We annex a summary of the imports of dry goods, by months, in each of the November December.. 5,797,556 2,506,926 8,710,857 6,071,208 2,285,107 7,709,721 2,004,219 3,466,405 5,371,041 1,558,567 Total...... $103,927,100 $43,636,689 $56,121,227 $67,274,547 $71,589,752 The imports of dry goods for each year since 1849, may be seen by the following table: The revenue at the port for 1864 shows a gain of about eight millions over the corresponding figures for the previous year. The following is a comparative summary : 2,489,026 25 1862. 1860. .. Dec... 1864. $6,180,536 09 7,474,027 93 4,626,862 86 4,554,460 13 7,659,770 47 1,643,261 99 4,149,952 36 3,957,197 57 18,982,555 60 Total.. 36,027,481 51 21,714,981 80 52,254,116 72 58,886,054 42 We would refer our readers to the Commercial Chronicle and Review of last month for the movements in specie, prices of United States paper and of gold, and the rates of exchange for the year 1864. Those tables, together with the foregoing, will afford a complete summary of the commercial movements at the port of New York the past twelve months. The official returns showing the total imports and exports have not yet been made up. We give, however, the figures for the first nine months in the Commercial Chronicle and Review of this month · JOURNAL OF BANKING, CURRENCY, AND FINANCE. CONVERSION OF STATE BANKS INTO NATIONAL-FURTHER OPPOSITION TO NATIONAL BANKS USELESS -SHOULD BE ADMITTED INTO THE CLEARING-HOUSE-CIRCULATION AND CONDITION OF BANKS Or THE THREE CITIES AT END OF THE YEAR-BANKS OF THE STATE OF MAINE. WE referred in previous numbers to the inevitable conversion of the great majority of the State Banks into National Banks, and this process is now going rapidly on. The official reports of Massachusetts show that of 181 Banks in this State, 52 have become national associations, 47 more have filed papers, and the remainder are looking forward to change, while 25 new ones have been started. In New York the same process is being developed, and an act has been introduced in the Legislature to authorize and facilitate the conversion. The desire for change seems to seize the stockholders strongest where the existing Banks hold the most gold and have the most surplus. These two items to be divided up, hold out a tempting bonus, and in many cases will allow the stockholder his shares in the new institutions as profits. These shares in the new Banks, however, will probably not be very valuable, since all cannot have the Government deposits, or do a large business in loaning to the Government, and general business is by far too much reduced from the old credit system to allow a large share to multiplied Banks. It is also the case that many of the old Banks are large holders of Government stocks, bought with their depositors' money, and which, in case the latter should demand it, they would find it difficult to pay off under the State system. Under the national system, however, they can deposit the stock with the Comptroller, and obtain as many notes as will pay the depositors without disturbing their investments. It is true these national notes are not legal tender generally, but are so between the public and the Government, and, as at present, almost all business is done with the Government, that faculty will suf fice. The Banks are not required to pay specie in any event, and there will therefore be no incentive to require the notes to be paid in legal tender. These considerations are the leading ones in bringing about the change that is being made, and it is very apparent that it is only another stage on the road to insolvency. The New York Bank Superintendent in his report states in relation to the national law, "its essential features are," as he expresses it, "transcrips from the banking laws of New York applied to a wider theatre of operations." This seems to be a strange misconstruction of the law. The constitution of the State of New York, (art. viii., sec. 5,) declares that— "The Legislature shall have no power to pass any law sanctioning in any manner, directly or indirectly, the suspension of specie payments by any person, association, or corporation issuing bank notes of any description." Under this provision the Banks are required to deposit New York State stocks to an amount which will always bring sufficient to pay the notes issued in specie. The national law requires only that the notes shall be paid in paper. When a Bank obtains notes on pledge of stock, and fails, the New York law requires the stock to be sold for specie, with which the notes shall be redeemed. The United States law only requires the stock to be sold for the dishonored notes themselves. The Comptroller has, however, a clear sense of the evils at hand. He remarks: "The system has in some measure the attraction of novelty, and is buoyed up by the gratuitous bestowment of currency, the receipt and payment of these notes in all governmental operations, and the prospect of deposits by the collectors and disbursers of public revenue. Few seems to take cognizance of the fact that it comes into existence on a wave of public expenditure such as has never been witnessed in this, and, with a single exception, in no other country; that it is floated upon an ocean of irredeemable paper, whose ebb and flow no human intellect can regulate, or whose currents and quicksands no intelligence can fully determine. Without waiting for the return of the business of the country to its normal condition-ignoring the lessons taught by the great revulsion which followed the war of 1812-15, and which has crowned every inordinate expansion of paper credit-our people, having arrived at the conclusion that the congressional system of banking promises profitable results, rush into it with all the impetuosity inherent in our national character." Some of the best of the State institutions will not adopt the new system, and the public will one day see the wisdom of their course, and thank them for it. Often have we stated in these pages the perils that attend this new banking experiment. Not a word would we now change. We firmly believe that the result will be a disasterous failure, and yet we cannot conceive that any good will be accomplished