS OF THE UNITED STATES. 
 
 On the organization of the government of the United States under 
 present Constitution, Alexander Hamilton, Secretary of the Treasury, in 
 his masterly report on the finances of the country, made to Congress 
 
 December 13, 1790, 
 recommended the es- 
 tablisment of a bank 
 of the United States 
 and opposed the issue 
 of paper money by the 
 Government. At that 
 time there were in ex- 
 istence in the country 
 only the three banks 
 — the Bank of North 
 America, the Bank of 
 Massachusetts and the 
 Bank of New York, 
 with an aggregate 
 capital of S-, 000,000 
 — of whose organiza- 
 tion sketches have 
 been given. There 
 was no provision for 
 the reception and pay- 
 ing out of the bills of 
 these banks bp the 
 Government and the 
 supply of gold and 
 silver was meagre. 
 The G o \- e r n m e n t 
 daily suffered for the 
 want of small sums in 
 ready money. So long 
 as specie only could 
 be used, and there 
 was no national bank, 
 the delay and ex- 
 e.xpcnse incurrctl in transferring monc)- from place to place were burden- 
 some and vexatious. Therefore, it was argued, a national bank was 
 imperatively recjuired, which would only serve these purposes but many 
 others as well, by making temporary loans to the Government. The bill 
 for the bank was debated chiefly on two ground.s — its constitutionality 
 and its expediency. It pas.sed the .Senate with little opposition but was 
 
 .\I. n. THArCHKK. 
 
 President First National Hank, Piieblo, Colorado 
 
 First National Bank, Trinidad Colorada. 
 
 First National Bank, Silverton, Colorado. 
 
6i 
 
 vigorousl)' resisted in the I louse of Representatives. On February S, 
 I79i,the House passed it by a vote of thirty-nine to twenty. Before 
 signini]^ it President Washington required each of its cabinet officers to 
 submit a written opinion on its constitutionality. The cabinet was equally 
 
 equally divided. Ham- 
 ilton, Secretary of the 
 Treasury, and Gen. 
 Knox, Secretary of 
 War. affirming its con- 
 stituality, and Jeffer- 
 son, Secretary of State, 
 and Edmund Ran- 
 dolph, Attorney Gen- 
 eral, denied it. But the 
 bill became a law by 
 the President's ap- 
 proval, on February 
 2 5, 1 791, and the bank 
 at once went into oper- 
 ation. The capital was 
 fixed at ^io,ooo,ooo, 
 divided into 25,000 
 shares of ,^400 each ; 
 one-fifth of which 
 might be subscribed 
 by the United States, 
 but no other subscriber 
 might take more than 
 1 ,000 shares. The 
 subscriptions, except 
 that of the United 
 States, were to be pay - 
 able on e- fourth in 
 specie and three- 
 fourths in certain si.x 
 per cent stocks of the 
 United States or in other three per cent stocks at half their nomi- 
 nal value. The institution was incorporated under the style of 
 "The President, Directors and Company of the Bank of the United 
 States," to continue twenty yei?rs, expiring March 4, 181 1. The bank 
 was authorized to hold property of all kinds, not exceeding, exclusive of 
 its capital, $15,000,000. Twenty-five directors were to be elected, by a 
 plurality of votes, on the first Monday of January in e\ery year, for one 
 year only, who were to choose a president from their own number. It 
 also provided "That no other bank shall be established by any future law 
 of the United States during the continuance of the corporation hereby 
 created, for which the faith of the United States is hereby pledged." The 
 bank was authorized to established offices of discount and deposit in the 
 several States, and to issue notes which were to be received in payments 
 of all dues to the Government. It was authorized to sell the Government 
 stocks received for subscriptions, but was forbidden to become the pur- 
 
 H. M. JORALMON. 
 Joralmon & Co, 
 
 Bankers. Financial Agents and Attorneys. Denver, Colorado. 
 
62 
 
 cha>er at such sales. Of the capital, 36,700,000 was reserved for the 
 chief bank, which was established at Philadelphia, and the residue of S4,- 
 300,000 was to be divided among the eight branches to be established in 
 the principal cities of the Union. The entire capital was subscribed and 
 applications made for 4,000 shares in excess of the whole stock, within 
 two hours from the time the books for subscription were opened. The 
 enterprise was immediateh' successful. The dividends averaged eight to 
 ten per cent per annum, being much below those of the Bank of North 
 America in previous years; which, in the words of a distinguished writer, 
 "now gradually declined as other banks sprang into exi.stence." The pay- 
 ment of the Government shares was to be in ten annual installements, but 
 the trearury department found it very difficult to comply with this require- 
 ment as to the entire payments, the urgent demand for money to meet 
 other pressing occasions being continious for several years. Neither bank 
 nor Government had been long in operation when the need arose for a 
 temporary loan from the bank. Congress authorized the treasury to 
 procure loans to pay the appropriations of the year, and to pledge the 
 duties on imports and the tonnage tax for their repayment. The revenue 
 came in so slowly that its anticipaton in this manner could not be avoided 
 if Government e.xpenditures were to be paid as they became due. This 
 policy was condemned by Albert Gallatin, but was generally defended on 
 the ground that it was a wall-known practice with older governments, and 
 that there was no other way of getting the money imperatively required. 
 
 These loans obtained from time to time, were of three kinds: First, 
 those made in anticipation of taxes to meet current expenditures; the last 
 of which was made in 1795. Second, the sinking commissionners were 
 authorized to borrow money, not exceeding $1,000,000 annuall}-, in anti- 
 cipation of the revenues, to pay interest. Each loan of this kind was to 
 be reimbursed within one year after it was made. Third, loans were also 
 founded on a pledge of the revenue to meet the exigencies of a specific 
 case rather than for a general purpose. The first loan of this kind was 
 to cover the expense of an Indian war. Of other subsequent loans, one 
 was to provide money to ramson American sailors held in slaver)- by the 
 Algerines. One still later was to equip and maintain the ships which 
 carried on the war which the United States, first of all civilized powers, 
 waged against the Harbary States for the protection of its commerce and 
 citizens rather than pay tribute. 
 
 Between the years 1796 and 1802 the United States disposed of its 
 stock in the bank at a net profit of $1,137,152.29, equal to fiftj'-seven per 
 cent on the original investment. In Augu.st, 1791, we are told. United 
 States Bank scrip sold for 195, in consequence of the mania for specul- 
 ation. In September of the same year, it fell to iio, but rallied, almost 
 at once, to 145. The last sales of its stock on Government account, in 
 1802, were made at 145. It was a successful and prosperous enterprise 
 from first to last. 
 
 Ikit, unfortunately for the bank, during the entire term of its exi.stence 
 it was looked upon and dealt with by a large majority of business men, and 
 by men in i)ublic life with scarcely an exception, as a political rather than 
 a business undertaking. Its projector, Hamilton, in 1791 urged its 
 creation "as a powerful political engine." Political t)i)position continued 
 from the beginning to the end of its career. When Jefferson became 
 
63 
 
 President he tlesired Albert Gallatin, then Secretai'}- of the Treasury, to 
 make a judicious distributitm of his favors among all the banks, since the 
 Stock of the L'nited States Bank was held lar<^ely by forei<^ners, and, 
 "were the Bank of the United States to swallow up all the others, and 
 monopolize the whole banking business of the United States — which the 
 demands we furnish them will tend shortly to favor — we might, on a mis- 
 understanding with a foreign power, be immensely embarrassed by an\' 
 disaffection in the bank." When the territory of Louisiana was purchased 
 in 1805. Gallatin was desirous of establishing a branch bank at New 
 Orleans. He considered the step of the highest importance. But the 
 President vehemently opposed every extension of the bank. He wrote 
 to Gallatin: "This institution is one of the most deadly ho.stility existing 
 against the principles and form of our Constitution. What an obstruit- 
 ion could not this Bank of the United States, with all its branch banks, 
 be in time of war!" But Gallatin, being brought into more intimate 
 relations with the bank, did not sha^'e the fears which Mr. Jefferson ex- 
 pressed, and the branch was established at New Orleans. While the bank 
 existed the funds of the Government were deposited with it to the credit 
 of the United States Treasury. Ihey were considered in the Trcaaury 
 from the time of depositing them, and were subject to the Treasurer's 
 control. The Government ceased to be a stockholder in 1802, and only 
 once applied for a loan after 1805. The revenues of the Government had 
 grown more ample, its wants were not so pressing, and loans were un- 
 necessar}'. With the great majority in Congress the bank was endured 
 only as a convenience for obtaining such loans. Yet the other advantages 
 derived by the Government from the bank were neither few nor unimpor- 
 tant. As stated by Gallatin in a communication to Congress recommand- 
 ing a renewal of the charter, these advantages were, first, with respect to 
 keeping the public money ; another concerned its transmission from point 
 to point, both at home and abroad; a third, and the greatest, related to 
 the collection of the revenue. The punctuality of payments introduced 
 by the banking system, and the facilities which it afforded importers in- 
 debted for revenue bonds, had enabled the Government to collect with 
 greater facility and fewer losses the revenues from the imports than it 
 could have done had no such bank existed. One chief complaint was 
 that the bank and its branches, and particularly the branch in New York, 
 were more inclined to grant loans to the members of one political party than 
 to others. Whether this charge contained any truth or not the complaint 
 ceased to be heard after the creation of the Manhattan Company in 1799. 
 The bank was required to make weekly reports to the Secretary ot 
 the Treasur}-, but the following, for Jannuary 24, 181 1, is one of the 
 only two balanced statements found on record: 
 
 RESOURCES- 
 Loans and discounts, - - - - - - $14,578,294 
 
 United States six per cent stock, ----- 2,750,000 
 
 Other United States indebtedness, . - - - 57,046 
 
 Due from other banks, ....-- 894,145 
 
 Real estate, -------- 500,653 
 
 Notes of other banks on hand. - ... - 393,341 
 
 Specie, .--.--.-- 5,009,567 
 
 Total, $24,183,046 
 
64 
 
 LIABILITIES. 
 
 Capital stock, . . . . 
 
 Undivided surplus, . . - - 
 Circulating notes outstanding, 
 Individual deposits, . . . . 
 United States deposits, . - - ■ 
 
 Due to other banks, - . . - 
 
 Unpaid draft outstanding. 
 
 Total, 
 
 $io 000,000 
 
 - 509^678 
 5^037,125 
 
 - 5'904.423 
 1,929.999 
 
 - 634,348 
 
 i7i>743 
 
 $24,183,046 
 
 In 1808 the bank petitioned for a renewal of its charter which 
 would expire three years later. This application was favored by Gallatin, 
 
 Secretary of the 
 Treasery, and by 
 Crawford and 
 Pickering in the 
 Senate, and op- 
 posed by Mr. 
 Clay.The trouble 
 with France and 
 England then 
 impending made 
 war probable in 
 the early future 
 with one or both 
 of these powers. 
 The State banks 
 expected to profit 
 from the disturb- 
 a n c e s which 
 would accom- 
 pany open war 
 and contributed 
 largely to prevent 
 any considera- 
 tion of the bank's 
 application until 
 1 8 10. when a de- 
 cision could no 
 longer be delay- 
 ed. The neces- 
 sit\' of the bank 
 ,., . w as warmly 
 
 urged by the 
 
 Treasury (lc])artnicnt. The debate in l)<)th branch o. Congress was 
 long, able and l)itter. The old cpiestion of its constitut onality was dis- 
 cussed at great length, and its opponents denied that the institutionn was 
 at all neces.sary to aid the Government in discharging its functions, insist- 
 ing that it was evident, from the rapid muliplying of State banks, that 
 there was a redundancy of capital. It was asserted that in case the bank 
 should not be rechartered that the quantity of specie in the country would 
 
 I'rcsklcnl C;i|iit;i 
 
 MF.Ill 'IKI) l;. WILSON. 
 
65 
 
 be reduced by the exportation of the lart;c amount of its capital which 
 belonged to foreigners. The bill was defeated in the Senate by the cast- 
 ing vote of the Vice-President, George Clinton, on h'cbruary 20, 181 1, 
 and subsequentl\- failed in the House by a minority of one vote. The 
 bank was now obliged to wind up its affairs, which was done with very 
 
 little disturbance 
 to the business 
 interest of the 
 countr}-. Within 
 eighteen months 
 from March 4, 
 181 1, the stock- 
 holders had re- 
 ceived 8 8 per 
 cent upon their 
 stock. On finally 
 closing its busi- 
 ness, the assets 
 yielded to the 
 stockholders an 
 excess ofSyi per 
 cent above the 
 par value of the 
 stock. Before 
 going into liqui- 
 dation, the bank 
 made an unsuc- 
 cessful applica- 
 tion to the Leg- 
 islature of Penn- 
 .sylvania for a 
 charter f o r a 
 State bank with 
 a capital ofS5,- 
 000,000, 
 
 D u r i 11 g the 
 war of 1812-15 
 the National (jovcrnmcnt, which was embarrassed b\' the want of 
 means, had received \cr\- considerable loans and other timely ser- 
 \ice from the State banks. Owing largely to such ad\ances, the 
 State banks, with the exception of those of New England, were, in 
 -August and September, 1814, dri\cn to a suspension of specie pay- 
 ments. Toward the end of 1 814 the finances of the Government were 
 again in seemingly inextricable confusion. Alexander J. Dallas became 
 Secretary of the Treasury on October 6, 18 14, and, within a fortnight 
 thereafter, made to Congress a report of extraordinary ability and lucidity 
 upon the condition of afi^airs. In this communication he strongly recom- 
 mended the re-establishment of a national bank, as the remedy required 
 to bring the finances once more into order. The State banks again were 
 opposed to its creation. With them were the speculators in exchange, 
 whose iufluence was verv considerable, and all whose interest were served 
 
 JOHN K. OTTLEV. 
 Cashier Anieritan Trust and Banking Co., Atlanta, Georgia. 
 
66 
 
 by a continuation of the suspension of specie payments. Various plans 
 were broui^ht forward in Congress which resulted in nothing, until, on 
 January 20, i8i 5, a bill was passed. This was vetoed by President Mad- 
 ison, not for lack of constitutionality, as he considered that point already 
 settled by the courts, but on the ground that it would not accomplish the 
 objects rendered necessary by the state of the revenue and the condition 
 of the country. On April 3, 181 6, however, a bill for a Bank of the 
 United States, which had previously passed the House of Representatives, 
 was adopted by the Senate, and, receiving the signature of the President, 
 became a law on April 10, 1816. 
 
 The charter was limited to twenty years and the capital to 535,000,- 
 000, composed of 350,000 shares of Sioo each, 57,000,000 was to be 
 subscribed by the Government, payable in coin or in United States five 
 per cent stocks at the option of the Government. Other subscriptions 
 were payable one-fourth in coin and the remainder in coin or United 
 States stocks. Five of its twenty-five directors were to be appointed by 
 the President of the United States. The bank was to be made a public 
 depository and was to aid the Government, free of charge therefor, in ne- 
 gotiating its loans. It was empowered to establish branches and to issue 
 circulating notes which were to be receivable in all payments to the 
 United States. No other bank, outside of the District of Columbia, was 
 to be establislied by Congress during the continuance of this charter, 
 and, in consideration of the grants therein, the bank was to pay to the 
 United States $1,500,000 in three installments. It was authorized to 
 organize and commence business as soon as 58,400,000. exclusive of 
 the subscription of the United States, was paid in. It was prohibited from 
 lending on the account of the United States more than 5500,000, or to 
 any State more than $50,000, or to any foreign prince or power an\- sum 
 whatever, without the sanction of law being previousK- obtained. It 
 went into operation January 7, 1817, and it was through its agency that 
 the other banks throughout the country were enabled and induced to 
 resume specie payments. At that time bank-notes at Washington and 
 IJaltimore were twenty-two per cent below par; at l'hiladcl[)hia from 
 seventeen to eighteen per cent; and at New York and Charleston they 
 were from seven to ten per cent. In the interior the depreciation was 
 much greater. This was nearl}- the worst stage tT the monetary trouble 
 resulting from the late war, and at the \ergc of that financial crisis 
 which culminated in 1819-20. As soon as the bank opened the Secretary 
 of the Treasury directed importers to lodge their bonds with it, the bank 
 agreeing, greatl\- to the relief of the Treasury, to tliscount the notes gi\en 
 U)V duties, to secure which these bonds were deposited. Congress resoKed 
 on April 30, 1S16, that all duties, ta.xes and debts payable to the United 
 States after February 20, 1817, should be paid in the "legal currency" of 
 the Government, or Treasury notes, or in notes of the Ikuik of the United 
 States, or of other banks which paitl their notes on demand "in the legal 
 currency of the United States." The .State banks agreed to resume specie 
 payments in Iul\', iSijJjul neillur Mi", ("raw ford, .Secretary of the Treas- 
 ury, nor the L'niled States jiank, h.ul nuicii f.iith that they would fulfill 
 their agreement. Both the (ioxernment and the bank were desirous of 
 hastening tiie return of specie paxnients. and the latter began negotiatiiMi 
 to that k:\u\. (.)ne consideration nioviiiLr the bank to do so was that, if it 
 
67 
 
 succeedctl, the dblii^ation which it had incurred nfdiscountinij^ all the notes 
 of importers wcuild be very much diminished, for if tlie State banks paid in 
 specie their notes would be readily taken by the Government. ( )n the 
 other hand, if the State banks refused to make any arranj^ement for resum- 
 ing;" specie pa\ment, a large amount of valuable paper for discount pur- 
 poses would go immediately to the National bank, and the State banks 
 would thus lose many of their best customers. As the result of this 
 communit)' of interests a plan was devised for resuming on February 20, 
 1S17. (^n that day the balances due to the Government in the several 
 banks, which ever since the closing of the first Bank of the United States 
 had kept its deposits with the State banks, were to be transferred to the 
 ]-5ank of the United States, retained by it until July i, when they were to 
 be paid, with the interest thereon. In liciuidating the balances which 
 might be due. The United States Bank agreed to credit the banks respect- 
 ively with the amount of their checks on all banks which were party to 
 the agreement. The payment of the balances which might accumulate 
 against the banks, subsequently to the transfer of the balances previously 
 mentioned, from the payment to them of Government dues in return for 
 money previously borrowed, was not to be demanded b\- the Bank of the 
 United States until it and its branches had discounted for individuals, 
 other than those having duties to pa)', certain specified sums in the several 
 principal cities of the country, provided the money should be called for 
 within sixty days, by borrowers offering good securities. If the whole 
 amount so to be loaned should not betaken by individual customers then 
 the residue was to be lent to the banks signing the agreement. This plan 
 for restoring specie payments was wholly successful. They were resumed 
 and maintained while the charter of the bank continued in force. 
 
 When the bank began business eighteen branches were established 
 in different States. The notes of the bank, whether issued by the parent 
 bank or by any of the branches, where everywhere received in payment 
 of duties and taxes, and were redeemable in specie at any office of the bank. 
 Another ver\' important function which it performed was in ecjualizing 
 the rates of domestic exchange. Through its agenc}' funds could be 
 transmitted from one part of the Union to another at an expense not 
 exceeding one-half, and frequently less than one-fourth that commonly 
 charged by private dealers, not exposed to the competition of the bank. 
 
 From 1820 to 1835 the country was prosperous, the bank recovered 
 from its embarrassments, and its stock rose steadily in value. Long 
 before 1828 the bank had lived down all respectable opposition; and it 
 was therefore a surprise to all parties when President Jackson, in his first 
 message, in December, 1829, took ground against a renewal of its charter 
 when it should expire in i<S36. The agitation thus awakened grew in 
 intensity, until it culminated on July 16, 1832, in the veto b}- President 
 Jackson of a bill re-chartering the bank. 
 
 The interval of about six years between the commencement of Jack- 
 --on's warfare upon the bank and the expiration of its charter is memorable 
 for the \iolence and acrimony of the dispute between the administration and 
 its supporters on one hand, and the bank and its friends on the other, both in 
 and out of Congress. The famous order for the removal of the Government 
 deposits was issued in 1833 '^Y ^''- Tane\', who was made Secretary of 
 the Treasury for this purpose, his predecessor, Mr. Duane, having declined 
 
68 
 
 to issue such an order. When Congress re-assembled in December, 1833, 
 resolutions were adopted in both Houses; those of the Senate censuring 
 the President and Secretary of the Treasury for usurpation of powers, 
 while in the House it was declared that the bank ought not to be re-chart- 
 ered, that the public deposits ought not to be restored to it, that the State 
 banks should be continued as depositories, and that Congress should 
 further regulate the subject by law. Among the early results which 
 followed the removal of the deposits was the expansion of their issues by 
 the State depositories, and the wild and general inflation of the currency 
 by the multitude of other banks, old and new. The aggregate of circu- 
 lating notes, exclusive of those of the Bank of the United States, increased 
 from $61,000,000, in 1830, to 5149,000,000 in 1837. In 1830 the 
 currency of the country had been characterized by the finance committee 
 of the Senate as being 
 more sound and uni- 
 form than that pos- 
 sessed by any other 
 country; and yet with- 
 in seven years after 
 this all the banks then 
 in operation, including 
 the great Bank of the 
 United States, which 
 had been re-chartered 
 by the State of Penn- 
 sylvania, went into 
 suspension. The bank, 
 when denied a renew al 
 of its charter by Con- 
 gress, did not close up 
 its affairs, but applied 
 for, and obtained, a 
 charter from the State 
 of Pennsylvania, P'eb- 
 ruary 18, 1H36, thir- 
 teen days before the 
 expiration of its chart- 
 er from the National 
 Government. This 
 was substantially a re- 
 newal for thirty years 
 of the old charter and 
 under the old corpor- 
 ate name, but with a 
 change as to the 
 
 amount and terms of the bonus to be paid the .Stale for such charter. 
 Colonel Benton, a sincere if not unprejudiced opponent of the Bank of 
 the United States, characterized the Pennsylvania charter as indicating, 
 by every circumstance of its enactment, corruption and bribery in the 
 members who passed it, and an attemjjt to bribe the whole people 
 of that State throutrh the bonus to be di.stributed among them. This 
 
 .Xmerican !\Iana>; 
 
 C. 11. SIl.I.lMAN. 
 Land M.>ii-ai;e liank of 
 F..11 Wnitli. ■|\-xa>. 
 
 L-xas (I.iTiiitcJ), 
 
69 
 
 bonus, had the bank rcniaincd solvent and in existence lont( enouj^h, 
 woulil not have fallen short of $5,000,000. 
 
 The histoiA' of the bank subsequent to the crisis of 1837 was a 
 disastrous one. It suspended payments as frequently as other State 
 banks, and finally succumbed to difficulties which prudent management 
 would ha\e enabled it to oxercome. It made three several assignments in 
 1 841, to secure various liabilities, the last and final assignment being on 
 September 4. 1841. The 57,000,000 of stock held by the United States 
 previous to the time at which the institution became a State bank, was 
 paid back in full, and the Government realized a very handsome profit 
 upon its inxestment, as will appear from the following .statement, taken 
 from the report of the Comptroller of the Currency for 1876: 
 
 Bonus paid by the Bank of the United States, $1,500,000.00 
 
 Dividends received from the bank, .... 7,118,416.29 
 Proceeds of Stock sold and moneys received 
 
 from the l)ank, 9,424,750.78 
 
 Total, $18,043,167.07 
 
 Subscription of capital stock ])aid in United 
 
 States five per cent bonds, $7,000,000.00 
 
 Interest paid by United States on same, , . 4,950,000.00 
 
 1 1.950,000.00 
 Profit on Investment, .... $6,093,167.07 
 
 Nicholas Biddle was president of the bank from January, 1823, to 
 March, 1839. ^^ ^'^^ time of his resignation the shares were selling at 
 III, having in 1837 sold at 137; but in i<S43, after the failure of the 
 bank, the shares were quoted at one and seven-eighths per cent. The 
 circulating notes of the bank, together with the deposits, were paid in 
 full, principal and interest; but fhe whole capital of §28,000,000 were 
 lost to the share-holders. 
 
 CHAPTKR VHI. 
 
 STATK i;.\.\KS LNTII. I 8 1 6. 
 
 We have seen that at the time of the establishment of the first 
 United States Bank three State banks existed: The Bank of North 
 America, the Bank of Massachusetts, and the Bank of New York. The 
 course of business to the beginning of the present century is sufficiently 
 indicated in the accounts given of these institutions. They served cpiite 
 as much to steady the business of the country as to extend it. They 
 inculcated a promptness of payment and regidarity in conducting all 
 business affairs, to which merchants had generally theretofore been 
 strangers. As business expanded merchants gradually adopted the habit 
 of selling their goods on credit, and, rexjuiring Spanish milled dollars 
 for shipment to India and China and doubloons for the purchase of West 
 Indian produce for Europe, they became more dependent on the banks 
 for accommodations and facilities, and the number of these institutions 
 
70 
 
 niiiltiplictl with the growth of trade. The bank obtained specie from 
 various sources, but while war lasted between Spain and Great Britain 
 our countrj'men were the carriers and commercial agents of Spain, and 
 as nearly all the silver product of Mexico and South America passed 
 through this channel, the banks of this country early accumulated a sub- 
 stantial and abundant fund of specie. From the peace of Amiens in i8oi 
 the influx of silver abated, although still considerable. Gouge says: 
 "The specie constantly /// transitu from South America through the 
 United States to other parts of the world was so great in amount that a 
 retention of the quarterh- or semi-quarterly supply for onh' a month or 
 two was sufficient to relieve the banks from the difficulties into which 
 they were occasionally brought by extending their operations too far." 
 Banking on the whole was a very profitable business in those days. 
 From 1792 to 1808 the Bank of Pennsylvania never divided less than 
 eight per cent, and sometimes ten. In 1792 the Bank of North America 
 divided fifteen per cent, the next year thirteen and one-half, and for the five 
 succeeding years twelve per cent annually. ( )ur commerce being exposed 
 to frequent interruptions b}' belligerents, the necessity for borrowing was 
 often so urgent as to make the banks masters of the situation, and money 
 was not infrequently lent by them for two and three per cent a month. 
 The business of banking was less openly conducted than at the present 
 day. It was part of the policy of every bank to keep its transactions as 
 carefully hidden as possible. It was long before people generally became 
 sufficient!)- accustomed to these institutions, either to appreciate or admit 
 their utilit)-. I^xcept a branch of the United States Bank, which was set 
 up in Norfolk in 1799, no bank existed in Virginia until 1804. Yet a sub- 
 sequent w'riter in the Richmond Enqiihur declared that until this branch 
 appeared there no people enjcn-ed greater happiness. "The desk of every 
 agriculturist in \'irginia had some gold or silx-er to spare if he were a 
 prudent and industrious man. or he had something like money to spare 
 in the hands of his merchant, who, in the da\'s of wliich I am speaking, 
 acted as a banker to his prospering customers. Nor was any interest 
 paid upon such inone}-s as might be deposited in the hands of the 
 merchant, because Ijoth planter and merchant considered themsel\-cs 
 accommodated In' tlie arrangement — the planter in ha\-ing his monc)- 
 safely kept for him until he wanted to use it, and the merchant in liaxing 
 the use of the money until it was called for..' 
 
 As for the need of banks to transmit funds from one jilace to another, 
 he adds: "Nor was there the least inconxenience in transmitting mone\- 
 from one point to another through the mercliants who.^e credit was then 
 as good as the credit of the banks now, if not better. Banks ha\e de- 
 stroyed the credit and confidence which men had in one another." 
 
 The banks in the greater cities having comparatively large cajiitals, 
 were conducted on principles which afforded greater safety to the public 
 than the smaller institutions situated elsewhere, whose capital often to a 
 considerable e.sient was fictitious, consisting partly in notes secured by 
 stock and managed by persons " with who.^e skill, caution or integrity the 
 public was very little accjuainted." Yet the latter were the banks whicli 
 had the most e.\tensi\e circulation. In i So(j the three banks in Boston 
 made the folUnviu'r return: 
 
71 
 
 CAIMTAI.. t IRCULA'IIOX. SPECIE. 
 
 Massachusetts, $ 800,000 $139,850 $105,670 
 
 Union, 1,200,000 279.431 132,242 
 
 Boston, 1,800,000 226,940 161,270 
 
 $3,800,000 $646,221 $399,182 
 
 At the same time, fi\e other banks in the State of Massachusetts 
 made the folUn\int;" return: .:(; ' 
 
 CAIMIAI,. CIRCULATION. SPECIE. 
 
 Lincohi and Kennebec, .... $200,000 $242,847 $20,920 
 
 Northampton 75.000 122,363 i9j377 
 
 Hallowell and Augusta, .... 200,000 166,123 23,664 
 
 Penobscot, 150,000 183,470 19,586 
 
 Berkshire 75,000 83,060 7,682 
 
 $700,000 $797,863 $91,229 
 
 These figures forcibly illustrate the difference between the safe and 
 cautious method of conducting a banking business obser\ed in the cities 
 and the erratic and irresponsible method of operating outside them. 
 
 After the Hank of Massachu.setts the next bank chartered in that 
 State was the Union Bank, organized in 1792, with a capital of 31,200,- 
 000, of which S400,oco was subscribed by the State. In 1795 the Nan- 
 tucket and Merrimac Banks were established. Up to 1799 but one more 
 bank was chartered in Massachusetts. In that }ear a law was enacted 
 prohibiting the establishment of unincorporated associations. In 1803 
 an act requiring semi-annual return^ to be made by the banks to the 
 Goxernor and Council was passed, and in 1805 an amendment required 
 these returns to be sworn to. In 1805 si.xteen banks were in operation. 
 From 1805 to 181 1 but one new bank was chartered. Two more were 
 chartered in 181 i. In all the charters granted by Massachusetts after 
 1793, proN'ision was made for a State subscription, and in 181 2 the State 
 held about $1,000,000 out of the S8,ooo,ooo of stock of the banks ot 
 the State. Nearly all the banks were re-chartered in 1811. In 18 12 the 
 State first imposed a tax on bank capital. In 181 3 the system of compelling 
 the redc.nption at par in Boston of the notes of the eastern banks, by 
 assorting and returning the notes to the place of issue, was inaugurated 
 by the New England Bank organized that year. This was the beginning 
 of what was afterwards known as the Suffolk Bank system. 
 
 Up to June II, 1812, the date of the declaration of war with Great 
 Britain, nineteen banks were chartered by the Legislature of New York. 
 Seven of these: the Bank of New York, Merchants', Mechanics", Union, 
 and City Bank of New York City, the New York State Bank of Alban}-, 
 and the Bank of Utica, are now National banks, and the Manhattan Com- 
 pany and Bank of America are the leading State banks. 
 
 During the period from 1791 to 1812 jjolitical feeling was bitter, and 
 obtaining the charters of the banks organized during this time was, in 
 many cases, the occasion of much strife and intrigue. Governor Tomp- 
 kins, afterward \'ice- President of the United States, in the year 181 3 pro- 
 rogued the Legislature, assigning as one reason for his action the attempt 
 to secure a bank chaiter through the use of corrupt means. These 
 charters were in the nature of special privileges, granted to particular per- 
 sons, and all others were specially restrained by law from participating in 
 
72 
 
 the business of banking. A restraining act was passed in 1804 to com- 
 pel private banking institutions to wind up their business, leaving a clear 
 field to chartered corporations, This act prohibited any person, under a 
 penalty of Si. 000, from subscribing to, or becoming a member of any 
 association for the purpose of receiving deposits, or from doing any busi- 
 ness which incorporated banks, by their charters, were permitted to do. 
 
 The first institution in the State of Ohio in the nature of a bank was 
 chartered under the name of the Miami Exporting Company, in 1803, 
 immediately upon the admission of this State to the Union. It was chart- 
 ered for torty years, with a nominal capital of $500,000, in shares of $100 
 each, payable five dollars in cash and the remainder in produce or mer- 
 chandise. Although in forming a trading company, it issued bills and 
 redeemed them in notes of other banks. The first regular bank was 
 chartered in 1808, and was located in Marietta, with a capital of $500,000. 
 During the same year another bank was established at Chillicothe, then 
 capital of the State, with a capital of SiOO,ooo. From 1809 to 1816 four 
 banks only were chartered in (3hio. 
 
 The first bank in the State of Illinois was established under its Ter- 
 ritorial Government in 181 3, at Sha.vneetown, and three years after was 
 incorporated for a term of twenty years with a capital of $300,000. In 
 1835 its charter was extended to 1857 and its capital increased to $1,400,- 
 000 the additional capital being subscribed by the State. 
 
 The first serious explosion in the banking business in New England 
 after the adoption of the Federal Constitution occurred in 1809. The 
 notes of many banks outside of Boston were at a varying discount, run- 
 ning as high as five per cent, and the merchants and retail dealers in that 
 city on whom the burden of depreciation fell combined for their own pro- 
 tection. They appointed a committee and raised a fund for the purpose 
 of sending home the bills of banks outside of that city received in the 
 course of their business and procuring their redemption and of bringing 
 suits against banks neglecting or refusing payment. This step brought 
 on a crisis. First, the Farmers' Exchange Bank — a large institution 
 whose operations were among the most notable in the history of New 
 I^ngland banking — suddenly failed, and " the shock upon the public was 
 tremendous." The Berkshire Bank followed next. The discovery that 
 banks could fail affected the credit of all, and in 1809 most of the country 
 banks of New I'^ngland having bills in circulation stopped payment. "It 
 would i^robably be a moderate estimate to put the lost in New England 
 by the bank failures of that period at $i,000,000." 
 
 When the charter of the first United States Bank expired its notes 
 were withdrawn and the notes of State banks were issued in reckless pro- 
 fusion to supply their place. During the year 181 1 and the two succeed- 
 ing years one hundred and twenty new banks commenced business in the 
 United .States. In Pennsylvania the Eegislature passed an act authoriz- 
 ing the wholesale creation of new banks on the loosest principles, which, 
 fortunately, was vetoed b\' the (iovernor. The new banks of these three 
 years added nominall\- about $30,000,000 to the banking capital of the 
 country. But the real capital of nearly all of these new concerns was 
 almost purely nominal, as, when a new bank was organized, its stock sub- 
 scribed, and the first installment paid, stock notes were taken for the residue, 
 which notes were discounted to meet all subsecpient calls. As soon as it 
 
73 
 
 became known that this practice was generally followed the credit of all 
 banks in circulation, save those whose reputation had been firmly es- 
 tablished, was quite swept away and the issues of all except a comparatixely 
 small number of well-known banks began to depreciate. This increase 
 of banking circulation came on the eve of the war with Cireat Britain 
 during which period exports almost ceased, and the coasting and foreign 
 trade of the whole country was practically annihilated. As but a small 
 portion of this manufactured capital could be used in legitimate mercantile 
 enterprise, considerable sums were invested in Government loans. The 
 demand for money in this direction as the war progressed became so great 
 that bank-notes rapidly multiplied. In New England, however, the banks 
 did not subscribe so freely, because of the unpopularity of the war in that 
 section. The banks of the interior, as well as those of New York, Phila- 
 delphia and Baltimore, expanded their issues with inexcusable indiscretion, 
 to call it by no harsher name. The drain upon the country for specie for 
 shipment to Europe was great, increasing, and perfectly well known. As 
 is always the case this drain was felt first and with greatest stringency in 
 those cities where the paper in circulation was most abundant and most 
 discredited. At this time the laws of the New England States imposed 
 a penalty of twenty-four per cent per annum on all banks suspending 
 payment of their circulating notes. This regulation forced the weaker 
 banks of that section to the wall, and assisted the stronger institutions in 
 maintaining their notes in full credit after those of the banks of other 
 sections had become greatly depreciated. 
 
 The capture of Washington in 1814 was followed by the failure of 
 nearly all the banks of the middle and southern Stales. All had been 
 drained of their specie. Those at Washington went first, ascribing their 
 failure to the fact that they were plundered by the P^nglish inv'aders, 
 though they had little for the enemy to take. Those at Baltimore 
 gave way next. Then the si.x banks at Philadelphia suspended specie 
 payments, and the next day those of New York followed the example. 
 The New England banks, however, easil)- stood the pressure. Their 
 issues of circulating paper were less, their individual strength was greater, 
 they were better used to united action, and the local supply of specie was 
 more abundant than in any other section of the Union. In the South 
 and West the Bank of Nashville alone maintained specie payment of its 
 paper until August 181 5, "the sturdy honesty of whose directors," says 
 Gouge, "amidst such general knaver\-, is no less praisworthy than it is re- 
 markable." The broken banks, though refusing to redeem their notes, 
 professed their desire and ability to do so at an early day. At first busi- 
 ness was not seriously interrupted by their suspension, for gold and silver 
 remained the standard of value. Bills of doubtful credit were compared 
 with these and the ratio of their depreciation fi.xed by this sound standard. 
 Bank bills became a merchantable commodit)' and were commonly 
 bought and sold tor coin; their rate of discount was tabulated and regu- 
 larly announced in the newspapers; they were even sold at auction, the 
 purchaser paying therefor in specie. Though the people and the Gov- 
 ernment were subjected to considerable loss and more inconvenience from 
 the employment of this depreciated paper, creditors received their just 
 dues and business calculations could be made with reasonable safety so 
 long as the specie .standard was adhered to. But the unfortunate action 
 
74 
 
 of the then Secretary of the Treasur}' in directing that the depreciated 
 jjaper of the State banks should be recci\-ed without discount in payment 
 of loans, customs duties, and other taxes, changed this almost in a mo- 
 ment. The suspended banks increased their issues, their depreciated 
 currenc)' became the standard, coin disappeared or was bought and sold 
 as merchandise at a premium varying in different cities with the ratio of 
 debasement of local bank-notes, and the difficulties of the Government 
 and the business conimunit\' immensel}' multiplied. 
 
 From 1S15 to the resumption of specie payments in 1817, the con- 
 dition of affairs was such as to place a direct premium on rascality in 
 banking. During these years, under the suspension of the .specie pa\-ments, 
 while the)' were in a bankrupt condition, the minor State banks made 
 larger dividends than e\er before. All res]Donsibility for their issues had 
 ceased; they grew rich at the expense of the holders of their notes. It 
 is no wonder the\- opposed a return to specie j)ayments. 
 
 We have seen, in connection with the account gi\'en of the formation of 
 the Second Bank of the United States, the part played by that bank and by 
 the United States Treasury' in bringing about, in 18 17, a return to specie 
 pa\nients. 
 
 CHAPTER IX. 
 
 THE ST.ATE r..\NKS FROM I816 TO 1 863. 
 
 When the Second United States Bank was created the various State 
 banks continued to do business as before. The Government no longer 
 kept its deposits with them, but it did not interfere with their affairs. Of 
 course, the National bank with its vast resources oxershadowed them ; 
 still the}' flourished and multiplied in number. The first noteworth}- ad- 
 vance in the system of State banking occurred in New England in 1824. 
 In Februar\- of that year an attempt was made to induce the banks of 
 Boston to give the bills of country banks the same credit as the banks in 
 the cit}- gave to the notes of each other. If they were thus taken it 
 would be necssary to send them home to be redeemed unless the 
 countr\' banks should choose to make an arrangement for their redemp- 
 tion in Bost<jn. It was final!}- agreed among the banks (though not all 
 of them came into the scheme), that each should receive at par in all pa}'- 
 ments from its customers the bills of all the banks in good credit in the 
 New I'jigland States, thus making country money equal in value to Bos- 
 ton lUdney, and saving to the customers of the cit\' banks the tax previ- 
 ously imposed on them in the way of premium for Boston mone}-. The 
 bills thus received were not to be kept for any considerable length of 
 time, nor to be paid out to supply the circulation of the cit\-. Nor was 
 it necessary for each bank to emplo}- messengers to carr}' the bills home, 
 for an agreement was made that the .Suffolk Bank shoukl do this busi- 
 ness or procure their redemption in such manner as it saw fit. The 
 countr)- bills received b}- the other banks in Boston which were parties 
 to the arrangements were paid o\er daily to the Suffolk Bank, and each 
 received in lieu thereof Boston mone}' at i)ar. The bills thus received by 
 the Suffolk i^ank absorbed a considerable portion of its capital. To in- 
 demnif}' it for exchanging or redeeming the bills of the countr}' banks, 
 the allied banks each lent the Suffolk liank, without interest, a sum of 
 mone}' which was licjd lo be i-(|ui\alent to the service performed. This 
 
75 
 
 plan of redemption was known as the Surrollv Bank s)-stcni, and was ot 
 obvious benefit to the piibUc in facilitatin<j^ the transaction of business and 
 in protectinij^ a portion of the comnuinit}- from a constant tax and ahnost 
 every one from occasional hea\y losses. The general tendency of the 
 arrangement was to gi\e to each country bank the benefit of the principal 
 local circulation of its o\\ n neighborhood, and to direct its bills home- 
 ward when the\' had wondered awa\-. The excellence of the system is 
 shown b)' the fact that it continued fc^- so many \-ears, and became so 
 widely accepted throughout New I^ngland. It oj^erated as a check to 
 excessixe issues of paper by any of the banks included in the association, 
 as they could not make an\- large adcition to the quantity of their notes 
 in circulation without its being at once discovered by the Suffolk Bank. 
 Discover}- v/ould of course be followed by a demand for increased security 
 as a consideration for continuing the redemption of the bills of any bank 
 which seemed to be inclined to resort to such a practice. Although 
 there was at first some opposition to the Suffolk Bank system it came into 
 nearl\- universal use in New England as earh' as 1825 and contined in 
 successful operation down to the adoption of the National banking sy.stem. 
 
 The first com])rehensi\e State law regulating banking was passed in 
 Massachusetts in 1S29. In 1837 there had been organized in that State 
 one hundred and tliirt\-four chartered banks, of which thirty-two failed 
 in the great panic of that year, with a loss of about thirty per cent of 
 their entire indebtedness. From 1793 to 1836 but ten banks had failed 
 in Massachusetts. As a result of the revulsion of 1837 that State 
 adopted a system of official exammations which was carefull)' and judici- 
 ously adhered to, and which was equally helpful in maintaining the 
 soundness and soK'ency of the banks and public faith and confidence in 
 their management. A free-banking law was adopted m 185 i, much like 
 that which grew up in the State of New \'ork, but onl\' se\en banks 
 were organized under it, as the specialU' chartei'ed banks then in existence 
 were jjossessed of numerous and valuable prixileges not conceded to 
 those formed under the pro\isions of the general law. In ( )ctober, 1865, 
 all but one of the State banks of Mas.sachusetts, sa\e four which wound 
 up and went out of business, had re-organized as National banks. 
 
