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of $1,164,718,000. The redemptions were 299,455,985 pieces, of the total value of $1,025,086,100. The pieces outstanding number 334,353,365, of the total value of $2,061,576,785. The average cost of each piece of United States paper currency issued and redeemed is about 1.526 cents, and the annual cost of maintenance of the currency issued by the National Government averages slightly more than one-fifth of 1 per cent of the amount outstanding:

The currency shipped from the Treasury in Washington to the subtreasuries and to banks during the fiscal year 1915 amounted to $836,961,227, against $935,952,146 in 1914.

Silver dollars were shipped to depositors therefor at the expense of the consignee for transportation as usual during the past fiscal year. However, the outgo of these coins from the Treasury is more than offset by the inflow, consequently the amount of silver dollars in circulation on June 30, 1915, was $64,647,156, a decrease of $5,653,329 as compared with that of 12 months earlier. The stock of subsidiary silver coin increased $3,423,563 and amounted to $185,430,250, of which $159,265,955 was in circulation on June 30, 1915, a decrease of $699,743 as compared with that of the preceding year. The amount held in the Treasury at the close of the fiscal year 1915 was $26,164,295, against $22,040,989 at the close of 1914.

The Federal reserve act imposed upon the Secretary of the Treasury the duty of announcing the date of the establishment of the Federal reserve banks, and in the discharge of that duty on October 25, 1914, he announced the 16th day of November, 1914, for the establishment of the Federal reserve banks in all the Federal reserve districts. On that date the new reserve requirements for national banks, as prescribed by the act, became operative.

Notwithstanding the short time allowed to perfect the organization of the banks, their officers and directors responded with commendable zeal and vigor, and as a result the Federal reserve banks were opened for business in each of the Federal reserve cities on November 16, 1914. The new reserve requirements which became operative on that date released an immense amount of reserve money and largely increased the credit facilities of the banks of the country. confidently believed that the reserve banks are going to exert a farreaching influence for good upon the banking system and business of the country.

Section 16 of the Federal reserve act authorizes the Federal Reserve Board, at its discretion, to exercise the functions of a clearing house for the Federal reserve banks. In the exercise of this authority, said board on May 8, 1915, devised and announced a plan for the establishment and maintenance of a gold fund for the settlement of balances arising out of transactions among the 12 Federal reserve banks, to be in the custody of and operated under the direction of the Federal Reserve Board with the cooperation of the Treasury Department. Each Federal reserve bank was required to deposit not later than May 24, 1915, with the Treasurer or nearest subtreasury, for credit to the account of the gold-settlement fund, $1,000,000 in gold, gold certificates, or order gold certificates, which the Treasurer transferred to Washington through the medium of his general account, and in payment thereof issued gold certificates,

23871-Ab. 1915--vol 1-9

series of 1900, drawn to the order of the Federal Reserve Board. The total amount deposited in the gold-settlement fund to June 30 was $31,840,000. Any excess balance may, on request of the Federal reserve bank to which it is due, be refunded by the return to the reserve bank of the gold order certificates held by the gold-settlement fund properly indorsed. If the Treasury finds it necessary to ship from one point to another funds to make payment on account of the said gold-settlement fund the Federal Reserve Board will refund any expenses incurred in making such shipments.

The balance of public moneys on deposit in national banks at the beginning of the fiscal year 1915 amounted to $69,288,369.62. The working balance in the Treasury offices at the same time was $84,570,004.74.