by further opposing it. Let it now be tried without opposition from any quarter. From time to time we shall notice its defects, especially as they are more clearly developed, and hope to see them modified. The right to flood the country with their circulation, at the present time, will, we trust, be taken away from them and from the State institutions; then let them run their There is much discussion just now about their being admitted into the New York Clearing-house. This would necessitate a change in its constitution, but should not, in our opinion, be delayed. Let every applicant stand on its own merits, and, if on examination of its affairs it be found a safe associate, let it be admitted. There are objections to this course to be sure; but we must come to it sooner or later-so why longer hold out? course. With the conversion of the State Banks into National Banks, it will be borne in mind that the State stocks held will be sold. Nearly all the New York debt is held by the Banks, and will be put upon the market. The New York State Bank capital has been reduced $1,951,199 in the past year, and the circulation as follows: The total number of circulating notes issued and outstanding on the 30th of September, 1863, was..... On the 30th of September, 1864, it was Decrease of circulation within the year....... $42,192,645 40,119,635 $2,074,010 The circulation of the National Banks has considerably increased the outstanding amount of notes. The weekly returns will show the general movement of all the Banks. The loans have fluctuated with the movements of the Government transactions, and the specie has generally declined to the amount owned by the Banks, which has been about $20,000,000 since July. Latterly, however, many of the Banks have begun to dispose of their specie, while the Bank of New York, (having become a common depository for the gold dealers,) has to some extent, increased the amount it holds. The deposits of the Banks were at their lowest point in January last year, when money was very dear and the Treasury had not begun to issue its new legal tender notes; after that event the deposits rose to over $174,000,000 in June, and subsequently fell to $144,000,000 in September. They are now low, under a state of affairs, as connected with the Treasury, similar to that of last year. We are compelled to omit the previous returns for the year; but they will be found in the January number: NEW YORK BANKS. NEW YORK BANKS. (Capital, Jan., 1864, $ 31,.. Jan. 7,.. 14,.. 21,.. Loans. ; Jan., 1865, $69,658,737.) Specie. Circulation. Net Deposits. Clearings. 24,.. $203,512,093 $20,600,441 $3,383,346 $153,805,909 $593,886.197 199,444,969 19,662,211 3,283.832 147,442,071 471,039,253 195,044,687 20,152,892 8,183,526 147,821,891 535,055,671 189,686,750 21,357,608 3,974,029 148,931,299 538,780,682 187,060,586 20,211,569 2,979,851 146,068,855 28,.. 169,502,630 18,174,316 2,906,194 143,842,230 611.194.907 656,828,378 The returns of the Philadelphia Banks show a line of loans $10,000,000 higher than in January last year. The increase has taken place mostly since their determination to merge into the new law. The specie also declined from $4,153,000 to $1,803,000, that not being requisite. The deposits of the new Banks have greatly increased since their adhesion to the national system. The returns are as follows: PHILADELPHIA BANKS. PHILADELPHIA BANKS. (Capital, Jan., 1863, $11,740,080; 1862, $18,318,880.) Loans. Date. 39,663,010 ........ ...... +6 24,... 47,406,491 1,830,635 2,516,063 46 31,... 48,059,403 1,808,583 2,793,468 39,845,963 $7,462,222 $3,786,553 The returns of the Boston Banks show the most remarkable fluctuation. There has been a steady contraction since the beginning of the year, under preparations for merging in the new law. The results of the State Banks are as follows: BOSTON BANKS. BOSTON BANKS. (Capital, Jan., 1863, $38,231,700; Jan., 1865, $22,350,000.) Date. Loans. Specie. Circulation. Deposits. Dec. 17,.. $45,092,121 $8,601,228 $7,397,227 $23,124,821 The State Banks of Maine report as follows their business for the years 1863 and 1864: The current of money which set towards Paris and London, on the raising of the rate of interest by those institutions, had continued to fill the reservoirs up to the latest dates, and had been followed by further reductions in the Bank rates. The leading cause that underlies the money difficulties of the Paris, as well as the London markets, is the Indian cotton, the value of which, imported into Great Britain in nine months of the year, has been as follows: This doubling process is going on without any corresponding increase in exports to meet it. The strain upon silver and gold is, therefore, steadily augmenting, and must be felt here, where the supply is reduced, with great force. In December, this operating cause lost much of its vigor, by reason of accounts from this side leading to the conviction that, in consequence of the steady march of events in America, the destruction of the Confederate Government may within a comparatively short space of time take place, control the disposition to speculate in cotton, and prevent the employment of any materially greater sum of money in its purchase abroad. This feeling induced a diminished operation in cotton, and less demand for remittances to Asia, and therefore helped to strengthen the Bank. The returns of which are as follows: Date. Circulation. THE BANK OF ENGLAND RETURNS. Public Coin and Rate of Discount Private Deposits. Securities. Dec. 7,... 20,118,116 6,468,544 12,666,764 28,726,674 13,840,691 7 per ct. 14,... 19,669,832 7,161,719 12,267,474 28,301,608 14,122,711 6 21.... 19,669,007 7,694,616 12,927,807 29,326,027 14,307,760 6 28,... 19,810,455 8,601,125 13,040,643 30,708,083 14,100,974 6 46 The increase of specie in the Banking Department has been steady. The reduction of the rate of interest was, however, more rapid in Paris than in London. Although the Bank of France has put down the rate in order to mitigate the pressure upon French merchants, she does not in any degree remit the close scrutiny upon all kinds of bills or the rigor with which are rejected all such as are likely to send money out of France. |