 In New \'ork the restraining act of 1804, aimed at the extinction of 
 unincorporated banks, was followed in i(Si8 b)- even more stringent legis- 
 lation. This enacted that no person, association of persons or body cor- 
 porate. e.\ce])t ^uch bodies corporate as were expressh' authorized by law, 
 should keep any office for the purpose of recei\ing deposits, or discount- 
 ing notes or bills, or for issuing any evidence of debt to be loaned or put 
 in circulation as monc\-. Although many of the restricti\e features of 
 this law were salutaiy and are to-da\' part of the law of every State, its 
 effect, as a whole, was in the direction of a monopoly of all forms ot 
 brokerage b\' the specially-chartered banks. The statute remained in 
 force until 1837, only one )-ear before the adoption of the free-banking 
 act. The safety-fund sy.stem originated in New \'ork and was authorized, 
 on the recommendation of (jovemor Van Ruren, by the Act of April 2, 
 1829, The distinctive feature of this s\stem was the re(iuirement that 
 each bank operated under it should make an annual contribution of one- 
 half of -one per cent of its capital to a common fund to be hekl b\- the 
 Treasurer of the State, such payments to be continued until each 
 bank had thus deposited three per cent of its capital. This fund was 
 
76 
 
 to be used to redeem tlie circulating notes and to pay the other debts of 
 any bank, joining the association, which might become insolvent. In 
 case the fund should at any time become impaired by payments made 
 from it, the banks were required to again make their annual contributions 
 until each had once more on deposit three per cent of its capital stock. 
 In practice the amount required to be deposited to the credit of the fund 
 was found to be too small to afford any substantial protection or relief. 
 When, during the panic of 1837, eleven banks belonging to the system 
 failed, the whole fund amounted to but little more than fi\e per cent of 
 their debts for the payment of which it was pledged. The loss in this 
 one instance to depositors and bill-holders of these banks was upward of 
 $2,500,000, beside the total lost of their capital stock amounting to some 
 $3,000,000 more. The deficiency of the safety fund was made good by 
 an issue by the State of its six per cent bonds, this advance to be reim- 
 bursed by future payments by the banks into this fund. But in the end 
 the State was a considerable loser by this transaction as the whole sum 
 contributed by safety-fund banks to that fund down to 1848, when the 
 scheme was finally abandoned, was but $1,876,000, little more than 
 seventy-five per cent the debts of the eleven insolvent institutions. In 
 1842 the safet3'-fund law was amended so that the common fund became 
 responsible only for the payment of the circulating notes of banks failing 
 thereafter, it being argued that banks which enjoyed the exclusive priv- 
 ilege of furnishing a paper currency should be required to contribute 
 something to a common fund to make that currenc}- safe and stable; that 
 a contribution of a moderate sum for this purpose was only reasonable 
 and proper, but that there was neither propriet}' nor justice in requiring 
 all the banks to contribute to a general fund for the benefit of the 
 depositors or other general creditors of individual banks ; and as there 
 was no exclusive privilege to receive deposits or contract general debts 
 there was no reason why the special fund should be applied to their 
 liquidatioii. The original .safety-fund system also operated as a bar to the 
 formation of new banks, which led to many abuses and the creation of 
 much cumbersome machinery for obtaining new charters. This \\", s one 
 strong incentive to the adoption b\- the State of New \'ork of the free- 
 banking .system, which was created by the Act of April 13, 1838. By 
 this system all the restrictions of banking privilelges to a fa\ored class 
 were abolished. Any number of persons were alowed to form banking 
 associations, subject only to the common restrictions and penalties imposed 
 by the general law. .\s originally enacted the law provided for the issue 
 of circulating notes to these bank-; by the State, upon the deposit of stocks 
 of the State of New York and of the United States at par, or of other 
 States at their market price in amount sufficient to make them equal to a 
 five per cent stock at par, or of bonds secured b\- mortgages on improved 
 and productive re^d estate worth, exclusive of the building thereon, double 
 the amount secured by the mortgage, and bearing interest at not less than 
 si.x per cent. The issue of notes to each bank was to be ec[ual to the 
 amount of the tleposit. I'rom 183S to 1843 twenty-nine of the banks 
 organized on this plan failed, and a sale of the securities which they had 
 deposited realized a sum sufficient to pay, averaging the whole, seventy- 
 four per cent only of their outstanding circulating notes. Some paid 
 nearly in full, others much less than the a\erage. Losses in e\"ery 
 
77 
 
 instance occurred only in the case of those banks which had deposited the 
 stocks of States other than New \'ork. The Act was therefore amended 
 so as to exckide tlie stocks of all States except New ^'ork, and these 
 were required to be kept equal in amonnt, at market value, to a five per 
 cent stock at par. In 1848 an amendment was adopted requirin^j all 
 stocks deposited to bear six per cent intercut and all bonds seven per cent, 
 the mortgages securing the latter to be for but two-fifths of the value of 
 the lands covered. In 1849 still another amendatory act required one- 
 half the .securities in all cases to consist of New York State stock, and 
 proxided that all other securities should be, or be made equal to, six per 
 cent stock, to be received at not above par and at not more than their 
 market value. The general policy of the New York free-banking system 
 furnished the groundwork for the plan on which the present National 
 banking law was built up. In i840the State of New York required its banks 
 to redeem their notes at an agency to be established cither in New York 
 City, Albany, or Troy, as well as at the home office. The redemption at 
 the agency was at a discount of one-half of one per cent, subsequently 
 reduced to one-fourth of one per cent. This discount was. in practice, 
 divided between the bank whose bills were redeemed and the redemption 
 agency. Any bank neglecting to pro\ide for such redemption of its notes 
 was to be forced to wind up its business. The constitution of this State, 
 adopted in 1846, prohibited the Legislature from granting any further 
 special charters to banking corporations; and provided for formation of 
 banking institutions under a general law. It also provided that after 
 1S50 the stockholders in all banks issuing circulating notes should be 
 responsible for all the debts of the bank, of every kind, in an amount 
 equal to their stock in such bank. In case of the bank's insoK'ency bill- 
 holders were preferred to all other creditors. 
 
 In Ohio but five banks were authorized before 18 16. In that \-ear 
 six new banks were chartered by an omnibus act which required each 
 new bank, as well as such of the old ones as should apply for an extension 
 of charter, to set apart annualh' for the use of the State, such a part of 
 its earnings as would, at the expiration of the term for which its charter 
 was granted, amount to one twenty-fifth of its capital. By a law passed 
 in 1825 this provision was so modified as to require each bank to pay to 
 the State two per cent on all dividends theretofore paid and four percent 
 upon all such as should be thereafter declared. From 1816 to 1834 
 thirteen new banks were authorized. Piranches of the Bank of the 
 United States having been established at Chillicothe and Cincinnati, the 
 Legislature proceeding upon the theor)- which then obtained in Ohio and 
 other States that the State should participate in the profits of the banking 
 corporations which it created, levied a lump sum or tax of S 50,000 on 
 each of these branches provided they should remain in business later 
 than September i, 1819. The bank contested this tax, however, and in 
 the Supreme Court of the United States obtained a decision in its favor 
 and denying the right of the States to tax its branches. In 1845 the 
 safety-fund system was applied to a State bank then authorized. A sum 
 equal to ten per cent of the circulating notes of the bank was to be paid 
 to a board of control, to be by it invested in Ohio State or United States 
 stocks, or in bonds secured by first mortgages on real estate of double 
 the value of the securit)-, to be deposited in the State Treasur}-. Sixty- 
 
7^ 
 
 three branches of this State bank were created, each of which was 
 treated as an independent institution so far as depositing security and 
 receiving the interest thereon was concerned. In case of the failure 
 of any branch bank its own funds and securities, not deposited in the 
 safety fund, were to be applied to the redemption of its circulation 
 before the safety fund could be called on, thus giving bill-holders a first 
 lien on all its assets. The safety-fund act was also applied to a portion 
 of the banks previousl}' existing, and the same statute authorized an 
 independent banking system which provided for a deposit with the State 
 Treasurer of United States or Ohio State stocks, to the full amount of the 
 circulating notes to secure their pa\'mcnt. A free-banking law, modeled 
 on that of New York, was passed in 185 1, but the new Constitution, 
 adopted later in the .same year, materially restricted its operation. The 
 revenue laws of Ohio, at this period, discriminated strong!}- against the 
 banks, subjecting them to double and three-fold taxation, as compared 
 with other forms ol property and investment. In 1856 another State 
 bank was created by law, largely on the lines of that of 1845, but with a 
 clause attaching a personal liability to the ownership of the stock. Most 
 of the banks organized under the lawof 1851 were taxed into liquidation, 
 and in i(S56 upward of sixt)- banks in this State were in bankruptcy, more 
 or less complete. In 1863 there were in Ohio fifty-si.x banks doing- 
 business under its laws, viz: Seven independent banks with an aggregate 
 capital of $350,000; three free banks with $1,270,000; and the State 
 Bank of Ohio with thirty-six branches and an aggregate capital of $4,054,- 
 000 and $7,246,000 circulation. The total capital of all the banks of the 
 State, when the National banking law went into effect, was 55,674,000; 
 circulation, 89,057,837; specie, $3,023,285. 
 
 Karly banks in Indiana were few. But two were chartered prc\ious 
 to 1820. In 1834 the State Bank of Indiana was chartered with ten 
 branches, each liable for the debt of all the others. Each share was to pay 
 the State an annual tax of twelve and one-half cents, and was liable to all 
 taxes assessed upon other forms of capital, with the proviso that in no 
 event should taxes on these shares exceed one per cent in the aggregate. 
 The cash capit.il of this bank was largely borrowed at the East upon the 
 credit of the State, which not only took $1,000,000 of its stock directly, 
 but also loaned its credit to indi\'idual stockholders to the extent o' 
 one-half their subscriptions, taking indixidual bonds secured upon real 
 estate at one-half its value, for the re-payment of the sums so advanced. 
 This bank paid di\itlends axeraging twelve to fourteen percent annually, 
 and weathered the panic of 1837 without hxss of capital or prestige. It 
 went into liquidation in 1854, on the expiration of its charter, and returned 
 to its stockholders nearly double the par x-alue of their .stock. The State 
 of Indiana received about 83,000.000 from its inx-estmcnt of S 1 ,000,000 
 in this insiilulion, as well as payment in full of all sums for which it 
 became surety, in 1851 Indiana adopted a new Constitution which prohib- 
 ited the further creation of banking corporations except under ageneral law. 
 Tlie general banking act, adopted in 1852 in pursuance of this constitu- 
 tional provision, re(|uired the deposit of .stocks of that States orof theCnitetl 
 States as security for the circulation of all banks formetl thereafter. A new 
 State bank chartered in Indiana in i 854, on the expiration of the charter of 
 the first State bank, had a capital of $6,000,000, was excellentK' managed 
 and passed through the- panic of 1 i<^j w ithout suspending specie pa\-ments. 
 
79 
 
 In Illinois a State bank was chartered in 1821 with a capital of 
 $500,000. It was owned b\' the State. It had no real capital and was 
 little, if any, better than the schemes for the emission of bills of credit to 
 be lent to all come.'-s, which flourished in the colonies during the last 
 century. Of its notes $300,000 were issued and loanetl to citizens of the 
 State, not more than $1,000 to one person, upon real estate mortgage, for 
 one year, at six per cent interest. These notes were made receivable for 
 taxes and for all debts due the State and the bank. They rapidly depre- 
 ciated and after passing for a time at twenty-five cents on the dollar, 
 became wholly discredited and cease to circulate. In 1835 anew State 
 bank was incorporated with a capital of $500,000, afterward increased to 
 $j,ooo,ooo, which was also owned by the State and managed and con- 
 trolled b\- the Legislature. It suspended specie pa\'ments during the 
 panic of 1837-38 and never recovered sufficiently to resume. In 1843 
 this bank and the old Shawneetown bank in which the State had a con- 
 trolling interest, were wound up under a law passed that year, which 
 practically confiscated the property of private .stockholders, depositors and 
 bill-holde s. The State took possession of its bonds amounting upward 
 of $3,000,000, which these banks held as securit}- for their bill-holders 
 and depositors, and caused the same to be burned in the old State House 
 Square at Springfield, in the presence of the Legislature. In 1843 a free- 
 banking law was adopted, modeled on the provisions of the earliest free- 
 banking acts of New York and Indiana. The securities deposited b\'the 
 free banks in Illinois were almost wholly those of the extreme southern 
 and south-uestern States, the \-alues of which fluctuated so widely and 
 C(^ntinually as to deprive the bills secured thereby of any settled value. 
 Under the Constitution of 1870 State bankmg ceased in Illinois so far as 
 the creation of new banks is concerned. 
 
 In nearly all the southern and western States banks were incor- 
 porated, during the period under consideration, in which the State had an 
 interest, partial or exclusive. Free-banking systems were also generally 
 adopted, after 1850, with the provisions for the security and redemption 
 of circulating notes, purely formal and useless in some and effective and 
 substantial in (Others. The result in all the other States was like that in 
 one or another of those whose experience is hereinbefore epitomized. 
 Indiana and Louisiana managed their banks with increasing and conspic- 
 uous prudence and success. To award justl\- the palm for pre-eminent 
 badness would be a task as difficult as unprofitable. We have noticed 
 the case of those States which, b\- constitutional limitation, forbade the 
 granting of special banking charters. Wherever obtainable these special 
 charters were in great demand because of the laxness which universalK- 
 characterized their proxisions. The abuse of any State system which did 
 not provide for the redemption at the State capital or other business center, 
 of the bills of every bank authorized to do business within its limits, was 
 easy and inevitable. A common plan was to obtain in one State a charter 
 for a bank to be located at some obscure and inexcessible point where no 
 occasion exists for any legitimate banking facilities, and to procure, on the 
 deposit of doubtful and inadequate security, an issue of bank bills which 
 were at once taken to a distant State to be put in circulation among a 
 people having no means of procuring redemption. Charters issued in 
 Georgia were sold to be used for putting a flood of worthless bank-notes 
 
8o 
 
 in circulation in Illinois. Banks ostensibly located in Nev\^ Jersey had all 
 their business operations conducted in other tates. The Snotes of all 
 banks except those located in large commercial cities, were always at a 
 discount. At New York a discount of one-eighth of one per cent was 
 charged on the bills of New England banks redeemable at the Suflolk 
 bank. The common rate of discount on the bills of banks which re- 
 deemed their currency only over their own counters was from one to five 
 per cent, and often greatly exceeded that rate. Five per cent on the en- 
 tire circulation of all the banks in the United States is estimated to have 
 been lost each year to the bill-holders by discount and brokerage. Losses 
 b\- insolvency were much greater. The losses and vexation occasioned 
 by the circulation of counterfeits and notes of broken banks was some- 
 thing incredible to one accustomed only to the currency of to-day. 
 
 In 1837 a general suspension of specie payments took place, occasi- 
 oned by the revulsion and panic of that year. A partial resumption in 
 1838 was followed by a second suspension in 1839, which was especially 
 disastrous in the West and vSouth. The reckless management of the 
 Bank of the United States, then operating under a charter from the State 
 of Pennsylvania, was the principal occasion of this second crash. What- 
 ever the previous merit or demerit of that bank may have been, its course 
 at this time was such as to justify the most severe condemnation, as its 
 policy was directed to forcing a run on, and suspension of, the New York- 
 banks in order to bring on another complete suspension. A general and 
 final resumption of specie payments was not effected until 1842. In 1857 
 another panic caused another general suspension of pa}-ments by the 
 banks. This revulsion, like so many others in this country, was occasi- 
 oned b}- expansion and overtrading. The first actual shock was the 
 failure of the Ohio Life and Trust Compan)-, on August 24, 1857. This 
 concern had borrowed largeh', on call, in New York and had loaned its 
 funds improxidentl}-. Its liabilities were about S/.OOO.OOO, and its credit 
 had been so high that its failure shook confidence in other institutions, 
 A desire to test the foundations of credit followed by a general collapse. 
 It had been the rule among banks to keep on hand specie to the amount 
 one-third of outstanding bills. During the period of acti\it\- which pre- 
 ceded 1857 this wholesome rule had been greath' relaxed and few banks 
 in the interior possessed a specie reserxe exceeding one-tweifth the total of 
 their circulating notes. The loss of the steamer Central America with a 
 million in gold helped to create a momentary stringency in New York. 
 Collections on interior points began to drag. Failures of banks, brokers 
 and produce dealers became numerous, and on Sejitembcr 12 and 13 the 
 banks at nearly all points south and we.st of New York sus|)encled pay- 
 ment. On October 13, 1K57, the New York banks su.spended and the 
 New hjigland and Boston banks followed a few days later. 
 
 The ])anic forced a speedy liquidation of all inflated schemes and 
 enterprises, and, as the country was at the bottom, in a genuinely pros- 
 perous condition, the recovery was prompt and ea.sy. Imports stopped 
 almo.st completely, (iold flowecl in from luirope. The New Orleans 
 banks, nine in number, had suffered least of all. But four of these sus- 
 pended, and they for a few days only. The New York banks resumed 
 in a body on December 1 2, and all others followed gradually and in- 
 formall}-. 
 
PART II. 
 
 THE DEPARTMENT OF THE TREASURY. 
 
 ITS HISTORY AND FUNCTIONS. 
 
 INTRODUCTION. 
 
 To give a comprehensive description within a limited space of the 
 duties and procedure cf a Department so extensive as the Treasury is a 
 task beset with many difficulties. The seed that was planted in 1775, 
 when the representatives of the struggling colonies appointed Continental 
 Treasurers, has been a striking illustration of evolution from the simple 
 to the complex, bearing fruit in the shape of an immense Department K)f 
 Finance, which, in its manifold ramifications, giving employment 'to 
 about 18,000 people, embraces every branch of the Government service. 
 
 The control and direction of the National finances; the customs 
 service; the enforcement of the immigration laws; the survey oP ocean 
 coasts, lakes and rivers; the light-house establishment; the supervision 
 and control of the national banks; the inspection of steam vessels; the 
 enforcement of laws and regulations in relation to navigation; the 
 designing, erection and custody of public buildings; the mints and assay 
 offices; the marine-hospital service; the life-saving service; the compila- 
 tic^n and publication of statistics relating to the Department; the manu- 
 facture, issue and redemption of currency; and the duties performed by 
 the law officers in the construction and enforcement of laws, constitute 
 in themselves a vast array of important and difficult functions. When 
 to the foregoing is added the examination, revision and adjustment of 
 all accounts, not only of the Department, but of every branch of the 
 Legislative, Executive and Judicial Establishment, its magnitude and 
 responsibility may be better appreciated. 
 
 It has been deemed best, out of the wealth of material that presents 
 itself for selection, to give a history of the Department, a brief state- 
 ment of the Duties of each Bureau, with the addition of details of busi- 
 ness methods of those Bureaus with which bankers are usually brought 
 in contact in their transactions with the Government; regulations in 
 relation to coin and paper currency, bonds, drafts, warrants, and checks, 
 and special items of interest relating to national banks and depositories. 
 Much of this material is embodied in the circulars issued by the Depart- 
 
ment, but is here arranged in more convenient manner for reference, and 
 being placed in permanent form, is less liable to meet the fate usually 
 attendmg circulars. It has been the desire and intention to devote but 
 little space to statistics, which, while valuable to the interested few, 
 make but dreary reading to the general public. In the stead there has been 
 given detailed statements of procedure in the manufacture, issue, redemp- 
 tion and destruction of paper currency, accompanied by illustrations, 
 which it is hoped will prove of interest. Finally, a few articles have 
 been included, which, while perhaps not strictly germane to thesubject, have 
 been the subject-matter of many inquiries from bankers and others. 
 
 An experience of many years devoted to the receipt, distribution 
 and answer of correspondence of an important bureau has encouraged 
 the hope that the selections of materials above outlined have been judicious, 
 and that they may prove not only entertaining, but of some lasting benefit. 
 
 SYNOPSIS OF CONTENTS. 
 
 History 
 
 History 
 
 Bureaus 
 
 I 
 
 2 
 
 3 
 
 4 
 5 
 6 
 
 7 
 8 
 
 9 
 
 lO 
 
 1 1 
 
 12 
 
 13 
 
 14 
 15 
 i6 
 
 17 
 i8 
 
 19 
 20 
 21 
 22 
 
 23 
 24 
 
 of the Treasury Department. 
 
 of the Treasury Seal. 
 
 of the Department, titles of officers, and functions. 
 
 Secretary of the Treasury. 
 
 Supervising Architect. 
 
 Director of the Mint. 
 
 Chief of Bureau of Engraving and Printing. 
 
 Supervising Surgeon-General of Marine-Hospital Service. 
 
 General Superintendent of the Life-Saving Service. 
 
 Supervising Inspector-General of Steam-Vessels. 
 
 Chief of the Bureau of Statistics. 
 
 Light-House Board. 
 
 Superintendent of Immigration. 
 
 Commissioner of Navigation. 
 
 Superintendent of the Coast and Geodetic Survey. 
 
 Chief of the Secret Service Division. 
 
 Comptroller of the Treasury. 
 
 Auditor for the Treasury Department. 
 
 Auditor for the War Department. 
 
 Auditor for the Interior Department. 
 
 Auditor for the Navy Department. 
 
 Auditor for the State and Other Departments. 
 
 Auditor for the Post Office Department. 
 
 Treasurer of the United States. 
 
 Register of the Treasury. 
 
 Comptroller of the Currency. 
 
 Commissioner of Internal Revenue. 
 
 Solicitor of the Treasury (Department of Justice). 
 Solicitor of Internal Revenue (Department of Justice). 
 
History of Office of Treasurer of the United Siate-. 
 Issue and Redemption of Currency (Regulations). 
 Issue of United States Notes. 
 
 Treasury Notes of 1890. 
 Silver Certificates. 
 Gold Coin. 
 
 Standard Silver Dollars. 
 Subsidiary (Fractional) Silver Coin. 
 Minor Coin. 
 Redemplion of United States Notes. 
 
 Treasury Notes of 1890. 
 Silver Certificates. 
 National Bank Notes. 
 Subsidiary (Fractional) Silv^er Coin. 
 Minor Coin. 
 Advertisements on Coins. 
 Defaced Minor Coin. 
 
 Registration free of charge (Currency for Redemption). 
 Express Charges. 
 Disposition of Counterfeit Money. 
 Refunding Certificates. 
 Gold Certificates. 
 Currency Certificates. 
 Interest Checks (Regulation). 
 
 Closing and Opening of Transfer Books. 
 Da es of Dividends and Payment of Checks. 
 Duplicates. 
 Change of Address. 
 Indorsements 
 Transfer Checks (Regulations). 
 Issue. 
 Duplicates. 
 Treasury Drafts and Warrants (Regulation.s). 
 Issue. 
 Duplicates. 
 Indorsements. 
 
 Gold Coins of the United States. 
 
 Weight, fineness and alloy. 
 
 Denomination now issued. 
 
 Coinage discontinued. 
 Silver Coins of the United States. 
 
 Weight, fineness and alloy. 
 
 Denominations now issued. 
 
 Coinage discontinued. 
 Minor C( ins of the United States. 
 
 Weight and alloy. 
 
 Denominations now issued. 
 
 Coinage discontinued. 
 
Purchase of Uncurrent Gold Coin. 
 
 Silver Coin. 
 Mutilated Minor Coin. 
 Light-Weight Gold C' in. 
 Legnl Tender. 
 
 Gold Coin. 
 
 Standard Silver Dollars. 
 
 Subsidiary Silver Coin. 
 
 Minor Coin. 
 
 United States Notes. 
 
 Demand Treasury Notes. 
 
 One and Two Year Notes of 1863. 
 
 Compound Interest Notes. 
 
 Treasury Notes if 1890. 
 
 Columbian Half Dollars. 
 
 Columbian Quarters. 
 Not Legal Tender. 
 
 Gold Certificates. 
 
 Silver Certificates. 
 
 National Bank Notes. 
 
 Trade Dollars. 
 
 Fractional Currency. 
 
 Foreign Gold Coin. 
 
 Foreign Silver Coin. 
 
 Continental Currency (?) 
 Legal Tender Cases in the Supreme Court. 
 "Outstanding Liabilities." 
 
 Three-year-limit for Checks and Drafts. 
 
 Government Bonds. 
 
 Titles and Amounts of Loans. 
 Regulations. 
 
 Redemption. 
 
 To Secure Deposits. 
 
 To Secure Circulation. 
 
 Purchase. 
 
 Transfer and Registry (Assignment). 
 
 Exchange of Coupon for Registered. 
 
 Non-exchange of Registered for Coupon. 
 
 Lost Registered Bonds. 
 
 Lost Coupon Bonds, Coupons, and U. S. Notes. 
 
 Destroyed and Defaced Bonds. 
 
 Mutilated Coupons. 
 
 Withdrawal of Bonds to secure Deposits. 
 
 Withdrawal of Bonds to secure Circulation. 
 Disbursing ( )fficers Checks. 
 
 Duplicates. 
 
 Pension Checks, (90 day limit). 
 Post Office Warrants. 
 
 Duplicates. 
 
National Banks. 
 
 Number in Operation. 
 
 The Organization of a National Bank. 
 
 Reserve Cities. 
 
 Lawful Money Reserve. 
 
 Place for Redemption of Circulation. 
 
 Additional Reserve Cities. 
 
 Central Reserve Cities. 
 
 List of Reserve Cities. 
 National Bank Examiners. 
 
 Appointment, Powers and Duties. 
 
 Compensation. 
 Semi-Annual Duty on Circulation. 
 
 Duty. 
 
 Return. 
 
 How to ascertain Duty. 
 
 "Notes in Circulation." 
 
 Opinion of Attorney-General. 
 
 New Banks. 
 
 Banks in Liquidation. 
 
 Payment of Duty. 
 Amount Collected from Banks by Semi-Annual Duty. 
 National Bank Redemption Agency. 
 
 History. 
 
 Duties. 
 
 Expenses, how paid. 
 National Bank Notes. 
 
 Lost or Stolen. 
 
 Manufacture and Issue. 
 
 Redemption and Destruction. 
 
 Bureau of Engraving and Printing. 
 Engraving and Printing. 
 
 Comptroller of the Currency. 
 Issue of Notes. 
 
 Treasurer of the United States. 
 Redemption of Notes. 
 
 Comptroller of the Currency. 
 
 Redemption of Notes. 
 
 Committee. 
 
 Destruction of Notes. 
 National Bank Depositaries. 
 
 Applications for Designation. 
 
 Regulations. 
 
 Functions, 
 
 Service rendered to Government. 
 
 Number, and Bonds held. 
 
6 
 
 United States Paper Currency. 
 
 Manufacture, Issue, Redemption, and Destruction. 
 Secretary (f the Treasury. 
 
 Government Paper Mill. 
 
 Distinctive Paper. 
 Bureau of Engraving and Printing. 
 
 Engraving and Printing Sheet Cunency. 
 Treasurer of the United States. 
 
 Sealing and Separating Sheet Currency. 
 
 I^sue of Notes. 
 
 Redemption of Notes. 
 Secretary of the Treasury. 
 
 Re-Count of Redeemed Notes. 
 Register of the Treasury. 
 
 Re-Count of Redeemed Notes. 
 Committee. 
 
 Destruction of Notes by Maceration. 
 
 Advice as to Official Mail. 
 
 Annual Reports of Fmancial Officers. 
 
 Public Debt Statements. 
 
 Resumption of Specie Payments. 
 
 List of Sub-Treasuries, Mints, and Assay Offices. 
 
 Exemption of United States Bonds from Taxation. 
 
 Taxation of National Bank Notes and Treasur\' Notes. 
 
 United States Mint Tests for Gold and Silver Coins. 
 
 Conscience Fund. 
 
 Values of Foreign Coins. 
 
 Columbian Half Dollars. 
 
 ("olumbian ("Isabella") Quarters. 
 
 Revenues and Expenditures of Government. 
 
 Contents of Vaults in U. S. Treasurer's Office. 
 
 Amount of Money in Circulation. 
 
 Per Capita Circulation. 
 
 Population of the United States, (January i, 1895). 
 
 Methods in the l^rection of a Public Building. 
 
 Continental Currency. 
 
 History. 
 
 Why not redeemable. 
 
 Counterfeiting. 
 
 Decision of Comptroller. 
 
 Eegal Tender Qualities. 
 Fessendcn on " P'inance." 
 The Wiles of " Green Goods" Men. 
 P.cmiums on Coins, (non paid by Government). 
 State Bank Notes, (not redeemed b)' Government). 
 Confederate Notes, (not redeemed by Government). 
 Gold Coins Minted by IVivate Parties. 
 Origin of the Dollar Mark {$). 
 
HISTORY OF THE TREASURY DEPARTMENT. 
 
 GERM: The germ of the Treasury department was planted July 
 -9. 1/75 (Journals of Congress, vol. i, p. 173) when by a resolution of 
 Congress, the mana<j^ement of the finances was intrusted to two Treas- 
 urers. BOARD OF TREASURY: By resolution of February 17, 
 1776 (Ibid. vol. 2, p. 66), a standing committee of five was appointed 
 for superintending the Treasury (known as the Committee on Finance, 
 or Board of Treasury). There was but little change in the character of 
 the Department until 1779. SECRETARY OF THE TREASURY: 
 On February 11. 1779 (Ibid. vol. 5, p. 51), Congress resolved "That a 
 Secretary of the Treasury be appointed," and on May 29, 1779 (Ibid, 
 p. 234), Robert Troup was elected " Secretary to the Board of Treasury." 
 
 On July 30, 1779 (Ibid. p. 301), 
 Congress agreed to an "Ordinance 
 for establishing a board of treas- 
 ury." The Board was to consist 
 of five members as heretofore, but 
 there was a reorganization as to 
 methods, functions and personnel. 
 SUPERINTENDENT OF FI- 
 NANCE: On February 20, 1781 
 (Ibid. vol. 7, p. 31), Robert Morris 
 was elected by Congress as Super- 
 intendent of Finance. Congress 
 vested the office with powers simi- 
 lar to those now held by the Sec- 
 retary of the Treasury (Ibid. p. 31 
 et sequitiw). BOARD OF TREAS- 
 URY: Robert Morris, Superin- 
 tendent of Finance, having signi- 
 fied his intention of retiring from 
 said office (Ibid. vol. 9, p. 251) 
 Congress resolved on May 28, 
 1784, that a Board consisting of 
 three commissioners be appointed 
 to superintend the Treasury and 
 States, which shall be styled The 
 The Finance Department of the 
 
 Wir.I.ARD I'OKKSTKK WARNKR. 
 
 manage the finances of the United 
 Board of Treasury" (Ibid. p. 255) 
 
 Government was managed by CommisMoners until 1789, when the Con 
 gress created a Treasury Department. TREASURY DEPARTMENT 
 ESTABLISHED: By the Act of September 2. 1789 (i Stat, p. 65). 
 the Treasury Dei^artment was established. This act provided for a 
 Secretary of the Treasury, an Assistant to the Secretary of the Treasury, 
 a Comptroller, an Auditor, a Treasurer and a Register. 
 
 SEAL OF TREASURY DEPARTMENT. 
 
 On September 26. 1778, the Continental Congress resolved "That 
 a committee of three be appointed to prepare a seal for the treasury and 
 for the navy ; the members chosen were Mr. Witherspoon, Mr. G. 
 
THE U. S. TREASURY, AVASHINGTON, D. C. 
 
 South-west (Maiii) Front. 
 
 Morris, and Mr. R. H. Lee " (Journals of Congress No. 4 p. 567). The 
 Navy at that time was under the jurisdiction of the Board of Admiralty, 
 and the Treasury under that of the Committee on Finance, or Board of 
 Treasury. 
 
 The said committee made a report as to the device for a seal for the 
 Navy, but no record can be found of a report for the Treasury. A seal, 
 however, was adopted, impressions of which may be found on original 
 papers now in the files of the Office of the Register of the Treasury. 
 Some minor changes have been made from time to time, but the seal 
 adopted was substantially the same in device and legend as the seal of 
 the Treasury Department at this day. 
 
 It may be interesting to state in this connection that Mr. Edward 
 Stabler, of Sandy Springs, Montgomery County, Maryland (who was 
 said to be one of the foremost die-sinkers and seal engravers of that 
 period) was commissioned in 1849 to make a fac-simile of the original 
 seal, which was nearly worn out. Mr. Stabler suggested some minor 
 changes as improvements, but was informed that the design must be 
 copied exactly "In accordance with the law." Diligent efforts have been 
 made by numerous interested parties to locate the law referred to, but 
 so far as 1 am informed, without avail. 
 
 The legend on the Treasury Department Seal is " Thesaur. Amer. 
 Septent. Sigil.," being an abbreviation of the Latin sentence: "Thesauri 
 
Americana Septentrionis Si\^illuni," meaning, The Seal of the Treasury 
 of North America. The inference drawn from the history of tliose times 
 would be that, in the event of success by the Colonies, the whole of 
 North America would be represented by the symbol. 
 
 THE SECRETARY OF THE TREASURY. 
 
 The Secretary of the Treasury is charged by law with the manage- 
 ment of the national finances. He prepares plans for the improvement 
 of the revenue and for the support of the public credit; superintends the 
 collection of the revenue, and prescribes the forms of keeping and render- 
 ing public accounts and of making returns; grants warrants for all 
 moneys drawn from the Treasury in pursuance of appropriations made 
 by law, and for the payment of moneys into the Treasury; and annually 
 submits to Congress estimates of the probable revenues and disburse- 
 ments of the Government. He also controls the construction of public 
 buildings; the coinage and printing of money ; the collection of statistics; 
 the administration of the coast and geodetic survey, life-saving, light- 
 house, revenue-cutter, steamboat-inspection, and marine-hospital branches 
 of the public service, and furnishes generally such information as may be 
 required by either branch of Congress on all matters pertaining to the 
 foregoing. The routine work of the Secretary's office is transacted in 
 
 the offices of 
 the Supervis- 
 ing Architect, 
 Director of 
 the Mint, 
 Chief of Bu- 
 reau of En- 
 graving and 
 Printing, Su- 
 perx'ising Sur- 
 geon -General 
 of Marine 
 H o s pi tals. 
 General Su- 
 perintendent 
 cifLife-Saving 
 Service, Su- 
 pervising In- 
 spector - Gen- 
 eral of Steam 
 Vessels, Bu- 
 reau of Statis- 
 tics, Light - 
 House Board, 
 and in the 
 following 
 d i \' i s i o n s : 
 
 i:.\..sll RUDM V.MI.r IKl-.ASrRY IJICI'.^RTMKNT 
 
lO 
 
 CAPTAIN OF THE WATCH. 
 
 MAIN CORRIDOR TREASURY BUILDING. 
 
 Book- keep- 
 ing and War- 
 ran t.s; Ap- 
 pointments; 
 C u s t o m s ; 
 Public Mon- 
 eys ; Loans 
 and Currency; 
 Revenue Cut- 
 ter ; Station- 
 ery, Printing, 
 and Blanks ; 
 Mails and 
 Files ; Special 
 Agents; and 
 Miscella- 
 neous. 
 
 SUPERVISING ARCHITECT. 
 
 This officer is charged with the following duties: The preparation 
 and duplication of plans for public buildings, the construction of the 
 same, and with the repairs and preservation of such buildings, including 
 marine-hospitals, the supply of heating apparatus, elevators, vaults, safes, 
 locks, etc., therefore. 
 
 THE DIRECTOR OF THE MINT. 
 
 The Director of the Mint has general supervision of all the mints 
 and assay offices of the United States. He prescribes rules, to be 
 approved by the Secretary of the Treasury, for the transaction of busi- 
 ness at the mints and assay offices. He regulates the distribution of 
 silver coin and the charges to be collected of depositors. He receives 
 for adjustment the accounts of the mints and assay offices, superintends 
 their expenditures and annual settlements, and makes special examina- 
 tion of them 
 when deemed 
 
 necessary. All 
 appointments, 
 removals, a n d 
 transfers in iht 
 mints and assay 
 offices are sub- 
 ject to his ap- 
 proval. Th f 
 purchase of sil 
 vcr bullion ai 
 the allotment < i 
 its coinage an 
 made b y t h c 
 
 Ki;i)i:.\ii'ii()\ DIVISION' lU. s rRi;.\srKNi. 
 
 KNUi: I'oR cui ri.\(. ki;i)i;i;.mi;d notics i.n ii.m.vics. 
 
1 1 
 
 CASH ROOM. 
 PREPARING CVRRENCY FOR SHIPMENT (TREASURY DEPT. ) 
 
 Director, and, 
 
 at his recjuest, 
 
 also transfers of 
 
 the moneys in 
 
 the mints and 
 
 I'i assay offices, and 
 
 |. advances f r o m 
 
 ippropriations 
 
 or the mint 
 
 service. 
 
 Tests of the 
 weight and fine- 
 ness of coins 
 struck at the 
 mints are made 
 in the assay lab- 
 oratory under his charge. The values of the standard coins of foreign 
 countries are annually estimated for custom-house and other public 
 purposes. Two annual reports are prepared by the Director, one for 
 the fiscal year, and printed in the Finance Report of the Secretary of the 
 Treasury, the other for the calendar year, on the statistics of the pro- 
 duction of the precious metals. 
 
 CHIEF OF BUREAU OF ENGRAVING AND PRINTING. 
 
 DUTIES. The functions of the Bureau consist in the engraving 
 and printing and otherwise preparing the United States currency, certifi- 
 cates of deposit, bonds, national currency, checks, miscellaneous drafts 
 and warrant>^. internal revenue stamp-^, custom stamps and postage stamps. 
 
 SUPERVISING SURGEON-GENERAL MARINE 
 HOSPITAL SERVICE. 
 The Supervi-ing Sur- 
 geon-General is charged 
 with the supervision of 
 the marine hospitals and 
 other relief stations <^f 
 the service,and the care 
 of sick and disabled 
 seamen taken from the 
 merchant vessels of the 
 United States (ocean, 
 lake and river), and from 
 the vessels of the Rev- 
 enue, Marine and Ligh.- 
 House Services. This 
 supervision includes the 
 purveying of medical 
 and other supplies, ihe 
 
 assignment Oiand orders SepimtinK ami trimminsr I'. S. Notes (received in sheets of 
 
 f/-. t-nori;/-'il /-.ffiz-ot-o fU^ .1 notes from Unreal! of Kiisiraviug and Printing) in Issne Division 
 
 Lo iiieuicdi oiiicers, ine |- c; -i.^^..,,,,^^. ,)0-,j,j. 
 
1 2 
 
 examination of requisitions, vouchers and property returns, and all 
 matters pertaininq^ to the service. Under his direction all applicants for 
 pilot's licenses are examined for the detection of color-blindness. Ordin- 
 ary seamen, on request of a master or agent, are examined physically to 
 determine their fitness before shipment, and a like examination is made 
 of the candidates for admission to the Revenue Marine Service and can- 
 didates for appointment as surfmen in the United States Life-Saving 
 Service. He examines also and passes upon the medical certificates of 
 claimants for pensions under the laws of the Life-Saving Service. Under 
 the act of April 29, 1878, he is charged with the framing of regulations 
 for the prevention of the introduction of contagious diseases and the 
 prevention of their spread; and under the act of August i, 1888, he is 
 charged with the conduct of the quarantine service of the United States. 
 He has the direction of laboratories established to investigate the cause 
 of contagious diseases, and publishes each week an abstract of sanitary 
 reports received from all parts of the United States and (through the 
 State Department) from all foreign countries. Under the law of March 
 28, 1890, known as the Inter- 
 state quarantine law, he is 
 charged with preparing the rules 
 and regulations, under direction 
 of the Secretary of the Treasury, 
 necessary to prevent the intro- 
 duction of certain contagious 
 diseases from one State to 
 another, and he has also super- 
 vision of the medical inspection 
 of alien immigrants, which under 
 the law of March 3, 1891, is 
 conducted by the medical officers 
 of the Marine Hospital Service. 
 
 GENERAL SUPERINTEN- 
 DENT OF THE LIFE- 
 SAVING SERVICE. 
 
 It is the duty of the General 
 Superintendent to supervise the 
 organization and government of 
 the employes of the service ; to 
 prepare and revise regulations 
 therefor as may be necessary ; 
 to fix the number and compen- 
 sation of surfmen to be employed 
 at the several stations within the 
 provisions of law; to super- 
 vise the expenditure of all appro- 
 priations made for the support 
 and maintenance of the Life- 
 
 IIOXI) VAII.T. r. S. TKI-;.\.SIKHKS OI'I-ICK. 
 
 I!.ii:<ls lu-ld losi'cureci! dilation of National Hanks; 
 to sicuic (Uposits of public tnonc-vs witli National 
 Hank Depositories, anil to slcuii- triist funds ^ Mi.scel- 
 lani-ons i. 
 
13 
 
 Saving Service ; to examine the accounts of disbursements of the district 
 superintendents, and to certify the same to the accounting officers of the 
 Treasury Department ; to examine the property returns of the keepers 
 of the several stations, and see that all public property thereto belonging 
 is properly accounted for ; to acquaint himself, as far as practicable, 
 with all means employed in foreign countries which may seem to advan- 
 tageously affect the interest of the service, and to cause to be properly 
 investigated all plans, devices and inventions for the improvement of life- 
 saving apparatus for use at the stations which may appear to be meritor- 
 ious and available; to exercise supervision over the selection of sites for 
 new stations the establishment of which may be authorized by law, or 
 for old ones the removal of which may be made necessary by the 
 encroachment of the sea or by other causes; to prepare and submit to 
 
 the Secretary 
 of the Treas- 
 ury estimates 
 for the sup- 
 port o f t h e 
 service ; t o 
 collect and 
 compile the 
 statistics of 
 marine disas- 
 ters; to collect 
 and compile 
 the statistics 
 of marine dis- 
 asters c o n - 
 templated by 
 the act of June 
 20, 1874, and 
 to submit to 
 the Secretary 
 of the Treas- 
 ury, for trans- 
 mission to Congress, an annual report of the expenditures of the mone>s 
 appropriated for the maintenance of the Life-Saving Service, and of the 
 operations of said service during the year. 
 
 INTERIOR OI' CASH ROOM iTRKASlRV DKI'ARTMi;XT). 
 
 SUPERVISING INSPECTOR-GENERAL OF STP:AM VESSELS. 
 
 The .Supervising Inspector-General superintends the administration 
 of the steamboat inspection laws, presides at the meeting of the Board 
 of Supervising Inspectors, receives all reports, and examines all accounts 
 of inspectors. The Board of Supervising Inspectors meets in Washing- 
 ton annually, on the third Wednesday in January, to establish regulations 
 for carrying out the provisions of the steamboat inspection laws. 
 
 BUREAU OF STATISTICS. 
 
 The Chief of the Bureau of Statistics collects and publishes the 
 statistics of our foreign commerce, embracing tables showing the imports 
 
14 
 
 : 
 
 
 t 
 
 
 ;>^^^^^^^K' 
 
 
 
 and exports, 
 respectively, 
 by countries 
 and customs 
 districts ; the 
 transit trade 
 inwards and 
 outwards b y 
 countries and 
 by customs 
 districts; im- 
 ported com- 
 m o d i t i e s 
 warehoused, 
 withdrawn 
 from, and re- 
 maining in 
 
 warehouse; the imports of merchandise entered for consumption, show- 
 ing quantity, value, rates of duty, and amounts of duty collected on 
 each article or class of articles; number of immigrants, their nationality, 
 occupation, etc., arriving from foreign coun tries, and the number of 
 passengers departing for foreign countries ; the inward and outward 
 movement in our foreign trade and the countries whence entered and 
 for which cleared, distinguishing the nationalities of the foreign vessels; 
 also special information in regard to our internal commerce. The publi- 
 cation of the Bureau are as follows; Annual Report on Commerce and 
 Navigation; Annual Report of Internal Commerce; Annual Statistical 
 Abstract of the United States; Quarter-yearly Reports on Commerce, 
 Navigation and Immigration; Monthly Summary Statements of Imports 
 and Exports; Monthly Reports of Exports of Breadstuffs, of Provisions, 
 of Petroleum, and Cotton; Monthly Reports of Total Values of Foreign 
 Commerce and Immigration. 
 
 REDEMPTION DIVISION ( r. S. TREASURY i. 
 Cauceling machine punching 4 holes (one in each corner) of redeemed notes 
 
 LIGHT HOUSE BOARD. 
 
 LIGHT IIOUSI-: ESTABLISHMENT 
 1789, it was pro- 
 vided that all 
 expense for the 
 support, main 
 tenance, and re- 
 pairs of light 
 houses, beacons, 
 buoys and pub- 
 lic piers, erected, 
 placed, or sunl< 
 before the pass- 
 ing of said Act, 
 should be de- 
 frayed out of the 
 Treasury of the 
 United States, 
 provided such 
 
 By the Act of August 7, 
 
 ^11-, 1)1\ l^lO.N 1 I 
 
 rRl-;.\M RV Ol-'FICK). 
 
 I';m])U>ye in charge of sealing V. S. paper currency ; 4,000 notes in each 
 package which is delivered to the Revenue Vault. 
 
15 
 
 lic^ht-houses, etc., should in the meantime be ceded to and vested in the 
 United States, by the State or States in which they were located, together 
 with the lands and tenements thereunto belonging, and together with 
 the jurisdiction of the same. By this Act the Secretary of the Treasury 
 was charged with the preparation of contracts for all materials and 
 supplies, said contracts to be approved by the President, and with the 
 fixing of the compensation of employes, to be appointed by the 
 President. 
 
 LIGHT-HOUSE BOARD: The Light-House Board was organ- 
 ized by the Act of August 31, 1852, which required it to make a plan 
 for the lighting of the coasts (ocean, lake and river) of the United 
 States. 
 
 This report was made and submitted to Congress, by which it was in 
 effect adopted. The plan provides, in brief, for lighting the whole coast- 
 lines of the United States, including those of the Atlantic and Pacific, 
 those of the lakes and of the larger rivers. " The President shall appoint 
 two officers of the Navy, of high rank, two officers of the Corps of 
 Engineers of the Army, and two civilians of high scientific attainments, 
 
 whose services may be at the 
 disposal of the President, together 
 with an officer of the Navy and 
 an officer of Engineers of the 
 Army, as secretaries, who shall 
 constitute the Light-House 
 Board (R. S. Sec. 4653), "The 
 Secretary of the Treasury shall 
 be cx-officio president of the 
 Light-House Board" (R. S. Sec. 
 4654). 
 
 DUTIES OF THE BOARD : 
 The Light-House Board, under 
 the superintendence of the Sec- 
 retary of the Treasury, discharges 
 all administrative duties relating 
 to: The construction, illumina- 
 tion, inspection, and superinten- 
 dence of light-houses, light-ves- 
 sels, beacons, buoys, sea-marks, 
 and their appendages, and embracing the security of foundation of works 
 already existing ; procuring illuminating and other apparatus, supplies 
 and materials of all kinds for building, and for rebuilding when neces- 
 sary, and keeping in good repair the light-houses, light-vessels, beacons 
 and buoys of the United States ; has charge and custody of all the 
 archives, books, documents, drawings, models, returns, apparatus, and 
 other things appertaining to the Light-House Establishment; and has 
 charge of the purchase of the necessary land for the erection of light- 
 houses, where the proper site does not belong to the United States, out 
 of the appropriations made. 
 