Reports from the several sections of the country in the beginning of the fiscal year indicated that an increased amount of money would be required to facilitate the movement and marketing of the crops, and in order to determine to what extent assistance would be required by the banks, the Secretary of the Treasury sent a letter to each national bank in the country inclosing a blank form upon which an expression of views of each bank was requested. A majority of the banks in the Eastern and Pacific States replied that they would not need Government funds, but, acting on the replies from banks which expressed a wish for assistance through public deposits, the following allotments were made: To the Southern States, $23,500,000; to the Western States, $13,475,000; and to the Pacific States, $350,000; a total of $37,325,000. These funds were distributed in installments of 25 per cent each, the amount distributed to October 31, 1914, being $19,446,246. The deposits were made only in national banks located in the principal cities or towns of the several States designated by the Secretary, and the depositaries selected acted as mediums of distribution in furnishing funds to the localities in need of them for the purpose of transporting and marketing the crops and assisting legitimate business. In apportioning the funds among the banks in each city consideration was given to the character of business done by the applicant bank and the extent to which it was lending money to its country correspondent banks. The Secretary distributed the Government money in such a way as to enable the ultimate borrower to get it at the lowest possible rate of interest.

Federal, State and municipal bonds and prime commercial paper were prescribed as acceptablo socurity for such deposits, and when the movement of the crops had been completed the money was returned to the Treasury in four installments-that is, on December 1, 1914, January 1, 1915, February 1 and February 15, 1915. Interest at the rate of 2 per cent per annum was paid on those deposits during the time thoy were held by the depositaries.

The balance of public moneys in national banks at the close of November, 1914, was $81,705,083.37, but thereafter there was a gradual reduction in the amount until the close of the fiscal year, when the banks held to the credit of the general fund $53,454,547.87, and to the credit of postmasters and judicial officers $6,484,611.32, making a total of $59,939,159.19.

District of Columbia. The amount of the funded debt retired during the fiscal year 1915 was $421,150, while $295,000 of 3 per cont United States bonds were purchased and are held for this fund.

The total issue of District of Columbia 3.65 per cent bonds is limited by law to $15,000,000, and of this amount $14,997,300 has been issued, while $8,479,300 has been redeemed, leaving the outstanding funded debt $6,518,000.

At the close of the fiscal year 1915 the 10 per cent guaranty fund retained from District of Columbia contractors amounted to $231,069.10, and is represented by $30,789.99 cash and $193,440 United States and District of Columbia bonds, which cost $200,279.11.

Detailed information in regard to the affairs of the District of Columbia will be found in the reports of the District Commissioners and the Treasurer of the United States, ex officio commissioner of the District of Columbia sinking fund.

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At the close of the fiscal year on June 30, 1915, there were 7,614 national banks in operation, having an authorized capital of $1,076,301,175 and a total circulation outstanding of $819,273,593, of which $725,313,141 was secured by United States bonds, $719,561 by other securities, and $93,240,891 by deposits of lawful money in retirement account.

Charters for 10,752 national banks have been issued since the organization of the national-banking system in 1863. Of this number, 2,607 banks voluntarily liquidated and 531 failed and were placed in charge of receivers. The Comptroller of the Currency issued 181 national-bank charters during the 12 months ending June 30, 1915, which number included 91 conversions of State banks (an increase of 52 over the previous year), 39 reorganizations of State and private banks, and 51 primary organizations. The capital of the banks chartered during the year aggregated $11,724,500.

From December 23, 1913, the date of the passage of the Federal reserve act, to June 30, 1915, 283 banks, having an aggregate capital of $24,039,500, were chartered. Of this number, 175 banks, with a capital of $4,619,500 were chartered under the act of March 14, 1914, and 108 banks, with a capital of $19,420,000, under the act of June 3, 1861.

For the three years prior to the passage of the Federal reserve act the average number of conversions to the total number of banks chartered was 27.6 per cent, reorganizations 29.2 per cent, and primary organizations 43.2 per cent. Since that date the conversions have been 43.5 per cent, reorganizations 26.5 per cent, and primary organizations 30 per cent.

Of the banks chartered during the fiscal year, 109, with an aggregate capital of $2,914,500, were organized under the act of March 14, 1900, and 72, with an aggregate capital of $8,810,000, were organized under the act of June 3, 1864. It may be of interest to note that 128 of the 181 banks have not become banks of issue by the deposit of United States bonds.