 The Atlantic coast-line is about 5,000 miles long, that of the Pacific 
 about 1,500, that of the lakes about 3,000, that of the rivers about 5,500 
 miles, making a total of about 15,000 miles. 
 
 ri-:di-;mi-ti()X i r 
 
 TKi-;.\.srRv 
 
 ' counter 
 
 ' enjiaged in the redemption of 
 mutilated currency. 
 
i6 
 SUPERINTENDENT OF IMMIGRATION. 
 
 The Superintendent of Immigration is charged with the duties, 
 under the control and supervision of the Secretary of the Treasury, of 
 enforcing the laws in relation to immigration. These laws are embraced 
 in the Acts of March 3, 1875, August 3, 1882, June 26, 1884, February 
 26, 1885, October 19, 1885, February 23, 1887, March 3, 1891, and 
 March 3, 1893. The office of Superintendent of Immigration was 
 created by section 7 of the Act of March 3, 1891. All inspection and 
 other officers in the immigration service are assigned to duty by the 
 Superintendent, their official duties and conduct are supervised by him, 
 and all correspondence between the Department and the officers in the 
 immigration service is conduced by the Superintendent. 
 
 Section 5 of the Act of March 3, 1893, provides that it shall be the 
 duty of every inspector of arriving alien immigrants to detain for a 
 special inquiry, under section i of the immigration act of March 3, 1891, 
 every person who may not appear to him to be clearly and beyond doubt 
 entitled to admission, and all special inquiries shall be conducted by not 
 less than four officials acting as inspectors, to be designated in writing 
 by the Secretary of the Treasury or the Superintendent of Immigration, 
 for conducting special inquiries, and no immigrant shall be admitted 
 upon special inquiry except after a favorable decision made by at least 
 three of said inspectors, and any decision to admit shall be subject to 
 appeal by any dissenting inspector to the Superintendent of Immigration, 
 whose action shall be subject to review by the Secretary of the Treasury, 
 as provided in section 8 of said immigration act of March 3, 1891. 
 When an appeal is thus taken to the Superintendent of Immigration he 
 will prepare and sign his decision in the case, and submit the same to 
 the Secretary, who will indicate thereon with his signature his approval 
 or disapproval. If the decision is approved it will be promulgated as 
 written; if disapproved it will be promulgated as revised. 
 
 Immigration inspectors under the alien contract-labor laws are 
 required, in connection with their regular duties, to render all assistance 
 in their power to the enforcement of the United States customs laws, and 
 to this end, whenever circumstances render this course practicable, they 
 are subject to the immediate authority of the respective collectors of 
 customs in the districts to which they are assigned. 
 
 THE COMMISSIONER OF NAVIGATION. 
 
 The Commissioner of Navigation is charged with general superin- 
 tcndcndcnce of the commercial marine and merchant seamen of the 
 United States, except so far as supervision is lodged with other officers 
 of the Government. He is specially charged with the decision of all 
 (|uestions relating to the issue of re^^isters, enrollments, and licenses of 
 vessels and the filling of those documents, with the supervision of laws 
 relating to the admeasurement, letters and numbers of vessels, and with 
 the final decision of (|uestions concerning the collection and refund of 
 tonnage taxes. He is emjiowered to change the names of vessels, pre- 
 pares annually a list of vessels in the United States, and reports annually 
 to the Secretary of the Treasury the operations of the laws relative to 
 navi<ration. 
 
17 
 
 TIIK SUPERINTENDENT OF THE COAST AND 
 GEODETIC SURVEY. 
 
 The Coast and Geodetic Survey is charged with the survey of the 
 Atlantic. Gulf, and Pacific coasts of the United States, including the 
 coasts of Alaska; the survey of rivers to the head of tide-water or ship 
 navigation; deep-sea soundings, temperature and current observations 
 along the said coasts and throughout the Gulf Stream and Japan Stream 
 flowing off from them; magnetic observations and gravity research; 
 determinations of heights by geodetic leveling, and of geographical posi- 
 tions by lines of trans-continental triangulation, which, with other connect- 
 ing triangulations and obser- 
 vations for latitude, longitude, 
 and azimuth, furnish points of 
 reference for State surveys and 
 connect the work on the Atlan- 
 tic coast with that on the 
 Pacific. Results of the survey 
 are published in the form of 
 annual reports, which include 
 professional papers of value; 
 bulletins which give informa- 
 tion deemed important for 
 immediatepublicaticn; notices 
 to mariners, issued monthly; 
 tide tables, issued annually; 
 charts upon various scales, 
 including harbor charts, gen- 
 eral charts of the coast, and 
 sailingcharts; chart catalogues 
 and Coast Pilots. 
 
 J. A. thatchicr. 
 
 Prksiuent Dk.nvkr Xatidnai. Hank. Dknvkr. Co 
 
 SECRET SERVICE 
 DIVISION. 
 
 This Division is charged 
 with the following duties: 
 The suppression of counter- 
 feiting the obligations and 
 coins of the Government ; the 
 suppression of the production 
 or sale of all articles in imitation of the obligations or coins of the Gov- 
 ernment; investigation of all suspected fraudulent claims of back pay and 
 bounty for the Auditor for the War Department; investigation of all 
 suspected fraudulent or excessive claims for reimbursement of expenses 
 incurred in last sickness and burial of pensioners for the Auditor for the 
 interior Department; investigating alleged frauds in seamen's back pay, 
 bounty, and prize money for the Auditor for the Navy Department, and 
 miscellaneous work relating to robbery and embezzlement of public 
 funds. 
 
i8 
 
 THE COMPTROLLER OE THE TREASURY. 
 
 The Act of July 31, 1894, reorganizing the accounting offices of the 
 Government, abolished the office of Second Comptroller of the Treasury 
 and the Commissioner of Customs, and provided that hereafter the First 
 Comptroller shall be known as the Comptroller of the Treasury. The 
 Comptroller is not charged with the duty of revising accounts, except 
 upon appeal from the settlements made by the Auditors, an apptal to be 
 taken within one year by either the claimant, the head of the Department 
 interested, or by the Comptroller himself. Upon the request of a dis- 
 bursing officer, or the head of a Department, the Comptroller is required 
 to give his decision upon the validity of a payment to be made, which 
 decision, when rendered, shall govern the Auditors ar.d the Compti oiler 
 in the settle-ment of the account involving payment; to approve, disap- 
 prove, or modify all decisions made by the Auditois making an original 
 construction, or modifying an existing construction of statutes, and to 
 certify his action to the Auditor. He shall transmit all decisions made 
 by him forthwith to the Auditor or Auditors whose duties are affected 
 thereby. By the regulations of the Department the Comptroller passes 
 upon the sufficiency of authorities to indorse drafts and receive and le- 
 ceipt for money from the Government, upon the evidence presented in 
 applications for duplicates or lost or destroyed United States bonds, 
 drafts, checks, etc. The forms of keeping and rendering all public ac- 
 counts (except those relating to the postal service), the recovery of debts 
 certified by the Auditors to be due the United States, and the preseiva- 
 tion, with their vouchers and certificates, of accounts finally adjusted, 
 are under the direction of the Comptroller. Upon revision of accounts, 
 appealed from the several Auditors to the Comptroller, his decision upon 
 such revision is final and conclusix e upon the executive branch of the 
 Government. 
 
 AUDITOR FOR THE TREASURY DEPARTMENT. 
 
 The Auditt)r for the Treasury Department receives and examines 
 all accounts of salaries and incidental expenses of the office of the Secre- 
 tary of the Treasury and all bureaus and offices under his direction. 
 All accounts relating to the customs service, public debt, internal revenue. 
 Treasurer and Assistant Treasurers, mints and assay offices, Bureau of 
 lingraving and Printing, Coast and Geodetic Survey, Revenue-Cutter 
 Service, Life Saving Service, Light House Board, Marine Hospital, 
 Public Buildings, Steam-boat-inspection Service, Immigration Service, 
 Bureau of Navigati< n. Secret Service, Alaskan Fur- Seal P'lsheries, and 
 all other business within the jurisdiction of the Department of the 
 Treasury, and certifies the balances arising thereon to the Division of 
 Bookkeeping and Warrants. 
 
 AUDITORS FOR THE WAR DEPARTMENT. 
 
 The Auditor for the War Department receives and examines all 
 accounts of salaries and incidental expenses of the office of the Secretary 
 of War and all bureaus and offices under his direction, all accounts 
 
19 
 
 relating to the military establishment, armories and arsenals, national 
 cemeteries, fortifications, public buildings and grounds under the Ciuef of 
 Engineers, rivers and harbors, the Military Academy, and to all other 
 business within the jurisdiction of the Department of War, and certifies 
 the balances arising thereon to the Division of Bookkeeping and War- 
 rants, and sends a coj^y of each certificate to the Secretary of War. This 
 office is not located in the Treasury Department, but in the " Winder 
 Building" near the W'ar Department as a matter of convenience. 
 
 THE AUDITOR FOR THE INTERIOR DEPARTMENT. 
 
 CH.\RIJ'.S \V.\RREN. 
 C.AsniKR .\.mi;kican Natio.vai. Bank, I.Dfisvii.i.i:, Kv. 
 
 The Auditor for the 
 Interior Department 
 shall receive and 
 examine all accounts 
 of salaries and inci- 
 dental expenses of the 
 office of the Secre- 
 tary of the Interior, 
 and of all bureaus and 
 offices under his direc- 
 tion, and all accounts 
 relating to Army and 
 Navy pensions. Geo- 
 logical Survey, public 
 lands, Indians, Archi- 
 tect of the Capitol, 
 patents, census, and to 
 a 1 1 other business 
 within the jurisdiction 
 of the Department of 
 the Interior, and cer- 
 tify the balances aris- 
 ing thereon to the 
 Division of Bookkeep- 
 ing and Warrants, and 
 send fo'thwith a copy 
 of each certificate to 
 the Secretary of the 
 In'erior " 
 
 THE AUDirOR FOR THE NAVY DEPARTMENT. 
 
 The Auditor for the Navy Department examines and settles all 
 accounts of the Navy Department, including the office of the Secretary 
 of the Navy, and all offices and bureaus under his direction, certifying 
 the balances arising thereon tn the Secretary of the Treasury (Division 
 of Bookkeeping and Warrants), .^ending a copy of each certificate to the 
 Secretary of the Nav)-. 
 
20 
 
 THE AUDITOR FOR THE STATE AND 
 OTHER DEPARTMENTS. 
 
 The Auditor for the State and other Departments receives, exam- 
 ines and certifies the balances arising thereon to the Division of Book- 
 keeping and Warrants all accounts of salaries and incidental expenses of 
 the offices of the Secretary of State, the Attorney-General, and the Sec- 
 retary of Agriculture, and of all bureaus and offices under their direc- 
 tion; all accounts relating to all other business within the jurisdiction of 
 the Department of State, Justice and Agriculture; all accounts relating 
 to the diplomatic and consular service, the judiciary. United States 
 courts, judgments of the United States courts. Executive Office, Civil 
 Service Commission, Interstate Commerce Conmiission, Depaitment of 
 Labor, District of Columbia, Fi.>-h Commission, Court of Claims and its 
 judgments, Smithsonian Institution, Territorial governments, the Senate, 
 the House of Representatives, the Public Printer, Library of Congress, 
 Botanic Garden, and accounts of all boards, commissions, and establish- 
 ments of the Government not wiihin the jurisdiction of any of the Exec- 
 utive Departments. He also examines and approves or disapproves all 
 requisitions for advances of money made by all persons authorized to do 
 so in any of the above-named Departments, commissions or establish- 
 ments. 
 
 THE AUDITOR FOR THE POST-OFFICE DEPARTMENT. 
 
 The Auditor for the Post-Office Department examines and adjusts 
 all accounts relating to the postal service, and his decisions on these are 
 final, unless an appeal be taken in twelve months to the Comptroller. 
 He superintends the collection of all debts due the United States for the 
 service of the Post-Office Department, and all penalties imposed; directs 
 suits and all legal proceedings in civil actions, and takes all legal means 
 to enforce the payment of money due the United States for the service 
 of the Post-Office Department. This office is not located in the Treasury 
 Department, but in the Post-Ofiice Department, as a matter of con- 
 venience. 
 
 THE TREASURER OF THE UNITED STATES. 
 
 The Treasurer of the United States is cliargcd with the receipt and 
 disbursement of all public moneys that may be deposited in the Treasury 
 at Washington and the sub-treasuries at Boston, New York,Philadtrli)hia, 
 Baltimore, New Orleans, San Francisco, St. Louis, Chicago and Cin- 
 cinnati, and in the national-bank United States depositaries; is trustee 
 for bonds held to .secure national-bank circulation and public deposits 
 in national banks; is custodian of Indian trust-fund bonds; is agent for 
 ])<iying the interest on the public debt, and ex-officio commissioner of 
 the sinking fund of the District of Columbia. The Treasury sub-divi- 
 sions are: 
 
 CHIEF" CLl^RK — Receives and distributes the official mail; has 
 charge of the correspondence and the disposition and payment of the 
 
21 
 
 clerical force, and the custody of the records and files ; and the issue of 
 duplicate checks and drafts. 
 
 CASH DIX'ISION — For receipt and payment of public funds at 
 Washington. 
 
 ISSUE DIVISION — Completion of new United States notes, gold 
 and silver certificates, and count of silver, gold and minor coin. 
 
 REDEMPTION DIMSION— All currency except national-bank 
 notes received and redeemed. 
 
 LOAN DIX^ISION — Interest checks prepared and bonds redeemed. 
 ACCOUNTS DIVISION— The accounts of the Treasury, the sub- 
 treasuries, and the United States national-bank depositaries are kept. 
 
 NATIONAL BANK 
 DIVISION— Has custody 
 of bonds held for national 
 bank circulation, for public 
 deposits, and various public 
 trusts, and makes collec- 
 tion of semi-annual duty. 
 
 «»&^- '^■■k NATIONAL BANK 
 
 «»»ft<r *^v^ REDEMPTION AGEN- 
 
 CY — Notes of national 
 banks are redeemed and 
 accounted for. 
 
 THE REGISTER OF 
 THE TREASURY. 
 
 The Register of the 
 Treasury signs and issues 
 all bonds and sends to the 
 Treasurer of the United 
 States schedules .showing 
 the names of persons en- 
 titled to receive interest 
 thereon. He examines and 
 registers redeemed bonds, 
 paid interest coupons, inter- 
 cut checks and interest 
 bearing notes, legal tenders 
 and fractional currency. 
 
 Prksidk.nt Statk Savi.vc.s Bank. Dktroit. Mich. 
 
 THE COMPTROLLER OF THE CURRENCY. 
 
 The Comptroller of the Currency has, under the direction of the 
 Secretary of the Treasury, the control of the national banks. The 
 divisions of this Bureau are: 
 
 ORGANIZATION DIXTSIOX- The organization of national 
 banks. 
 
 ISSUE DIVISION — The prejjaration and issue of national-bank 
 circulation. 
 
22 
 
 REPORTS DIVISION — Examination and consolidation of the 
 report of national banks. 
 
 REDEMPTION DIVISION — The redemption and destruction of 
 notes issued by national banks. 
 
 THE COMMISSIONER OF INTERNAL REVENUE. 
 
 The Commissioner makes assessment of. and has general superin- 
 tendence of the collection of all internal revenue taxes; employment of 
 internal revenue agents; compensation and duties of gaugers, store- 
 keepers, and other subordinate officers; the preparation and distribution 
 of stamps, instructions, regulations, forms, blanks, hydrometers, station- 
 ery, etc.; and analysis of foods and drugs in the District of Columbia, 
 and payment of bounty on sugar. 
 
 THE SOLICITOR. 
 
 The Solicitor of the Treasury takes cognizance of all frauds or 
 attempted frauds on the customs revenue. He is charged by law with 
 duties regarding the compromise of debts and with a supervision over suits 
 for the collection of moneys due the United States, excepting those due 
 under internal revenue laws. His approval is required of official bonds 
 of United States Assistant Treasurers, Department disbursing clerks, 
 collectors of internal revenue, the Secretary and the Chief Clerk of 
 the Department of Agriculture. As the law officer of the Treasury 
 Department many matters are referred to him for his examination and 
 opinion arising under the customs, navigation, banking, and registry 
 laws, and in the administration of the Department. He is also charged 
 by law with the supervision of suits and proceedings aiisirg out of the 
 provisions of law governing national banking associations in which the 
 United States and any of its agents or officers are parties ; ;.lso. with the 
 charge, release, and sale of lands acquired in payment of debt, excepting 
 those acquired under internal revenue laws. 
 
 (NOTE : — The Solicitor of the Treasury is not an officer of the 
 Treasury Department, but of the Department of Justice. As his 
 functions pertain to the Treasury Department the office is located there- 
 in as a matter of convenience.) 
 
 SOLICITOR OF INTERNAL REVENUE. 
 
 The Act of July 13, 1866, ([4 Stat., p. 170), created the office of 
 Solicitor of Internal Revenue, as a part of the corps of the Internal 
 Revenue Office, but by the Act of June 22, 1870, (16 Stat, p. 162), 
 organizing the Department of Justice, the Solicitor was formally tras- 
 ferred to that Department. Although an officer of the Department of 
 Justice his office is located in the Treasury Department, as a matter of 
 convenience, his duties being intimately connected, as the title indicates, 
 witii I he office of the Commissioner of Internal Revenue. 
 
 DUTIES OF THE SOLICITOR :— He is the law officer and law 
 adviser of the Commissioner of Internal Revenue. He is charged with 
 
23 
 
 duties of a miscellaneous nature involving advice upon points of law, 
 but his principal functions, as defined by law, are in connection with 
 comprise cases, as follows : " The Commissioner of Internal Revenue, 
 with the advice and consent of the Secretary of the Treasury, may 
 compromise any civil or criminal case arising under the internal revenue 
 laws instead of commencing suit thereon ; and, with the advice and 
 consent of the said Secretary and the recommendation of the Attorney- 
 General, he may compromise any such case after a suit thereon 
 has been commenced. Whenever a compromise is made in 
 
 any case there shall 
 be placed on file in 
 the ofifice of the 
 Commissioner the 
 opinion of the 
 Solicitor of Inter- 
 nal Revenue, or 
 of the officer act- 
 ing as such, with 
 his reasons there- 
 for with a state- 
 ment of the 
 amount of tax as- 
 sessed, the amount 
 of additional tax 
 or penalty imposed 
 by law in conse- 
 quence of the neg- 
 lect ordelinquency 
 of the pers o n 
 against whom the 
 tax is assessed,and 
 the amount act- 
 ually paid in ac- 
 cordance with the 
 terms of the com- 
 promise." (Re- 
 vised Statute, Sec- 
 .\. c. joBEs. tion 3229). 
 
 Cashikk Kansas National Bank. Wiciiit.\. Kans.\s. 
 
 HISTORY OF THE OFFICE OF TREASURER OF THE 
 UNITED STATES. 
 
 JOINT TREASURERS (CONTINENTAL). Under date of 
 July 29, 1775, (Journals of Congress, vol. r, p. 173), it was resolved 
 "That Michael Hillegas and George Clymer, Esqrs., ht Joint Treasjircrs 
 of the United Colonies. By the same resolution (Ibid., p. 174), they 
 were styled Continental Treasunrs. CONTINENTAL TREASU Rl^R : 
 Under date of August 6, 1776. (Ibid., vol. 2, p. 299), it was lesolved 
 that for future there be only one Continental Treasurer, Mr. G. Clymer. 
 
24 
 
 one of the joint Treasurers, being appointed a delegate to Congress by 
 the Convention of Pennsylvania. TREASURER OF THE UNITED 
 STATES: By the resolution of September 6, 1777, (Ibid., vol. 3, p. 301), 
 additional compensation was "allowed to Michael Hillegas, Esq., 
 Treasurer of the United States, from the 6th day of August, 1776, when 
 Mr. Clymer resigned the office of joint Treasurer." On March 22, 
 1785, (Ibid., vol. 10, p. 96), mention is made of Michael Hillegas, 
 Esquire, Continental Treasurer!' 
 
 Mr. Hillegas held the office of Treasurer continuously from July 29, 
 1775, to September 11, 1789. The first entry to be found on the 
 records in the office of the Register of the Treasury is under date of 
 April 16, 1776, (see "Waste-Book). The last entry on the original 
 ledger accounts, also in the Office of the Register, prior to the date of 
 the commission of Mr. Meredith, is under date of August 28, 1789. 
 
 TREASURY DEPARTMENT ESTABLISHED. — THE 
 TREASURER— By the act of September 2, 1789, ([ Stat, p. 65). the 
 Treasury Department was established. It was provided that, among 
 other officers, there should be a Treasurer. The first incumbent under 
 said act was Samuel Meredith, whose commission bore the date of 
 September 1 1, 1789, (see U. S. Treasury Register). 
 
 ISSUE AND REDEMPTION OF CURRENCY. 
 
 (Based upon Treasury Department circular No. 162 of Novem- 
 ber I, 1894). 
 
 The following regulations govern the issue, redemption, and ex- 
 change of the paper currency and the gold, silver, and minor coins of 
 the United States and the redemption of national bank notes by the 
 Treasurer of the United States : 
 
 ISSUE OF UNITED STATES PAPER CURRENCY. The 
 Treasurer will forward new United States notes. Treasury notes of 1890, 
 or silver certificates, by express, at the expense of the consignee, at 
 Government contract rates, or by registered mail, registration free, at 
 the risk of the consignee, in return for such notes or certificates unfit 
 for circulation, national bank notes, fractional silver coin, or minor coin, 
 received for redemption. 
 
 Silver certificates are issued by the Treasurer or Assistant Treasurers 
 upon a dejiosit of standard silver dollars. 
 
 ISSUE OF GOLD COIN. Gold coin is issued in redemption of 
 United States notes, in sums not less than ^50, by the Assistant Treas- 
 urers in New York and San Francisco, and in redemption of Treasury 
 notes of 1890, in like sums, by the Treasurer and all the Assistant 
 Treasurers. 
 
 ISSUE OF STANDARD SIL\1:R DOLLARS. Standard 
 silver dollars are issued by the Treasurer and Assistant Treasurers in 
 redemption of silver certificates and Treasury notes of 1890. and are 
 sent by express, at the expense of the Government, in sums or multiples 
 of $500, for silver certificates or Treasury notes of 1890 deposited with 
 the Treasurer or any Assistant Treasurer. 
 
25 
 
 ISSUE OF FRACTIONAL SILVER COIN. Upon the deposit 
 of an equivalent sum in United States currency or national bank notes 
 with the Treasurer or any Assistant Treasurer or national bank deposi- 
 tary, fractional silver coin will be paid in any amount by the Treasurer 
 or Assistant Treasurers in the cities where their several officers are, or 
 will be sent by express, in sums of $200 or more, at the expense of the 
 Government, or by registered mail, at the risk of the consignee, in 
 packages of ;^50, registration free, from the most convenient Treasury 
 office, to the order of the depositor. For this purpose drafts may be 
 sent to the Treasurer or the Assistant Treasurer in New York, payable 
 in their re-pective cities to the order of the officer to whom sent. 
 
 ISSUE OF MINOR COIN. Minor coin is issued under the 
 
 following regu- 
 1 itions of the 
 Director of the 
 Mint: 
 
 Fi ve - c en t 
 nickel and one- 
 c e n t bronze 
 pieces will be 
 furnished in the 
 order of appli- 
 cation from the 
 United States 
 Mint at Phila- 
 delphia, Pa., to 
 points reached 
 by the United 
 States and con- 
 necting express 
 companies, free 
 o f transporta- 
 tion charges, in 
 sums of $20, or 
 multiples there- 
 of, except New 
 York, Boston, 
 Baltimore,Phil- 
 adelphia, Cin- 
 cinnati, Chica- 
 go, St. Louis, 
 New Orleans, 
 
 and San Francisco, upon receipt and collection by the Superintendent of 
 that Mint of a draft on New York or Philadelphia payable to his order. 
 To points not reached by express companies, delivery under contract 
 with the Government being impracticable, these coins will be sent by 
 registered mail at applicant's risk, registry fee to be paid by the Govern- 
 ment. 
 
 A supply of these coins will be kept on hand by the Assistant 
 
 J.\S. W. HNOMSH, 
 ■:nt .^miikic.x.v TRfST & Banki.vc, Co., Ati..\nt.\. C.a. 
 
26 
 
 Treasurers of the United States at New York, Boston, Pliiladelphia, 
 Baltimore, Cincinnati, Chicago, St. Louis, New Orleans and San Fran- 
 cisco, and application for them should be made to the sub-treasuries. 
 
 Minor coin is not forwarded by express to applicants by the 
 Treasurer or Assistant Treasurers, nor is it forwarded by the mint at 
 Philadelphia to applicants in cities where there are sub-treasuries. 
 
 The Treasurer and Assistant Treasurers will pay out for lawful 
 money any minor coin not needed in the current business of their offices, 
 but in no case should drafts be sent to them for it. 
 
 ISSUE OF THE TREASURER'S TRANSFER CHECKS. 
 Subject to the convenience of the Treasury, and provided that the express 
 charges on remittances have been prepaid, the Treasurer will issue 
 transfer checks on the Assistant Treasurers, payable to the order of the 
 sender or his correspondent, for United States notes and Treasury notes 
 of 1890 unfit for circulation or national bank notes sent to Treasurer 
 for redemption, or for fractional silver coin or minor coin sent in 
 multiples of $20 to the Treasurer or Assistant Treasurer, but not for 
 silver certificates sent for redemption. 
 
 REDEMPTION OF PAPER CURRENCY. 
 
 BY TREASURER A\D ASSISTANT TREASURERS. 
 United States notes, fractional currency notes, gold certificates, silver 
 certificates, and Treasury notes of 1890, are redeemable by the Treas- 
 urer, and when not mutilated so that le-is than three-fifths of the original 
 proportions remains, by the several Assistant Treasurers, at face value. 
 
 UNITP2D STATES NOTES are redeemable in coin, in sums not 
 less than $$0, by the Assistant Treasurers in New York and San 
 Francisco. 
 
 TREASURY NOTES OF 1890 are redeemable in coin, in sums 
 not less than $50, by the Treasurer and all the Assistant Treasurers. 
 
 SILVER Ct^RTIF"ICATES are redeemable in standard silver 
 dollars only, or exchangeable for other silver certificates. 
 
 NATIONAL BANK NOTES are redeemab'e in lawful money of 
 the United States by the Treasurer, but not by the Assistant Treasurers. 
 
 LESS THAN THREE-FIFTHS OF NOTES. United States 
 notes, fractional currency notes, gold certificates, silver certificates. 
 Treasury notes of 1890, and national bank notes, when mutilated so that 
 less than three-fifths, but clearly more than two-fifth-, of the original 
 proportions remains, are redeemable by the Treasurer only, at one-half 
 the face value of the whole note or certificate. Fragments not clearly 
 more than two-fifths are not redeemed, unless accompanied by the evi- 
 dence required in the following paragraph : 
 
 A I-'M DAVITS. I^Vagments less than three-fifths are redecmfd at 
 the face value of the whole note wlien accompanied by an affidavit of 
 the owner or other persons having knowledge of the facts that the 
 missing portions have been totally destroyed. The affidavit mu.st state 
 the cause and manner of the mutilation, and must be sworn and sub- 
 scribed to before an officer (jualifietl to administer oaths, who must 
 affix his official seal thereto, and the character of the affiant must be 
 
27 
 
 certified to be good by such officer or some ether having an official 
 seal. Signatures by mark (X) must be witnessed by two persons who 
 can write, and who must give their places of residence. The Treasurer 
 will exercise such discretion under this regulation as may seem to him 
 needful to protect the United States from fraud. Fragments not re- 
 deemable are rejected and returned. 
 
 RETURNS FOR PAPER CURRENCY. 
 For remittances received under the Government contract: 
 SUB-TREASURY CITIES. P^or remittances from a place where 
 
 there is a sub- 
 treasury, re- 
 turns will be 
 made in new 
 United States 
 paper currency 
 by express, at 
 the expense of 
 the consignee, 
 at Government 
 contract rates; 
 or, subject to 
 the conveni- 
 ence of the 
 Treasury, in the 
 Treasurer 's 
 transfer checks 
 on the subtreas- 
 ury in the place 
 from whence 
 the remittance 
 is received. 
 OTHER PLACES. 
 For remittances 
 from a place 
 where there is 
 no sub-treasury 
 returns will be 
 made in new 
 United States 
 
 paper currency by express, at the expense of the consignee, at Govern- 
 ment contract rates; or in fractional silver coin, at the expense of the 
 Government for transportation, in sums or multiples of $200. 
 
 NO EXCIIAXGIC. Xo exchange for remittances of currency to 
 the Treasurer for redemption under the Government contract will be 
 furnished either by transfer checks or shipments of currency. 
 
 REDEMPTION OR EXCH.WGE OP^ .SILVER .AND MINOR COIN. 
 ASSORTMENT. Fractional silver coin and coins of copper, 
 bronze, or copper-nickel. may be presented in sums or multiples of 520, 
 
 J. J. Sl'LUVAX. 
 
 C.'VSHIER CKXTRAI, NaTIO.NAI, It.VNK, Cl.KVKI AN II 
 
28 
 
 assorted by doiomiiiations iu separate packages, to the Treasurer or an 
 Assistant Treasurer for redemption or exchange into lawful money, and 
 standard silver dollars for exchange into silver certificates only. When 
 forwarded by express, the charges should be prepaid. 
 
 OLD AND NEW DESIGN. Depositors of fractional silver coin 
 will obtain quicker returns and aid the Depirtment in retiring the old 
 issues from circulation, if they will present coins of the old designs and 
 the new in separate packages. 
 
 NOT RECEIVED. No foreign, mutilated, or defaced silver coins 
 or coins to which paper or any other substance has been attached as an 
 advertisement or for any other purpose, will be received. Reduction by 
 natural abrasion is not considered mutilation. 
 
 DEFACED MINOR COIN. Mmor coin that is so defaced as 
 not to be readily identified, or that is punched or clipped, will not be 
 redeemed or exchanged. Pieces that are stamped, bent, or twisted out 
 of shape, or otherwise imperfect, but showing no material loss of metal, 
 will be redeemed. 
 
 TRANSMISSION TO THE TREASURER. 
 
 MAKING UP PACKAGES. United States notes, gold certifi- 
 cates, silver certificates. Treasury notes of 1890, and national bank notes 
 should be sent in separate remittances. The notes should be assorted 
 by denominations and inclosed in paper straps, not more than 100 notes 
 to each strap, and the straps should be marked with the amount of their 
 contents. Not more than 8,000 notes should be put in one package. 
 
 IN\^ENTORY. An inventory, giving the amount of each de- 
 nomination of notes, the total amount in the package, the address of the 
 party sending, and the disposition to be made of the proceeds, should be 
 inclosed with each package, and a letter of advice sent by mail. 
 
 PACKAGES BY EXPRESS. The package, if sent by express, 
 should be sealed up in stout paper and addressed to the " Treasurer of 
 the United States, Washington, D. C." The wrapper should be plainly 
 marked with the owner's name and address, the amount and kind ot 
 currency inclosed, and, if the sender desires the benefit of the Govern- 
 ment contract, with the words "under Government contract with the 
 United States Express Companw" 
 
 REGISTRATION FRl-:i: OF CHARGE. It is the duty of 
 postmasters to register free of charge all letters on which the jjostage 
 has been fully prepaid, addressed to the Treasurer, containing currency 
 of the United States for redemption. It is recommended that all such 
 letters be registered as a protection against loss. 
 
 REMITTANCES BY MAIL Remittances of money by mail 
 should be addressed to the " Treasurer of the United States, Washing- 
 ton, D. C." Such remittances and returns therefore by mail are in- 
 variably at the risk of the owners. All communications to the Treas- 
 urer in regard to packages lost in the mail are referred for investigation 
 to the Chief Post-(Jffice Inspector, I'ost-Office Department, Washington, 
 D. C , to whom any subsequent inquiry should be addre.=sed. 
 
EXPRESS CHARGES. 
 
 GOVERNMENT CONTRACT. The Government contract with 
 the United States ICxpress Company for the transportation of moneys 
 and securities extends to all points accessible through established express 
 lines reached by continuous railway conmiunication, in all the States and 
 Territories of the United States, excepting Alaska, Arizona, California, 
 Idaho, Nevada, New ^lexico, Oregon, Utah, and Washington, but does 
 not embrace sea, river, or stage transportation of any kind. 
 
 RATES. The contract rates for the transportation of all kinds of 
 
 paper currency 
 to or from 
 Washington 
 are: 
 
 Between Wash- 
 ington and 
 points in the 
 territory of the 
 United States 
 Express Com- 
 pany and reach- 
 ed by it, 20 
 cents per^ 1,000 
 or fractional 
 part thereof 
 over 5500; 
 sums of $500 
 or fracti onal 
 part thereof, 10 
 cents. 
 
 Between Wash- 
 i n g t o n and 
 points in the 
 territory of an- 
 other express 
 company ex- 
 cepting points 
 in Texas, Ar- 
 kansas. Colo- 
 rado, Kansas, 
 
 Nebraska, Montana, North Dakota, South Dakota, Wyoming, and the 
 Indian and Oklahoma Territories, 60 cents per $1,000 or fractional part 
 thereof over $500; sums of $500 or fractional part thereof, 40 cents. 
 
 Between Washington and points in Colorado, Kansas, and Nebraska, 
 75 cents per $1,000 or fractional part thereof over $500; sums of $500 
 or fractional part thereof, 50 cents. 
 
 Between Washington and points in Te.xas, Arkansas, Montana, 
 North Dakota, South Dakota, W'yoming, and the the Indian and Okla- 
 homa Territories, gi per S 1,000 or fractional part thereof over $500; 
 -sums of 5500 or fractional part thereof, 65 cents. 
 
 w. J. iiAvi:s, 
 KF \\". J. H.wES & Sons. 1!anki:ks, Clkvkland-Hosto.v-New York. 
 
30 
 
 EXPRESS CHARGES PAID BY GOVERNMENT. Express 
 charges are paid by the Government, at contract rates, on standard 
 silver dollars sent by the Treasurer or Assistant Treasurer in sums or 
 multiples of $500, or fractional silver coin in sums of $200 or more, and 
 on minor coin sent from the mint at Philadelphia in sums or multiples 
 of 320. 
 
 ON CURRENCY SENT FOR REDEMPTION. On United 
 States notes, gold certificates, silver certificates. Treasury notes of 1890, 
 or national bank notes, sent for redemption, and on any kind of lawful 
 money sent for credit of the 5 per cent, redemption fund, the charges, if 
 not prepaid, are deducted from the proceeds at contract rates. 
 
 ON RETURNS IN CURRENCY. On United States notes, gold 
 certificates, silver certificates, or Treasury notes of 1890, returned for 
 United States currency or national bank notes redeemed, the charges 
 are deducted at contract rates. 
 
 ON SILVER AND MINOR COIN. On standard silver dollars, 
 fractional silver coin, and minor coin, sent for exchange or redemption 
 the charges must be prepaid by the sender. 
 
 ON TRANSFERS OF FUNDS. On transfer of funds from 
 national bank depositaries, under letters of instruction, the charges must 
 be paid by the depositaries. 
 
 CONTROL OF RATES. The Treasurer has no control over 
 rates e.xacted when the charges are prepaid, or for the transportation 
 outside of the territorial limits of the contract. 
 
 EXPRESS CHARGES INCLOSED No charge is made for the 
 amount of express charges inclosed with a remittance when separately 
 noted on the wrapper. Packages should always be marked with the 
 exact amount of the contents. 
 
 GENERAL INFORMATION. 
 
 ASSORTMENT OF CURRENCY BY KINDS AND DE- 
 NOMINATIONS. Paper currency presented for redemption or ex- 
 change or for credit of the Treasurer at the offices of the Assistant 
 Treasurers must be assorted by kinds and denominations, and inclosed in 
 paper straps, the straps not to contain more than 100 notes each, and 
 to be plainly marked with the amount of the contents. 
 
 STAMPING COUNTERFEIT MONEY. The act of June 30, 
 1876, (19 Statutes, 64), recjuires " that all United States officers charged 
 with the receipt or disbursement of public moneys, and all officers ot 
 national banks, shall stamp or write in plain letters the wird 'counterfeit,' 
 'altered,' or 'worthless' upon all fraudulent notes issued in the form of 
 and intended to circuUte as monev which shall be presented at their 
 j)laces of business ; and if such officers shall wrongfully stamp any 
 genuine note of the United States or of the national banks, they shall, 
 upon presentation, redeem such notes at the face value thereof." 
 
 DISPOSITION OF COUNTERFEIT MONEY. Counterfdt 
 notes or coins found in remittances to this office are returned to the 
 sender canceled for the p irpose of enabling him to make reclamation, 
 and after such use they must be returneti to the Treasurer for transfer to 
 the Secret-Service Divi-i >n nf the Treasury Department. 
 
REFUNDING CKRTIFICATES. 
 
 The Act of February 26, 1879, (20 Statutes, 321), authorized the 
 Secretary of the Treasury to issue, in exchange for lawful money of 
 the United States, certificates of deposit, of the denomination of ten 
 dollars, bearing interest at the rate of 4 per cent, per annum, and converti- 
 ble at any time, with accrued interest, into the 4 per cent, bonds described 
 in the refunding act. 
 
 The said Act made no provision for their payment in money. After 
 July I, 1907, when the 4 per cent, bonds become redeemable at the 
 
 option of Gov- 
 ernment, hold- 
 ers of certifi- 
 cates, i f the 
 Secretary so di- 
 rects, may re- 
 ceive in cash 
 their face value 
 with interest ac- 
 crued to that 
 date. No mon- 
 ey can be ac- 
 cepted in the 
 conversion o f 
 these certifi- 
 cates to make 
 up the amount 
 required for the 
 issue of a bond; 
 only their face 
 value and the 
 accrued interest 
 can be applied. 
 Parties send- 
 ing certificates 
 for conversion 
 should state 
 whether regis- 
 tered or coupon 
 bonds are de- 
 sired, and should forward the certificates to the Treasurer, who will 
 furnish the necessary data for the issue of bonds by the Secretary. Any 
 excess of interest is returned by check to the remittor. 
 
 GOLD CERTIFICATES. 
 
 FIRST AUTHORIZED. The issue of Gold Certificates was 
 authorized by Section 5 of the Act of March 3, 1863, ( (2 Stat., p. 709), 
 as follows: 
 
 That the Secretary of the Treasury i.s hereby authorized to receive 
 deposits of gold coin and bullion with the Treasurer or any Assistant 
 
 OKRIX III. MP. 
 PRKSIDKNT Old SECOXD XATIO.NAI. BA.NK. IiA\ Cn\, MiCIIK.A.N. 
 
Treasurer of the United States, in sums not less than twei ty dollars, and 
 to issue certificates therefor, in denomiiiaiions of not less than twenty- 
 dollars each, corresponding with the denominations of the United States 
 notes. The coin and bullion deposited for or representing the certifi- 
 cates of deposit shall be retained in the Treasury for the payment < f the 
 same on demand. And certificates representing coin in the Treasury 
 may be issued in payment of interest on the public debt, which cert.fi- 
 cates, together with those issued for coin and bullion deposited, shall 
 not at any time exceed twenty per centum beyond the amount of coin 
 and bullion in the Treasury; and the certificates for coin or bullion in 
 the Treasury shall be received at par in payment for duties on imports." 
 
 It will be observed that under the foregoing Act the Secretary was 
 authorized, but not required, to issue certificates on deposits of gold coin 
 and bullion. Their issue under this Act was discontinued during the 
 fiscal year ending June ^o, 1879. 
 
 PRESENT AUTHORITY. By Section 12 of the Act of July 12, 
 1882, (22 Stat, p. 165), their issue was "aulhoiized and directed," as 
 follows : 
 
 "That the Secretary of the Treasury is authorized and directed to 
 receive deposits of gold coin with the Treasurer or Assistant Treasurer 
 of the United States, in sums not less than twenty dollars, and to issue 
 certificates therefor in denominations of nc t less than twenty dollars 
 each, corresponding with the denominations of United States notes. 
 The coin deposited for or representing the certificates of deposit shall be 
 retained in the Treasury for the payment of the same on demand. Slid 
 certificates shall be receivable for custi:)ms, taxes, and all public dues, 
 and when so received may be re-issued; and such certificates, as also 
 silver certificates, when held by any national banking association, shall 
 be counted as part of its lawful reserve ; and no national banking asso- 
 ciation shall be a member of any clearmg house in which such certifi- 
 cates shall not be receivable in thesettlement of clearing house balances : 
 Provided, That the Secretary of the Treasury shall suspend the issue 
 of such gold certificates whenever the amount c f gold coin and gold 
 bullion in the Treasury reserved for the redemption of United States 
 notes falls below one hundred millions of do lars; * * * * 
 
 ONE HUNDRED MILLION RESERVE. In accordance with 
 the provisions of the foregoing Act the issue of gold certificates was 
 suspended on April 14, 1893, the gold coin and bullion in the Treasurx- 
 "reserved for the redemption of United States notes" having fallen 
 below the amount of one hundred million dollars. 
 
 CURRENCY CERTIFICATES. 
 
 (Act of June 8, 1872). 
 
 R. S. Section 5193. "The Secretary of the Treasury may receive 
 United States notes on deposit, without interest, from any national 
 banking associations, in sums of not less than ten thousand dollars, and 
 issue certificates therefor in such form as he may prescribe, in denom- 
 inations of not less than five thousand dollars, and payable on demand 
 
33 
 
 ill United States notes at the place where the deposits were made. The 
 notes so deposited shall not be counted as part of the lawful money- 
 reserve of the association ; but the certificates issued therefor may be 
 counted as part of its lawful money reserve, and may be accepted in the 
 2ttlement of clearing-house balances at the places where the deposits 
 therefor were made." 
 
 R. S. Section 5194. "The power conferred en the Secretary of 
 the Treasury, by the preceding section, shall not be exercised so as to 
 create any expansion or contraction of the currency. And United 
 States notes for which certificates are issued under that section, or other 
 United States notes of like amount, shall be held as special deposits in 
 the Treasury, and used only for the redemption of such certificates." 
 
 INTEREST CHECKS. 4 PER CENT. CONSOLS OF 1907. 
 
 CLOSING AND OPENING OF TRANSFER BOOKS. The 
 Books of the Department are closed to the transfer of stock on the 
 evening of the last day of February, May, August, and November, and 
 re-opened for transfer and exchange on the morning of the first day of 
 April, July, October, and January. In case stock is transferred while 
 the books are closed, the interest will be declared in favor of the payee 
 of the old bonds. 
 
 DATES OF DIVIDENDS AND PAYMENT OF CHECKS. 
 The quarterly dividends of interest, due on the first day of January, 
 April, July, and October, are paid by checks, which are mailed on or 
 before those dates to holders of stock or to parties designated by the 
 holders to receive them. Checks can be drawn only in the names of 
 the payees inscribed on the face of the stock. 
 
 5 PER CENT. BONDS OF 1904. 
 
 CLOSING AND OPENING OF TRANSFER BOOKS. The 
 Books of the Department are closed to the transfer of stock on the 
 evening of the fifteenth of January, April, July, and October, and re- 
 opened for transfer and exchange on the morning of the first day of 
 February, May, August, and November. 
 
 DATES OF DIVIDENDS AND PAYMENT OF CHECKS. 
 The quarterly dividends of interest, due on the first day of February, 
 May, August, and November, are paid by checks, which are mailed on or 
 before those dates to holders of stock or to parties designated by the 
 holders to receive them. Checks can be drawn only in the names of 
 the payees inscribed on the face of the stock. 
 
 4>< PER CENT. FUNDED LOAN OF 1891, (CONTINUED 
 AT 2 PER CENT.) 
 
 CLOSING AND OPENING OF TRANSFER BOOKS. The 
 Books of the Department are closed to the transfer of stock on the 
 evening of the last day of January, April, July, and October, and re- 
 opened for transfer and exchange on the morning of the first day of 
 March. June, September, and December. 
 
34 
 
 DATES OF DIVIDENDS AND PAYMENT OF CHECKb 
 The quarterly dividends of interest, due on the first day of March, June, 
 Scpientber, and December, are paid by checks, which are mailed on or 
 befoie those dates to holders of Stock or to parties designated by the 
 holders to receive them. Checks can be drawn only in the names of 
 the payees inscribed on the face of the stock. 
 
 PACIFIC RAILWAY BONDS. 
 
 CLOSING AND OPENING OF TRANSFER BOOKS. The 
 Books of the Department are closed to the transfer of this stock on the 
 evening of the la^t day of May and November, and re-opened for trans- 
 fer and exchange on the morning of the first day of July and Januarw 
 
 DATES OF DIVIDENDS AND PAYMENT OF CHECKS. 
 The semi-annual dividends of interest, due on the first day of January 
 and July, are paid by checks, which are mailed en or before tho.^e dates 
 to holders of stock or to parties designated by the holders to receive 
 them. Checks can be drawn only in the names of the payees inscribed 
 c n the face of the stock. 
 
 3.65 DISTRICT OF COLUMBIA FUNDING BONDS. 
 
 CLOSING AND OPENING OF TRANSFER BOOKS. The 
 Books of the Department are closed to the transfer of this stock on the 
 evening of the 21st day of January and July, and re-opened for transfer 
 and exchange on the morning of the first day of succeeding months. 
 
 DATES OF DIVIDENDS. The dividends of interest are 
 payable semi-annually, at the ( ffice of the Treasurer U. S. or the Assis- 
 tant Treasurer U. S. in New York, on the first day of February and 
 August by checks, which are sent by mail on those dates to holders of 
 stock or to parties designated by them to receive their checks. The 
 check can be drawn only in the name of the payee inscribed on the 
 face of the stock. 
 
 GENERAL REGULATIONS AS TO INTERIiST CKECKS. 
 
 FOUR MONTHS LIMIT: For a period of four months from 
 date of issue, checks are payable at the cffices of the Treasurer U. S., 
 and any Assistant Treasurer U. S.; after that time they are payable only 
 at the U. S. Treasury in Washington. 
 
 DUPLICATE CHECKS. Upon request being made for a dupli- 
 cate, payment of the original check will be stopped, and, upon satisfac- 
 tory proof of its loss, a bond of indemnity will be prepared in this 
 office, and transmitted for execution. Ujwn the return of the bond 
 executed according to instructions, and its approval by the Comptroller 
 of the Treasury, a duplicate check will be issued, provided /r^;Y)'-yf7v (/<7rs 
 have elapsed from the date of the original. Foreign holders of stock 
 will be recjuired, under the ruling of this Department, to execute such a 
 bond with two sureties resident in the United States. 
 
 SCI IEI)ULP2S. Schedules, from which the checks are written 
 and mailed, giving the name and address of each payee, the amount of 
 bonds held by him, and the interest due thereon, are prepared quarterly 
 
35 
 
 in the office of the " Re^jister of the Treasury, Washington, D. C." to 
 whom all communications relating thereto should be addressed. 
 
 CHANGE OF ADDRESS. Requests to change the post-office 
 address of a person entitled to receive interest-checks should give the 
 title of the loan and the last post-office address, and be sent to the 
 Register of the Treasury. The address should be given in full, and 
 include the street and number. 
 
 IXDORSEMEXTS. i. The name of the 
 
 paj'ee, 
 
 as indorsed, 
 must corres- 
 pond with 
 that on the 
 face of the 
 check. If 
 the name as 
 written on the 
 check is spell- 
 ed incorrectly, 
 the check 
 should be re- 
 turned to the 
 Treasurer U. 
 S. for correc- 
 tion, unless 
 the spelling 
 corresponds 
 with that on 
 the face of the 
 bonds, in. 
 which case 
 both check 
 and bonds 
 should be for- 
 warded to the 
 Register ot 
 the Treasury 
 for correction. 
 2. Payees 
 and indorsees 
 must indorse 
 by their own 
 hands; offi- 
 cials.officially, 
 
 with full title; firms, the usual firm signature by a member of the firm, 
 
 not by a clerk or other person for the firm. 
 
 3. Stamped indorsements and signatures in pencil are nf)t accepted. 
 
 4. Indorsements by mark (X) must be witnessed by two persons 
 who can write, and who must give their places of residence. 
 
 5. When the Secretary of the Treasury has been notified that the 
 payee of bonds are infants, checks issued in pa}ment of interest thereon 
 
 .\RTHrR I). BISSKLL. 
 
 I'RKSIDKNT I'Kori.K'S HANK. ItrFK.AI.O. N. 
 
36 
 
 are delivered and paid only to the guardian of such infants who must 
 file with the Auditor of the Treasury Department evidence, (i) of 
 guardianship; (2) that his authority is in force; and (3) of the identity 
 of his ward wiih the payee of the bonds. Neither the father nor the 
 mother ot the infant has the right to indorse such interest-checks. 
 
 6. Interest-checks are paid upon the indorsement of any one 
 of several joint holders, co-attorneys, guardians, executors, adminis- 
 trators, or trustees; but in a transfer of stock, or in the execution cf a 
 power of attorney to collect interest, all must join. 
 
 7. Indorsements by an agent, attorney, guardian, executor, admin- 
 istrator, or trustee of an estate, are not recognized unless evidence of 
 authority has been filed with the Auditor for Treasury Department. In 
 the four last-named cases the certificate, under seal, of the Probate 
 Court is required. 
 
 8. Evidence of authority to indorse checks payable to corpora- 
 tions or societies, except in the case of CasJiiers of National Banks, must 
 be furnished the Auditor for Treasury Department in the form of a 
 certified copy, under seal, of an extract from the by-laws showing the 
 authority of the officer to indorse for the corporation or society, and 
 giving his name and the date of his election, or in the form of a resolu- 
 tion adopted by the official board of such corporation or society, desig- 
 nating by name and title the officers empowered to collect interest. TJie 
 same evidence is rcqnired to cover indorsements by Presidents, J^ice-Presi- 
 dcjiis, and assistant Cashiers of National Banks. If the corporation or 
 society have no seal, the instrument must be acknowledged before a 
 notary public or other competent officer under his seal. 
 
 9. When a check is payable to an officer of an institution, as, for 
 instance, "John Smith, Cashier of the First National Bank of Smith- 
 ville, Ohio," authority for any other individual to indorse must be given 
 by the officer named in the check. 
 
 10. In transmitting to the Auditor for Treasury Department 
 powers of attorney, letters testamentary, letters of administration, or 
 other evidence of authority for indorsements, notice should be given 
 that officer at which of the following named officers checks will be pre- 
 sented for payment under such powers, viz: Washington, New York, 
 Boston, Philadelphia, Baltimore, Cincinnati, Chicago, St. Louis, New 
 Orleans, and San Francisco. 
 
 NOTE. District of Columbia checks are payable only at Wash- 
 ington and New York. 
 
 I I. Checks paid on indorsements not in accordance with the 
 above requirements are returned to the parties through whose hands 
 they have passed for collection, with reclamation for the amounts. 
 
 TRANSFER CHECKS. 
 
 The Treasurer's transfer checks are issued by the Redemption 
 Division in return for United States notes and Treasury notes of 1890 
 received for redemption, by the Loan Division in the redemption of 
 United States bonds; by the Cashier in redemption of subsidiary silver 
 coin or minor coin, and in various other cases ; and b\- the National 
 
Bank Redemption Agency in leturn for national bank notes sent for 
 redemption. Said checks are drawn on the Assistant Treasurers of the 
 United States at Boston, New York, Philadelphia, Baltimore, Cincinnati, 
 Chicago, St. Louis, New Orleans, and San Francisco. 
 
 DUPLICATES. Upon request being made for a duplicate, pay- 
 ment of the original check will be stopped, and, upon satisfactory proof 
 of its loss, a bond of indemnity will be prepared in this office, and 
 transmitted for execution. Upon the return of the bond executed ac- 
 cording to instructions, and its approval by the Comptroller of the 
 Treasury, a duplicate check will be issued, provided forty-five days have 
 elapsed from the date of the original. 
 
 TREASURY DRAFTS AND WARRANTS. 
 
 Treasury drafts were drawn by the Treasurer of the United States, 
 based upon warrants drawn by the Secretary of the Treasury, counter- 
 signed by the Comptroller, and recorded by the Register. The drafts 
 were drawn upon the Treasurer U. S., an Assistant Treasurer U. S., or a 
 national bank designated as a depository of public moneys of the United 
 States. By recent provisions of law the issue of Treasury drafts ceased 
 on December 31, 1894, and on January i, 1895, the issue of TREAS- 
 URY WARRANTS commenced in their stead. 
 
 DUPLICATES. Upon request being made for a duplicate, pay- 
 ment of the original will be stopped, and, upon satisfactory proof of its 
 loss, a bond of indemnit)' will be prepared in this office, and transmitted 
 for execution. Upon return of the bond executed according to instruc- 
 tions, and its approval by the Comptroller of the Treasury, a duplicate 
 will be issued, providing forty five days have elapsed from the date of 
 the original. 
 
 INDORSEMENT AND PAYMENT OF TREASURY DRAFTS 
 AND POST-OFFICE DEPARTMENT WARRANTS. 
 
 (Department Circular No. 87 of June 7, 1893.) 
 
 Treasury drafts and Post-Office warrants must not be paid until the 
 indorsements conform to the following regulations : 
 
 1. The name of the payee, as indorsed, must correspond in spell- 
 ing with that on the face of the draft; no guarantee of an indorsment, 
 imperfect in itself, can be accepted. If the name of a payee, as written 
 on the face of a draft, is s[)elled incorrectly, the draft should be returned 
 to the Treasurer U. S. for correction. 
 
 2. Indorsements by mark (X) must be witnessed by two persons 
 who can write, giving their places of residence. 
 
 3. Indorsements by executors, administrators, guardians, or other 
 fiduciaries must be accompanied by certified copies, under seal, of letters 
 testamentary, letters of administration, of guardianship, or other evidence 
 of fiduciary character, as the case may be. 
 
 4. Payees and indorsees must indorse by their own hands ; officials, 
 officially with full title: firms, the usual firm signature by a member of 
 the firm, not b}- a clerk or other person for the firm. 
 
38 
 
 5- Every indorsement must be by the proper written (not printed) 
 signature of the person whose indorsement is required. 
 
 6. Powers of attorney for the indorsements of drafts in payment 
 of claims must be executed as required by section 3477 of the Revise^l 
 Statutes of the United States. The letter of attorney must state the 
 number, date, and amount of the draft, also the number and kind of 
 warrant on which the draft is issued ; must be signed by the constituent 
 in the presence of at least two attesting witnesses subsequently to the 
 date of the draft, and be acknowledged by him before a notary public, 
 and certified by such officer under his hand and official seal; or, when 
 not before a notary public, the acknowledgment must be before an 
 officer having authority to take acknowledgments of deeds within the 
 State or Territory in which it is taken, which authority must be shown 
 by a certificate as to the official character and signature of such officer 
 and setting forth that he is duly authorized to take acknowledgments of 
 deeds, made by the clerk of a court or record of such State or Territory, 
 under the seal of the court, or by some other officer of the State or 
 Territory authorized to make such certificate, under his official seal. 
 
 If executed in a foreign country, the acknowledgment must be 
 before a notary public, and certified under his hand and official seal, or 
 before a consul or minister of the United States, under the seal of the 
 legation or consulate. 
 
 The official taking the acknowledgment must certify that the letter 
 of attorney was read and fully explained to the constituent at the time 
 of acknowledgment, and that said constituent is personally well known 
 to him to be the identical person named in and who subscribed his name 
 to said power of attorney. 
 
 7. Evidence of authority to indorse for incorporated or unincorpor- 
 ated companies must have been previously filed ivitJi the First Comptroller 
 of the Treasury, or accompany drafts drawn or indorsed to the order of 
 such companies or associations. Such evidence should be in the form 
 f'f an extract from the by-laws or records of the company or association 
 showing the authority of the officer to indorse and receive and receipt 
 for moneys for the company, and giving his name and the date of his 
 election (t appointment, and the period for which he was elected or ap- 
 pointed, and that such authority shall be binding on the company until 
 notice of revocation has been filed zvith the First Comptroller of the 
 Treasury, whic.i extract must be verified by a certificate under seal 
 signed by the president and secretary, or by one of these officers and 
 not less than two of the directors; which certificate must state that such 
 authority remains unrevoked and unchanged. If the company have no 
 seal, the extract should be certified as correct by a notary public or 
 other competent officer under his seal. When a resolution is adopted 
 at a special meeting < f directors, it must be shown that all had notice of 
 the time and place of such meeting, and that a quorum assented to ihe 
 resolution. 
 
 The evidence of authority to indorse required in paragraph 7, 
 above, may be dispensed with in the case of drafts or checks not exceed- 
 ing in amount the sum of tv\eni)-five dollars ($2 5), payable to a corpor- 
 
39 
 
 tion or company which necessarily employs a number of local agents in 
 the transaction of its business — such as railroad, telegraph, steamboat, 
 express, tran>fer, turnpike, hotel, newspaper, gas, and ice companies — 
 when it is impracticable to obtain the indorsement of the secretary, 
 treasurer, or other principal officer of such corporation or company: 
 Provided, that the draft or check be indorsed by a local agent of such 
 corporation or company who is authorized t") receive and collect money 
 on behalf of the same, and that this indorsement as such agent be 
 guaranteed by a bank, or by some other responsible and satisfactory 
 guarantor. 
 
 8. In cases where an individual or a co-partnership is doing busi- 
 ness under a company title, the affidavit of the owner or of at least two 
 
 members of the co- 
 partnership will be 
 required, showing 
 the fact of owner- 
 ship, and in the 
 case of co-part- 
 nerships, naming 
 the member of the 
 co-partnership who 
 is authorized to 
 indorse and receive 
 and receipt for 
 moneys for the 
 owners. 
 
 9. The indorse- 
 ment of all the joint 
 holders or co-trus- 
 tees, executors, ad- 
 ministrators, guard- 
 ians, or other fiduc- 
 iaries will be re- 
 quired on drafts, 
 and in the execu- 
 tion of a power to 
 a third party to 
 collect all must 
 join. In case of 
 the death of either, the survivors will be recognized as having full 
 authority, upon due proof of such death and survivorship. 
 
 NOTE. Since this circular, the latest on the subject, was issued, 
 the official designation of the l-'irst Comptroller of the Treasury has 
 been changed to Comptroller of the Treasury, the offi:c of Second 
 Comptroller of the Treasury having been abolished. 
 
 GOLD COINS OF THE U.NITED STATES. 
 
 FINENESS AND ALLOY. The .standard for gold coins of the 
 United States .vjiall be such that of one thousand paits by weight nire 
 
 CLAKKNCK W. H.-\M.MONI>, 
 
 CASHIER PEOPLE'S B.ANK, KfKE.AI.O. N. Y. 
 
40 
 
 hundred shall be of pure metal and one hundred of alloy: The alloy 
 of the gold coins shall be of copper, or of copper and silver; but ihc 
 silver shall in no case exceed one-tenth of the whole alloy. (R. S. 
 Section '514) 
 
 NOW ISSUED. 
 
 ;^20 — Double Eagle. Authorized by the Act of March 3, 1849, 
 (9th Stat., p. 397). Standard weight of the double-eagle, or twenty 
 dollar piece, five hundred and sixteen grains. (R. S. Section 351 1) 
 
 ^10 — Eagle. Authorized by the Act of April 2, 1792, (i Stat, 
 p. 248). Standard weight of the eagle, or ten-dollar piece, two hundred 
 and fifty eight grains. (R. S. Section 351 1.) 
 
 ;^5 — Half Eagle. Authorized by Act of April 2, 1792, (i S':at , 
 p. 248). Standard weight of the half-eagle, or five-dollar piece, one 
 hundred and twenty-nine grains. (R. S. Section 3511.) 
 
 $2}4 — Quarter Eagle. Authorized by the Act of April 2, 1792, 
 (i Stat., p. 248). Standard weight of the quarter-eagle, or two and a 
 half dollar piece, sixty-four and a half grains. (R. S. Section 351 1.) 
 
 COINAGE DISCONTINUED. 
 
 ^3 Piece. Authorized by the Act of February 21, 1853, (10 Stat., 
 p. 161). Standard weight of the three-dollar piece, seventy-seven and 
 four-tenths grains. (R. S. Section 351 i.) Coinage discontinued by the 
 Act of September 26, 1890, (26 Stat., p. 485). 
 
 ^i Piece. Authorized by the Act of March 3, 1849, (9 Stat , p. 97 ) 
 "The gold coins of the United States shall be a one-dollar piece, 
 which, at the standard weight of twenty-five and eight-tenths grains, 
 shall be the unit of value * * * * ," (R. S. Section 35 1 1.) Coin- 
 age discontinued by the Act of September 26, 1890, (26 Stat, p. 485). 
 
 SILVER COINS OF THE UNITED STATES. 
 
 FINENESS AND ALLOY. The standard for silver coins of the 
 United States shall be such that of one thousand parts by weight nine 
 hundred shall be of pure metal and one hundred of alloy. The alloy 
 of silver coins shall be of copper. (R. S. Section 3514.) 
 
 NOW ISSUED. 
 
 STANDARD SILVER DOLLARS. Authorized by the Act of 
 April 2, 1792,(1 Stat., p. 248). Coinage discontinued by the Act of 
 February 12, 1873, (R. S. Section 3513). Coinage re-authorized by the 
 Act of February 28, 1878, (20 Stat., p. 25). 
 
 The Act of February 28, 1878, (R. S. Supplement, p. 152) i)rovides: 
 
 "That there shall be coined, at the several mints of the United 
 States, silver dollars of the weight of four hundred and twelve and a 
 half grains, Troy of standard silver, as provided in the Act of January 
 eighteenth, eighteen hundred thirty-seven, on which shall be the devices 
 and superscriptions provided by said act; * * * 
 
 NOTF^ — The provisions of the Act of 1837, ch. 3, (5 Stat, L., 
 137), here referred to, are as follows: 
 
41 
 
 "Sections. That the standard for both gold and silver coins of 
 the United States shall hereafter be such, that of the one thousand part 
 by weight, nine hundred shall be of pure metal, and one hundred of 
 alloy; and the alloy of the silver coins shall be copper. * * * 
 
 "Section 9. That of the silver coins, the dollar shall be of the 
 weight of four hundred and twelve and one-half grains; * * * 
 
 HALF DOLLARS. Authorized by the Act of April 2, 1792, 
 (i Stat., p. 248). The weight of the half-dollar shall be twelve grams 
 and one-half of a gram. (R. S. Section 3513). 
 
 QUARTER DOLLARS. Authorized by the Act of April 2, 
 1792, (i Stat., p. 248). The weight of the quarter- dollar shall be one- 
 half of the weight of said half-dollar. (R. S. Section 3513). 
 
 DIMES. Authorized by the Act of April 2, 1792, (i Stat., p. 248). 
 The weight of the dime shall be one-fifth of the weight of the said 
 half-dollar. (R. S. Section 3513) 
 
 COINAGE DISCONTINUED. 
 
 TRADE DOLLARS. Authorized by the Act of February 12. 
 1873, (R. S. Section 3513.) The weight of the trade dollar shall be 
 four hundred and twenty grains troy. (Ibid.) Coinage suspended by 
 Secretary of the Treasury February 22, 1878. By Act of March 3, 
 1887, (24 Stat., p. 635) the authority to coin was repealed, and it was 
 provided that for a period of six months they should be received by the 
 Treasurer or any Assistant Treasurer in exchange for silver dollars or 
 subsidiary coins. This period having expired they are not now redeem- 
 able but are purchased by the Mints as bullion in the same manner as 
 other uncurrent silver coin. 
 
 TWENTY CENT PIECES. Authorized by the Act of March 3. 
 1875, (18 Stat., p. 478.) There shall he coined at the Mints a coin of 
 silver of the denomination of twenty cents, and of the weight of five 
 grams. (Ibid.) Coinage discontinued by the Act of May 2, 1878, 
 (20 Stat., p. 47). 
 
 HALF DIMES. Authorized by the Act of April 2, 1792, 
 (i Stat., p. 248). To be of the value of one-twentieth of a dollar, and 
 to contain eighteen grains and nine-sixteenths part of a grain of pure, 
 or twenty grains and four-fifth parts of a grain of standard silver. 
 (Ibid.) Coinage discontinued by the Act of February 12, 1873. (R. S. 
 Section 3513. 
 
 THREE CENT PIECES. Authorized by the Act of March 3, 
 1851, (9 Stat., p. 591)- To be composed of three-fourths silver and 
 one-fourth copper, and to weigh twelve grains and three-eighths of a 
 grain. (Ibid.) Coinage discontinued by the Act of P^ebruary 12, 
 1873, (R. S. Section 3513.) 
 
 MINOR COINS OF THE UNITED STATES. 
 NOW ISSUED. 
 
 FIVE CENT NICKEL. Authorized by the Act of May 16, 
 1866, (14 Stat., p. 47). The alloy for the five cent piece shall be of 
 
42 
 
 copper and nickel, to be composed of three-fourths copper and one- 
 fourth nickel. The weight of the piece of five cents shall be seventy- 
 seven and sixteen hundredths grains troy. (R. S. Section 3515). 
 
 ONE CENT BRONZE. Authorized by the Act of April 22. 
 
 1864, (13 Stat., p. 54), The alloy of the one cent piece shall be ninety- 
 five per centum of copper and five per centum of tin and zinc, in such 
 proportions as shall be determined by the Director of the Mint. The 
 weight of the one-cent piece shall be forty-eight grains. (R. S. Sec- 
 tion 3515.) 
 
 COINAGE DISCONTINUED. 
 
 THREE CENT NICKEL. Authorized by the Act of March 3, 
 
 1865, (13 Stat., p. 517) The alloy for the three cent pieces shall be of 
 copper and nickel, to be composed of three- fourths copper and one- 
 fourth nickel. The weight of the three cent piece shall be thirty grains. 
 (R. S. Section 3515). Coinage discontinued by the Act of September 
 26, 1890. (26 Stat., p. 48;). 
 
 TWO CENT BRONZE. Authorized by the Act of April 22, 
 1864, ([3 Stat., p. 54). The standard weight to be ninety-six grains, or 
 one-fifth (.(f one ounce troy, to be composed of ninety-five per centum 
 of copper, and five per centum of tin and zinc. (Ibid). Coinage dis- 
 continued by the Act of February 12, 1873, (R. S. Section 3515.) 
 
 ONE CENT COPPER. Authorized by the Act of July 6, 1787. 
 Authorized to be coined (by the United States Mint) by the Act of 
 April 2, 1792 (i Stat., p. 248). To be of the value of the one hundredth 
 part of a dollar, and to contain eleven penny-weights of copper. (Ibid). 
 Coinage discontinued by the Act of February 21, 1857, (i i Stat., p. 63). 
 
 ONE CENT NICKEL. Authorized by the Act of February 21, 
 1857, (i I Stat, p. 163). The standard weight to be seventy-two grains, 
 or three twentieths of one ounce troy, and to be composed of eicjhty- 
 eight per centum of copper and twelve per centum of nickel. (Ibid). 
 Coinage discontinued by the Act of April 22, 1864. (13 Stat., p. 54) 
 
 HALF CENT COPPER. Authorized by the Act of April 2, 
 1792, (i Stat., p. 248) To be of the value of half a cent, and to con- 
 tain five penny-weights and half a penny-weight of copper. (Ibid). 
 Coinage discontinued by the Act of February 21, 1857. (ri Stat, p. 63.) 
 
 PURCHASE OF UNCURRKNT GOLD COINS. 
 (Department Circular No. 1 14 of July 15, 1892). 
 
 Mutilated or orthei wise uncurrent United States gold coins, of any 
 denomination, will be received at any of the mints or assay offices of the 
 United States, and the value of the fine gold contained will be paid to 
 the depositor at the rate of $20.67 per ounce fine, or ;$ 18.60 per ounce 
 standard (.900 fint). 
 
 Returns for mutilated coins will be made by check payable to the 
 order of the depositor, unless remittances by express or registered mail 
 are preferred. In either case the payments will be at the depositor's 
 exnense and risk. 
 
43 
 PURCHASE OF UNCURRENT SILVER COINS. 
 
 (Department Circular No. 15 of January 30, 1892.) 
 
 The Superintendents of the Mints at Philadelphia, San Francisco, 
 New Orleans, and Carson will purchase, when presented in sums of 
 thrte dollars and upwards, mutilated and uncurrent United States silver 
 coin at the price fi.xed by the Director of the Mint for silver contained 
 in gold deposits. 
 
 Uncurrent coins should be transmitted to the mints by registered 
 
 mail or express 
 (charges prepaid). 
 The value will be 
 returned in the 
 same manner at the 
 seller's expense and 
 risk. 
 
 NOTE. Muti- 
 lated minor coin 
 (copper, bronze, or 
 copper-nickel) will 
 neither be redeemed 
 nor purchased. 
 
 LIGHT(VVEIGHT) 
 GOLD COINS. 
 
 The Secretary o' 
 the Treasury, under 
 date of July 9, 1886, 
 issued the follow- 
 ing instructions to 
 the Treasurer: 
 
 " You are hereby 
 in.-tructed on and 
 after August i. 
 I 886, to reject, and 
 place a distin- 
 guishing mark upon 
 all gold coins of the 
 United States pre- 
 sented at your counters for deposit, which may be found below the 
 standard weight and limit of tolerance provided by law for the single 
 piece. Although the law makes such coins a legal tender 'at valuation 
 in proportion to their actual weight,' it is found to be impracticable for 
 public officers, generally, who receive them to determine the exact 
 valuation. 
 
 " The true value of light weight gold coins can only be ascertained 
 at the United States Mints at Philadeljihia, New Orleans, and San Fran- 
 cisco, and the United States A^say Office at New York, where they will 
 
 %07l4;<=.^iT 
 
 I"RI:SII>KNT FIRST .NATIONAL HANK. KAI.AMAZ( 
 
44 
 
 be received, their value determined, and proper amount of coins of legal 
 weight, or a check therefor, returned. 
 
 " This action is taken to avoid the necessity of testing the same 
 coin more than once, experience having shown that when a light weight 
 coin is handed back to a depositor without placing thereon some dis- 
 tinguishing mark, a cashier or teller may in the course of business 
 handle and reweigh the same coin several times." 
 
 On August 23, 1886, the foregoing instructions were so modified 
 as to authorize the placing of a distinguishing mark on all gold coins 
 which fall below the " least current weight," as shown by the set of 
 least current weights provided for the purpose, instead of below the 
 "standard weight and limit of tolerance." 
 
 UNITED STATES CURRENCY.— LEGAL TENDER. 
 
 DEFINITION OF THE TERM LEGAL TENDER. " Money 
 of a character which by law a debtor may require his creditor to receive 
 in payment in the absence of any agreement in the contract or obliga- 
 tion itself" (Bouvier's Law Dictionary). 
 
 GOLD COINS. The gold coins of the United States are a legal 
 tender in all payments at their nominal value when not below the 
 standard weight and limit of tolerance provided by law for the single 
 piece, and, when reduced in weight below such standard and tolerance, 
 are a legal tender at valuation in proportion to their actual weight. 
 (Act of February 12, 1 873, 17 Stat., p. 426, R. S., Section 3585). 
 
 STANDARD SILVER DOLLARS are a legal tender at their 
 nominal value for all debts and dues, public and private, except where 
 otherwise expressly stipulated in the contract, (.^ct of February 28, 
 1878, 20 Stat , p. 2c ). 
 
 SUBSIDIARY SILVER COIN. The silver coins of the United 
 States of smaller denominations than one dollar are a legal tender in all 
 sums not exceeding ten dollars, in full payment of all dues, public and 
 private. (Act of June 9, 1879, ^i Stat., p. 457). 
 
 MINOR COIN (coin of copper, bronze, or copper-nickel). Minor 
 coins are a legal tender at their nominal value for any amount not ex- 
 ceeding twenty-five cents in any one payment. (Act of February 12, 
 1873. 17 Stat , p. 426). 
 
 UNITED STATES NOTES (known as legal tender notes, or 
 " Greenbacks.") They are a legal tender in payment of all debts, public 
 and private, within the United States, except duties on imports and 
 interest on the public debt. (Act of March 3, 1863, 12 Stat., p. 711, 
 R. S., Section 3588). 
 
 Section 3 of Act of January 14, 1875, (18 Stat., p. 296), provided 
 that, on and after January i, 1879, the Secretary of the Treasury should 
 redeem, in coin, the United States legal tender notes then outstanding, 
 on their presentation for redemption at the office of the Assistant Treas- 
 urer U. S., New York, in sums of not less than fifty dollar.*;. 
 
 Treasury Dcjiartment circular letter No. 141, of December 21, 
 1878, addressed to Officers of Custom*^, authorized them, by reason 
 
45 
 
 of the foregoing Act, to recei\e United States notes in payment of 
 duties on imports, on and after January i, 1879. 
 
 DEMAND TREASURY NOTES authorized by the Act of July 
 17, 1 86 1, (12 Stat., p. 259), and the Act of h'ebruary 12, 1862, (12 Stat., 
 p. 338), are lawful nioney and a legal tender in like manner as United 
 States notes. (R. S., Section 3589). 
 
 ONE AND TWO YEAR NOTES OF 1863. These note.s, re- 
 dtemable one year from date and two years from date, bearing interest 
 at five per centum per annum, are a legal tender for their face value, 
 exclusive of interest. (Act of March 3, 1863, 12 Stat, p. 710). 
 
 COMPOUND INTEREST NOTES These notes weie payable 
 at any time after three years from date, and bearing interest not exceed- 
 ing seven and three-tenths per centum, payable in lawful money at 
 maturity, or, at the discretion of the Secretary of the Treasury, semi- 
 annually; and such of them as ."-hould be made payable, principal and 
 interest, at maturity, to be a legal tender to the same extent as United 
 Sates notes for their face value, excluding interest. (Act of June 30, 
 1864, 13 Stat., p. 218). 
 
 TREASURY NOTES OF 1890 are a legal tender in payment of 
 all debts, public and private, except when otherwise expressly stipulated 
 in the contract, and are receivable for customs, taxes, and all public 
 dues. (Act of July 14. 1890, 26 Stat., p. 289). 
 
 COLUMBIAN HALF DOLLARS are a legal tender to the same 
 extent as subsidiary silver coin, i. e., ten dollars in any one payment. 
 (Act of August 5, 1892, 27 Stat., p 389). 
 
 COLUMBIAN QUARTERS are a legal tender to the same extent 
 as subsidiary silver coin, i. e., ten dollars in any one payment. (Act of 
 March 3, 1893, 27 Stat., p. 586). 
 
 UNITED STATES CURRENCY.— NOT LEGAL TENDER. 
 
 GOLD CERTIFICATES are not a legal tender. They are re- 
 ceivable for customs, taxes, and all public dues. (Act of July 12, 1882, 
 22 Stat., p. 165). 
 
 SILVER CERTIFICATES are not a legal tender. They are re- 
 ceivable for customs, taxes, and all public dues. (Act of February 28, 
 1878, 20 Stat, p. 25). 
 
 NATIONAL BANK NOTES are not a legal tender. They are 
 receivable at par in all parts of the United States in payment of taxe^, 
 excises, public lands, and all other dues to the United States, except 
 duties on imports; and also for all salaries and other debts and demands 
 owing by the United States to individuals, corporations, and associations 
 within the United States, except interest on the public debt, and in 
 redemption of the national currency. (Act of June 3, 1864, 13 Stat., 
 p. 106, R. S., Section 51 82). 
 
 TRADE DOLLARS are not a legal tender. By the Act of 
 February 12, 1873,(17 Stat , p. 424). they were legal tender at their 
 nominal value for any amount not exceeding five dollars in any one 
 payment, but under date of July 22, 1876, (19 Stat., p. 215). it was 
 enacted that the trade dollar should not thereafter be a legal tender. 
 
46 
 
 The Act of March 3, 1887, (24 Stat., p. 634), provided that all 
 trade dollars should be presented for redemption within a period of six 
 months after the passage of said Act. Said coins are not now redeem- 
 able, but will be purchased as bullion in the same manner as mutilated 
 or other uncurrent silver coin, by the United States Mints at Philadel- 
 phia, New Orlean-;, Carson, and San Francisco. 
 
 FRACTIONAL CURRENCY is not a legal tender. NOTE. It 
 was receivable for postage and revenue stamp'^, and also in payment of 
 
 (.ASIIUK 1 IKM NATIONAI. HANK, K AIAM A/. 
 
 any dues to the United States less than five dollars, except duties on 
 imjjorts. (Act of March 3, 1.S63, 12 Stat., p. 711). 
 
 1*'()RP:IGN gold coins arenotalegal tender in payment of 
 debts. (Act of 1^'ebruary 2r, 1847, 11 Stat., p. 163, R. S., Section 3584). 
 
 I'^OREIGN SILX'ER COINS are not a legal tender in payment of 
 debts. (Act of February 21. 1857. i i Stat., p. 163, R. S., Section 3584). 
 
47 
 
 CONTINENTAL CURRENCY. The question has been raised 
 and disputed as to whether what was called the "Continental Currency," 
 issued during the War of the Revolution by the old government, was 
 or was not a legal tender. The facts appear to be that while the Conti- 
 nental Congress did not by any ordinance attempt to give it that 
 character, they asked the States to do so, and all seem to have complied 
 except Rhode Island. The Continental Congress only enacted that the 
 man who refused to take the money should be deemed an enemy of his 
 country. ("The National Loans," by Rafael A. Bayley, Treasury De- 
 partment; prepared for the Tenth Census). 
 
 LEGAL TENDER CASES. Agamst constitutionality, Hepburn 
 V. Griswold, 8 Wall, 603. For constitutionality, Knox v. Lee, 12 Wall, 
 457: Parker V. Davis, 12 Wall, 559. 
 
 OUTSTANDING LIABILITIES. 
 
 THREE- YEAR-LIMIT FOR CHECKS AND DRAFTS. 
 Treasury drafts, disbursing officers' checks, etc., outstanding more than 
 tJiree years frojn the date of issue, are, at the end of each fiscal year, de- 
 posited to the credit of the Treasurer U. S. on account of appropriation 
 "Outstanding Liabilities." They are covered into the Treasury by what 
 are known as COVERING-IN-WARRANTS to the credit of said 
 appropriation, and to the personal credit of the payees of said drafts and 
 checks, to await proper claims for their payment. 
 
 Drafts and checks of this nature should be sent to the Secretary of 
 the Treasury, who will have them examined by the proper accounting 
 officer, and then referred to the Auditor for the Treasury Department 
 for examination and settlement. 
 
 GOVERNMENT BONDS. 
 
 {From Public Debt Statement January 2, 1S95.) 
 
 OrTST.^NDIXO 
 Am'T ISSrED JANT.-VRV 
 
 Funded Loan of 1S91, Acts of July 14, 1870, and Jan. '• iS95- 
 
 20, iSjr, at 44 per cent., continued at 2 per 
 
 cent.. Option, U. S., Interest payable to M , J., 
 
 S., and D (4 '^s) $250,000,000 5 25,364,500 
 
 Funded Loan of 1907, Acts of July 14, 1870, and Jan. 
 
 20, 1871, at 4 percent., redeemable July i, 1907, 
 
 Interest payable to J., A., J., and 740,883,500 5;9,622,i5o 
 
 Refunding Certificates, Act of Feb. 26, 1879, at 4 per 
 
 cent., interest payable to J., A., J., and 40,012,750 56.480 
 
 Loan of 1904, Act of Jan. 14, 1875, at 5 per cent., 
 
 redeemable Feb. i, 1904, interest payable to F. , 
 
 M., A., and N "... 94.125,000 94.125,000 
 
 Aggregate of Interest-Bearing Debt, exclusive of 
 
 United States Bonds issued to Pacific Railroads 
 
 as stated below 11,125.021,250 5679,168,130 
 
 BONDS ISSUED IN AID OF TIIF, CONSTRUCTION OF THK SEVERAL 
 PACIFIC RAILROADS. 
 
 I'RI.VCII'AI- 
 
 Name of Railway. OrrsTANniNf; 
 
 JA.V. I. IS9S. 
 
 Central Pacific $ 25,885.120 
 
 Kansas Pacific 6,303,fxxD 
 
 Union Pacific 27,236.512 
 
 Central Branch, U. P i,6oo,(xx3 
 
 Western Pacific 1,970,560 
 
 Sioux City and Pacific 1,628, 320 
 
 Totals $ 64,623,512 
 
48 
 REGULATIONS AS TO GOVERNMENT BONDS. 
 
 BONDS FOR REDEMPTION. Should be sent to the Secretary 
 of the Treasury. 
 
 BONDS TO SECURE DEPOSITS. Should be sent to the 
 Treasurer. 
 
 BONDS TO SECURE CIRCULATION. Should be sent to the 
 Comptroller of the Currency. 
 
 BONDS FOR PURCHASE. Should be sent to the Secretary of 
 the Treasury, but not until offer has been made to, and accepted by, 
 that officer. 
 
 BONDS FOR ASSIGNMENT(TRANSFER AND REGISTRY). 
 Where it is desired to assign or transfer bonds on the books of the 
 Treasury Department, they should be sent to the Register of the 
 Treasury. 
 
 COUPON BONDS TO BE EXCHANGED INTO REGIS- 
 TERED BONDS. Should be sent to the Secretary of the Treasury. 
 
 REGISTERED BONDS CANNOT BE EXCHANGED INTO 
 COUPON BONDS. 
 
 LOST REGISTERED BONDS. In case of the loss of registered 
 bonds send notice with numbers and description, to the Secretary of the 
 Treasury, who will direct that the lost bonds be entered upon the 
 caveat list. 
 
 LOST COUPON BONDS, U. S. NOTES, AND COUPONS. 
 The Government cannot, and will not, undertake to protect the owners. 
 
 DESTROYED AND DEFACED BONDS. Address all com- 
 munications on these subjects to the Secretary of the Treasury. 
 
 MUTILATED COUPONS. Will not be paid at the Sub-Treas- 
 uries, but must be sent to the Treasurer U. S. 
 
 WITHDRAWAL OF BONDS HELD TO SECURE CIRCU- 
 LATION. Send correspondence on this subject to the Comptroller of 
 the Currency. 
 
 WITHDRAWAL OF BONDS HELD TO SECURE DE- 
 POSITS. Address all correspondence on this subject to the Secretary 
 of the Treasury. 
 
 DISBURSING OFFICERS' CHECKS. 
 
 DUPLICATE CHECKS. R. S. Section 3646 (as amended by 
 Act of P'cbruary 16, 1885). Whenever any original check is lost, stolen, 
 or destroyed, disbursing officers and agents of the United States are 
 authorized, after the expiration of six months, and within three years 
 from the date of such check, to issue a duplicate check; and the Treas- 
 urer, assistant treasurers, and designated depositaries of the United 
 States are directed to pay such duplicate checks, upon notice and proof 
 of the loss of the original checks, under such regulations in regard to 
 their issue and payment, and upon the execution of such bonds, with 
 sureties, to indemnify the United States, as the Secretary of the Treasury 
 shall prescribe. This section shall not apply to any check exceeding in 
 amount the sum of two thousand five hundred di)llars. 
 
49 
 
 R. S. Section 3647. In case the disbursing officer or agent by 
 whom such lost, destroyed, or stolen original check was issued, is dead, 
 or no longer in the service of the United States, it shall be the duty of 
 the proper accounting officer, under such regulations as the Secretary of 
 the Treasury shall prescribe, to state an account in favor of the owner 
 of such original for the amount thereof, and to charge such amount to 
 the account of such officer or agent. 
 
 BONDS OF INDEMNITY. Bonds of Indemnity are furnished 
 by the Secretary of the Treasury in these cases only; Where the Bond 
 is for the issue of an interest check or Treasury draft, address the 
 Tieasurer ff the United States. 
 
 PENSION CHECKS NOT PAID IN 90 DAYS. All pension 
 
 checks not present- 
 ed for payment 
 within 90 days 
 from the date of 
 issue must be sent 
 to the Secretary of 
 the Trea.^ury (and 
 not to the U. S. 
 Treasure! ) for auth- 
 oiization of pay- 
 ment. If presented 
 at the office on 
 which drawn with- 
 out compliance with 
 this requirement 
 payiuoit will be re- 
 fused. 
 
 POST OFFICE 
 WARRANTS. 
 
 Post Office War- 
 rants are drawn by 
 the Third Assis- 
 tant Postmaster 
 General, and coun- 
 tersigned by the 
 Aud tor for the 
 Post Office Depart- 
 ment and the Treas- 
 urer of the United States. Said warrants are drawn on the Treasury 
 and the various Sub-Treasuries. 
 
 DUPLICATES. Applications should be addressed to the Auditor 
 for the Post Office Department, who will furnish the blank bond of 
 indemnity and give the necessary insti uctions. 
 
 NUMBER OF NATIONAL BANKS IN OPERATION. 
 
 (F"rom Report of Comptroller of Currency, 1894). 
 The records of the Bureau show that on October 3 1 the total 
 number of national banks in operation was 3,756, with an authorized 
 
 c:^»^= 
 
 :C£^,f-t:sJ^ xyr^^^^ 
 
 t. Asmi K Tin; 
 
 i.\s:n NAT I 
 
 1N.\1. TANK. MII.W \tKi:i-; 
 
50 
 
 capital stock of $672,671,365, represented by 7,955.076>3 shares (.f 
 stock owned by 287,842 shareholders, thus giving to each bank in the 
 system an average capital stock of $179,092, with 2,1 17 shares and 76 
 shareholders. 
 
 In this total number of banks in the system Pennsylvania leads 
 with 406; New York follows with 334; Massachusetts is next with 267, 
 and the three following in order of numbers are Ohio, 246; Texas, 218; 
 and Illinois, 217. In the item of capital stock Massachusetts is first, 
 with $97,992,500, with the several States following next in the order 
 named, viz.: New York, $87,346,060; Pennsylvania, $74,168,390; 
 Ohio, $45,240,100; Illinois, $38,506,000; Texas, $23,255,000; Con- 
 necticut, $22,791,070, and Missouri, $20,840,000. 
 
 On October 2, 1894, the date of their last report of condition, the 
 total resources of the 3,755 banks then reporting were $3,473,922,055.27, 
 of which their loans and discounts aggregated $2,007,122,191.30, and 
 money of all kinds in bank, $422,428,192.45. Of their liabilities, 
 $1,728,418,819.12 represented indixidual deposits, $334,121,082.10 sur- 
 plus and net undivided profits, and $172,33 1,978 circulating notes out- 
 standing. The total amount of circulation of nati -"nal banks October 
 31, as shown by the books of the office, was $207,472,603, a net 
 decrease during the year cf $1,741,563, and a gross decrease of $8,614,- 
 864 in circulation secured by a deposit of b(ind<. 
 
 THE ORGANIZATION OF A NATIONAL BANK. When 
 any person advises the office of the Comptroller cf the Currency that he 
 contemplates organizing a bank, he is written to and requested to file 
 there a formal notice setting forth the name of the place in which it is 
 proposed to locate the bank, the title by which the bank is to be known, 
 and the names of five or more of the persons who propose to take stock 
 therein. The object of this notice is to enable the Comptroller to reserve 
 for the persons the title selected so as to prevent the confusion and 
 difficulties that would arise from the selection of a title which could not 
 be approved. When this notice isfiied, the persons, if they so desire, are 
 furnished with blank forms to be used in affecting an organization, and the 
 title which they have selected, if it is approved, is reserved for them for 
 a reasonable period. The forms sent include articles of association, 
 organization certificate, certificate upon which officers and directors are 
 to set forth the facts of which it is necessary for the Comptroller to 
 inform himself before authorizing the bank to begin business; oaths cf 
 directors, and order for circulating notes. When these papers are 
 returned to this office executed, they are carefully examined to see that 
 they are in due form, and if any errors are f )und therein these errors are 
 pointed out and the jiapers sent back to the corporation for correction or 
 completion, as the case maybe If all the paj^ers are found duly correct, 
 this fact is certified to the bond clerk, who then sends to the Register of 
 the Treasury, for transfer upon the books of the Department, the bonds 
 which have been forwarded to this office for the account ( f the bank. 
 
 When this transfer has been made, and the bonds have been deposited 
 with the Treasurer, the certificate of the Comptroller, authorizing the 
 bank to begin business, is issued. 
 
5^ 
 RKSERVI-: CITIES. 
 
 "LAWFUL-MOXEY RESKR\'K" PRESCRIBED. Every na- 
 tional banking association in eiilier of the followin^r cities : Albany, Balti- 
 more, Boston, Cincinnati, Chicago, Cleveland, Detroit.Louisville.Milvvaukee, 
 New Orleans, New York, Philadelphia, Pittsburg, Saint Louis, San Fran- 
 cisco, and Washington, shall at all times have on hand, in lawful money 
 of the United States, an amount equal to at least twenty-five per centum 
 of the aggregate amount of its notes in circulation and its deposits; and 
 every other association shall at all times have on hand, in lawful money 
 of the United States, an amount equal to at least fifteen per centum of the 
 aggregate amount of its notes in circulation and of its deposits. When- 
 ever the lawful money of any association in any of the cities named shall 
 be below the amount of twenty-five per centum of its circulation and 
 deposits, and whenever the lawful money of any other association shall 
 be below fifteen per centum of its circulation and deposits, such association 
 shall not increase its liabilities by making any new loans or discounts 
 otherwise than by discounting or purchasing bills of exchange payable at 
 sight, nor make any dividend of its profits until the required proportion, 
 between the aggregate amount of its outstanding notes of circulation and 
 deposits and its lawful money of the United States, has been restored. 
 And the Comptroller of the Currency may notify an association, whose 
 lawful money reserve shall be below the amount above required to be 
 kept on hand, to make good such reserve and if such association shall 
 fail for thirty days thereafter so to make good its reserve of lawful money, 
 the Comptroller may, with the concurrence of the Secretary of the 
 Treasury', appoint a receiver to wind up the business of the association, as 
 provided in section fifty-two hundred and thirty-four. (R. S. Section 5 1 9 1 ). 
 
 WHAT MAY BE COUNTED TOWARDS THE " LAWFUL- 
 MONEY" RESERVE. Three-fifths of the reserve of fifteen per 
 centum required by the preceding section to be kept; may consist of 
 balances due to an association, available f>ir the redemption of its circulat- 
 ing notes, from associations approved by the Comptroller of the Currency, 
 organized under the act of June three, eighteen hundred and sixty-four, 
 or under this Title, and doing business in the cities of Albany, Balti- 
 more, Boston, Charleston, Chicago, Cincinnati, Cleveland, Detroit, Louis- 
 ville, Milwaukee, New Orleans, New York, Philadelphia, Pittsburg, 
 Richmond, Saint Louis, San Francisco, and Washington. Clearing- 
 house certificates, representing specie or lawfulmoney specially deposited 
 for the purpose, of any clearing-house association, shall also be deemed 
 to be lawful money in the possession of any association belonging to 
 such clearing-house holding and owning such certificate, within the 
 preceding section. (R. S., Section 5192). 
 
 The Secretary of the Treasur\- may receive United States notes on 
 deposit, without interest, from anv national banking association, in sums 
 of not less than ten thousand dollars, and issue certificates therefor in 
 such form as he may prescribe, in denominations of not less than five 
 thousand dollars, and payable on demand in United States notes at the 
 place where the deposits were made. The notes so deposited shall not 
 be counted as part of the lawful-money reserve of the association ; but 
 
52 
 
 the certificates issued therefor may be counted as part of its lawful- 
 money reserve, and may be accepted in the settlement of clearing-house 
 balances at the places where the deposits therefor were made. (R. S., 
 Section 5 193). 
 
 That the Secretary of the Treasury is authorized and directed to 
 receive deposits of gold coin with the Treasurer or assistant treasurers of 
 the United States, in sums not less than twenty dollars, and to issue 
 certificates therefor in denominations of not less than twenty dollars 
 each, corresponding with the denominations of the United States notes. 
 The coin deposited for or representing the certificates of deposit shall 
 
 J. A riiAi\iii';K, 
 
 I'Ki sim.NT i)i;.\vi;i< natio.nai, i:.\nk, i)1.nvi;k, uoi.. 
 
 be retained in the Treasury for the payment of the same on demand. 
 Said certificates shall be receivable for customs, taxes, and all public 
 dues, and when so leceived may be re-issued; and such certificates, as 
 also silver certificates, when held by any national-banking association, 
 shall be counted as j)art of its lawful reserve; and no national banking 
 association shall be a member of any clearing-house in which such cer- 
 tificates shall not be receivable in the settlement of clearing-house bal- 
 ances : froviditf, That the Secretary o{ the Treasury shall suspend the 
 
53 
 
 issue of such ^old certificates whenever the amount of gold coin and gold 
 bullion in the Treasury reserved for the redemption of United States notes 
 falls below one hundred million dollars ; and the provisions of section 
 fifty-two hundred and seven of the Revised Statates shall be applicable to 
 the certificates herem authoiized and directed to be issued, (section 12 
 of Act cf July 12. 1882). 
 
 PLACE FOR REDEMPTION OF CIRCULATING NOTES. 
 Each association organized in any of the cities named in section fifty-one 
 hundred and ninety-one shall select, subject to the approval of the 
 Comptroller of the Currency, an associati*. n in the city of New York, 
 at which it will redeem its circulating notes at par; and may keep one- 
 half of its lawful-money re.'-erxe in cash deposits in the city of New 
 York. Bit the foregoing provision ."^hall not apply to associations 
 organized ai d located in the city of San Francisco for the purpose of 
 issuing notes pa)-able in gold. Each association not organized within 
 the cities named, shall .'-elect, subject to the approval of the Comptroller, 
 an association in either of the cities named, at which it will redeem its 
 circulating notes at par. The Comptroller shall give public notice of 
 the names of the association selected, at which redemption are to be 
 made by the respective associations, and of any change that may be 
 made of the association at which the notes of any association are re- 
 deemed. Whenever any association fails either to make the selection or 
 to redeem its notes as aforesaid, the Comptroller of the Currency ma>', 
 upon receiving satisfactory evidence thereof, appoint a receiver, in the 
 manner provided fo-" in section fifty-two hundred and thirty-four, to wind 
 up its affairs. But this section shall not relieve any association from its 
 liability to redeem its circnhting notes at its own counter, at par, in 
 lawful money on demai d. (R. S, Section 5195). 
 
 ADDITIONAL RESERVE CITIES. That whenever three- 
 fourths in number of the national banks located in any city of the 
 United States having a population of fifty thousand people shall make 
 application to the Comptroller of the Curnncy, in writing, asking that 
 the name of the city in which such banks are located shall be added to 
 the cities named in sections fifty-one hundred and ninety-one and fifty- 
 one hundred and ninety-two of the Revi.^ed Statutes, the Comptroller 
 shall have authority to grant such request, and e\'ery bank located in 
 such city shall at all times thereafter ha\e on hand, in lawful money of 
 the United States, an amount equal to at least twenty-five per centum 
 of its deposits, as provided in section fifty-ore hundred and ninety-one 
 and fifty-one hundred and ninr ty-five of the Revised Statutes. (Act of 
 March 3, 1887). 
 
 CENTRAL RESERVE CITIES. That whenever three-fourths 
 in number of national banks located in any city of the United States 
 having a population of two hundred thousand people shall make appli- 
 cation to the Comptroller of the Currency, in writing, asking that such 
 city may be a central reserve city, like the city of New York, in which 
 one-half of the lawful-money reserve of the national banks located in 
 other reserve cities may be deposited, as provided in section fifty-one 
 hundred and ninety-five of the Revised Statutes, the Comptroller shall 
 
54 
 
 have authority, with the approval of the Secretary of the Treasury, to 
 grant such request, and every bank located in such city shall at all times 
 thereafter have on hand, in lawful money of the United States, twenty- 
 five per centum of its deposits, as provided in section fifty-one hundred 
 and ninety-one of the Revised Statutes. (Act of March 3, 1887). 
 
 LIST OF CITIES, CENTRAL RESERVE, (i) New Yoik 
 City, (2) Chicago, (3) St. Louis. OTHER RESERVE CITIES. ([) 
 Boston, (2) Albany, (3) Brooklyn, (4) Philadelphia, (5) Pittsburg, (6) 
 Baltimore, (7) Washington, (8) New Orleans, (9) Louisville, (10) Cm- 
 cinnati, (11) Cleveland, (12) Detroit, (13) Milwaukee, (14) Des Moines, 
 (15) St. Paul, (16) Minneapolis. (17) Kansas City, (18) St. Joseph, (19) 
 Lincoln, (20) Omaha, (21) San Francisco. 
 
 NATIONAL BANK EXAMINERS. 
 
 APPOINTMENT, POWERS, AND DUTIES. The Comptroller 
 of the Currency, with the approval of the Secretary of the Treasury, shall, 
 as often as shall be deemed necessary or proper, appoint a suitable 
 person or persons to make an examination of the affairs of every banking 
 association, who shall have power to make a thorough examination into 
 all the affairs of the association, and, in doing so, to examine any of the 
 officers and agents thereof on oath; and shall make a full and detailed 
 report of the condition of the association to the Comptroller. (R. S. 
 Section 5240). 
 
 COMPENSATION. All persons appointed to be examiners of 
 national banks not located in the redemption cities specified in section 
 five thousand one hundred and ninety-two of the Revised Statutes of 
 the United States, or in any one of the States of Oregon, California, and 
 Nevada, or in the Territories, shall receive compensation for such exam- 
 ination as follows. For examining national banks having a capital less 
 than one hundred thousand dollars, twenty dollars; those having a capital 
 of one hundred thousand dollars and less than three hundred thousand 
 dollars, twenty-five dollars; those having a capital of three hundred 
 thousand dollars and less than four hundred thousand dollars, thirty-five 
 dollars ; those having a capital of four hundred thousand dollars and less 
 than five hundred thousand dollars, forty dollars ; those having a capital 
 of five hundred thousand dollars and less than six hundred thousand 
 dollars, fifty dollars ; those having a capital of six hundred thousand dollars 
 and over, seventy-five dollars ; which amount .<«hall be assessed by the 
 Comptroller of the Currency upon, and paid by, the respective association 
 so examined, and shall be in lieu of the compensation and mileage here- 
 tofore allowed for making said examinations; and persons appointed to 
 make examinations of national banks in the cities named in section five 
 thousand one hundred and ninety-two of the Revised Satutes of the 
 United States, or in any one of the States of Oregon. Califorinia. and 
 Nevada, or in Territories, shall receive such compensation as may be 
 fixed by the Secretary of the Treasury upon the recommendation of the 
 Comptroller of the Currency; and the same shall be assessed and paid 
 in the manner hereinbefore provided. (Ibid). 
 
SEMI-ANNUAL DUTY ON CIRCULATION. 
 
 DUTY. There is due from every national bank, in the months of 
 January and Jul\- of each year, a tax or duty of one-half of one per 
 
 H. W. IIAYKS, 
 
 TRKSIDICNT PRESTON NATIONAL BANK, 
 
 DKTRDIT, MICH. 
 
 centum upon the average amount of its notes in circulation during the 
 
 six months preceding each January and July. (Section 5214, R. S.) '| 
 
 RETURN. In order to ascertain the amount of duty due, every 
 
 national bank must, within the first ten days of January and July of each 
 
56 
 
 year, make a return to the Treasurer of the United States, upon blanks 
 furnished by him, of the average amount of its notes i)i circulation for the 
 six months next preceding tJic first day of January and July. This return 
 must be subscribed and sworn to by the President or Cashier cif the bank, 
 and a failure to so make it subjects the bank to a penalty of two hundred 
 dollais 
 
 HOW TO ASCERTAIN THE AVERAGE CIRCULATION. 
 To ascertain the average amount of notes in circulation, the following 
 directions should be closely followed : 
 
 If the duty is due in January, add together the daily balances of 
 notes in circulation of each dnx-, beginning wiih the first day of the last 
 preceding July and including December 3 I. Divide the sum thus ob- 
 tained by 184, the number «.f da\ s f'om Jul\' i to December 31, and 
 the quotient will be the average amount d notes m circulation for the 
 six months preceding January i. 
 
 If the duty is due in July, a similar calculation is made, beginning 
 with the first day of the last prect cling Januaiy and including June 30, 
 but dividing the sum by 181, the number of days from January i to 
 June 30, except in leap } ears, when the divisor will be 182. For each 
 Sunday and holiday the balance of the precedmg business day should 
 be counted. 
 
 The same result may be obtained by banks making a weekly state- 
 ment instead of daily statements, by addmg together the weekly balances 
 and dividing the sum by the number of weeks in the half year, which 
 will be 2 5y or 26 for the first six months, and 26* for the last six 
 months. For each day in any fractional part of a week, counting the 
 one-seventh of the weekly balance next preceding such fractional part. 
 
 "NOTES IN CIRCULATION." Extract from opinion of the 
 Attorney-General, rendered December 2, 1894. 
 
 "Bank n^ tes signed and actually paid out over the country, or 
 otherwise so dealt wiih as to become liabilities of the bank, are "notes 
 in circulation." But notes merely held in the vaults of the bank, 
 whether signed or unsigned, and notes so signed and held and carried 
 on the books of the bank are not its "notes in circulation." For the 
 same reason, notes that have been obligations of the bank but cease to 
 be so and return and remain in the bank for whatever period, are not, 
 during such period its "notes in circulation." 
 
 NEW BANKS. If a bank is organized between the first days of 
 January and July or between July first and January first, or has no notes 
 in circulation on the fir.'^t day of January or July, then the calculation 
 should begin on the day the bankfirst put any of its notes in circulation, 
 and continued to and including June 30th or December 31st, as the case 
 may be and t/ie sum dri'idcd bv tJie full nund^cr of days, iS i or iSf. 
 
 BANKS IN LIQUIDATION. The liability ceases upon the 
 deposit of lawful m^n' y to retire the notes, and a bank in liquidation, 
 upon dej)ositing such lawful money, begins the calculation in the same 
 manner as above explained and continues it to the Hav of deposit of the 
 lawful moncv, alwa>s dividing by the full number of days in the semi- 
 annual period. 
 
57 
 
 PAYMENT OF DUTY. Payment of duty must be made in one 
 of the following ways, viz.: 
 
 1st. By a remittance to the Treasurer U. S. of the amount in law- 
 ful money or notes of nationl bank or by a draft on New York City, for 
 which the Treasurer will issue his certificate of deposit in duplicate and 
 send the duplicate to the bank. 
 
 2d. By depositing the amount due with an Assistant Treasurer of 
 the United States or with a national bank depositary, for which the 
 Assistant Treasurer or depositary will is^ue to the bank a certificate of 
 deposit in triplicate, the original of which the bank should send to the 
 Secretary of the Treasury, the duplicate to the Treasurer of the United 
 States, and retain the triplicate as its voucher. 
 
 SEMI-ANNUAL DUTY COLLECTED FROM NATIONAL 
 
 BANKS. 
 
 (From Treasurer's Report, 1894). 
 
 On Circulation, fiscal years 1864 to 1894, inclusive, $75,834,997.17 
 On deposits, " " 1864 to 1883, " 60,940,067.16 
 
 On capital. " " 1864 to 1883. " 7,855.887.74 
 
 $I44,630.952.C7 
 NOTE. The tax on capital and depo.>-it3 of National Banking 
 Associations was repealed by the act of March 3, 1883. (22 Stat, p. 488, 
 Supplement R. S., p. 404). 
 
 NATIONAL BANK REDEMPTION AGENCY. 
 
 (Expenses Reimbursed by National Banks.) 
 
 By Section 3 of the Act of June 20, 1874. (18 Stat., p. 123). it was 
 provided that the notes issued by national banks might be presented to 
 the Treasurer U. S for redemption, etc. By the Act of March 3, 1875 
 (Ibid., p. 399), for the purpose of carrying into effect the provisions of 
 the first named act, an appropriation was made for the force so employed 
 in the Office of the Treasurer. 
 
 DUTIES. The business of the National Bank Redemption Agency 
 consists in carrying into effect the provisions of the Acts of Congress 
 approved June 20, 1874, (18 Stat., p. 123), July 12, 1882,(22 Stat, p 
 162). and July 14, 1 890, (26 Stat., p. 289), and Section 5222 and 5229 
 of the Revised Statut'-s, relating to the redemption of national bank 
 notes at the Treasury uf the United States, of which the following are 
 the principal features. 
 
 Section 3 of the Act of Congress approved June 20, 1874.(18 Stat, 
 p. 123), provides that every national bank shall keep on deposit in the 
 Treasury of the United States a sum of lawful money equal to 5 per 
 centum of its circulation, to be held and used for the redemption of its 
 notes; that the circulating notes of the banks shall be redeemed by the 
 Treasurer on presentation and charged to the respective a.ssociations by 
 which they were issued ; that the redeemed i.otes shall be forwarded to 
 the banks of i^sue, but if any of the notes are unfit for circulation they 
 
58 
 
 shall be delivered to the Comptroller of the Currency for destruction 
 and replacement with new notes; and that the banks shall re-imburse to 
 the Treasury the charges for transportation and the costs of assorting the 
 notes redeemed. Section 4 of the same act provides that any bank may 
 
 I-RKD'K rAHsr. 
 |'ki;sii>i;ni' tiii; Wisconsin national i:\nk. Mii.wArKii:. wis. 
 
 deposit lawful money and take up the bonds on deposit for the security 
 of an ecjual amount of circulation, and that this amount of its notes shall 
 be redeemed at the Treasury and destroyed. Section 3 of the Act of 
 March 3, 1875. (18 Stat., p. 399), requires the Secretary of the Treasury 
 
59 
 
 to reimburse tiic i ica.-5ury lo the full amount expended in carrying into 
 affect the provisions of the Act c>f June 20, 1874. By Section 6, 8, 
 and 9, of the Act of July 12, 1882,(22 Stat., p. 162), these provisions 
 are modified in some ])articulars, and each bank is required at the end of 
 three ) ears from the date C'fthe extension of its corporate existence, to 
 dep >sit lawful money with theTreasurer sufficient to redeem the remain- 
 der of the circulation which was outstanding at the date of the extension. 
 The laws relating to the redemption of the notes of banks in voluntary 
 liquidation or insolvent are embodied in the Revised Statues (Section 
 5220 to 5242.) 
 
 THE EXPENSES OF THE AGENCY. The expenses of the 
 Agency, including the salaiies of the employes; the charges for trans- 
 porting the notes to Washington in sums or multiples of ;^ 1,000, and for 
 the return of the notes fit for circulation to the banks of issue; and all 
 other incidental expenses, are passed upon by the accounting officers of 
 the Treasury, and paid in the first instance out of regular appropriations. 
 After the close of each fiscal year the amount so expended is reimbursed to 
 the Treasury, as provided in Section 3 of the Act of March 3, 1875, (18 
 Stat., p. 399). by deposit as a miscellaneous receipt, and assessed upon 
 the several banks in proportion to their circulation redeemed. The 
 assessments are computed in the Agency and charged on its books to 
 the 5 per cent, account of the banks. An advice is sent to each bank 
 assessed, showing the amount of its notes redeemed and the rate and 
 amount of the assessment. 
 
 LOST OR STOLEN NATIONAL BANK NOTES. The Act of 
 July 28, 1892,(27 Stat , p. 322) provides. "That the provisions of the 
 Revised Statutes of the United States, providing for the redemption of 
 national bank notes, shall apply to all national bank notes that have been 
 or may be issued to, or received by, any national bank, notwithstanding 
 such notes may have been lost by or stolen from the bank and put in 
 circulation without the signature or upon the forged signature of the 
 president or vice-president and cashier." 
 
 MANUFACTURE, ISSUE, REDEMPTION, AND DESTRUCTION 
 OF NATIONAL BANK NOTES. 
 
 ENGRAVING AND PRINTING OF NATIONAL BANK NOTES. 
 
 Requisition is made on the chief of Bureau of Plngraving and 
 Printing by the Comptroller of the Currency for a plate and impressions 
 for a new bank. The chief makes an order on the engraving division 
 fir the new face-plate. The engraving division makes the face-plate of 
 the appropriate title for the new bank, daily depositing it, in its various 
 stages of preparation at the close of the work, with the custodian of 
 dies, rolls, and plates. The impressions comprise a plate printed tint, 
 with a surface-printed charter number of bank subsequently placed on 
 it, forming the back, a plate-printed face, and surface-printed seal and 
 charter number on face. The tints of earh denomination of all banks 
 are. alike, varying only as to the State < r Territory in which the bank is 
 located. To facilitate the preparation of the currency when ordered for 
 
6o 
 
 the separate banks, the tints are prepared and kept in the vault division 
 as stock in advance of such orders. When the Comptroller of the Cur- 
 rency makes an order on the chief of Bmeau for a new plate for a 
 national bank, in the event of its bein<T the fir.^t oiganized in its State oi 
 Territory, the order includes the tint-plates, and the tints are prepared 
 there from to accomodate the future orders of the same bank, and < f 
 any others that may be subsequently organized in the same State. On 
 an order of the chief of Bureau the engraving divi.sion makes the tint- 
 plate and deposits it with the custodian of die>, rolls, and plates. The 
 paper for the tints is furnished by the Secretary of the Treasury on 
 rtquiMtion ( f the wetting branch, and prepared for printing. On order 
 of the chief of Bureau the plate branch draws the plate from the cus- 
 todian of dies, roU.-^, and plates, and assigns it to a printer, who draws the 
 paper from a wettini.^ branch and prints the tints. These are passed to 
 the examining division, wet counted,dried.arrangedafter drying, examined, 
 counted, packed and deposited with the vault keeper for safe-keeping 
 until redeemed for face printing. Pending the preparation of the face- 
 plate and nearing its completion the chief of Bureau makes an order on 
 the plate branch to print the faces, and on the surface branch to print 
 the seals and charter numbers on the faces and the charter numbers 
 combined with tints to form the back. When the order is received to 
 print the faces, the wetting branch draws the tints on requisition on the 
 examining division, and prepares them to receive the face printing. The 
 plate branch draws the face-plate from the custodian of dies, rolls, and 
 plates, assignes a printer, who draws the paper from the wetting branch 
 and prints the faces. The printed faces are passed to the examining 
 division, where they are wet-counted, dried, arranged after drying, ex- 
 amined, recounted, pressed, and again counted. They are then forwarded 
 to the numbering division, where they are counted, trimmed, and re- 
 counted, receive the bank number, are examined and counted, receive 
 the Treasury number, examined and counted, and delivered to the surface 
 branch. In the surface branch the work is counted on its receipt, and 
 a requisition made on the custodian of dies, rolls, and plates for the 
 charter number and seal forms. The charter number is printed on the 
 back, and the impressions examined and counted. The seal is printed 
 on the face, and the work again examined and counted, and then packed, 
 and transmitted to the vault keeper for delivery to the Comptroller of 
 the Currency, at which point the work is finally disposed of by the 
 Bureau. 
 
 ISSUl-: OF NATIONAL BANK NOTES. 
 
 C0MPTR0LLI-:R of the currency. This officer makes 
 requests on the Bureau of Engraving and Printing, in compliance with 
 orders from the banks, for the prei)aration of engraved pla'es for the 
 national banks and the printing of their circulating notes therefrom, to 
 supply not only the first i-<sue to them, but also to replace the destruction 
 of their notes as they occur. 
 
 When this " incomplate currency" is received from the Bureau of 
 Engraving and Printing, it is examined, tested, and counted, a record of 
 
6i 
 
 the same is entered on the books, and the reserve supply is stored in the 
 vaults in sealed packages. The retjuircd amount are issued to the banks, 
 (after being counted and recorded in the proper books), in sealed pack- 
 ages, with receipts for the same, which are forwarded to the banks, signed 
 and returned by them, and filed in the office. 
 
 iii:Riii:R r i,. o itKii'.N, 
 
 CASIIIKK TKlCSroN N ATM >.NAI, ItANK. DKTKOIT, .MICH. 
 
 trp:asurer of the UxMted states, 
 procedure in redemption of national bank 
 
 NOTES. The notes are forwarded by banks for redemption mostly 
 through the United .States IC.xpress Compan}\ under a contract with the 
 United States for their transportation, and arc received and receipted for 
 by the Superintendent of the Redemption Agency, in sealed packages. 
 Small sums are received by mail, and from some other sources. 
 
62 
 
 These packages, with all sums coming from other sources, are 
 deHvered to the express clerk, and are by him entered upon a register, 
 the entry consisting of the name and address of the sender, the amount 
 marked upon the wrapper of the package, the date of the sender's advice, 
 and the serial number of the remittance. The footing of this register for 
 each day shows the amonnt received for redemption. 
 
 The packages are delivered by the express clerk singly to the 
 counters, who receipt for them on the regester. It is the duty of the 
 the counters to open the package, count the contents, rejecting all notes 
 not the genuine issue of a national bank, put up the notes, each demoni- 
 nation separately, in straps marked with the remittance number, the 
 amount in the strap, the counter's signature, and the date of the count, 
 and to prepare a report the result of the count by filling in a blank form. 
 The notes, with the counter's report, are then delivered to the first assort- 
 ment clerk, who verifies the amount by inventorying the sums marked 
 on the straps, and gives his receipt on a book supplied to the counter. 
 When the count of one package is completed, and the money delivered, 
 the counter receives another package, and so on until all the remittances 
 on hand have been disposed of. 
 
 The first assortment clerk, from the counter's reports, makes entry 
 of the result of the count of each remittance upon a register, setting out 
 the number of the remittance, the amount claimed by the sender, the 
 amount of the proceeds, and by items the additions and deductions 
 reconciling the count with the amount marked on the package. The 
 footing of this register show the result of the whole count for each day. 
 The counted notes remaim in the custody of the first assortment 
 clerk, being placed in a safe, which is locked up by the Superintendent 
 until the morning of the next business day, when they are apportioned 
 among the first assorters, who give their receipts an a book. 
 
 The first assorters severally verify the amounts receipted for by 
 making an inventory of the parcels and counting the notes in each strap. 
 Their next duty is to assort the notes into groups of banks according 
 to an alphabetical arrangement by location of all the banks that have 
 circulation outstanding. The number of groups at this time is seventy- 
 two, averaging about seventy banks each. The assortment being fin- 
 ished, the notes in each group are counted and put up in straps, each 
 strap being marked with the number of the group, the amount, the 
 assorter's signature, and the date. Finaly an inventory of the straps is 
 made to reconcile the total with the amount receipted for, and the notes 
 arc delivered to the second assortment clerk, who also makes an inven- 
 tory by strap, and gives his receipt on a book in the assorter's hands. 
 
 The grouped notes arc locked up in the custody of the second 
 assortment clerk in the manner already described, and on the next busi- 
 ness day this clerk distributes the notes by groups in the assorters' 
 straps, according to the group numbers marked on the straps makes into 
 bundles the amounts in the groups, severally, and prepares a schedule ot 
 these amounts. The notes are then transferred by the Teller to the 
 vault of the Agency, where the bundles are checked off by the Super- 
 intendent and placed in compartments assigned to the groups severally. 
 
63 
 
 Each day the notes that have accumulated in a number of groups — 
 usually five — are taken out of the vault by the Superintendent and the 
 Teller and delivered to the second assortment clerk, who opens the 
 bundles, verifies the contents of each by inventory, and assorts the 
 notes of each group in the assorters' straps by denominations, lie 
 enters the several sums by denominations and groups in a book, and the 
 money is locked up in his custody in a safe by the Superintendent. The 
 following day the accumulations in the next consecutive groups are 
 taken out of the vault in the same way, and so on. The intervals be- 
 tween successive handling of money in the same group depend upon 
 the number of groups handled each day. 
 
 Next morning the second assortment clerk delivers the notes in 
 his hands, arranged by denominations as described, to the second as- 
 sorters, taking receipts on his book. The second assorters first verify 
 by count the correctness of the sums receipted lor, then assort the notes 
 by bank issue, and finally count out the amounts found for each bank. 
 In the final count the notes that under the various provisions of law are 
 required to be destroyed are separated from those fit for circulation that 
 are to be returned to the banks of issue, and those of the series of 1882 
 from the old series. The notes in the various lots are put up in different 
 straps, which are marked with the number of the bank in the group, 
 the amount, the assorter's signature, and the date. The correctness of 
 the count is then verified by an inventory and the notes are delivered to 
 a maker-up, who receipts for them after satisfying himself that the inven- 
 tory is correct. The amounts delivered to the several makers-up are 
 placed under lock in a safe until the next business day. 
 
 It is the duty of a maker-up to distribute the notes of the group in 
 his charge according to the marks on the straps, to make a schedule for 
 each class of the notes of each bank, showing the amount of each 
 demonination and the total, and ti fill in a printed list of the banks in 
 the group with the totals shown by the schedules. The footings of 
 the resulting colums of figures enable him to test the correctness of his 
 work. The notes thus prepared in packages, with the schedules ac- 
 companying are then transferred to the delivery clerk and receipted for. A 
 book in which the amounts of the packages have been entered also goes 
 with the money. 
 
 The delivery clerk places the packages in the hands of the provers, 
 one or more at a time to the same person, taking receipts, for verification 
 of the work oftheassorter and maker-up. This completed, the prover signs 
 and dates the schedule, securely ties the notes that are to be returned to 
 the bank of issue, and carries the parcel to the desk of the sealer, who 
 wraps and seals it under the prover's eye, first cancelling the notes that 
 are to be destroyed by cutting off the lower corners. The package is 
 then returned by the prover to the delivery clerk, who gives his receipt. 
 On the day following the making up of a group the notes are delivered 
 from the Agency to the United States Exjiress Company or the Comp- 
 troller of the Currency, according to the classification rf the parcels, 
 the delivery clerk taking receipts in favor of the Treasurer of the 
 United States as redemption! agent on blank f^rm previously prepared 
 
64 
 
 The exceptions to this course are in the case of banks whose redemp- 
 tion account is overdrawn, and of amounLa less than the minimum sum put 
 into a package. In the former case the deHvery is suspended until the 
 account is made good, and in the latter the notes are returned. 
 
 II. J. uoi.i.isi):!-; 
 
 CASHIER OLD NATIONAL HANK, (IK.XNI) KAI'IDS, MIOH. 
 
 COMPTROLLER OK THE CURRENCY. 
 
 REDEMPTION OF THE NATIONAL BANK CURRENCY. 
 National l^ank Currency is received by the Redemption Division, either 
 direct from the bank of issue, the United States Treasurer, or the 
 National Bank Redemption Agency. The daily receipts of packages of 
 
65 
 
 currency, which come sealed, are subject to count. The packages re- 
 ceived are entered on a register, arranged alphabetically and numeric- 
 ally, and entered in counter's receipt books for their verification. A 
 schedule is made of each package and series of currency contained 
 therein, which gives charter-number and name of bank and number 
 and value of notes. After verification the curnncy is returned to the 
 clerk in charge of the register who gives his receipt therefor to the 
 counters. The schedules are exainined and name of agent marked on 
 face of package and face of schedule. The packages are then checked 
 by the register and the schedules delivered to another clerk, whose 
 duty it is to make the certificate of destruction, which contams 
 the aforementioned information. After checking, the packages are 
 arranged according to agents, counted and verified by number ot 
 certificate for each agent, and placed in boxes in the vault preparatory 
 to destruction the next day. The schedules made by the counters 
 are used by the bookkeepers of the division to make their entries, and 
 after being verified are filed. The certificates are used by the clerks in 
 making up each day's destruction, and are finally forwarded to the 
 banks of issue. 
 
 COMMITTEE ON DESTRUCTION. 
 
 DESTRUCTION OF MUTILATED NATIONAL BANK 
 NOTES: Under the provisions of the National Bank Act (Section 
 5184, Revised Statues) a committee is appointed to witness and certify 
 to the destruction of mutilated National bank notes. The committee 
 consists ot four persons, one appointed by the Secretary of the Treasury, 
 one by the Comptroller of the Currency, one by the Treasurer of the 
 United States, and one by the association. 
 
 This committee meets daily at 2 p. m. in the Redemption Division 
 of the Office of the Comptroller of the Currency. One member reads 
 from the certificate the name of the bank, one calls the amount from 
 the slip on the package of money, the third checks the amount on the 
 book in the presence of the bank's agent; after which this money is 
 placed in the macerator for destruction, and the certificates are signed 
 by the committee representing the Secretary of the Treasury, the 
 Treasurer U. S., the Comptroller of the Currency, and the bank's 
 agent. The said certificates are then forwarded to the various banks 
 represented, there being from two hundred to three hundred certificates 
 dail}-. The Macerator is located in the sub-basement of the Treasury 
 Building. The notes are reduced to pulp by the combined action of 
 steam, alkalies, and knives; and the pulp is sold under contract. 
 
 NATIONAL BANK DEPOSITARIES. 
 
 APPLICATION FOR DESIGNATION AS UNITED 
 STATES DEPOSITARY: Any National Bank desiring to make 
 application for designation as United States Depositary, should ad- 
 dress the Secretar)- of the Treasur)-, who will give all necessary 
 information and instructions. 
 
66 
 
 REGULATIONS AS TO U. S. DEPOSITARIES: All 
 national bankine^ associations, designated for that purpose by the 
 Secretary of the Treasury, shall be depositaries of public money, 
 except receipts from customs, under such regulations as may be pre- 
 scribed by the Secretary; and they may also be employed as financial 
 agents ot the Government; and they shall perform all such reasonable 
 duties, as depositaries of public moneys and financial agents of the 
 Government as may be required of them. The Secretary' of the 
 Treasur)' shall require the associations thus designated to give satis- 
 factory security, by the deposit of United States bonds and other- 
 wise, for the safe keeping and prompt payment of the public money 
 deposited with them, and for the faithful performance of their duties 
 as financial agents of the Government. And every association so 
 designated as receiver or depositary of the public money shall take and 
 receive at par all of the national currency bills, by whatever associa- 
 tion issued, which have been paid into the Government for internal 
 revenue, or for loans or stocks. (Section 5153 R. S.) 
 
 FUNCTIONS OF DEPOSITARIES: The national banks 
 serve a very useful purpose, both to the Government and the public, 
 more especially in localities where there is not a Sub-Treasury, by 
 acting, when so authorized by the Secretary of the Treasury, as 
 depositaries of public moneys and financial agents of the United 
 States. For their services in this regard they receive no direct com- 
 pensation, and are, moreover, required to give satisfactory security for 
 the faithful performance of their duties and the safe custod}- and 
 prompt payment of all public moneys intrusted to them, by a deposit 
 with the Treasurer of a sufficient amount of United States bonds. 
 (See Section 5153 R. S.) 
 
 SERVICE RENDERED TO GOVERNMENT: As Govern- 
 ment depositaries, the national banks have received, stored in their 
 vaults, and accounted for $5,356,625,801, without expense to the 
 Government. (Report of Comptroller of the Currency, 1894). It may 
 be added that the Government has never lost a cent of deposits of 
 public moneys in National Bank Depositaries, while the savings in 
 the transportation of funds during a period of thirty years must have 
 amounted to a verv considerable sum. 
 
 NUMBER OF DEPOSITARIES: On January i, 1895, the 
 number of national banks designated as depositaries was 157. The 
 amount of bonds held by said banks to secure deposits of public 
 moneys, on the same date, was $15,001,000. 
 
 MANUFACTURE, ISSUE, REDEMPTION AND DESTRUC- 
 TION OF UNITED STATES PAPER CURRENCY. 
 SECRETARY OF THE TREASURY. 
 
 GOVERNMI-NT PAi^ER MILL: This mill, where the dis- 
 tinctive paper for United States notes, gold and silver certificates. 
 bonds, checks and drafts is made, is under >.he supervision of an em- 
 ploye of the Loans and Currency Division, detailed as superintendent 
 by the Secretary of the Treasury. The distinctive paper shipped by 
 
67 
 
 the superintendent of the null to the Treasury Department is under 
 tile custody of the Loans and Currenc}' Division, where it is examined 
 and counted. 
 
 DISriNCnVE TAPER: The examination and count of the 
 distinctive paper for United States securities and for the printincj of 
 internal revenue stamps is a critical one, involving the detection and 
 exclusion of all sheets inferior in quality or weight to the paper 
 adopted as the standard sheet, or which contain imperfections of any 
 kind. In the case of silk-threaded paper the examination must ex- 
 clude all paper where the silk is not completely inclosed between the 
 two surfaces of the paper. 
 
 A. K. V. WHITE, 
 
 ■RKSIDENT I'KKSTK.V NATIONAI, liANK. DETROIT. .MICH. 
 
 ISSUE OF DISTINCTIVE PAPER: The demand for all 
 kinds of securities has its origin, so far as the Department is con- 
 cerned, in the office from which the security is issued, the head of that 
 office or bureau making his requisitions upon the Secretary for the 
 number of printed impressions required from time to time to supply 
 the demand. 
 
 LOANS AND CURRENCY DIVISION: This Division, 
 having charge of the examination, count, and custody of distinctive 
 paper, is the medium through which a requisition is sent. An order 
 
68 
 
 for the printing is prepared and signed by the Secretary. The amount 
 of paper required to fill the requisition, with a percentage allowed for 
 work spoiled, is placed by denominations to the credit of the Bureau 
 of Engraving and Printing, and against this credit that bureau is 
 allowed to draw from time to time for printing the securities ordered. 
 
 BUREAU OF ENGRAVING AND PRINTING. 
 ENGRAVING AND PRINTING SHEET, CURRENCY, ETC. 
 
 MISCELLANEOUS (OFFICE) DIVISION. The office re- 
 ceives the requisitions of the Departments for the work of the Bureau, 
 and in compliance therewith gives the necessary order in writing to the 
 superintendents of the several divisions and sees that they are proper- 
 ly carried out. It makes the estimates, subject to the approval of the 
 Secretary of the Treasury, purchases the supplies, and prepares the 
 designations for employment. The office receives, files, and answers 
 communications, keeps all the general accounts of the Bureau, and re- 
 ports daily to the Secretary of the Treasury, by classes and denomina- 
 tions, the blank distinctive paper received and delivered printed, and 
 monthly reports compiled from the division, daily reports of the 
 receipts, deliveries, and balances of paper, for comparison and check 
 with the paper account against the Bureau kept in the Secretar}''s 
 office, division of loans and currency. 
 
 ENGRAVING DIVISION. The work of this division is en- 
 graving new dies and plates for plate printing and new forms for sur- 
 face printing the securities, etc., and keeping them in good printing 
 order. New engravings are made only on the written order of the 
 chief of the Bureau. The superintendent directs the preparation ot 
 models, to be approved by the Department for which the work is in- 
 tended, and also all the processes of engraving, until the work is 
 finished. The engraved stock is classified as plates, forms, rolls, dies, 
 shells, etc., and numbered, each piece being designated and known by 
 its class and separate serial number. All the engraved stock is held 
 in safety vaults by the custodian of dies, rolls, and plates, a direct rep- 
 resentative of the Secretary of the Treasury, independent of the 
 Bureau. The custodian keeps a record of the engraved stock, and, on 
 requisition of the superintendent,, delivers during the day the pieces 
 required for additional processes of engraving. He receives it all back 
 at the close of work, giving the superintendent a receipt for each piece' 
 and makes a daily report to the Secretary of the Treasury that all the 
 engraved stock delivered during the day has been correctly returned. 
 The engraving division keeps a record of every piece of engraving 
 handled, showing the name of the workman through whose hands 
 each piece passed and the nature of the work bestowed upon it. 
 Each workman at the close of the day delivers to the superintendent 
 the piece remaining in his hands, and is not permitted to leave the build- 
 ing at any time without a certificate that all the engraved stock 
 handled \)y him has been returned. 
 
69 
 
 PRINTING DIVISION. Wetting Branch—The- printing divis- 
 ion comprises several branches under the general supervision of the 
 superintendent of printing, and the work in the respective branches is 
 under the immediate supervision of a separate superintendent. In the 
 wetting branch the paper is prepared for plate printing. All the im- 
 pressions representing values and the checks are printed on a distinc- 
 tive paper manufactured exclusively for, and under the supervision of 
 the officers of the Treasury Department. The superintendent of the 
 wetting branch is furnished with a copy of the printing orders and 
 makes daily requisitions on the Secretary of the Treasury for the paper 
 needed. The paper is received in packages, usually of i,ooo sheets 
 each, and is counted on receipt to verify the filling of the requisition. 
 It is then passed through the wetting process. The wetting requires 
 a separation and count of the paper in sections of from ten to forty 
 sheets each, according to the character of the paper and its requisite 
 condition for printing. The sections, which have been placed between 
 cotton cloths saturated with water, are shifted, taken out of cloths and 
 counted, and stacked in their wet condition ready for delivery to the 
 printers. If more than one plate printing is required on the same 
 sheet, the paper is again received in its printed form from the examin- 
 ing division to be prepared as before for the next printing. The mdi- 
 \idual plate printers are charged in this branch with the paper delivered 
 to them daily for each job of work and credited with the paper 
 returned unprinted. Employes are not permitted to leave the building 
 without a certificate from the superintendent that the work is correctly 
 balanced. An account is kept and a daily report made to the ofifice 
 by class and denomination of the number of sheets received, delivered, 
 and on hand. 
 
 Plate branch — Hand-presses. — Plate-printing on the hand-presses 
 is executed in this Vjranch. No work is printed except on the written 
 order of the chief of the Bureau. The superintendent daily assigns 
 certain classes and denominations of printing to the individual printers, 
 who draw from the wetting branch the paper to correspond with the 
 job, and after counting it, give their indi\'idual receipts for it. By 
 requisition on the custodian of dies, rolls, and plates, the superinten- 
 dent obtains the necessary plates, and appropriately distributes them 
 among the printers, holding each printer accountable for the return of 
 his plate at the close of work. Attached to each press is an autom- 
 atic register, b\' which every revolution of the press capable of printing 
 an impression from the plate in the hands of the printer is exactly 
 indicated to the register clerk, who makes a daily report to the office 
 of the advance made in the register from the preceeding day. The 
 printing of the day is collected from the printers in packages of one 
 hundred and two hundred sheets each, entered in their pass-books, 
 and delivered to the examining division, to be counted and recorded 
 in the entry-book to the credit of the printer. At the close of work 
 each day the accounts of the wetting branch, examining division, and 
 register Clerks are compared and checked by the superintendent of 
 printing, to show that the paper delivered for printing and the printed 
 
70 
 
 impressions received from the printers agree and correspond with the 
 register account, and the custodian of dies, rolls, and plates reports 
 that all the plates and forms delivered for printing during the day have 
 been returned to him. No printer is permitted to pass from the 
 building during the day without a certificate showing the return of his 
 paper and a check showing the return of his plate. 
 
 Plate branch. — Steam-presses — Plate-printing on the presses ope- 
 rated by steam is executed in this branch. It is under the supervision 
 of a seperate superintendent, and its methods are substantially the 
 same as those of the plate branch hand-pres.sec. 
 
 --^^^rs^^^^^^^^^^V^ 
 
 CASHIER HA< KI.EV NATIUNAI- HANK, MlsKEi 
 
 Surface branch. — The surface printing on typographic presses is 
 executed in this branch. No work is printed except on the written 
 order of the chief the Bureau. The presses are known by number, and 
 in this branch the work is assigned to the press instead of the printer, 
 one press-man having charge of one or more presses. The work con- 
 sists of printing seals and charter numbers on the faces and charter 
 numbers on the backs, of national currency, indorsements, addresses, 
 etc., on checks, and tints on distinctive paper for internal-revenue and 
 customs stamps, etc. The distinctive paper is drawn from the wetting 
 branch, the national currency from the numbering division, and the 
 
71 
 
 checks from the bindini^ division, and receipted for in each case by the 
 superintendent. The engraved forms from which the printing is 
 executed are drawn from the custodian of dies, rolls, and plates, the 
 superintendent making the requisition, and taking a receipt for each 
 piece returned at the close of work. The sheets are counted on their 
 receipt, fed on the press, examined, and counted. Automotic registers 
 are on the presses indicating the number of impressions printed. The 
 register count is checked with the superintendent's account of each 
 day, and no employe is permitted to leave the building without a cer- 
 tificate of the superintendent that the work account is correctly 
 balanced. A daily report by classes and denominations is made to the 
 office of the number of sheets received, delivered, and on hand. 
 
 EXAMINING DIVISION. In this division the plate printed 
 work is carefully examined by experts with a view to elimmating and 
 withholding from the further process all mutilated or imperfect impres- 
 sions. The sheets requiring no additional wetting frr further printing 
 are also pressed by placing two together between pressing boards, and 
 in lots of about a thousand, subjecting them to heavy hydraulic pres- 
 sure to restore the even surface of the paper roughened by the wetting. 
 The impressions printed in the plate branches come to this division 
 fresh from the press to be wet-counted, are entered to the credit of the 
 printers whose initials are printed on the margins of the sheets, spread 
 on racks and conveyed to the drying-room to remain during the night. 
 The surface printed tints are also received, counted, and delivered to 
 the vault division to be held as stock subject to be drawn on requsi- 
 tion by the wetting branch to prepare them for additional printing in 
 the plate branch. After the plate-printed impressions have been dried 
 ihey are arranged in classes, each printer's work separately, and exam- 
 ined. A report is made of the number of sheets spoiled by each 
 printer, and showing the nature of the defect as a basis of charge 
 against the printer's pay account when the number of sheets exceeds a 
 stated percentum of allowance for spoilage. The imperfect impressions 
 are canceled and delivered to the vault division for final delivery to the 
 Secretary of the Treasury for destruction. The perfect plate-printed 
 impressions required for further plate printing are delivered to the vault 
 division to be held subject to requisition by the wetting branch to pre- 
 pare them for the additional printing. Those requiring no further plate 
 printing are pressed and counted, and, if other processes are to be 
 applied to thtm, they are delivered to the proper operating division. 
 If no other process is required they are packed, and delivered to the 
 vault divi>ion for delivery to the department for which they are 
 intended, h'.mployes are not permitted to leave the building without 
 a certificate from the supermtendent that the work account is correctly 
 balanced. An account is kept by class and denomination, and a daily 
 report made to the office of the number of impressions received, de- 
 livered, and on hand. 
 
 NUMBERING DIVISION. In this division all the securities, 
 notes, certificates, checks, stamps, etc., requiring the process, are, 
 with automatic machines, numbered on each subject of the sheet. 
 
72 
 
 The numbers on the securities, notes, stamps, or checks of a particular 
 issue or series begin at one on the first issue and continue in uninter- 
 rupted sequence, and represent the order and extent of the issue of any 
 series. The sheets are received from the examining and binding divi- 
 sions and counted on their receipt. After numbering they are exam- 
 ined as to the accuracy of the numbers and again counted. The sheets 
 requiring seals and charter numbers imprinted on them by the surface 
 process are machine-trimmed on the two sides to fit them to an 
 accurate register on the surface-printing presses. The sheets requiring 
 further processes are delivered to the proper oj:)erating division. Those 
 that are finished are delivered to the vault division for final delivery to 
 the department for whicn they are intended. Employes are not per- 
 mitted to leave the building without the superintendent's certificate 
 that the work is correctly balanced. An account is kept of the serial 
 numbers placed on all the securities, notes, certificates, checks, stamps, 
 etc., by class and denomination, and a daily report is made to the 
 office of the number of sheets received, delivered, and on hand. 
 
 BINDING DIVISION. In this division all the checks and the 
 stamps requiring the process are bound. Certain stamps are also 
 gummed and pressed, and, after gumming, perforated ; others are per- 
 forated without being gummed. There are other processes, such as 
 needling, triming, and separating. The sheets are received from the 
 examining division and numbering division and surface branch. They 
 are counted on their receipt and passed through the various processes 
 by the workmen and operatives under the supervision of the super- 
 intendent. All the bound sheets art examined as to the sequence of 
 numbers in the volume, and all the unbound sheets are counted. The 
 finished sheets are delivered to the vault division for final delivery to 
 the department for which they are intended. Employes are not per- 
 mitted to leave the building without a certificate from the superinten- 
 dent that the work account is correctly balanced. An account is kept 
 in the division and a daily report made to the office by class and 
 denomination of the number of sheets received, delivered, and on hand. 
 
 VAULT DIVISION. The superintendent of this division re- 
 ceives from the several operating divisions the unfinished work for safe- 
 keeping when not undergoing any process, and receives the completed 
 notes, securities, stamps, etc., and delivers them to the several Bureaus 
 of the Treasury and other departments; and receives and delivers the 
 imperfect impressions to the Secretary of the Treasury, and takes re- 
 ceipts and sees that the entries on the receipt book are accurately 
 made and properly signed. The receipts obtained b\- the vault 
 division are prepared in the office from the schedules of the divisions 
 on account of which the deliveries are made, and are verified by the 
 daily reports. 
 
 SECURITY WAGON. At stated times each day an inclosed 
 and locked steel-lined truck or "security wagon" is used by this 
 division to carry the paper from the office of the Secretary of the 
 Treasury to the wetting branch, and also to deliver the securities, 
 notes, stami)s, etc. Emjilyes are assigned by the superintendent to 
 
73 
 
 accompany the truck for protection; otherwise the employes are not 
 permitted to leave the building without a certificate from the sup- 
 erintendent that the division account is correct. 
 
 TREASURER OF THE UNITED STATES. 
 
 SEALING AND SEPARATING SHEET CURRENCY. 
 
 RECEIPT OF SHEET CURRENCY : The notes are received 
 from the Bureau of Engraving and Printing at 8:30 a.m. each business 
 day. and the packages are carefully checked off and receipted for by 
 the Division Chief, or his assistant, subject to count. Forty-eight (48) 
 packages of 1,000 sheets each are now received daily. 
 
 im;e.-ii>i:.\t halki.kv national bank, miskeoox. mich. 
 
 The packages are at once numbered from i to 48, in the order in 
 ■which the notes run numerically, in order to facilitate the arranging of 
 the packages later in the day, and are then given to the sheet counters 
 for verification in the order in which they are required in the Press 
 Room, and is for the purpose of doing away with tne necessity of re- 
 arranging the seals in the forms. 
 
 SEALING: In the meantime the presses, six in number, are 
 being prepared for the process of sealing. As soon as a sufficient 
 
74 
 
 number of bundles have been counted to start the presses they are at 
 once sent to the Press Room. When the seaHng takes place the 
 bundles aie strapped and returned to the Separating Room, and others 
 take their place. The packages just sealed are immediately given 
 to the sheet counters (who are not permitted to count back their own 
 work) when the third count is given. The second count is made in 
 the Press Room by an automatic register attached to each press. Dur- 
 ing this third count the sheet counters are not only required to see 
 that they have i,000 sheets, and that they are all sealed, but must 
 watch for imperfections of every description, more especially those re- 
 sulting from the process of sealing. 
 
 The packages are now placed in a case constructed for the pur- 
 pose, there to remain until all of the 48,000 sheets have been sealed, 
 when they are arranged in the order in which the bundles were num- 
 bered upon their receipt from the Bureau ot Engraving and Printing, 
 packed in a box constructed for their reception, the box locked and 
 taken to the Cashier's vault, where it is left until the next day; then 
 taken out and delivered to the Issue Division, where the packages are 
 placed in the immediate vicinity of the separating machines, and the 
 process of separating and trimming begun. 
 
 SEPARATING: The separator takes a package of sheets and 
 placing herself at the machine, feeds it sheet by sheet until all the 
 1,000 sheets have been passed through, separated, and trimmed ready 
 for circulation, pausing a moment at the end of each 25 sheets (100 
 notes) to enable the receiver, who sits on the opposite side of the 
 machine, to place a strap around the notes and pass the package to 
 the note counter assigned to the machine, who makes the final count, 
 sees that the notes are numerically arranged, removes for exchange 
 such notes as have been thrown out for imperfections, substitutes per- 
 fect notes which are furnished at the time for the purpose, placing on 
 the back of the strap the numbers of the substitute notes, the strap 
 having already been stamped on its face, calling attention to the sub- 
 stitution; and so on until the entire 4,000 notes have been counted 
 and are ready to go to the package sealer. She now turns over to the 
 person keeping the record and exchange box a ticket which gives an 
 exact description of the package, the names of those through whose 
 hands it has passed, with the number of notes rejected marked there- 
 on, the reasons, and who is responsible, receiving therefor a label which 
 describes the package as a whole, which, with the bundle of money, is 
 turned over to the package sealer. 
 
 PACKAGE SEALER: The package sealer sees that the 
 bundle contains 40 packages, places the bundle in a press constructed 
 for the purpose, compresses it to the smallest compass possible, ties it, 
 wraps, seals, and labels it. 
 
 VAULT CLERK. When the package sealer has the whole 48 
 bundles ready he delivers them to the Vault Clerk and takes his re- 
 ceipt in a book especially prepared for the purpose. 
 
 This gives in detail the course which a single bundle of sheets 
 takes from the moment it is received from the Bureau of Engraving 
 
75 
 
 ar.d I'rinting up to the time when it is sealed, separated, trimmed, 
 counted, packed and ready for the custody of the Vault Clerk. 
 
 It may be proper to add that this Division is daily handling 
 3^4,000 notes in process of completion, the denominations ranging 
 Ir -m one dollar to one thousand. 
 
 ISSUE OF UNITED STATES PAPER CURRENCY. 
 
 CASH DIVISION. This division is a part of the office of the 
 Treasurer of the United States, is under the immediate direction of the 
 Cashier of the Treasury, and is charged, among other duties, with the 
 receipt of all United States Notes, Treasury Notes of 1890, Gold 
 Certificates, Silver Certificates, and Currency Certificates made and 
 issued by the Government. A record is kept by kind, denomination, 
 and number of all currency received, through the Issue Division of the 
 Treasurer's Office, from the Bureau of Engraving and Printing, for de- 
 posit in the Reserve Vault, and of all currency withdrawn therefrom to 
 take the place of unfit currency destroyed. Transfers of new cur- 
 rency are made to the various Sub-Treasuries. Returns for currency 
 sent for redemption are made, when requested, in new currency, to the 
 Banks and mdividuals by whom it was sent. Tickets showing the 
 name and address of the Banks or individuals to whom the currency 
 is to be shipped and the amount thereof are received from the Redemp- 
 tion Division, currency is drawn from the vault, and such amounts as 
 are directed by the tickets are placed in strawboard shipping-boxes, 
 which are wrapped, sealed, and addressed, and delivered to the United 
 States Express Company for transmission. A record is kept of each 
 note shipped, by kind, denomination and number. 
 
 REDEMPTION OF UNITED STATES PAPER 
 CURRENCY. 
 
 EXPRESS CLERK: The express clerk receives from the Chief 
 the packages of money transmitted for redemption and delivers them 
 to the counters, taking a receipt for each one, after having entered in 
 his register — in numerical order — the name and address of the sender, 
 the amount marked on the outside of the wrapper, and the express 
 charges to be deducted; he also makes a statement daily at the close 
 of business of the uncounted money on hand, showing the amount of 
 each package and the name of the counter or person having it in 
 charge. 
 
 MONEY COUNTERS. Closely allied to the Express Clerk's 
 desk are the money counters, who, each in turn, receives from him a 
 package of money for count. This she takes to her desk, exammes 
 the seals to see that they are intact and have not been tamptred with 
 in transmission, notes the markings on the outside, then opens the 
 package and compares the contents with the outside markings, taking 
 care to report all overs, shorts, counterfeits, raised notes, pieced note=, 
 or other errors. She then assorts the money into its different kinds 
 and denominations, places it in paper straps properly marked, makes a 
 written statement showing the contents of the package, its errors, etc.. 
 
76 
 
 has the money cancelled, and returns it with the statement to the 
 Teller, who gives her a receipt. 
 
 The counters are under the superintendence of experieneed per- 
 sons, who, in addition to other duties, carefully verify all errors, see 
 that a record of them is made, and report matters of importance to 
 the Chief 
 
 TELLER: The teller receives from the counters the contents of 
 each remittance after being counted, together with a statement show- 
 ing the name of the sender, the amounts and kinds of money found, 
 and a record of all errors (if any) discovered. He compares the money 
 
 6 :fy'' 
 
 v-i'ui;sri>i:NT iiaiki.ey national bank, mu>ki:(;on. jik ii, 
 
 with the statement, seeing that each item is properly entered and 
 returned. He makes a detailed entry in his cash books and forwards 
 the statement first to the Express Clerk for entry in his register, and 
 then to the Settlement Clerks, as a basis for making returns to the 
 sender of the remittance. He makes a daily statement showmg the 
 amount and kinds of money in his possession at the close of business. 
 At the opening of business each day the Teller deliversto the 
 Delivery Clerk the money counted and got rt-ady for destruction the 
 preceding day ; to the Odds Clerk the money not yet made up into 
 full packages; to the Discount Clerk the mutilated notes that have 
 
77 
 been redeemed at less than full value; to the Ca^h Division the new 
 money fit for reissue and the coin; and to the National Hank Redemp- 
 tion Agency the national bank notes found. 
 
 ODDS CLERK: The Odds Clerk receives from the Teller the 
 odd money found m the preceding day's count, that is, the money of 
 which there is less than $50 of a kind and denomination, and after 
 combination returns what full money she can make up to the Teller. 
 
 DISCOUNT CLERK: The Discount Clerk receives from the 
 Teller the money discounted during the day and holds it subject to 
 the orders of the Chief. 
 
 DELIVERY CLERK: The Delivery Clerk prepares the re- 
 deemed money received from the Teller for destruction. He first 
 assorts it into its T<in<is and denominations and makes an inventory of 
 each, which is copied into a record kept for that purpose. A copy of 
 this IS also prepared for the use of the Destruction Committee, which, 
 after being certified by them, is forwarded to the accounting officers 
 of the Department in settlement of the Treasurer's redemption 
 account. 
 
 The Delivery Clerk places marks and labels on each package of 
 money, so that an error can always be traced, cuts it in two parts, 
 lengthwise, on a knife prepared for that purpose, and delivers the upper 
 half to the Office of the Register of the Treasury and the lower half 
 to the Office of the Secretary of the Treasury, in each of which a 
 recount and examination is made. 
 
 COMMITTEE ON DESTRUCTION. 
 
 DESTRUCTION OF UNITED STATES SECURITIES: 
 
 The committee to witness and certify to the destruction of United 
 States securities is composed of four persons, one representing the 
 Secretary of the Treasuiy, one the Register of the Treasury, one the 
 Treasurer U. S., and one especially appointed by the Secretary of the 
 Treasury as a special witness. The committee is authorized by the 
 Act of March 17. 1862 ( i 2 Stat., p. 370). 
 
 All U. S. securities that are sent to the Treasurer U. S. for 
 redemption are classified by denominations, counted, proved, and 
 entered in a book for that purpose. They are then made up into lots 
 by issues and denominations, after which they are cut in two from end 
 to end — the upper half being sent to the Register of the Treasur)' and 
 the lower half to the Office of the Secretary of the Treasury for recount 
 to verify the count of the Treasurer's Office, after which each half is 
 entered in a book in the respective offices, corresponding with the 
 book of the Treasurers Office. 
 
 These securities are then turned over to the committee for destruc- 
 tion, which committee meets three mornings of each week at 9 o'clock, 
 in the Committee Room of the Secretary's Office and there checks the 
 lowes halves by denominations from slips for that purpose into boxes 
 said bo.xes being securely locked. The committee then goes to the 
 Register's Office and there checks the upper halves of the same lots 
 from the slips used in checking the lower halves; if the committee is 
 
then satisfied that all is correct, the boxes are taken to the Bureau of 
 Engraving and Printing and the securities are placed in the macerator, 
 which is then locked and sealed in their presence. The securities thus 
 placed in the macerator are reduced to pulp by the combined action of 
 steam alkalies, and knives; and the pulp is sold under contract. 
 
 ADVICE AS TO OFFICIAL MAIL. 
 
 DO NOT ADDRESS LETTERS TO THE "TREASURY 
 DEPARTMENT.' If letters are addressed to the "Treasury Depart- 
 ment" they are invariably sent to the office of the Secretary, while, in 
 thousands of cases, they are intended for other officers. The duties of 
 each Bureau are herein clearly set forth, showing to whom correspond- 
 ence on any subject should be addressed. 
 
 K. H. EV.\XS, 
 ■ASIIIKU <;i:i{MAN NATIllXAI. HANK, 
 
 ■iKO.-ll. \VI> 
 
 DO NOT SEND STAMPS, STAMPTED OR SELF-AD- 
 DRESSED ENVELOPl^S. They are unnecessary, are not used by 
 the Department, and occassion a great deal of trouble. In some 
 Bureaus the practice is to return the stamps and envelopes, in others 
 the stamps arc sold and the proceeds deposited in the Treasury. 
 
79 
 
 ANNUAL REPORTS OF FINANCIAL OFFICERS: Re- 
 port on finances, by the Secretary of the Treasury'; report of the 
 Director of the Mint (and also report on "Production of Precious 
 Metals in the United States."); report of Comptroller of the Currency, 
 in two volumes, (the second \olume giving a detailed statement as to 
 each National Bank); report of the Treasurer of the United States, and 
 report of Treasurer as ex-officio Commissioner of the Sinking Fund of 
 the District of Columbia. 
 
 Applications for copies of any of said reports should be addressed 
 to the Bureau by which it is issued, as each Bureau is charged with 
 I he distribution of its own reports. 
 
 PUBLIC DEBT STATEMENT: This statement is issued on 
 the first of each month by the Division of Book-keeping and Warrents, 
 Office of the Secretary of the Treasury. Applications for said state- 
 ment, and all correspondence on the subject, should be addressed 
 to the Secretary of the Treasury. 
 
 RESUMPTION OF SPECIE PAYMENTS: " "=• " "^ * 
 and on and after the first day of January, anno Domini eighteen hun- 
 dred and seventy-nine, the Secretary of the Treasury shall redeem, in 
 coin, the United States legal-tender notes then outstanding on their 
 presentation for redemption, at the ofiice of the Assistant Treasurer of 
 the United States in the city of New York, in sums of not less than 
 fifty dollars." (Section 3 of Act of January 14, i<S75, 18 Stat., p. 296, 
 Supplement R. S., p. 58.) 
 
 Sections of the Act of March 3, 1887, (24 Stat., p. 560), is as 
 follows: That Section 3 of the Act of January 14, 1875, entitled "An 
 Act to provide for the resumption of specie payments, be, and the 
 same is, hereby amended by adding after the words "New York" the 
 words "and the city of San Francisco, California." 
 
 LIST OF SUB-TREASURIES, MINTS, AND ASSAY OFFICES. 
 
 Location. 
 
 Baltimore 
 
 Boston - - - 
 
 Chicago 
 
 Cincinnati 
 
 New Orleans 
 
 New York 
 
 Philadelphia 
 
 Samt Louis - 
 
 San Francisco 
 
 Carson City, i Nev.) 
 New Orleans 
 Philadelphia 
 San Francisco 
 Denver. (Equipped as 
 
 Title of Officer in Charge. 
 
 Sub -Treasuries. 
 
 Mints. 
 
 Assay Orfico 
 
 Assistant Treasurer U. S. 
 Assistant Treasurer U. S. 
 Assistant Treasurer U. S. 
 Assistant Treasurer U. S. 
 Assistant Treasurer U. S. 
 Assistant Treasurer U. S. 
 y\ssistant Treasurer U. S. 
 Assistant Treasurer U. S. 
 Assistant IVeasurer U. S. 
 
 Superintendent 
 Su[)erintendent 
 Superintendent 
 Superintendent 
 Assayer in charge 
 
8o 
 
 Assay Offices. 
 
 Boise City, (Idaho; . . - - - Assayer in charge 
 
 Charlotte, (N. C.) - - - - - - Assayer in charge 
 
 Helena, (Mon.) ------ Assayer in charge 
 
 New York ------- Superintendent 
 
 Saint Louis ------- Assayer in charge 
 
 EXEMPTION OF UNITED STATES BONDS FROM 
 TAXATION. 
 
 Section 3701 of the Revised Statutes provides as follows: "All 
 stocks, bonds. Treasury notes, and other obligations of the United 
 States, shall be exempt from taxation by or under State or municipal 
 or local authority." This section makes the exemption from taxation 
 binding only upon "State or municipal or local authority," but according 
 to the express terms of the act of Congress of July 14, 1870, the bonds 
 and the interest thereon of the funded loans which are thereby author- 
 ized — namely, the loan of 18S1, the loan of 1891, and the four-per- 
 cent consols of 1907 — "shall be exempt from the payment of all taxes 
 or duties of the United States, as well as from taxation in any form 
 by or under State, municipal or local authority; and the said bonds 
 shall have set forth and expressed upon their face the above specified 
 conditions." 
 
 TAXATION OF NATIONAL BANK NOTES AND 
 TREASUARY NOTES. 
 
 The act of August 13, 1894, (Statutes, 53d Congress, 2d session 
 p. 278), provides: That circulating notes of national banking associa 
 tions and United States legal tender notes and other notes and 
 certificates of the United States payable on demand circulating or in 
 tended to circulate as currency and gold, silver or other coin shall be 
 subject to taxation as money on hand or on deposit under the laws of 
 any State or Territory: Provided, that any such taxation shall be ex- 
 ercised in the same manner and at the same rate that any such State 
 or Territory shall tax money or currency circulating as money within 
 its jurisdiction. 
 
 Sec. 2. That the provisions of this Act shall not be deemed or 
 held to change existing laws in respect of the taxation of national 
 banking associations. 
 
 UNITED STATES MINT TEST FOR GOLD AND 
 SILVER COINS. 
 
 For gold coins: Strong nitric acid 63^ drachms; muriatic acid 15 
 drops or '4 drachm; water 5 drachms. For silver coins: Nitrate of 
 silver 24 grains; nitric acid 30 drop.s; i ounce of water. 
 
 The lifiuid should be used near the edge of the coin or where it is 
 most worn. 
 
 CONSCIENCE FUND. 
 
 An account designated as the "Conscience Fund," was opened by 
 the Register of the Trcasuay, to show from time to time the receipts 
 
8i 
 
 of moneys by the United States Government from unknown persons. 
 These moneys are covered into the General Treasury as a Miscellane- 
 ous Receipt, and may be used like other assets of the Treasury for 
 any purpose that Congress may deem proper. 
 
 The account was opened in 1811, and up to January i, 1895, 
 there has been received, in small and large sums, the aggregate amount 
 
 271448.70. 
 
 Remittances are received almost weekly — occasionally the receipts 
 are two or three cases a week — and, as a rule, the letters are not sign- 
 ed. Frequently they are forwarded by clergymen at the request of 
 penitents. As nearly all the communications are anonymous acknow- 
 ledgements are always made through the local press of Washington. 
 
 VALUES OF FOREIGN COINS. 
 By Section 25 of the Act of August 28, 1S94 (Statutes, 53rd 
 Congress, 2nd session, p. 552) the Director of the Mint was required 
 to estimate quarterly, on the first day of January, April, July, and 
 October, the value of the standard coins in circulation of the various 
 nations of the world. The followin g table is the estimate contained 
 in Circular No. i, of January i, 1895 : 
 
 ArgeQline Republi< 
 
 Austria^Hungary. 
 B«lg 
 
 um. 
 
 Boll 
 
 Brazil 
 
 British Puasessions N. 
 \. 'except NewTound- 
 )and|. 
 
 Central Amer. States- 
 Costa Rica 1 
 
 Guatemala 
 
 Honduras 
 
 NicaraKua 
 
 Salvador J 
 
 Chile 
 
 Eg:>pi 
 
 Finland 
 
 France 
 
 German Empire. 
 
 Great Britain 
 
 Greece 
 
 Haiti 
 
 India 
 
 It»ly 
 
 Japan 
 
 Lit>erta 
 
 Mexico 
 
 Netherlands 
 Newfoundland.. 
 
 Norway 
 
 Perti 
 
 Portugal 
 
 Russia 
 
 Spam 
 
 Sweden 
 
 Switzerland 
 
 Tripoli 
 
 Turkey 
 
 Venezuela 
 
 Gold and silver . 
 
 Gold and silver. 
 
 Silver 
 
 Gold 
 
 Gold 
 
 Silver 
 
 Gold anUsilv 
 
 Silver 
 
 Gold and silver . 
 
 Gold 
 
 Silver 
 
 Gold. 
 
 Gold 
 
 Gold and ailver 
 
 Gold 
 
 Gold 
 
 Gold and silver 
 Gold and silver 
 
 Silver 
 
 Gold and silver 
 
 Gold and silver* 
 
 Gold and silver 
 
 Gold 
 
 Gold 
 
 Silver 
 
 Gold " 
 
 Sllverl 
 
 Gold and silver . 
 
 Gold 
 
 Gold and silver . 
 
 Silver 
 
 Gold 
 
 <»oId and silver 
 
 Monetary- unit. 
 
 Franc 
 
 Boliviano . 
 
 MUrels 
 
 Dollar 
 
 Peso.. 
 Peso. 
 
 , Shangbai .. 
 
 I Haikwan 
 Tael iCusloms). 
 
 ' Tientsin 
 
 i.Chefoo. 
 
 Peso 
 
 Peso - 
 
 Crown 
 
 Sucre 
 
 Found (100 piasters) 
 
 Mark 
 
 Franc 
 
 Mark 
 
 Pound sterlii 
 
 Drachma 
 
 Gourde 
 
 Rupee 
 
 Lira 
 
 v.„ /Gold.. 
 • en 1aii»>, 
 
 1 Silver 
 
 Florin 
 
 Dollar _ _ 
 
 Crown 
 
 Sol 
 
 Milreis 
 
 «"»"« {S?I^r.:::: 
 
 peseta 
 
 Crown 
 
 Franc - - 
 
 Mahbub ufSU piaslera. 
 
 Piaster 
 
 Bolivar 
 
 .19.3 
 .44.5 
 .&4.6 
 1.00 
 
 4.iH.3 
 
 I'.i.a 
 .19.3 
 .23,N 
 4.H6.6J 
 .19.3 
 .Wi.S 
 
 :)6.4 
 
 19.3 
 .2«.l) 
 .19,3 
 
 41.1 
 .04.4 
 
 19.3 
 
 Gold: argentine (S4.t«.4) and >^ argentine. Silver, powaiid 
 
 divisions 
 (Gold: former nysteni— 4 florins (II.9Z.9). 8 donna (»3.»,8), 
 ' ducat (82.28.7) and 4 ducats ()f9 1S.8). Silver : 1 and 2 florins. 
 [ Gold presentsystem -20cro>viiB{»«.06,2).10crowiislJ2.irA6). 
 Gold: 10 and 20 francs. Silver 5 franca. 
 Silver boliviano and divisions. 
 Gold : 5. 10. and 20 uiilreis. Silver : i^. I. and 2 milreis. 
 
 Silver peso and divisions. 
 
 Gold escudo «l.82.4). doubloon (fl.a«,l ), and condor «».I2,3). 
 Silver peso and divisions. 
 
 911 v 
 
 peso. 
 
 Gold condor tf9 64.71 and doubl 
 
 ■Gold doubloon l$5 01 .7 1. Silver 
 
 Gold 10 and 2<l crowns 
 
 Gold condor ($9 61.7) and double.^'ondor 
 
 divisions 
 Gold . pound 1 100 piaslersj. 5. 10, 20. and 50 plaste 
 
 I. 2. 5. lU. and '.'<i piasters 
 Gold : 20 marks ($3.85.9). 10 marks ($1,931. 
 (iold 6. 10. 20. 50. and 100 franos. Silver . i frunc 
 Gold 5. 10. and 20 marks 
 
 sovereign (pound sterling) and J^ 
 
 Silver. Sucre ■ 
 
 igii. 
 
 Gold 5. 10, 20" 50. and 100 drachmas. Silver 5 drachmas. 
 
 Silver . gourde. 
 
 Gold, mohur ($7.10.5) Silver rupee and divisions. 
 
 Gold: 5. 10, 20, 50. and 100 lire. Silver; 5 lire 
 
 Gold 1. 2. 5. 10, and 20 yen 
 
 Silver: yen 
 
 Gold, dollar ($0.98.3). 2! i. 5. 10, and 20 dollars Sliver: dolls 
 
 (or peso) and divisions 
 Gold: 10 florins. Sliver J-J. 1, and 2!-5 florins. 
 Gold 2 dollars (r2.02,7) 
 Gold 10 and 21" crowns 
 Silver sol and divisions. 
 Gold 1.2. 5. and 10 inllreia. 
 
 Gold : Imperial ($7.71,8,, and W imperial t($3.86) 
 Silver '^ •/,. and I ruble 
 Gold . 2S pesetas Silver 5 pesctaa 
 Gold: 10 and 2U crowns 
 Gold 5, 10. 20, 50. and lUU francs. Silver 5 frano. 
 
 Gold 25. SU. 100. '250. and 500 plasters 
 
 G^ld: S. 10. 20. 50. and 100 bolivars. Silver: 5 liollvars. 
 
 * Gold the nominal standard Silver practicallv the standard 
 
 tCoined since January 1. 1886. Old half-iiuperial —$3.98,6. 
 
 I Silver the nominal standard. Paper the actual currency, the depreciation of wbicti i 
 
 sured hy ihe gold slandarrl 
 
82 
 
 COLUMBIAN HALF DOLLARS. 
 
 The Act of August 5, 1892 (27 Stat., p. 3 89;, provided for the 
 coinage of silver half dollars not to exceed five million i 5,000,0001 
 pieces, to be known as the Columbian half dollar, struck in commem- 
 oration of the World's Columbian Exposition. The said act authorized 
 the Secretary of the Treasury to pay the same to the World's Colum- 
 bian Exposition, for labor done, materials furnished, and services per- 
 formed in prosecuting the work of preparing the Exposition for 
 opening. 
 
 JOHN A. KINC. 
 
 l'Ul>IDKNT 1 OUT UKAItltOKN NATIONAI, ItANK. Ill IC AC.O, ILL. 
 
 "Only about §750,000 were sold at the Fair, while nearly 
 $1,250,000 more were paid out at their face \alue by the Fair Man- 
 agement. There were $570,880 of the com which never left the Phila- 
 delphia Mint until now. There was $1,795,980 in the possession of 
 the Government a short time ago, a large number finding their way 
 
back to the Trcasui}- during the recent money panic. Tlie oftlcers of 
 the l'"air proposed at one time to pay tlie cost of transportation and 
 recoinage of the half dollars which had not been sold to the public, in 
 order to protect the rights of those who had bought the souvenirs at a 
 premium. The sum of $41,000 was deposited with the Treasurer last 
 December for these expenses, but the Government insisted on a further 
 tieposit of $17,000 to pay for the recoinage of the souvenirs which had 
 never left the Philadelphia Mmt, and to this the Managers demurred. 
 The Director of the Mmt had considerable correspondence on the sub- 
 ject with Mr. James W. Ellsworth, the Lhairman of the Finance Com- 
 mittee, with the result that the deposit of $41,000 was withdrawn and 
 the entire mass of souvenirs left to be treated as the Secretary of the 
 Treasury might see fit. * * * It may be mentioned here that all the 
 Columbian half dollars now being put in circulation bear the date 
 1893. There were $2,501,052.50 coined in that year, and $475,000 in 
 1892. The latter still sell at a premium." (Dickerman's Counterfeit 
 Detector, November, 1 894.) 
 
 The question has often arisen as to whether people are compelled 
 to accept the Columbian half dollars, but there should be no doubt on 
 the subject, as the Act authorizing their coinage provided that "All 
 pro\-isions of law relative to the coinage, legal-tender quality, and 
 redemption of the present subsidiary silver coins shall be applicable to 
 the coins issued under this Act." 
 
 Subsidiary silver corns are a legal tender in the amount of ten 
 dollars in any one payment, and are redeemable, when presented in 
 sums or multiplies of twent)' dollars, by the Treasurer or any Assistant 
 Treasurer U. S. 
 
 Columbian half dollars are paid out only in exchange for gold 
 coin or gold certificates, and will be sent by express at the expense of 
 the Government in sums of $200 or more for like amounts of gold coin 
 of current weight or gold certificates deposited v.-ith the Treasurer U. S. 
 or any Assistant Treasurer. 
 
 A less sum than $200 will be sent by express at the cost of the 
 consignee, or by registered mail in amounts of $50 at risk of consignee, 
 registration free, as may be directed. 
 
 ISABELLA QUARTERS. 
 
 The Act of March 3, 1S93, (27 Stat., p. 586), provides that "Ten 
 thousand dollars of the appropriation for the Board of Lady Managers 
 shall be paid in souvenir coins of the denomination of twenty-five 
 cents, and for that pur])ose there shall be coined at the Mints of the 
 United States siher cjuarter dollars of the legal weight and fineness, 
 not to exceed fort\- thousand pieces * * * and all provisions 
 of law relative to the coinage, legal-tender quality, and redemption of 
 the present subsidiary silver coins shall be applicable to the coins here- 
 in authorized to be issued; 
 
 "There were $10,005 75 of Columbian quarter dollars coined and 
 disposed of, none of which are 111 general circulation so far as we can 
 learn." (Dickerman's Counterfeit Detector, No\-cmber, 1894.) Said 
 
84 
 
 coins have the same legal-tender qualities and are redeemable in like 
 manner as Columbian half dollars. 
 
 Applications for Isabella quarters must be made to the Board of 
 Lady Managers of the World's Columbian Exposition, Chicago, 
 Illinois. 
 
 REVENUES AND EXPENDITURES OF THE GOVERNMENT. 
 
 (Home Report of Treasurer, U. S., 1894J. 
 
 ftEVBNTTES ANT) EXPENDITURES. 
 
 The net ordinary revenues and expenditures for the fiscal years end- 
 ing June 30, 1893 and 1894, were as shown in the following table : 
 
 REVENUES. 
 
 Cuatoms 
 
 Internal revenue 
 
 Sale of public lands 
 
 Misrellaneons aonrces. . 
 
 Total 
 
 EXPENDmrRBS*. 
 
 Civil and miscellaneona: 
 
 Customs, light-hoDses, pntlic 
 
 buildings, etc... 
 
 Internal revenue 
 
 Interior civil (lands, patents, etc.) . 
 Treasury proper (legislative, exec- 
 utive, and other civil) 
 
 Diplomathc (foreign relations) 
 
 Judiciary 
 
 War Dep.irtTnent 
 
 Navy Department - . 
 
 Interior nepartment (Indians and 
 
 pensions) 
 
 Interest on public debt 
 
 Total 
 
 Net decrease. 
 
 "snrplns 
 
 Petiv'.iencv 
 
 $■203. 355. 016. 73 
 
 161, 027, 623. 93 
 
 3,182, 0«<». 78 
 
 18. 2.54. 898. 34 
 
 385, 819, 628. 78 
 
 19, 398, 233. 00 
 14, 866, 436. 78 
 9. 751, 506. 22 
 
 50, 507, 363. 69 
 
 1, 997, 042. 90 
 
 7,212,216.68 
 
 49.641^773.47 
 
 30. 136.084 43 
 
 172. 702, 905. 14 
 27,264,392.18 
 
 383, 477. 9.54. 49 
 
 2, 341, 674. 29 
 
 $131,818,530.62 
 
 147,111,232.81 
 
 1, 673, 637. 30 
 
 17,118.618.52 
 
 297. 722, 019. 25 
 
 20,316.268.90 
 16. 308, 849. 71 
 8,911,054.85 
 
 49, 160, 804. 19 
 
 1, 702, 307. ai 
 
 5, .544. 599. 11 
 
 54, 567, 929. 85 
 
 31 701. 293. 79 
 
 151,470, 766. 4« 
 27.841,40.5.64 
 
 Increase. 
 
 Decrease. 
 
 671.536,486.11 
 
 13, 916, 391. 12 
 
 1. 508, 452. 48 
 
 1.136.279.82 
 
 88.097.609.53 
 
 $918,035.90 
 1,442,412.93 
 
 4, 926. 1.56, 38 
 1. 565. 209. 36 
 
 367.52.5.279.83 0.428.828 03 
 
 69, 803, 260 58 
 
 1,346, 5.59 50 
 
 294, 736. 59 
 
 1.667,617.57 
 
 21.232.138.66 
 
 25. 381, 502. 69 
 15. 9,52. 674. 66 
 
 72. 144. 9M. 87 
 
 CONTENTS OF VAULTS IN U. S. TREASURER'S OFFICE. 
 
 (Approximate.) 
 
 VAULT. 
 
 AMOUNT. 
 
 DESCRIPTION. 
 
 I $103,740,000 Standard silver dollars. 
 
 2 48,000,000 Standard silver dollars. 
 
 2 3,680,000 (lold coin. 
 
 2 600,900 I"'ractional silver, $529,000; minor coin, $7 1,900. 
 
 3 3,500,000 National bank notes received for redemption. 
 
 4 1,000,000 Mixed moneys received daily for redemption. 
 
 6 13,000,000 Mixed moneys for daily use. 
 
 7 250,000,000 lionds held as security for N. B. circulation, S:c. 
 
 <S [ 393,700,863 Held as reserve to replace worn and mutilated notes 
 
 unfit for circulation. 
 
 Total. . 817,221,763 
 
 Total weight of coin about 4,500 tons 
 
^5 
 AMOUNF C)l' AK)NI-:V IN CIRCULATION. 
 
 General Stock, 
 Coined ok Issued. 
 
 In Treasury. 
 
 Gold Coin 
 
 Standard Silver Dollars 
 
 Subsidiary Silver 
 
 Gold Certificates 
 
 Silver Certificates 
 
 Treas'y Notes, Act .July 14, 1890.. 
 
 United States Notes 
 
 Cur'y Cert'fs, Act June 8, 1872.. 
 National Bank Notes 
 
 $577, 
 
 422, 
 
 77, 
 
 53, 
 
 336, 
 
 1.50, 
 
 346, 
 
 48, 
 
 206, 
 
 380,396 00 
 426, 749 00 
 155, 722 00 
 420,869 00 
 924, .504 00 
 823, 731 00 
 681,016 00 
 965,000 00 
 605,710 00 
 
 191,879, 
 
 364, 537, 
 
 14, 483, 
 
 .58, 
 
 5, 846, 
 
 28, 369, 
 
 81,919, 
 
 1, 960, 
 
 4, 759, 
 
 020 00 
 659 00 
 6.36 00 
 960 00 
 720 00 
 950 00 
 158 00 
 000 00 
 972 00 
 
 Totals 
 
 2,220,38.3,697 00 
 
 593,815,075 00 
 
 Amount in Circu- 
 lation 
 
 $485, 501, 376 00 
 
 57, 889, 090 00 
 
 62,672,086 00 
 
 5.3, .361,909 00 
 
 331,077,784 00 
 
 122,4.53,781 00 
 
 264,761,8.58 00 
 
 47, 005, 000 00 
 
 201,845,7.38 00 
 
 1,626,568,622 00 
 
 Population of the United States January 1, 1895, estimated at 69,134,000; circulation per capita, S23.52. 
 
 SUPERVISING ARCHITECT OF THE TREASURY. 
 
 METHODS IN THE ERECTION OF A PUBLIC BUILD- 
 ING: When Congress authorizes the erection of a Federal building 
 at any place, in most cases the limit of the cost of the site, building, 
 heating apparatus, elevators, and approaches is fixed in the law, either 
 separately or jointly, and a portion thereof is usually appropriated for 
 purchase of site and commencing the erection of the building. When 
 an appropriation has thus been made, the Secretary, except in cases 
 where the act of Congress otherwise specially directs, advertises in the 
 local papers for proposals for the sale of the necessary land, as re- 
 quired by sectiou 355, Revised Statutes, United States, and designates 
 an officer of the Treasury Department to examine the property offered 
 and recommend the selection of a site therefrom most advantageous to 
 the interests of the Government and convenient to the citizens of the 
 place in which the building is to be erected. Upon the selection o{ 
 the site of proposal of the owner of the land chosen is transmitted to the 
 Attorney-General of the United States, with request that he cause the 
 title to the same to be examined, and if found valid, to secure deeds of 
 conveyance to the United States, and cession of jurisdiction over the 
 site selected is then secured from the State in which the same is 
 located. The sketch plans for the building, specifications, and detail 
 estimates are next prepared and approved by the Secretary of the 
 Treasury, Secretary of the Interior, and Postmastc;r-General; work is 
 commenced on the working drawings and specifications for each 
 branch of work on the building, which form the immediate basis upon 
 which to invite by public adxertisement, proposals and the execution 
 of contracts; and when such drawings and specifications are completed 
 action is prorriptly taken to place the work on the market and to 
 secure the early commencement and rapid prosecution of the same. 
 When the working drawings and definite specifications are sufficiently 
 advanced to warrant the commencement of active building operations 
 and securing uninterrupted prosecution of the same, a superintendent, 
 technically qualified and a resident 1 when a competent person can be 
 
86 
 
 secured in the locaiit)' of the buildingi, is appointed by the Secretary 
 of the Treasury to represent the Department in superintending the 
 construction and securing the satisfactory prosecution of all work on 
 the building to the best interests of the Government and in full com- 
 pliance with specifications, drawings, and terms of contract. To assist 
 th e superintendent in the performance of his duties the Department 
 authorizes the employment of a clerk, and, at buildings of considerable 
 magnitude, an assistant superintendent, a general foreman, and watch- 
 
 (".. C. HIXON. 
 riKST IMtKST. I.A C'KOSSK NATIONAI. BANK. I,A CKll-SK. WIS. 
 
 man. Funds on account of the appropriation for the building are 
 from time to time remitted to the disbursing agent, (who is duly ap- 
 pointed, in accordance with section 8, R. S., U. S., by the Secretary of 
 the Treasur)', under a bond, at a maximum rate of three-eighths of one 
 per cent, commissionj.with which to pay certificates issued by the super- 
 intendent on account of the work, authorized by the Supervising 
 Architect and approved by the Secretary of the Treasury, and of which 
 authority he has been duly advised. 
 
 Proposals to su[)j)ly lalior and material are. except in cases here- 
 inafter stated, invited by publishing advertisements in local news- 
 
8? 
 
 })apers and certain technical or trades journals which are printed for 
 the benefit and information of parties engaged in building pursuits 
 throughout the United States. After the proposals are secured, in 
 response to such advertisements, they are opened at the designated 
 time, in the presense of such bidders as choose to be present, and for- 
 warded to the Department (m accordance with section 371O R. S., 
 U. S ), and are submitted by the Supervising Architect, with a specific 
 recommendation, to the Secretary of the Treasury, and upon his 
 approval the most economical proposal is accepted and the bidder re- 
 quired to execute a bond or formal contract for the faithful compliance 
 therewith. The cases which are exceptional to this practice are those 
 in which the superintendent, in view of public exigency demanding 
 the immediate performance of the work or delivery of material (as pro- 
 vided for by section 3709 R. S., U. S.), recommends the employment 
 of the labor by the day or the purchase of the material in open market 
 and such recommendations are approved by the Supervising Architect 
 and by the Secretary of the Treasury. 
 
 CONTINENTAL CURRENCY. 
 
 REASONS WHY IT IS NOT REDEEMABLE: "The mass 
 of debt which devolved upon the United States, as an inheritance 
 from the Continental Congress and the se\eral colonies, engaged the 
 attention of the national legislature soon after the adoption of the Con- 
 stitution. The debt was very large and depreciated, and was still 
 depreciating in value; but it was the price of liberty, and the payment 
 of that portion of it contracted by national authority was made obliga- 
 tory by the new Constitution." (Bayley's History of the National 
 Loans.) 
 
 All debts contracted and engagements entered into, before 
 
 the adoption of this Constitution, shall be as valid against the 
 
 United States under this Constitution, as under the Confedera- 
 tion. (Constitution, Article Vl.i 
 
 " It was necessary, therefore, to provide for it in some way. 
 although the payment of even the interest seemed impossible in the 
 exhausted condition of the country at that time." (Bayley's History 
 of the National Loans.) 
 
 On September 2 1, 1789, the House of Representatives adopted 
 the following resolutions: 
 
 Resolved, That this House consider an adequate provision for 
 
 the support of the public credit as a matter of high importance to 
 
 the national honor and prosperity. 
 
 Resolved, That the Secretary of the Treasury be directed to 
 
 prepare a plan for that purpose, and to report the same to this 
 
 House at its next meeting. 
 "There were two kinds of debt in the adjustment of which there 
 seems to have been no difficulty: One was the unadjusted foreign 
 debt, where the lenders had paid for their bonds in gold, on the faith 
 of the Continental Congress; the other icas the paper money issued by 
 Comrress and the several States." 
 
88 
 
 " Authorities vary as to the amount of paper money issued 
 during the struggle for independence. Possibly Mr. Jefferson's 
 statement in his writings may be taken as approximate to the truth, 
 and it affords, at the same time, a striking exhibit of the effects of the 
 inflation of our paper currency: (Bayley's History of the National 
 Loans.) 
 
 The total issue was estimated by Jefferson at about 
 $200,000,000. He states that this " paper money continued for 
 a twelvemonth equal to gold and silver;" it then began to de- 
 
 S. S. BrRTON. 
 iiitsT <'ashii:r, l.\ cro.sse nation.xi. hank, i.a ckosse. wis. 
 
 prcciate. " In two years it had fallen to two dollars of paper 
 money for one of silver; in three years to four for one ; in nine 
 months it fell to ten for one; and in the six months following, 
 that is to say, by Se[)tember, 1779, it had fallen twenty for 
 
 M .y. J/, -v. 
 
 one. -^ * ■• 
 
 " It continued to circulate and to depreciate till the end of 
 17S0, when it had fallen to seventy-five for one; and the money 
 circulatetl frcjui the I'^rench army being, by that time, sensible in 
 
89 
 
 all the States north of the Potomac, the j)aper ceased its circula- 
 tion altogether in those States. In Virginia and North Carolina 
 it continued a year longer, within which tune it fell to one 
 thousand for one, and then expired, as it had done in the other 
 States, without a single groan. Not a inunmir zvas heard o?i 
 this occasion among the people. On the contrary, universal con- 
 gratulations took place on their seeing this gigantic mass, whose 
 dissolution had threatened convulsions which should shake their 
 infant Confederacy to its center quietly interred in its grave." 
 (Jefferson's Works, Vol. IX, p. 248, quoted in Bayley's History of 
 the National Loans.) 
 Jefferson estimates the value of the two hundred millions of Con- 
 tinental currency at the time of its emission at $36,367,719.83 in 
 specie, and says : 
 
 " If we estimate at the same value the like sum of $200,- 
 000,000 supposed to have been emitted by the States, and 
 reckon the federal debt, foreign and domestic, at about $43,000,- 
 000, and the State debts at $25,000,000, it will form an amount 
 of $140,000,000, the total sum which the war cost the United 
 States. It continued eight years from the Battle of Lexington 
 to the cessation of hostilities in America, The annual expense 
 was, therefore, equal to about $17,500,000 in specie," (Ibid. 
 p. 260.) 
 COUNTERFEITING. The Continental bills would have 
 rapidly sunk by reason of the enormous quantity issued, even if 
 they had not been weighed in any other manner; but not long after 
 the appearance of the first issue, the country was inundated with 
 counterfeits which found their way among the people, and hastened 
 the depreciation and fall of paper money. Counterfeiting was not con- 
 fined solely to individuals. The British Government also embarked 
 in the business. ( Bolles' Financial History of the United Siates.) 
 
 "On the 9th of January, 1790, Hamilton made his report to the 
 House of Representatives, in obedience to the resolution of September 
 21,1 789, before referred to, in which he gave many reasons for assum- 
 ing the debts of the old government and of the several States, and 
 fuinished a plan for supporting the public credit. His recommenda- 
 tion was finally adopted, and embodied in the act making provision 
 for the payment of the debt of the United States, api)roved August 
 4, 1790, I I Statutes, 138.) (Bayley's History of the National Loans.) 
 By the act above cited a loan to the full value of the domes- 
 tic debt was authorized, the subscription to be payable in certifi- 
 cates issued for the said debt. The terms of subscription as to 
 Continental currency were as folllows: 
 
 "And in the bills of credit issued by the authority of the 
 United States in Congress assembled, at the rate of 0)ie hundred 
 dollars in the said bills, for one dollar in specie." 
 
 By the Act of March 3, 1797. 1 t Stautes, 5i6\ it was declar- 
 ed that said mone\- should be receivable as above until December 
 31, 1797, and no longer. 
 
90 
 
 By the Act of July 9, 1798, (Ibd. p, 580) it was provided that' 
 "all credits on books of the Treasury of the United States, for 
 transactions during the late war, which, according to the course of 
 the Treasury, have hitherto been discharged by issuing certificates 
 of registered debt, shall be forever barred and precluded from settle- 
 ment or allowance, unless claimed by the proper creditors, or their 
 legal representatives on or before the first day of March, in the 
 year of one thousand seven hundred and ninety-nine." 
 
 CHAS. BKST. 
 
 VICE-I'RKST. WISCONSIN NATIONAL ItANK. >l ILWAIK KK 
 
 DECISION OF THE FIRST COMPTROLLER. In a claim 
 submitted by the Register of the Treasury under date of June 5, 1886, 
 asking for an opinion as to the legal authority for payment, the First 
 Comptroller, under date of August 2, 1886, decided that: 
 
 "Owing to the loss of papers and documents in the* Treasury 
 Department, first by fire which occurred January 20, 1801, second 
 by theincrusion of the British, August 24, 18 14, and third by the 
 fire of March 31, 1833, it is now impossible to tell what was the 
 basis of said claim, or the evidence of its payment, if it was ever 
 
91 
 
 paid. If it was never paid, it may be barred by the act of July 9, 
 1798, "''■ '^ ■■* and is so barred if issued to pay a claim em- 
 braced b\- that act. Whether that is so or not, 1 am of the opinion 
 that the claim should not now be paid, on account of the long lapse 
 of time before its presentation for payment. 
 
 LEGAL TENDER QUALITIES. "The question has been 
 raised and disputed as to whether what was called the "Contin- 
 ental currency," issued during the War of the Revolution by the old 
 Government, was or was not legal tender. The facts appear to be 
 that while the Continental Congress did not by any ordinance at- 
 tempt to give it that character, they asked the States to do so, 
 and all seem to have complied except Rhode Island. The Con- 
 tinental Congress only enacted that the man who refused to take 
 the money should be deemed an enemy of his country. George 
 Washington complained, in one of his letters, that he had been 
 obliged to receive the currency at par, in payment of a debt, when 
 it had so depreciated that its value was almost nominal." (Bayley's 
 History of the National Loans.) 
 
 FESSENDEN ON "FINANCE." 
 
 The bill for the issue of Legal Tender notes was approved 
 February 25, 1862, ( 12 Stat., p. 345.) Mr. Fessenden, in his speech 
 in the Senate oii the bill, referring to the legal tender clause, said: 
 
 "Nobody knows much upon the question of finance, not even 
 those who are most famil.ar with it ; for, sir, I declare today that, 
 in the whole number of learned financial men that I have consulted, 
 I never have found any two of them who agree, and therefore it is 
 hardly worth while for us to plead any very remarkable degree of 
 ignorance when nobody is competent to instruct us; and yet such is 
 the fact. I can state to you, Mr. President, that on one day I was 
 ad\ised very strongly by a leading financial man, at all events to oppose 
 this legal-tender clause; he exclaimed against it with all the bitterness 
 in the world. On the \ery same day I received a note from a friend of 
 his, telling me that we could not get along without it. I showed it 
 to him, and he expressed his utter surprise. He went home, and 
 the next day telegraphed to me that he had changed his mind and 
 now thought it was absolutely necessary ; and his friend who wrote 
 to me again that he had changed his, and they were two of the 
 most eminent financial men in the country." (Congressional Globe, 2d 
 Session 37th Congress, p. 766, quoted in Bayley's "History of the Na- 
 tional Loans," p. 80.) 
 
 THE WILES OF "GREEN GOODS" MEN. 
 
 The following description of the methods of a very numerous 
 class of swindlers, known by the title of "Green Goods Men," or "Bood- 
 lers," is taken from a circular letter (Form 20) of the Secret Service 
 Division of the Treasury Department. Parties offering to sell counter- 
 feit money "never deal in it, but make a pretense of doing so on pur- 
 pose to inveigle dishonest persons — who would buy counterfeit money 
 
92 
 
 if they could — into parting with their good money in the hope of get- 
 ting counterfeit. These swindlers are usually located in large cities, 
 but New York contains by far the greater number. 
 
 They send circulars in imitation of letters by thousands all over 
 the country, inviting their correspondents to visit New York, nam- 
 ing the hotel at which they should stop, and offermg them great 
 inducements to purchase. Those who go after such bargains never 
 obtain counterfeit money, and seldom return home without leaving 
 all of their good money in the hands of these plausible but dan- 
 gerous men. 
 
 i'i;i>n)i:.N r i \i 
 
 ■lUSl NAlUiNAI, liA.NK, Ul.TKOlT, .MICH. 
 
 In August, 1S85. James T. Holland, of Abilene, Tex., allured 
 to the City of New York by a circular * * "^ * " 
 
 met Tom Davis and Theodore, his brother. These men, while ])re- 
 tending to sell Holland ten thousand dollars of so-called counter- 
 feit money, but which were genuine notes, cheated him of his good 
 money. Holland, at once discovering the cheat, shot Tom Da\is, 
 killing him instantly. A jury subsequently acquitted Holland. 
 
 Another practice is to toll on their victims by sending a genuine 
 one or two dollar note, or parts of the same, and representing them 
 to be specimens of the counterfeit notes thc\- ha\'c tor sale. 
 
93 
 
 Under the various names of "Green Articles," "Green Cigars," 
 "Green Leaves," etc., they offer for sale counterfeit money which 
 they aver is printed on plates stolen from the Bureau of Engraving 
 and Prmting of the Goxernment. Not a plate of any kind has ever 
 been stolen from that establishment. 
 
 Those who have counterfeit money for sale do not write letters 
 requesting strangers to buy it. Even after the introduction of a 
 new man by one counterfeiter to another, it takes a long time to 
 establish such friendly relations as would induce a counterfeiter to 
 trust a new-comer. 
 
 L. .\. C.ODDARD, 
 
 CA.SIIIKK I-(IRT DKARBOItN NATIONAL HANK. HIK AGO. ILL. 
 
 Yet thousands of criminally foolish people believe they can 
 purchase counterfeit money as they would butter or cheese, and in 
 their attempts to obtain it, are robbed, and an honest public sent- 
 iment says, "Serves them right." 
 
 The crime of which the "Boodler" is guilty is covered by Sec- 
 tion No. 5480, United States Revised Statutes, as amended and 
 approved March 2, 1889, and the offender, upon conviction, is liabel 
 to a fine of S500 and imprisonment for eighteen months. It is next 
 
94 
 
 to impossible to obtain le^^al evidence against these swindlers ; and 
 were one of them arrested and brought to trial, the testimony of 
 the main witness (he who lost tiie money) would be weakened by 
 the fact that he would have been a criminal if he eoiild. 
 
 PREMIUM ON COINS. 
 
 (Circular letter of Treasurer U. S.) 
 
 (i) The Department makes no distinction between the various 
 issues of coin and currency of the United States, neither reLeivi)tg nor 
 paying a prei)iiuvi in any ease. 
 
 N. W. HARRIS. 
 SKNIDK I'AltT.NER Ol" N. W. HAKRIS A; C* 
 
 CHICArJO, ILL. 
 
 NOTI^: None of the coins of the United States have been 
 "called in." All statements to the contrary are erroneous, and 
 their origin and purport unknown. 
 (2) Applications for list of, and correspondence in relation to, 
 
 premium coins, should be addressed to some of the COIN DEALERS 
 
 to be found in all larire cities. 
 
95 
 
 CONFEDERATE AND STATE HANK NOTES. 
 
 (Circular letter of Treasurer U. S. 
 
 Notes issued by the late so-called CONFEDERATE States of 
 America, and by the various STATE BANKS, are not redeemable by 
 the United States. 
 
 GOLD COINS MINTED BY PRIVATE PARTIES. 
 
 The only denominations of gold coins whose issue was authorized 
 by law are the $20, $iO $5, $3, $2/2 and $1 pieces. Of these the 
 coinage of the $3 and $[ pieces was discontinued by the Act ot Sep- 
 tember 26, 1890. There have been a great many gold coins, of de- 
 nominations varying from 25 cents up to $50, which were minted by 
 private parties. In the year 185 i there were fifteen minting establish- 
 ments in the United States, only one of which was authorized by law. 
 Many of the coins were in imitation of the United States coins, but 
 the greattr portion were stamped with the names and bore the devices 
 and legends of the persons by whom issued. 
 
 The Director of the Mint in his report for the year 1840 observed: 
 "It seems strange that the privilege of coining copper should be care- 
 fully confined by law to the general government, while that of coining 
 gold and silver, though withheld from the States, is freely permitted 
 to individuals, with the single restriction, that they must not imitate 
 the coinage established by law." 
 
 This private coinage appears to have been confined to the far 
 Western States, especially California, and the State of North Carolina. 
 The Mint of the Bechtlers in the State last named seems to have done 
 an extensive busines>' — basing the assumption upon the number of 
 coins formerly m circulation. 
 
 The $50 piece, commonly known by the name of "gold slug" was 
 octagonal in shape, and was regarded as a novelty on account of its 
 shape and general design, as well as its extraordinary size. The 50 
 cent and 25 cent pieces were coined in California and Colorado. They 
 are extremely rare, and, on this account, are frequently counterfeited. 
 There was also coined a piece known as the "Twenty-five dollar piece 
 ofTempleton Reid." 
 
 The majority of the coins issued by private parties were of the 
 same denomination as the coins of the United States. As these 
 private coins were not authorized ^although permitted) by law, they 
 are not redeemable by Government, and, as a matter of course, none of 
 them are in the Treasury. Applications for any of the coins referred 
 to, or any correspondence on the subject, should be addressed to some 
 of the numerous dealers in rare coins to be found in all large cities. 
 (Compiled principally from Eckfeldt & Du Bois' "Manual of Coins," 
 
 1S51 j 
 
 ORIGIN OF THP: dollar mark ($) 
 
 The dollar unit, as a money of account, was established by Act of 
 Congress of April 2, 1792, and the same Act provides for the coinage 
 of a silver dollar of the value of a Spanish milled dollar as the same is 
 
95 
 
 <:/9'.£'yi^i^ ^(9 y^^ ^^/ /^ <* ^ 
 
 ^.^*t^i^ 
 
 .^-^^^^■V'^.V^Xt, 
 
 y 
 
 
 
 4^ 
 
 
 
 31 
 
 ■•t«^^ 
 
 
 
 OIKICERS t)K 
 
 THK PkKI-HKKKlJ HANKHRS' MFK ASSURANCE COMPANY, 
 
 t)l' MICHIGAN. 
 
97 
 
 now current. It was the Spanish pillar dollar (^called also the milled 
 dollar from its milled edgeithat was taken as the basis of the United 
 States coinage and money of account. 
 
 Spanish dollars were chiefly coined in the Spanish- \nieiican 
 colonies. The best known \ariety was the i)illar dollar, so-called from 
 the two pillars on its reverse, rejjresenting the "Pillars of Hercules," 
 the ancient name of the opposite promontories at the Straits of Gibr- 
 altar. The rude imitations of these pillars in writmg, connecting them 
 with a scroll, is said to have been the origin of the dollar mark (S). 
 Another explanation is that, as the dollar consistsof 8 reals (8 R being 
 stamped upon it I, the mark was designed to stand for the "piece of 
 eight," as the dollar was commonly called, the two vertical lines being 
 employed to distinguish it from the figure 8. (Compiled from Apple- 
 ton's Cyclopaedia, title "Dollar.' ) 
 
 "One writer says it comes from the letters U. S. (United States), 
 which, after the adoption of the F"ederal Constitution, were prefixed to 
 the Federal currency, and which afterwards, in the hurry of writing, 
 were run into one another; the U being made first and the S over it. 
 Another, that it is derived from the contraction of the Spanish word 
 pesos, dollars, ox pesos ftiertes, hard dollars. A third, that it is a con- 
 traction for the Spanish fuertes, hard, to distinguish silver or hard 
 dollars from paper money. The more probable explanation is that it 
 is a modification of the figures JJ formerly used to denote a piece of 
 eight reals, or, as a dollar was then called, a pieee of eight." ("Bart- 
 lett's Dictionary of Americanisms.") 
 
 '"As to my boat it was a very good one, and that he saw, and told 
 me he would buy it of me for the ship's use; and asked me what 
 I would have for it. I told him that I could not offer to make any 
 price of the boat, but left it entirely to him; upon which he told 
 me he would give me a note of hand to pay me eighty pieces of 
 eight {ox it in Brazil." (Robinson Crusoe, c[uoted in "Bartlett's 
 Dictionary of Americanisms.") 
 
 Of the many theories advanced, several of which are plausit^le, it 
 is difificult to determine to which the most weight should be given, but 
 inasmuch as the Spanish pillar dollar has on its reverse two j:)illars, 
 from each of which floats a scroll similar in shape to an S, and in view 
 of the fact that the Spanish pillar dollar was taken as the basis of 
 American coinage, the theory that the dollar mark was derived from the 
 pillar and scroll (8) is surely entitled to much consideration; but a great 
 deal may be said in favor of the "piece of eight " (8), with the two 
 pillars II, written thus: ($), which would result, when rapidly written, 
 in the eight bearing a similarity to the letter S The theor>' as to the 
 letters U. S. (L'nited Sta'esi, written one o\er the other, appears to be 
 based merely upon sentiment. 
 
 "PILLARS OF HERCULES." Among the ancient peoples 
 of the East there were many versions of miraculous deeds performed 
 by such wonderful beings as Hercules, or Herakles. The researches 
 of modern scholars, however, have showd these tales to be nothing 
 more or less than Sun-myths. The Phoenicians regarded the op- 
 
98 
 
 posite promontories at the Straits of Gibraltar as the Western limits 
 of the land — all beyond was a vast, unknown extent of water, ap- 
 parently "world without end," When Herakles (the Sum had run 
 his brilliant course through the heavens, and slowly retired at the 
 close of day into the "dark unfathomed caves," the glorious picture 
 as seen between these two noble promontories might well suggest 
 the designation: — "The Pillars of Hercules." 
 
 WILLARD FORESTER WARNER, 
 
 Washington, D. C. 
 
IMUNIGIPflL BONDS 
 
 (Not Subject to Federal Taxation 
 
 Pledging the faith and 
 credit and the real and 
 personal property of the 
 corporation are second 
 only to U. S. Government 
 Bonds in point of security, 
 while yielding a much 
 higher rate of interest. 
 
 w. J. mm & SONS 
 
 BANKERS 
 
 7 EXCHANGE PLACE 
 
 BOSTON, MASS. 
 
 311-313 SUPERIOR ST. 
 
 CLEVELAND, OHIO, U.S.A. 
 
 WE BUY AND SELL 
 
 Cf\BL& fVDDRESS "KENNETH" 
 i 
 
F 
 
 (191) 
 
 IRST 
 
 ESTABLISHED 
 1863 
 
 INATIOINAL BANK 
 
 KALAMAZOO, MICH. 
 
 CAPITAL - - - - $100,000.00 
 
 SURPLUS AND PROFITS - $150,000.00 
 
 Loans 430,000 Depo^its 450,000 
 
 Collections a Specialty 
 
 L. M. GATES, Pres F. N. ROWLEY, Cashier 
 J. W. OSBORN, Vice-President 
 
 Mercantile National Batik, N. V. 
 
 National Hank Illinois, C/iiraeo 
 
JaS. W. English. President Jno. K. Oftley, Cashier 
 
 Jas. R Gray, Vice President Chas. I Ryan. Assistant Cashier 
 
 American Trust & Banking Co. 
 
 ATLANTA, GEORGIA 
 
 CAPITAL, - _ _ _ $500,000.00 
 
 SURPLUS AND PROFITS, - - - $40,000.00 
 
 LARGEST CAPITAL OF ANY BANK IN ATLANTA 
 
 Liability same as National Banks 
 Transacts a General Banking: Business 
 
 COLLECTIONS 
 
 We make a specialty of COLLECTIONS and have Superior 
 Facilities for handling business throughout the State 
 
 Any information cheerfully furnished. Write us for terms 
 
 CORRESPONDENTS 
 
 American Exchange National Bank, New York 
 independence National Bank, Philadelphia 
 
 iii 
 
THE PEOPLE'S BANK 
 
 OF BUFFALO, NEW YORK 
 
 CflPITALi - - $300,000 SUJ^PIiUS - - $100,000 
 
 President, DANIEL, 0'I>AY. Vice President, ARTHUR D. BISSELL 
 Cashier, C. W. HAMMOND 
 
 BOARD OF DIRECTORS 
 DANIKI. O'DAV ........ Standard Oil Company 
 
 CHA.S. I'. BISHOP, Mayor of City of itiitlalo, Wliolesale Teas, Coilees and Spices 
 
 P. H. GKIFFIN ....... New Vorlt Car Wheel Works 
 
 <iEO. H. r.KWIS, of Bell & Lewis, .... Sliiiera and Wholesale Coal 
 
 K. O. S. MII.I.KK , ......... Brewer 
 
 W. H. GUAN<;KI{, ...... Wholesale (irocer 
 
 JOHN HI'OIIKS, of .Swope, HngheH, Waltz A; Benstead Live Stork Dealers 
 
 CLAKKNCK W. HAMMO.ND, ........ Cashier 
 
 W. KICHAHD>ON .......... Capitalist 
 
 WILI>IAM W. SI.OAN ......... Malster 
 
 ,IOHN M. ItKINKKH, of Drinker & Jones Miners and Wholesale Coal 
 
 ■JOHN T. STEWART, of Stewart Bros. ..... Wholesale Lumber 
 
 ARTHUR D. BISSELL ........ Vice President 
 
 THE PEOPLE'S BANK can handle COLLECTIONS to advantage in ButValo and 
 vicinity, also all points East an<l WeAt, and will be plea.sed to Iiave your patronage. 
 
 Se"nd your Collections to THE PEOPLE'S BANK. 
 
 iv 
 
- : THE^ : ■ 
 
 Central National Bank 
 
 (PERRY=PAYNE BUILDING) 
 
 CLEVELAND, OHIO 
 
 COTVTTU^eNCED BVJSIISeSS 7UTKY 26th, IS90 
 
 CKRITKL- - - $500,000.00 
 
 THOMAS WILSON. President JOSEPH BLACK, Vice President 
 
 J. J. SULLIVAN, Cashier C. A. PAINE, Ass't Cashier 
 
 DIREOTORS 
 
 JOSEPH BLACK, of the D. Black Cloak Company 
 
 N. C. BREWER, President Cleveland Rubber Paint Company 
 
 WILLIAM CHISHOLM, Sr., Iron Manufacturer and owner of Chisholm Steel Shovel Works 
 
 JOHN H. FARLEY, Brass Founder, and Ex-Mayor of Cleveland 
 
 H. P. MCINTOSH, Counselor and Ajrent of Hon. H. P. Payne and Col Oliver H. Payne 
 
 C. MORRIS, President Morris Coal Company 
 
 E. W. OGLECAY. Iron Ore Merchant and President Nat. Bank of West Va., Wheeling 
 
 CHARLES L. PACK, Pack, Gray and Company, Wholesale Lumber 
 
 B. L. PENNINGTON, of The Lockwood-Taylor Hardware Company 
 
 J. J. SULLIVAN. Cashier 
 
 THOMAS WILSON, Vessel Owner and President Wilson Transit Company 
 
 The record and business standini,' of the jrentlemen comprising the Board of Directors 
 will be a jruarantee of careful, conservative management. 
 
 We invite correspondence, or a personal interview with a view to business. 
 
FIRST NATIONAL 
 ..BANK.. 
 
 PAID-UP CAPITAL, 
 SURPLUS 
 
 $500,000 
 $55,000 
 
 WACO, TEXAS 
 
 E. ROTAN, President 
 
 WM. CAMERON ) 
 TOM PADGITT \ 
 
 Vice Presidents 
 
 J. K. ROSE, Cashier 
 
 R F. GRIBBLE, Ass't Cashier 
 vi 
 
C- 
 
 
 Vres^A^^^. D. (^°'''' 
 
 GlOti 
 
 
 Vl\^N\^* 
 
 V\ce- 
 
 .Vres^Ae^^ -. 
 
 m^lt 
 
 m^ 
 
 
 ^i\H^^^ 
 
 N^O. 
 
 
 \ f.tt-^^'^V^^'''''' 
 
 Vll 
 
Dgs Moines Mm Bank 
 
 DES MOINES, IOWA 
 
 OHPITKL .... $300,000 
 
 TRANSACTS ANY BUSINESS 
 CONNECTED WITH 
 BANKING 
 
 ...COLLECTIONS... 
 
 Carefully made and proceeds promptly accounted for 
 on moderate terms 
 
 KVERKGe DEPOSITS • $1,000,000 
 
 P. M CASADY, President 
 
 G. M. HIPPEE, Vice President 
 
 SIMON CASADY, Cashier 
 
 viu 
 
Ml-:i)I'URI) H. WILSON. PKi siniNT 
 
 W.M. !■. CIHRCIIMAN, casmikk 
 
 The Capital National Bank 
 
 INDIANAPOLIS, IND. 
 
 ^ f.^, -^ •^•-- ^. . . ^ 
 
 CAPITAL STOCK, - $300,000 SURPLUS AND EARNINGS, - $50,000 
 
 ESPECIAL FDCILITIES FOR MAKING COLLECTIONS Oil ALL POIIITS IK INCUKA 
 
 IX 
 
BSTfVBLISfiED 1865 
 
 THE 
 
 ID 
 
 
 FIRST 
 
 NATIONAL 
 
 BANK 
 
 OF( 
 
 EAST SAGINAW = = MICHIGAN 
 
 Cf\PITfVL 
 SURPLUS 
 
 SIOO.OOO 
 SIOO.OOO 
 
 SPECIAL ATTENTION GIVEN TO COLLECTIONS 
 
 E. T. JUDD, President 
 
 CLARENCE L. JUDD, Cashier 
 
r 
 
 ■j < 
 
 CO 
 " < 
 
 -2 
 5< 
 
 ■T. 
 
 o 
 -r 
 
 XI 
 
L. C. NELSON, President H. M. NOKL, Vice Pres. C. W. ISAACS, Cashier 
 
 No, 1112 
 
 TfHE 
 
 ST. LOUIS NATIONAL BANK 
 
 ST. LOUIS, MO. 
 
 (ESTABLISHED 1857) 
 
 CAPITAL STOCK, = = $1,000,000.00 
 
 SURPLUS = = = $150,000.00 
 
 DIRECTORS 
 
 L C. Nelson H. M. Noel 
 
 W. T. Anderson J. B. M. Kehlor 
 
 G. Paddock F. Mitchell 
 
 Jno S. Culi in F. H. McKittrick 
 
 A. K. Root Jas. m. nelson 
 
 Calvin F. Burnes 
 
 ALL THE ADVANTAGES OF SAFETY 
 AND CONSERVATIVE 
 BANKING OFFERED 
 
 xii 
 
NO. -4939 
 
 First National Bank of Buchanan County 
 
 ST. JOSEPH, MISSOURI 
 
 Gf\PITf\L = = = $500,000.00 
 
 Accounts of banks, bankers, corporations 
 and individuals respectfully solicited 
 
 --«mtm«m»«i 
 
 -COLLECTION DEPARTMENT f\ SPECIALTY 
 
 J. M. I-ORI) I 
 
 S. C. WOODSON, rresidtiit li. li. I'R.^ZHR 
 
 A. KIRKIWTKICK I 
 
 E. C. H.\RT\VI<;, .\s,st Cashier 
 
 OFFIC&RS 
 
 Vice Presidents J. \V. Mc.M.ISTKR. Cashier 
 J r I.I IS R0SI-;XHI..\TT. 211(1 .Asst Cashier 
 
 DIRECTORS 
 
 John 1*. H.\x of Hax Bros., Capitalists 
 
 A. KiKKP.xTRiCK Capitalist 
 
 Loris H.AX Pres. Loui.s Ha.x Furniture Co. 
 
 C. .\. CoNNETT..Pres. St. Joseph Pres.sed Brick Co. 
 KnwARi) C. .Smith.... Pres. C. D. Smith Drug Co. 
 \V. C. Brown . 
 
 C.en'l Mgr. Burlington Route in Missouri 
 
 B. B. Fr.\zkk I'resident Park Bank 
 
 C. A. Hiii.\CHKR Capitalist 
 
 Capitalist 
 
 . ..of R. L. McDonald & Co. 
 
 J. M. Im)RI) 
 
 R. I-. McI»<)N.\LI> 
 
 W. S. Hkndrick 
 
 Treas. (ieo. A. Kennard (irocery Co. 
 
 Dr. C. K. Woodson '. 
 
 Siipt. Slate Lunatic Asylum No. 2 
 
 C. W. Wii.Li.v.MS Banker, Seneca, Kansas 
 
 S. C. Woodson President 
 
 J. W. Mc.\i.isti;r Cashier 
 
 J. M. Fori 
 
 DISCOUNT COMMITEE 
 
 Loris H.A.v Hdw. C. S.mitii J. W. Mc.Alistkr S. C. Woodson 
 
 Xlll 
 
TfiB 
 
 GALVESTON NflTIONflL BANK 
 
 GALVESTON, TEXAS 
 
 cAPrrAL 
 
 MBSOO.OOO 
 
 T. J. CjROCE, President H. A. LANDES, Vice President 
 
 A. J. COMPTON, Cashier 
 
 SEND US ALL OF YOUR TEXAS COLLECTIONS 
 
 xiv 
 

 XV 
 
CALVIN HOOD, President 
 
 W. T. SODEN, Vice President 
 
 L. T. HERITAGE, Cashier 
 
 J. M. STEELE, Assistant Cashier 
 
 Capital $100,000. Surplus $100,000 
 
 F mporia N ational B4NK 
 
 EMPORIA, KANSAS 
 
 PROMPT ATTENTION PAID TO COLLECTIONS 
 
 XVI 
 
R udolph K leybqlte I H ompany 
 
 ...INVESTMENT BANKERS- 
 
 STATE, COUNTY, mUNICIPAL AND SCHOOL 
 
 ...BONDS... 
 
 SPECIRLiLiY ADAPTED FOR 
 
 SAVINGS BANKS 
 TRUST COMPANIES 
 AND INVESTORS 
 
 MUNlCIPflLi OFFICEHS HAVING LiOANS TO NEGOTIATE 
 ARE SOLilCITED TO CORRESPOND WITH US 
 
 INVESTIVIEIMT UISTS |VI R I U E D ON APPLilCATION 
 
 MASONIC TEMPLE. •:• •••• CINCINNATI, OHIO 
 
 XVI 1 
 
FIRST NATIONAL BANK 
 
 HELENA, MONTANA 
 
 Capital and Profits, $1,000,000 
 Average Deposits, $3,000,000 
 
 S. T. 1IAUS1:R. Presidtnt 
 GEO. F. COPK, Casliicr 
 
 i:. \). KDGKRTON, VicePicsidcnt 
 GKO. H. HILL, Asst. Cashier 
 
 L)o a ^enerril Hanl-cinj^ l)ijsiness 
 Collect on all western points 
 
 will 
 
1016 
 
 THE PIRST NflTIONflL BANK 
 
 DENVER, COLORADO 
 
 THE OLDEST NATIONAL BANK IN COLORADO 
 
 CAPITAL AND SURPLUS - - - $1,000,000.00 
 
 A GENERAL BANKING BUSINESS TRANSACTED 
 
 H. MOFFAT, President 
 
 S. CHHRSMAN, Vice President 
 
 G. E. ROSvS-LEWIN. Cashier 
 THOMAS KEFXV, Asst. Cashier 
 J. A. VICKERS, 2d Asst. Cashier 
 
 ACCOUNTS OF BANKS AND BANKERS INVITED 
 
 Special Attention Given to Western Collections, and Remittance Made on day of 
 Receipt at Most Favorable Rates 
 
 STATEMENT 
 
 Of the condition of the FIRST NATIONAL BANK, DENVER, COL. 
 
 close of business, December 22, 1876: 
 
 at the 
 
 ASSETS. 
 
 I, oans and Discounts $ 648,105 86 
 
 r. S Bonds 100,000 00 
 
 Other Stocks and Bonds 3-267 45 
 
 Cash on Hau<l and bij<ht Ex. 269,042 01 
 
 R^^al F;slate, I'urn. & Fix 33.404 30 
 
 Current Hxp- nsts and Ta.xes 
 
 paid 6,709 23 
 
 Preiniinns Paid 10,000 00 
 
 LIABILITIES. 
 
 Capital and Profits $ 319,798 10 
 
 Circulating Notes 44,900 00 
 
 Total Deposits 705,830 85 
 
 11,070,528 95 I 11,070,528 95 
 
 STATE/WENT 
 
 of the condition of the FIRST NATIONAL BANK OF DENVER, COL., at 
 close o.^ business, March 5, 1895. 
 
 RESOURCES. 
 
 Loans and Discounts ^>3. 998, 715 43 
 
 r S Bonds, Circulation 2cxj,ooo 00 
 
 Premiums 37,114 98 
 
 I, oi-al Securities 189,821 96 
 
 Keal Instate '9.395 00 
 
 r. .S. Bonds, Deposits 15CJ ooo 00 
 
 Due from Banks 1,510,061 95 
 
 C.ish on Hand 1,664,500 89 
 
 57,769,610 21 
 
 LIABILITIES. 
 
 Capital Stock $ 500,000 (x) 
 
 Surplus 550,26852 
 
 Circulation 180,000 00 
 
 Deposits 6.539,341 69 
 
 57,769.610 21 
 
 NEW YORK CORRESPONDENTS— First National Bank. Fourth National Itaiik. 
 Aiiierioaii Kxchang:e National Itank. National Park and Mechanics National Itank. 
 CHICAGO COKKESPONDENT Cbicaso National Hank 
 IvONOON AfiENTS— Brown, Shipley & Co. 
 
 XIX 
 
HooE. Brownuee & Co. 
 BANKERS 
 
 Butte City (Dontana 
 
 TRflNSflCT A 
 GEHERflU BANKING 
 BUSINESS .... 
 
 COLiliECTIOHS A SPECIAbTY 
 
 HOGE, DALiV 8t CO 
 
 ANACONDA 
 
 XX 
 
H G THOMAS, President E. W. DOWDEN. Vice-President F. L. DOBBIN, Casiiier 
 
 THE 
 
 ommm NflTiONfli bank 
 
 OflPITflL, S50.000 
 
 OKLflHOMfV GITY, O. T, 
 1 
 
 COLLECTIONS 
 
 Made in Indian Territory and Oklahoma Territory 
 
 INQUIRY IN REGARD TO INVESTMENTS IN OKLAHOMA 
 PROMPTLY ANSWERED 
 
 xxi 
 
C. W. GIBSON, President 
 
 B. G. CONNOR, Vice-President 
 
 R. G. PHILLIPS, Cashier 
 
 H. H. DUNN, 2d Vice-President 
 
 FIRST 
 HATIGHAL 
 
 BRHK 
 
 CKPITKL 
 
 SURRLUS - 
 
 $100,000 
 $20,000 
 
 WAXAHACHIE, TEXAS 
 
 Collections • Pi^omply • JVIade 
 
 ON fllili flCCESSlBliE POINTS 
 
 XXll 
 
J. J. SOriKR, President \VM. C. HKNRICI. Cashier 
 
 S. B. ARMOUR, Vice-President C. N. PROUTV, Asst. Cashier 
 
 NO. -4381 
 
 Inier-Siaie National BaoK 
 
 THE ONLY BANK LOCATED AT THE STOCK YARDS 
 
 KANSAS CITY 
 
 POST OFFICE ADDRESS 
 
 STATION A, KANSAS CITY, MO. 
 
 Member of the Kansas City. Mo., Clearing House 
 
 RKID \J^ OKPITHI- 
 
 $1,000,000.00 
 
 COLLECTIONS A SPECIALTY 
 
 Made on all Points in the United States and Canada 
 
 ACCOUNTS OF BANKS, BANKERS, CORPORATIONS AND INDIVIDUALS RECEIVED 
 
 UL BUSIKESS IMTRUSTEO TO US WILL HtVE PROMPT AND CIREFUt UTTEIITIOII 
 
 DIRECTORS 
 
 CiKo. W. Williams, Seneca, Kan. 
 
 Tho.m.^s Kirby. Abilene. Kan. 
 
 J. C. Ro<;ers, Waniego, Kan. 
 
 I,KK Clark. Parsons, Kan. 
 
 C. Hoon. Kniporia, Kan. 
 
 J. V. ,\NDRKWS, Kansas City, Kan. 
 
 S. }5. Armovr, Kansas City. Mo. 
 
 C. W. McKnic.ht. Junction City. Kan. 
 
 J. J. SguiER, Kansas City, Mo. 
 
 L. V. McKek, Frankfort, Kan. 
 E. N. Morrill, Hiaw.itha, Kan. 
 J. D. Robertson, Jewell City. Kan. 
 J. R. MuLVANE, Topeka, Kan. 
 John R. Foster. C.arnett. Kan. 
 FoKi) F. Harvey. Kansas City, Mo. 
 C. F. Morse, Kans-is City. Mo. 
 M K PL ATT. Kansas City. Mo. 
 
 XXlll 
 
The First National Banl( 
 
 OF 
 
 ALBUQUERQUE 
 
 UNITED STATES DEPOSITORY 
 
 NBW MEXICO 
 
 CAPITAL 
 SURPLUS 
 
 TOTAL 
 
 $100,000 
 oO,000 
 
 $150,000 
 
 JOSHUA S. RAYNOLDS, President 
 M. W. FLOURNOY, Vice President 
 
 A. A. KEEN, Cashier 
 FRANK McKEE. Asst. Cashier 
 
 DEPOSITS, $900,000 
 
 CORRESPONDENTS— Chemical National Bank, N. Y. 
 First National Banl<. Chicago 
 
 XXIV 
 
BUSINESS tSTABLISHED 1873 
 
 JORRLMON 6c GO. 
 
 Bf\NKERS 
 
 Financial f\06iiis and Mmm 
 
 229 TO 235 Equitt^ble Building 
 
 DENVER, GOL 
 
 INVESTMENTS IN 
 
 BONDS. MORTGAGES 
 AND REAL ESTATE 
 
 COLLECTIONS ON COLORADO POINTS 
 
 Invesiigate, aj^ipraise and report impartially upon Real P^state, Industrial 
 and Mining Properties. 
 
 Act as Attorneys in the foreclosure and reconstruction of defaulted mort- 
 gages and other securities. 
 
 Represent non-residents in the general management of their interests. 
 
 Complete facilities and extended experience guarantee prompt and 
 efficient service. 
 
 XXV 
 
NO. 1833. 
 
 TI16 First National BanK oi FueDio. 
 
 CObORADO. 
 
 Illnitcb states IDcpositori?. 
 
 Capital - - = $ 300,000. 
 Surplus and Profits ■= 200,000. 
 Average Deposits = 2,000,000. 
 
 ESTABLISHED 1871 
 
 The Laraesi and Oldest Bankincj Institution in Southern Colorado, 
 Transacts a General Banking Business. 
 
 Special Attention Given to Collections. 
 
 M D. THATCHER, President. JOHN A. THATCHER, Vice-President. 
 
 R. F LYTLE, Cashier. 
 
 xxvi 
 
NO. 2300 
 
 THE FIRST NATIONAL BANK 
 
 OF TRINIDAD, COL. 
 
 CAPITAL - - $100,000 SURPLUS - - $100,000 
 
 A General Banking Bubiness Transacted. 
 Prompt Attention Given to Collections. 
 
 M D. THATCHER, President 
 
 D. A. CHAPPKLL, Vice President 
 
 H. J. ALKXANDKR, Cashier 
 J. C. HUDELSON, Asst. Cashier 
 
 XX\ 1 
 
TI16 Film National Banii oi Gincinnaii. 
 
 CnjtUstl 
 
 Siirftliia !itt<l I'm fits 
 
 SrtOO.ODO.OO. 
 
 OFFICERS : 
 ROBERT M. NIXON, President, 
 
 Kx-I)e]>iity Ci)iiii)tri)llcr of tlif Ciim-iicv. 
 CHAS. A. HINSCH, Cashier. 
 
 T. J. DAVI5, Assistant Cashier. 
 
 lL)oiir Collections SolicitcD. 
 
 Ipronipt IRcturns. 
 x.wiii 
 
 Xowest TRatc^. 
 
0. FURTH, President. 
 
 E. C. NEUFEUDER, Vice-President. 
 R. V. Ar>lKENY, Cashier. 
 
 The Pnget Sound National Bank of Seattle, 
 
 SEATTliE, LUASH. 
 
 I 
 
 Capital 
 Surplus 
 
 $600,000.00. 
 120,000.00. 
 
 XXIX 
 
The First National Bank 
 
 OF 
 
 EL PASO, TEXftS 
 
 CKRITA L 
 
 $1<)0,00<) 
 25,000 
 
 $12.">.00() 
 
 JOSIU'A S. RAVXOLDS, I'rcsuluiil 
 M \V l-LOrRNOV, Vice President 
 
 ULYSSES S. STEWART, Cashier 
 JOSI-PH I". vVII.MAMS, Asst. Cashie: 
 
 WE BUY AND SELL 
 
 MEXIOA^N SIL^VBH AND 
 
 MBXIUA^N BJlCHANGB 
 
 X X X 
 
o 
 
 o 
 o 
 
 Ob 
 
 fc 
 
 a: 
 
 o 
 
 a 
 
 
 
 ^ 
 
 
 ^ 
 
 
 < 
 
 
 PQ 
 
 >j 
 
 
 c 
 
 
 ;a 
 
 J 
 
 u 
 
 < 
 
 V 
 
 Z 
 
 
 o 
 
 
 XXXI 
 
T. B. WALLACE, Pres. JNO. S. BAKER, Vice Pres. P. C. KAUFFMAN, Cash. 
 
 F idelity T rust Ca 
 
 TtCOMA. WASHINGTON 
 
 PAID UP CAPITAL 
 
 $500,000 
 
 TRANSACTS A GENERAL BANKING BUSINESS 
 
 ACTS AS TRUSTEE, EXECUTOR, OR 
 IN ANY FIDUCIARY CAPACITY 
 
 T. ]',. WALLACK 
 
 CHESTER THORNE 
 
 TRUSTEES 
 
 JOHN S. BAKER 
 (GEORGE BROWNE 
 
 xxxii 
 
 L. I). CAMPBELL 
 C. W. GRIGGS 
 
The First National Banl( 
 
 OF CHICAGO. 
 
 
 Paid 
 
 in Capital 
 
 = 
 
 $3,000,000. 
 
 
 
 SurpI 
 
 us 
 
 " ' 
 
 3.000,000. 
 
 
 
 
 OFFICERS: 
 
 
 
 LYMAN 
 
 J. GAGE 
 
 , President. 
 
 
 
 
 
 JAS. B. 
 
 FORGAN, V 
 
 'ice=President. 
 
 
 
 
 
 RICHARD 
 
 J. STREET, Cash 
 HOLIES HOQE, 
 
 'er. 
 
 Ass't Cashier. 
 
 
 
 
 
 FRANK E 
 
 . BROWN, 2d Ass't 
 
 Cashier 
 
 XXXI 11 
 
•fc* 
 
 
 i»i law 
 
 ^J|B^>- 
 
 
 
 ' i 
 
 -^' i^i v^f 
 
 : ■ 
 
 THE B'PVNKERS Nf\TIONf\L Bf^NK' 
 
 CHICAGO, ILLINOIS. 
 
 Capital 
 
 $1,000,000. 
 
 OFFICERS 
 
 E. S. LACEY, I'rcsuleiit. 
 
 OEORC.lv S. I.ORI), -^11(1 Vii-e I'rcsicUnt. 
 J. C. McNAfC.HTcjN, Asst.Cashiii-. FRANK 1'. jrDSoN. 2\\<.\ Asst. CasliK-r 
 
 1). I!. 1)I-;\V1-:Y, vice I'lcsidcnt. 
 JOHN C. CRAI-T, Casliiir. 
 
 XXXIV 
 
C. H. HACKLEY, President. 
 
 THOS. nUNROE, 2nd Vice President. 
 
 C. T. HILLS, Vice President. 
 GEO. A. ABBOTT, Cashier. 
 
 HACKLEY NATIONAL BANK. 
 
 IWOSKEGON, MICH. 
 
 Capital 
 
 $100,000. 
 
 
 Surplus 
 
 50,000. 
 
 
 
 DIRECTORS : 
 
 
 C. H. HACKLEY. 
 
 
 
 L. Ci. MASON. 
 
 
 
 C. T. 
 
 HILLS. 
 
 LUTHER WHITNEY. 
 
 THOS. HUME. 
 
 THOS. MUNROE. 
 
 
 
 GEO. A. 
 
 ABBOTT 
 
 XXXV 
 
Preston National Bank, 
 
 DETROIT, MICHIGAN. 
 
 CAPITAL, 
 
 $1,000,000. 
 
 F. W. HAYES, President. A. E. F. WHITE, Vice=President. 
 
 H. L. O'BRIEN, Cashier. J. P. OILMORE, Auditor. 
 
 DIFJECTORS. 
 
 F. \V. HAYES. C. A. BLACK. \VM. H. ELLIOTT. JAS. E. DAVIS. 
 
 JAS. D. STANDISH. JOHN CANFIKLD. A. E. F. WHITE. 
 
 A. L. STEPHEN'S. JEROME CROl'L. J. B. BOOK. II. K. WHITE. 
 
 The buiintss of this Bank was establishfd l\v David Preston in 1S52. The 
 present organization dates from July, 1887. 
 
 The Hank does a large business with individuals, firms, corporations, banks 
 and bankers, and solicits business from all such, tendering the attention and 
 courtesies given by banks conducted in a sale, conservative and promjit 
 manner. 
 
 xxxvi. 
 
THE FIRST NATIONAL BANK 
 
 OF DULUTH 
 
 Capital - - - . . |i,ooo,ooc). 
 Surplus 200,000. 
 
 The American Exchange Bank 
 
 OF DULUTH. 
 
 Capital 1500,000. 
 
 Surplus ------ 385,000. 
 
 THE mARHSlE HatioHau baHk 
 
 OF DULUTH. 
 
 Capital $200,000. 
 
 Surplus ------ 33,000. 
 
 THE NATIONAL BANK OF COMMERCE 
 
 OF DULUTH. 
 
 Capital ----- $200,000. 
 Surplus ------ 27.000. 
 
 THE STATE BANK 
 
 OF DULUTH. 
 
 Capital ----- |ioo,ooo. 
 Surplus ------ 40,000. 
 
 THE SECURITY BHNK 
 
 OF DULUTH. 
 
 Capital $100,000. 
 
 Surplus 40,000. 
 
 THE IRON EXGHf\NGE> BftNK 
 
 OF DULUTH 
 
 Capital ----- $100,000. 
 Surplus 8,500. 
 
 Duiuili Giearino House flssociaiion. 
 
 xxxvii 
 
Zbc pvctcncb Bankers 
 
 Xife Hssuvancc Company 
 
 OF MICHIGAN )}< )i( 
 
 This assurance company was organized by one hundred prominent Michigan 
 l)ankers and business men, nearly every city of importance in the state being repre- 
 sented by one or more of its leading citizens, as incorporators. 
 
 75 GUKRKNTEE F=\^ND 
 
 This fund is accuinulated by the payment of fifty cents for every year of a members age on each 
 certificate of ji.ooo, and may lie secured by four notes on two years' time drawing six per cent, pay- 
 able in quarterly installments. A man at'the age of forty puts S20 into the guarantee fund on each 
 51,000 of insurance. This fund is held as security or collateral to the payment of premiums, and is 
 returned to the l)eneficiar\- at the death of a member, but on failure to pay is forfeited to this com- 
 pany, and is at once transferred to the surplus fund to pay death losses when the deaths shall 
 amount to more than one per cent of the membership, or 10 to each 1,000. F;ach member's guarantee 
 fund, being in amount proportionate with his age. his calls to pay death losses being a percentage on 
 that amount, makes his premium in proportion to the balance of the members, equal to his ex- 
 pectancy of life, so each member is paying always the just and proper amount. This amount makes 
 up the 
 
 eeNepiT f=uisd 
 
 This fund is e.xclusively for the purpose of paying to the designated beneficiaries the amount 
 belonging to them on the death of a member, and is only called for that purpose, and is only .suffi- 
 cient in amount to meet said death lo.s.ses, and provide for the maximum amount at risk on any 
 three members in advance. 
 
 S\/RRLV/S F=VJND 
 
 This fund is to pav death losses when the death rate shall exceed one per cent in any one year, 
 or 10 deaths to the 1,000. This fund is made up of all guarantee deposits tliat are forfeited to this 
 company, and from a 1 interest on the funds of said company. 
 
 Trt© CONTINGENT F=\^ND 
 
 This fund is composed of the membership fee, which is 50 per cent of the guarantee amount pai<l 
 by each member A man at the a ^e of 40 ye irs puts Jio into this fuml for every Si. 000 of insurance, 
 at the same time he puts J2:j into the guarantee fund. 
 
 TU^BTU^BERSHIR 
 
 We will write only men. and between the ages of 21 and s.s years, always reckoning from his 
 nearest birthday, and he must be .sober, industrious and of good moral character, and must not be 
 engaged in auv hazardous occupation, or in the sale of intoxicating litiviors, and nuist be in all 
 respects what is meant by the word a "' preferred risk," which is the watch tower of this ass\irance 
 company, 
 
 AMOUNT OF INSURANCE LIMITKD. 
 
 Age. Highe.st Am't. 
 
 21 to 35 - - - - - - $5.00000 
 
 ,\S to 45 - - - - - - - 4,000.00 
 
 45 to 50 - - - - - - 3,000.00 
 
 50 to . "55 - - - - - - - 2.000.00 
 
 ORRIC©RS 
 President, ARTHUR O. BEMENT, 
 
 I'AMavor lit I/iusing, Mich., and I'residenl of K. Hement N: Sons, I/uising, Mich. 
 1st Vice President, ROBERT SMITH, 
 
 State Printer. I.ansing. Mich. 
 2d Vice President, EUGENE A. SUNDERLiN. 
 
 Dep.itv State Hank Commissioner, Lansing, Mich. 
 Secretary and Manager, IRA E. RANDALL, 
 
 Lansing. Mich. 
 Treasurer, J. EDWARD ROE, 
 
 Cashier Lansing State Savings Hank, Lansing. Mich. 
 Medical Director, HENRY B. BAKER, H. D., 
 
 Secretary State Board of Health. Lansing. Mich. 
 Legal Director, EDWARD CAHILL, 
 
 lv\-J>istice of Supreme Court, L.iusing. Mich. 
 
 ANNUAL COST ON $t,ooo 
 
 2,S - - 8.S.0O .]'■ j.S.o, i 50 - - VIO 00 
 
 30 - - - 6.00 .15 - - - y.cX) .55 - - - 11.00 
 
 35 - - 700 
 
 .\ctnal results on six deaths per i.ooci. 
 
 THE PREFERRED BANKERS* LIFE ASSURANCE CO., 
 
 HOME, OFFICE, LflNSING, MICHIGf\N. 
 
 XXXVIII 
 
BOARD OF TRADE BIJIL.DING, 
 FORT WORTH, TEXAS, 
 
 CONTAININC, THK OFFICKS OI" 
 
 Land Mortgage Bank of Texas, Limited, 
 
 Subscribed Capital, . £750,000. 
 
 Surplus, . . £ 60, con. 
 
 HOME OFFICE: 
 LONDON, ENGLAND. 
 
 C. H. SILLIMAN, AMERICAN MANAGER, 
 FORT WORTH, TEXAS 
 
 Negotiates Loans Upon Improved Real Estate Anywhere in Texas. 
 
 xxxix. 
 
OFFICERS AND DIRECTORS. 
 
 JEFFERSON RAYNOLDS, President. ALFRED B. SMITH, Cashier. 
 
 JOHN W. ZOLLARS, Vice-President. 
 
 JOSHUA S. RAYNOLDS. A. A. JONES. 
 
 • • • 111 L^ • • • 
 
 First National Bank, 
 
 Las Vegas, New Mexico. 
 
 CAPITAL AND SURPLUS, 
 
 $125,000. 
 
 New iVfe.vioo ftnd Smithwestern Collecftinns a Specialty 
 
 CORRESPONDENCE INVITED, 
 xl 
 
p. I. BONEBRAKE, President. A. S. JOHNSON, Vice-President. 
 
 EDWIN KNOWLES, Cashier. F. M. BONEBRAKE, Asst. Cashier. 
 
 THE, CENTRAL NflTlONflL BANK 
 
 OF 
 
 ToPEKA, Kansas. 
 
 CAPITAL, 
 
 i*i2ijO,000 
 
 DEALS IN 
 
 United States and Municipal Bonds 
 
 DOES A GENERAL BANKING BUSINESS. 
 
 xli 
 
THE NATIONAL EXCHANGE BANK 
 
 OF 
 
 07^LL-7XS» 
 
 PAID UP CAPITAL, 
 
 $300,000. 
 
 DALLAS, TEXAS 
 
 JOHN N. SIMPSON, President. 
 
 ^\. H. (GASTON, Yice-President. 
 
 W. H. GETZENDANER, 2ud Viee-Presideut. 
 ROYAL A. FERRIS, Cashier. 
 
 R. C. AYRES, Asst. Casliier. 
 
 Accounts of Banks, Corporations and Individuals Solicited. 
 
 Ccllections Made on all Texas Points and Remitted at Lowest 
 Rates of Exchange. 
 
 xlii 
 
THeSiPaul National Bank 
 
 ST. PAUL, MINN. 
 
 Capital 
 
 S(!<K), OOO. 
 
 OFl'ICKRS : 
 
 F. W. ANDERSON, President. A. C. ANDERSON, Cashier. 
 
 PHILIP REILLY. Vice President. VV. B. GEERY, Assistant Cashier. 
 
 xliii 
 
TUG NicollGi National Bank ol Minneapolis, 
 
 rvlINNKSOTA. 
 
 Capital S500,000. Surplus and Profits, Sl()0,0(M>. 
 
 Transacts anv Imsiiiess consistent with kt^Mtiniate bankini^. 
 
 DIRECTORS. 
 
 FI. W. BROWN. C. E. WALES. H. ALDEN SMITH. A. T. RAND. T. B. CAS;':Y 
 
 J. A. BOHN. R. R. RAND. J. F. R. FOSS. 
 
 CORRESPONDENTS. 
 NEW YORK: Merchants' Kxchange National Bank. 
 
 CHICA(i!0: Continental National Bank. Bank of Nova vScotia. 
 BOSTON : National Bank of the Commonwealth. 
 IMIILADELPHIA: 1 irst National Bank. 
 
 No interest paid on any form of deposits with the exception of accounts 
 from Ll.-inks and Bankers. No time certificates of deposit issued. 
 
 SEND US YOUR COLLECTIONS ON 
 
 Minneapolis, St. Paul and other Points of the Northwest. 
 
 H. W. BROWN, 
 
 President. 
 
 F. R. FOSS, 
 Vice-I'resident nnd Cashier. 
 
 XMV 
 
American National Bank. 
 
 LOUISVILLE, KY. 
 
 Capital 
 
 $800,000 00 
 
 J H LINDENBERGER. President. 
 
 LOGAN C. MURRAY, Vice Presid<?nt. 
 
 CHAS. WARREN. Cashier. 
 
 H. C. TRUMAN. Asst. Casiiier 
 
 accounts Of ,li3nnl?!? an^ .I6anl?cr^ received on favorable tcrm^. 
 Collection!? on all ^lointti a iipccialtv!. 
 
 xlv 
 
A-E- WING. 
 
 DIRECTORS 
 
 R A ALGER H MCAMPBELl. 
 
 WCCOUBUR^^ WM.EL-LtOTT 
 
 C U FREER F J HECMER 
 
 H.BLEDVARO M U GM M^ M I LLAh 
 
 W. C M' MILL Ail R S.MASON 
 
 R.W.GILLETT. MENRV RUSSEL 
 
 OeO H RUSSEL M S SMITH 
 
 CMAS STINCMFIELD 
 
 CAPITAL $ 200.000. 
 SURPLUS $ I50.000- 
 
 ^HAMMOND BUILDING. ^ 
 
 Cor Fort and 
 Gnswold Sheets 
 
 COMMERCIALS SAVINGS HEPARTMENTS 
 
 Xl\l 
 
THE 
 
 J UNION 
 
 % 
 
 m 
 
 NATIONAL 
 BANK 
 
 OF CHIGf\GO 
 
 Was organized in December, 1864, succeeding the well-established business of 
 W. F. Coolbaugh & Co. It immediately took the front rank among the banks of 
 Chicago and the Northwest, the high standing attained by its first president, Mr. \V. 
 F. Coolbaugh, being at once reflected in the business of the bank. It was one of the 
 earliest organizations in the national banking system, and was organized with a 
 paid up capital of |50o,ooo, and embraced in its board of directors some of the lead- 
 ing citizens of Chicago and New York. David Dows, of New York, was one of its 
 organizers and directors, and continued in the directory during the remainder of liis 
 lifetime. Mr. Coolbaugh died in ICS77, and was succeeded by Mr. C. T. Wheeler, who 
 was subsequenth- succeeded by Mr. W. C. D. Grannis, who was afterwards followed 
 b)- Mr. C. R. Cummings. In 1890 Mr. J. J. P. Odeli succeeded to the presidency, 
 after having served as cashier and vice-president successively from iNSo until that 
 period, and he still occupies the presidenc}' and managership of the bank. The 
 capital of the bank was increased from time to time, until in 1S86 it was raised to 
 |2, 000,000. It now has a reserve of 1500,000, in addition to its capital, and has 
 paid continuous dividends to its stockholders. It has extended its field of usefulness 
 so as to embrace all parts of the commercial world, its connections reac hing the far 
 east and the tlistant west. Its board of directors now consist of tlu' following 
 gentlemen: 
 
 DAVID KELLEY 
 
 J. H. BARKER 
 S. K. MARTIN 
 H. N. MAY 
 
 O. C. BARBER 
 D. B. DEWEY 
 H. H. GETTY 
 W. T. BAKER 
 
 J. W. ELLSWORTH 
 RICHARD C. LAKE 
 J. J P. ODELL 
 
 xlvii 
 
THE OilSCOrlSlH HATIOHALi BANK 
 
 OF miljUiRUKEE. 
 
 CilMTAL, 
 SURPLUS, 
 
 81,000,000 
 8100,000 
 
 FREDK. 
 
 r»AKST, 
 
 President. 
 
 CHARLES BEST, 
 
 Vice-President. 
 
 FREDK. KASTEN. 
 
 Cashier. 
 
 DIRECTORS. 
 
 FREDK. PABST. A. A. L. SHITH. CHARLES BEST. EDWARD BRADLEY. 
 
 CHARLES SCHRIBER. F. P. MArTHI-:\VS. PHILETI'S SAWYER. 
 
 Wn. W. ALLIS. ROBERT HILL. DAVID ADLER. FREDK. KASTEN. 
 
 xlviii 
 
^\^^\.T^<^^^ 
 
 e^ 
 
 9*0 
 
 CoWcct^^-^ 
 
 «^R^' 
 
 
 X ' x 
 
Wisconsin Marine and Fire Insurance Gonipanij BanK, 
 
 MILWfVUKBE, WISCONSIN. 
 
 KSTABLJSHED 183!». 
 
 PAID UP CAPITAL, 
 
 .S.)00,000 
 
 GENERAL BANKING BUSINESS DONE, 
 
 INTEREST PAID ON TIME DEPOSITS 
 
 We solicit accounts of Banks, corporations, firms and individuals, and promise 
 to g:ive them the best terms and most careful attention. 
 
 DIRECTORS. 
 
 WASHIXOTON liKCKEH. ANGUS SMITH. EDWARD 1'. BACON. GEORGE HII.ES. 
 
 ALFRED JAMES. JOHN L. MITCHEM,. SAMI. McCORD. 
 
 WM. H. HRADLEY. JOHN JOHNSTON. 
 
 WASHINCiToN I5ECKER, 
 
 • 'resident. 
 
 OFFIC&RS. 
 JOHN ].. MITCHELL, 
 
 Vice-President. 
 
 JOHN JOHNSTON. 
 
 Cashier. 
 
THE NATIONAL BANK OF COMMERCE 
 
 TACOmA, WASH. 
 
 Capital 
 
 CHESTER THORNE. President 
 L. W. ROYS, Vice-President 
 
 S200,000 
 
 EDWARD MUGGINS. 2d Vice-President 
 J. W. WALLACE. Casiiier 
 
 Transacts a General Banking Business, and will cheerfully answer all incjuiries 
 concerning Tacoma, Seattle or the State of Washington. Have unsurpassed facilities 
 for making collections. 
 
 li 
 
OQanafacturers ISiational Bank 
 
 OF PACINE:, WISCONSIN. 
 Capital and Undivided Earnings, 8400,000. 
 
 Savings Department. Affords all the advantages of the best Savings Banks in the country. Interest 
 
 ,; per ctnt. per aunnni on deposits left three months, according to the rules. 
 Investment Securities. The Bank keeps on hand a choice supply of Bonds, which will be sold to 
 
 customers who desire to realize a larger interest than Banks allow. 
 Foreign Exchange and Letters of Credit. Furnished at lowest New York rates and availalile in all 
 
 parts ofthe world. 
 Passports. Procured from the State Department at Washington for those going abroad. 
 Ocean 5teamsliip Tickets. By Cunard. White Star, Anchor and principal steamship lines for sale at 
 
 lowest Xe'v York rates. 
 Domestic Exchange. Drafts available throughout the United States and Canada, in small or large 
 
 amounts. 
 
 Collections. Special care and attention given to collections at home and abroad. 
 Your banking business respectfully solicited, 
 
 STKPHKX BULL, President. 
 JOHN" S. CLEMENT. Asst Cashier. E. J. HUEFFXKR, Yice-President. 
 
 EDWARD B. KILBOURN, Paying Teller. B. B. NORTHROP, Cashier. 
 
 EDWARD W. RAPPS, Receiving Teller. 
 
 Report Made to the Comptroller of the Currency, upon his first call for 1895, showing 
 condition of the bank at the close of business. 
 
 7VVKRCH 5. 1B95. 
 
 RESOURCES 
 
 Loansand Bills Discounted S978,633 58 
 
 Overdrafts 1,360 !»4 
 
 United States Bonds at Washington to secure Circulation 50,000 (10 
 
 Railwav, Citv and County Bonds i»9,849 59 
 
 Banking House, 44u Main Street 15,00O 00 
 
 Due from United States Treasurer, 5 percent. Redemption Fund 2,350 00 
 
 Due from I'nited States Treasurer, other than above SS5,000 00 
 
 Due from National and State Banks 1«>3,552 92 
 
 Ca.shon hand in Yault 146,004 58 
 
 313,557 50 
 
 $1,460,651 61 
 LIABILITIES 
 
 Capital Stock !S250,000 00 
 
 Surplus Fund, 4fi per cent, of Capital 100, OOO 00 
 
 Undivided Profits, less E.xpen.ses and Taxes paid 77,<;92 62 
 
 Circulating Notes outstanding 45,000,00 
 
 Individual Deposits !$524,536 71 
 
 Demand Certificates of Deposit 454,4,'>9 04 
 
 Due Banks and Bankers 8,963 •.♦4 
 
 987,958 9!» 
 
 ST.\TE OF WISCONSIN, I »1,460,651^I 
 
 County OK Racine, ( 
 
 I, B. B. Northrop. Cashier of the above named bank, do solemnly swear that the above statement 
 is true to the best of my knowled,ge and belief ' B. B. NORTH ROP, Cashier. 
 
 Subscribed and sworn to before n:e this 9th dav of March, \S9^. 
 Correct .attest: EDW.\RD B. KILBOURN, Notary- Public, - 
 
 JOSEPH MILLER, I Racine Countv. 
 
 (). \V. JOHNSON, -Directors. 
 
 E J. HUEFFNER, 
 
 DIRECTORS 189>5. 
 
 STEPHEN BULL. President, Manufacturers National Bank of Racine. President. J. I. C ise 
 
 Threshing Machine Co. President, Milwaukee Harvester Co. 
 JACKSON I, CASE. President, Bank of Burlington, Wi.s, President, J, I, Case Plow Works, Presi- 
 
 <k nl. Itelk Citv Street Railw:iy Compriny. Mayor of the City of Racine. 
 CHARLES E ERSKINE. Cai)italist 
 ALKjLlST C. PRANK, Capitalist. 
 WILLIAH HORLICK. President, Horlick's Food Co. Presi.leiit. Malted Milk Co. Presi<lent Horlicks 
 
 Investment Co. 
 ERNST J. HUEFFNER. Dealer in Hides and Leather, Vice-President, Manufacttirers National 
 
 Bank of Racine. 
 OTIS W. JOHNSON. I'resident, First National Bank of St. Ignace, Mich. Vice-President. I-ish 
 
 Bros. Wagon Company, 
 JOSEPH niLLER. l'resi<Unt, J. Miller Compaiiv, Manufacturers of Boots and Shoes. President. 
 
 Kaciui N.iil lV Tack Co. President, Chic.i'gi> K\tbber Clothing Co. of Racine. 
 BYRON B NORTHROP. Cashier, Manufacturers National Bank of Racine, Wis. 
 
 lil 
 
 I 
 

 ^.r 
 
 
 UNITED STATES DEPOSITARY. 
 
 . . . THE . . . 
 
 FIRST NATIONAL BANK 
 
 .... OF ... . 
 
 DETROIT, MICHIGAN. 
 
 D. 
 
 M. FERRY, President. EMORY WENDELL, Pres. Pro Tempore. 
 
 L. E. CLARK, Vice-President. JOHN T. SHAW, Cashier. 
 
 DIReCTORS. 
 
 EDWI.V S. HAKIiorR. 
 
 I'rtsideiit Dt-troit Stove Works. 
 LORHNZo K. CL.\RK, Vice-President. 
 WM. C. McMlI.I.AX. 
 
 Maiiatriiii; Director MicliiKaii-I'ciimsnl ir 
 Car Co. 
 HON. J.AMKS MCMILLAN, 
 
 riiited States Senator. 
 
 HON. GKO. V. N. LOTHROI', Lawyer. 
 KMORY WKNDKLL, I're.sidcnt Pro Tempore. 
 HON. DON .M. DICKINSON, 
 
 of Dickinson, Tlnirl)er & Stevenson, 
 .\ttoreys. 
 WILLIAM J. CHITTKNDEN, 
 
 of Chittenden it McCreary, Proprietors of 
 the "Russell House." 
 
 1). M. I"I-:RKV. President. 
 
 This Bank will receive the accounts and collections of Banks, Bankers. Corporations. 
 Firms and Individuals, and will give prompt and careful attention to any business 
 entrusted to us. Correspondence solicited. 
 
 liii y 
 
DENVER NATIONAL BANK, 
 
 DENVER, COL. 
 
 Capital $500,000 
 
 Surplus - - 150,000 
 
 J. A. THATCHER, President G. B. BERGER, Cashier 
 
 J. B. GRANT, Vice President E. S. IRISH, Assistant Cashier. 
 
 J. W. HUDSTON, 2d Assistant Cashier. 
 
 liv 
 
jnEHERCH ANTS NATIONAL BANK, 
 
 HELENPC, 7VYONT. 
 
 UNITED 5TATES DEPOSITORY. 
 
 Paid in Capital 
 
 Surplus and Undivided Profits 
 
 $350,000 
 170,000 
 
 L. H. HERSHFIELD, President A. J. DAVIDSON, Vice President 
 
 T. P. BOWMAN, Assistant Cashier 
 
 Kxchange sold on the principal cities of the I'nited States and Europe. Prompt attention given 
 to collections. Issues letters of credit. Transfers of nionev made bv telegraph. Accounts of banks, 
 firms and individuals solicited. 
 
J. H McC.RAW, 
 
 I'rL-si(k-iit. 
 
 FIRST Nf^TIONf\L Bf\NK. 
 
 MAIRICK Mc\\llCKl-;.\. I.l'lSTlvR 'ITRXKR. 
 
 A'icc-I'rcsidciil. Cashier. 
 
 FIRST NATIONAL BANK 
 
 OF SEATTLE, WASHINGTON. 
 
 Cnjiitnl 
 UtnJl\'itloil I'riiflts 
 
 
 Inquiries regarding Seattle and Washington Investments answered with pleasure. 
 
 ]vi 
 
SECURITY NATIONAL BANK, 
 
 SIOUX CITY, IOWA. 
 
 Capital 
 Surplus 
 
 $250,000. 
 50,000. 
 
 W. P. MANLEY. President 
 C L WRIGHT. Vice President 
 
 F. M. CASE, Cashier 
 
 F. C. SWAN, Assistant Cashier 
 
 CORRESPONDENCE INX'ITED 
 
 ivii 
 
BanK. 
 
 KflNSftS CITY. MO. 
 
 Cf\PITf\L 
 
 S500,000 
 
 OFFICERS 
 
 S B. ARMOUR, President. 
 
 W. H. WINANTS, Vice-President. 
 
 L. E. PRINDLE, Cashier. 
 
 DIRECTORS 
 
 S. B. ARMOUR, 
 
 President Armour Packius^ Co. 
 GKO. H. NETTLETON, 
 
 Prest. Kansas City, Ft. Scott & Memphis Rv 
 W. W. KENDALL, 
 
 Prest. W. W. Kendall Boot & Shoe Co. 
 JOHN R. MULV^NP:, 
 
 Prest. Bank of Topeka, Kas. 
 Cip;o. AV. FULLER, 
 
 Secv. and Treas. John Deere Plow Co. 
 KICHAKD H. KPUTH, 
 
 Prest. Central Coal & Coke Co. 
 
 A. R. mevp;r, 
 
 Prest. Kansas Citv vSnieltins; &. Refining Co. 
 K. B. ARMOUR, 
 
 Vice-I'rest. Armour Packing Co. 
 
 A. F. sawyf;r, 
 
 Pt. Chrisman-Sawver Bks:. Co., Independence. Mo. 
 
 g.-\rdinf:r lathrop. 
 
 Of Lathrop, Morrow, Fox & Moore, .\ttvs. 
 F. W. SCHULTE, 
 
 Probst Con.struction Co. Cliicago, 111. 
 CHARLES A. MURDOCK, 
 
 Prest. C. A. Murdock Mfg. Co. 
 
 W. H. WINANTS, Vice-Presiceut. 
 
 OONDENSeO STT^TeTVTENT 
 
 Ol- TIIK CONDITION OK THIi :MII)I..\N1) N.^TIONAL B.\XK, OF K.\NS.\S CiTV, MO., .\T TlllC CI-OSIC 
 
 or lU'SINICSS, M.\KCII 5, 1S95, 
 
 Resource.s 
 
 
 
 Loans ... - - 
 
 $2 
 
 146,015.70 
 
 Overdrafts . . . 
 
 
 5.9''*o-75 
 
 U. S. Bondsaiicl l'irnii\nns - 
 
 
 64,218.75 
 
 Redemption Pund . . . . 
 
 
 2,250.00 
 
 Other Stocks and Bonds 
 
 
 aoo, 747.95 
 
 Real I-vst;ite, iMirnilure and Fi.xtures 
 
 
 1 18,407.82 
 
 Cash and Sight Exchange - 
 
 I 
 
 ;,S7,.';vi.ig 
 
 Liabilities 
 
 Ca])ital Stock . - - . J 500,000.00 
 
 Surplus and Undivided Profits, less 
 E.xpenses and Taxes Paid - - 58,630.99 
 
 Circulation 45,000,00 
 
 Deposits — Individual si, 469, 244.07 
 Banks - - 1,871,977,10 
 
 ;„54i,22i.l7 
 
 53,924,852. 16 
 I certify that the above is correct. 
 
 /,. li. I'lilSni.ti, C^imlilcr 
 
 $3,924.,S52.i6 
 
 I VI I I 
 
JOHN A. KIXC, President. 
 
 lOHN H. WITHHCK. Vic- -I'resickiit. 
 
 L. A CODDAKI), Cashier. 
 
 \\"M. COX .\sst C:isliiir 
 
 Fori DearDorn Naiionai BanK. 
 
 UNITED STATES DEPOSITORY. 
 
 SURPLUS 
 
 lOO.OOO 
 
 S. W. CORNER MONROE AND CLARK STREETS, 
 
 CHI07XG0. 
 
 hx 
 

 
 l(iO.OO«» 
 
 „.,V.V . HOUUST..^. ^ ^ 
 
 BAR 
 
 NETT 
 
 HO 
 
 j^^NlESNl B«-^^ 
 
 DENf 
 
 CLAV H. *^"'-^ssT C 
 
 ^^?irC.SH,CB, J 
 
 \W. B 
 
 ABNHABJ' oENT 
 
 V\CE' 
 
 pBESI 
 
 ,'V%'^»^ 
 
 -^^ 
 
 ^^.•/•^•/•^^ 
 
 •.^/•/^^ 
 
 l\ 
 
JOHN PAUL. President. GEO. W. BURTON, Cashier. 
 
 W. W. CARGILL, Vice-President F H. HANKERSON, Asst. Cashier. 
 
 TI16 La Crosse Naiionai BanK. 
 
 LA CROSSE, WISCONSIN. 
 
 Capital 
 
 Surplus and Profits 
 
 $200,000 
 
 100,000 
 
 DIRECTORS 
 
 JOHN I'Ari.. n. H. HEAI.V. I. a. MiiUI.TON. CHAS. MICHKL 
 
 C-.. K. MoNTACilE. F. r. HlXnX. \V. W. CAKCH,!,. 
 
 JOHN PAMl-KKIN. GKO. W. HfKToN. 
 
 IXl 
 
GEORGE BAUMAN, Prest. J. H. JENKIN:?, Vice Prest. 
 
 R. B. EVANS, Cashier. 
 
 Zbe 
 
 (3crman H^ational IBmxk 
 
 OSHKOSH, WISCONSIN. 
 
 CAPITAL 
 SURPLUS 
 
 $1 <)(>,()()<> 
 1 ()<>,(><)<) 
 
 C W. WASMIURN 
 J. H. JKNKINS 
 Gl-;0. HAUMAN 
 K. H. J(JSSI,YN 
 
 DIR&GTORS 
 
 li. C. (UDDKN 
 
 K li. HVAX> 
 
 J. Y. Hl'M, 
 
 I). C. lU'CKSTAl'l- 
 
 Ixii 
 
 F. J. HARHEK 
 R. C. RrSSELI. 
 
 G. H. GILE 
 JULIUS MARTIN 
 
The Farmers and Mechanics National Bank, 
 
 FORT WORTH, TEXAS. 
 
 Capital 
 Surplus 
 
 $400,000 
 40.000 
 
 J. W. SPENCER, President. H. W . WILLIAMS, Vice-President. 
 
 BEN O. SniTH, Cashier 
 
 Ixiii 
 
FIRST NATIONAL BANK, 
 
 OMAHA, NEBRASKA. 
 
 Capital 
 Surplus 
 
 $500,000 
 100,000 
 
 HERHAN KOUNTZE, President. F. H. DAVIS, Cashier. 
 
 J. A. CRKIfiHTON, Vice-President. W. H. nEOQUIER, Asst. Cashier. 
 
 Ixiv 
 
O. T. CRA1, Pr.sident 
 
 N. O. NELSON, Vice-President 
 
 T. A. 5TODDART, Cashier 
 
 J. R. COOKE, Asst. Cashier 
 
 THIRD NATIONAL BANK, 
 
 ST. LOUIS. MO. 
 
 Capital, $1,000,000. Surplus and Profits, 300,000. 
 
 IX V 
 
Andrews' 
 
 Desks, Best in the World. 
 
 NOTHING ABOUT M lir ■ Q EXCEPT THEIR 
 THEM UnCAr PRICE 
 
 New Departilre ^ssri^o^v' ^^^^t 
 
 m 
 
 THIS PESK (|)I 
 
 ' Others Pioportionally Low "■ 
 
 ODR SPECIALTY 
 
 BANK AND OFFICE FIXTURES 
 
 IP Typewriter 
 
 1^^ Chair 
 
 Adjustable seat & spring back 
 
 15 
 
 4\ A.H.A NDREWS&CO . 
 
 ^ 215 Wabash Av. CHICAGO 
 
 Oiiiana sate and iron worKs. 
 
 G. AJMDf^EEJvi, PpoprietoP, 
 
 INIAXUFACTrKEK Ol-* 
 
 FIRE PROOF SHUTTERS, WIRE WORK, 
 
 Anchors and Wrought Iron Work for Buildings, 
 
 FIRE ESCMPBS. 
 
 DIebold Safe and Lock Co. 
 
 BANK WORK A srECIALTY. CORRESPONDENCE SOLICITED. 
 
 Opening- and Repairing: Safes and General Job Work Promptly Done. 
 
 ON\f\fAf\, NEB. 
 
 Ixvi 
 
STATE OF 11,1 INdlS 
 
 WESTERI^ 
 
 BAi^lK NOTE 
 
 COmPRNY 
 
 FIRE PROOF BUILDING 
 
 madison St. and 
 
 JVIiehigan Ave 
 
 CHICAGO 
 
 Steel Plate and liithographic 
 Engraving and Printing 
 
 BONDS 
 
 FOR J^AIIiLUAYS, TOWNS AJ^D CITIES, REALi ESTATE 
 
 BONDS, STREET RAILiWAYS, WATER- 
 
 U40RKS, GAS COmPANIHS 
 
 CePtifieates of Stock, Dnafts, Cheeks, Uetter and Bill 
 Headings, Ete., for 
 
 Hailuiays, Banks, mepehants and Corporations 
 
 Bonds and other Securities Engraved by this Company Accepted 
 on the New York 5toci< Exchanjte 
 
 C. C. CHENEY, President 
 
 C. fl. CHAPCnnN, Vise-President 
 
 C. HEINBMAN, Searetory 
 
 Ixvii 
 
NW HARRIS 
 & C2MPAN Y 
 
 s. 
 
 BANKERS 
 
 im mMMom sidiHincA©® 
 
 MEWY®1K 
 
 
 I. 
 
 ^ 
 
 E§ ^"V lib 
 
 jj. 
 
 
 )¥EIFIHIIE]MT iSIMBS 
 
 Mir AK© SOIIE) b'(f D"^ b"(/ ^^c t^v 
 
 nMriEi¥i[]BW§ 
 
 
 0(J 
 
 All bonds offered our clients for invest- 
 ment have been purchased outright with 
 our own funds, after a searchin<< investiga- 
 tion into their security and legality. No 
 investment is offered a client which has not 
 first been accepted for ourselves, a point, in 
 view of the countless offerings of securities 
 on the market, which the discriTuinating 
 investor will appreciate. 
 
 u 
 
 Ixviii 
 
Edwards Whitaker Charles Hoogmin 
 
 WHITAKER & HODGMAN, 
 Bond and Stock Brokers 
 
 300 N. Fourth St., 
 ST. LOUIS, MO., 
 
 Deal in First-class Investment Securities and High Grade 
 Commercial Paper, 
 
 MONTHLY ClflCULIR QUOTING LOML SECURITIES MAILED ON APPLICHTION. 
 
 I XIX 
 
5 CO 
 
 o "5. 
 O s 
 
 ^ 
 
 
 Ol 
 
 o 
 
 o 
 
 p 
 
 o 
 
 ■a 
 
 o 
 
 1-K 
 
 o 
 
 
 o 
 
 
 
 
 
 m 
 
 3D 
 
 
 r 
 
 H 
 
 
 
 z 
 
 r 
 
 DO 
 
 Z 
 7\ 
 
:ST«Bl_ISHED I3&2. 
 
 Wells, Fargo &Co;s 
 
 Bf\NK 
 
 San pFaneiseo, Cal 
 
 JOHN J. VALENTINE, President. H. WADSWORTH, Cashier. 
 
 HOMER S. KING, Manay:er. F. L. Lipman. Asst. Cashier 
 
 BJ^flHCHES: NEUl YORK - H. B. PARSONS, Cashier. 
 
 SflliT LiAKE - - U. E. Dooly, Cashief. 
 
 A General Banking Business Transacted. 
 
 Domestic and Foreign Exchange Bought and Sold. 
 
 Travelers' and Commercial Credits Issued, available m all p^arts of the world. 
 Bullion and Mexican Dollars Bought and Sold. 
 
 Collections Made promptly and economically. 
 Accounts Received on Favorable Terms. 
 Correspondence Invited. 
 
 GorresnondeiiTs in all the nrincipal cities ot the world. 
 
 STKTE7VYENT OF= CONDITION 
 
 
 I)l-:CHMliF 
 
 K 31. iS<),|, 
 
 
 ASSETS 
 
 
 LIABILITIE«? 
 
 
 Real Kstate 
 
 5 793.055-4S 
 
 Capital i)aid in 
 
 ~ 500,000.00 
 
 Uoiiils, Stocks and Warraiil.-* 
 
 987,295.49 
 
 Surplus - 
 
 5,750,00000 
 
 Furniture and Fi.xtures - 
 
 25.'^45-29 
 
 Undivided Profits - 
 
 563,792.04 
 
 Loan.s - . . . 
 
 7.110.317.SJ 
 
 Deposits, Banks and Bankers 
 
 l,l28.Si6.l6 
 
 Due from Hanks and Uanktrs 
 
 66,1,530.82 
 
 Deposits. Individual 
 
 3.589,382.71 
 
 Cash on hand - 
 
 1. 950. '-46. 00 
 
 
 
 
 Si 1.531.1,90.91 
 
 $11,531,999.91 
 
 Ixxi 
 
INDEX TO PORTRAITS 
 
 PART ONE 
 
 PAGE. 
 
 Bull, Stephen 29 
 
 Cannon, H. W 21 
 
 Carlisle, John G 7 
 
 Casady, P. M 16 
 
 Chick, J. S 36 
 
 Cope, George F 57 
 
 Durham, R. L 37 
 
 Floornoy, M. W 40 
 
 Furth, Jacob 44 
 
 Gage, Lyman J 9 
 
 Groce, T. J .\^ 
 
 Hershfield, L. H 56 
 
 Hood, C 24 
 
 Joralmon, H. M 61 
 
 Kountze, Herman 13 
 
 Lacey, E. S... 12 
 
 Lindenberger, J. H 25 
 
 McGraw, J. H 45 
 
 Moffat, D. H 48 
 
 Murray, Logan C 32 
 
 Nelson, L. C 20 
 
 Nixon , Robert M 17 
 
 Odell, J. J. P 10 
 
 Ottley, John K 65 
 
 Rotan, E 28 
 
 Raj-nolds, Joshua S 49 
 
 Raynolds, Jeffer on 52 
 
 Silliman, C. H 68 
 
 Simpson, J. N 41 
 
 Thatcher, M. D 60 
 
 Valentine, John J 8 
 
 Wilson, Medford B 64 
 
 Zollars, John W 53 
 
 PART TWO 
 
 PAGE. 
 
 Abbott, George A 70 
 
 Baker, Henry B 96 
 
 Bement, Arthur O 96 
 
 Best, Chas.. 90 
 
 Bissel, Arthur D 35 
 
 Bump, Orrin 31 
 
 Burton, S. S 88 
 
 Cahill, Edward 96 
 
 p;nglish, Jas. W 25 
 
 Evans, R. B 78 
 
 Gates, L. M 43 
 
 Goddard, L. A 93 
 
 Hackley, C. H 73 
 
 Hammond, Clartnce W 39 
 
 Harris, N. W 94 
 
 Hayes, F. W 55 
 
 Hayes, W. J 29 
 
 Hills, C. T 76 
 
 Hixon, G. C 86 
 
 PAGE. 
 
 HoUister, H.J 64 
 
 Jobes, A. C. 23 
 
 Judd, E. T 98 
 
 Kasten, Frederick 49 
 
 King, John A 82 
 
 O'Brien, Herbert L 6r 
 
 Pabst, Fred'k 58 
 
 Randall, Ira E 96 
 
 Roe, J. Edward 96 
 
 Rowley, F. N 46 
 
 Russel, Geo. H 21 
 
 Smith, Robert 96 
 
 Sullivan, J.J 27 
 
 Simderlin, Eugene A 96 
 
 Thatcher, J. A 52 
 
 Warner, Willard Forester 7 
 
 Warren, Charles 19 
 
 Wendell, Emory 92 
 
 White, A E. F 67 
 
 IXXll 
 
J. N. ROACH, President 
 
 C. W. BROWN, Vice-President 
 
 A. C. JOBES, Cashier 
 
 J. A. DAVISON, Asst. Cashier 
 
 KflNSflS NIlTIONflL BANK 
 
 Capital, $100,000. 
 
 WICHITA, KANS. 
 
 in 
 
 We solicit the accounts of imiividuals. firms, corporations, hanks and hankers on terms as 
 liberal as would be consistent with safe and conservative bankinji. We transact an exchisive cotn- 
 niercial banking business, and are always in the market for hijih grade commercial and cattle 
 feeders" paper. Personal interviews and correspondence with a view to forming Inisiness relations 
 re(iuesled. All letters promptly answered. Special and careful attention given to collections. 
 
 Kespectfnllv. 
 
 A. C. JOHKS. Cashier. 
 
 Ixxiii 
 
INDEX TO ADVERTISEMENTS 
 
 American National Bank Louisville, Ky xlv 
 
 American Trust & Banking Co Atlanta, Ga iii 
 
 Andrews, A. H. & Co .. Chicago, 111 Ixvi 
 
 Bankers' National Bank Chicago, 111 xxxiv 
 
 Capital National Bank Indianapolis, Ind ix 
 
 Central National Bank Cleveland, O v 
 
 Central National Bank of Topeka, Kansas xli 
 
 Commercial National Bank Portland, Ore Ixx 
 
 Denver National Bank Denver, Colo liv 
 
 Des Moines Savings Bank Des Moines, Iowa viii 
 
 Dulutli Clearing House Association Duluth, Minn xxxvii 
 
 Emporia National Bank Emporia, Kan xvi 
 
 Fidelit}' Trust Co Tacoma, Wash xxxii 
 
 First National Bank All)uquerque, N. M xxiv 
 
 First National Bank Butte, Mont xlix 
 
 First National Bank of Chicago, 111 xxxiii 
 
 First National Bank.. Denver, Colo xix 
 
 First National Bank of Detroit, Mich liii 
 
 First National Bank '. East Saginaw, Mich x 
 
 First National Bank of El Paso, Texas xxx 
 
 First National Bank Helena, Mont xviii 
 
 First National Bank Kalamazoo, IVIich ii 
 
 First National Bank Las Vegas, N. M xl 
 
 First National Bank Omaha, Neb Ixiv 
 
 First National Bank of Pueblo, Colo xxvi 
 
 First National Bank Seattle, Wash Ivi 
 
 First National Bank of Buchanan Co.. .St. Joseph, Mo xiii 
 
 First National Bank Trinidad, Col xxvii 
 
 First National Bank Waxahachie, Texas xxii 
 
 First National Bank Waco, Texas vi 
 
 Fifth .National Bank of Cincinnati, Ohio xxviii 
 
 Farmers' & Mechanics National Bank.. Fort Worth, Texas Ixiii 
 
 Fort Dearborn National Bank Chicago, 111 lix 
 
 Galveston National Bank Galveston, Texas xiv 
 
 German National Bank Oshkosh, Wis Ixii 
 
 Hackley National Bank Muskegon, Mich.. xxxv 
 
 Harris, N. W. & Co., Bankers Chicago, 111 Ixviii 
 
 Hayes, W. J. & Sons Cleveland and Bo^ton i 
 
 Hoge, Brownlee & Co Butte City, Mont.. xx 
 
 Home National Bank of Arkansas City, Kansas xv 
 
 Inter State National Bank Kansas City, Mo xxiii 
 
 Joralmon & Co Denver, Col xxv 
 
 Kansas National Bank Wichita, Kansas.. Ixxiii 
 
 Kleybolte, Rudolph & Co Cincinnati, O xvii 
 
 Land Mortgage Bank of Texas, Ltd... Fort Worth, Tex s xxxix 
 
 La Crosse National Bank Lacrosse, Wis Ixi 
 
 Manufacturers' National Bank of Racine, Wis Hi 
 
 Merchant's National Bank of Helena, Mont Iv 
 
 Midland National Hank Kansas City, Mo Iviii 
 
 Mis.souri National Bank Kansas Citv, Mo vii 
 
 National Bank of C<jnimcrce Tacoma, Wash li 
 
 National Bank of Commerce Seattle, Wash xxxi 
 
 National Exchange Bank of Dallas, Texas xlii 
 
 Nicollet National Bank of Minnea])olis. Muin xliv 
 
 Old National Bank of Grand Rapids, Midi Ix 
 
 Old Second National Bank at Bay City, Mich xi 
 
 Omaha Safe & Iron Works Ixvi 
 
 Oklahoma National Bank Oklahoma Citv, O. T xxi 
 
 Peoj.le's Bank of Buffalo, N. V .'. iv 
 
 Preferred Bankers' Life Assurance Co.. Lansing. Mich xxxviii 
 
 Preston National Bank Detroit, Mich xxxvi 
 
 Puget Sound National Bank .. Seattle, Wash xxix 
 
 Security National Bank Siou.x City, In Ivii 
 
 St. Louis National Bank St. Louis, Mo xii 
 
 St. Paul National Bank vSt. Paul, Minn xliii 
 
 State Savings Bank Detroit, Mich xlvi 
 
 Third National Bank St Louis, Mo Ixv 
 
 Union National Bank of Chicago, 111 xlvii 
 
 Wells, Fargo 6c Co.'sBank San Francisco, Cal Ixxi 
 
 Western Bank Note Co. of Chicago, 111 Ixvii 
 
 Whitaker & Hodgman St. Louis, Mo Ixix 
 
 Wiscon.sin Marine & Fire In.s. Co.'s Bank, Milwaukee, Wis.. 1 
 
 Wiscou.sin National Bank of Milwaukee, Wis xlviii 
 
 Ixxiv 'P 
 

 ^m 
 
„„ THE IA81 BA^IE 
 TBI. BOOK I|^3g«3™0W 
 
 ,»T ^"iNE or 25 CEHTS 
 
 «1LU BE '■S^t^tHE DATE "OE- J"^ poURTH 
 
 "'1!SI.'e?«to%oceh«on^he^„ ..V 
 
 DAV AND TO » ^^^^^^^^^^^^^^^^^ 
 
 OVERDUe. ===== 
 
 1,D 2l-95m-'7-'£ 
 
lUUtJU 
 
 K9f*' 
 
 
 THE UNIVERSITY OF CALIFORNIA LIBRARY