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During the last fiscal year 106 national banks discontinued busi

Of these, 12 failed and were placed in charge of receivers and 94 were closed by voluntary liquidation. Two of the failed banks previously had been placed in voluntary liquidation by their shareholders.

Of the banks placed in voluntary liquidation, 46, with an aggregate capital of $2,007,000, were absorbed by or reorganized as State banks; 37, with an aggregate capital of $9,570,000, were consolidated with other national banks; 5, with an aggregate capital of $300,000, were reorganized as national banks; and 6, with an aggregate capital of $310,000, discontinued business.

Among the banks liquidated are included 3 associations the corporate existence of which expired by limitation.

Banks for which receivers were appointed during the year number 16, with capital on the date of closing aggregating $2,200,000, while the liabilities to depositors and other general creditors amounted to $16,027,061.82.

Six of the 16 banks placed in charge of receivers paid dividends as follows during the year: One, 70 per cent; two, 65 per cent; one, 40 per cent; two, 10 per cent; while four, with capital aggregating $375,000 and liabilities to depositors and other general creditors amounting to $2,166,531.53, were permitted to resume business, having been restored to solvency by their shareholders.

From the date of the passage of the national-bank act; February 25, 1863, to June 3, 1864, the date on which the law was reenacted and amended, there were 456 national banks chartered, and of this number 223 are still in operation. Under the act of 1864 charters were granted to 6,798 associations, under the gold-bank act of 1870 to 10 banks, and under the act of 1900 to 3,488 banks, or a total of 10.752 charters issued to July 1, 1915.

The percentage of national banks closed or which are being closed by receivers is 4.9, and the percentage of voluntary liquidations is 27.3. The banks in active operation represent 70.8 per cent of the total number chartered.

The act of March 14, 1900, authorized the incorporation of national banks with minimum capital of $25,000 and permitted the issue of circulation to the par value of bonds deposited, not in excess, however, of paid-in capital, and reduced the tax on circulating notes. On that date 3,617 national banks were in operation, and from that date to July 1, 1915, there were 5,488 national banks, with capital aggregating $355,402,800, authorized to begin business, of which number 3,488 banks, with capital aggregating $90,955,000, were chartered under the act of March 14, 1900, with individual capital of less than $50,000. Of this class of banks the average capital is $26,076, the great majority of the banks being incorporated with a minimum capital of $25,000. The remaining banks organized during the period, numbering 2,000, with capital of $264,447,800, were incorporated under the act of 1864.

Comparing conditions on March 14, 1900, with those of June 30, 1915, a net increase of 3,997 is shown in the number of active national banks and an increase in authorized capital of $459,993,080.

During that period the outstanding circulation increased from $254,402,730 to $819,273,593, or a net increase of $564,870,863. The bond-secured circulation during the fiscal year 1915 decreased

$10,215,819, or from $735,528,960 to $725,313,141. The amount of circulation secured by the deposit of lawful money increased $78,097,952. The total increase during the year of circulation secured by bonds, miscellaneous securities, and lawful money amounted to $68,601,694.

The number and capital of national banks organized since March 14, 1900, by State and geographical divisions, together with the number and paid-in capital stock of the banks on May 1, 1915, appear in the following table:

Summary, by States, geographical divisions, and classes, of national banks organized from Mar. 14, 1900, to June 30, 1915, and the paid-in capital stock of all reporting national banks on June 23, 1915.

Capital $25,000.

Capital over
$25,000 and
less than
$50,000.

Capital $50,000 Total organi.
and over

zations.

National banks ro porting June 23,

1915.

States, etc.

No. Capital. No. Capital. No. Capital. No. Capital. No. Capital paid in.

ow

New England
States:
Maine.
5 $125,000

$385,000 12 $510,000 70 $7,765,000.00 New Hampshtre..

100,000 $30,000 2 200,000 7 330,000 56 5,285,000.00 Vermont..

5
125,000

2 150,000

7 275,000 48 4,985,000.00 Massachusetts.. 2 50,000

19 4,450,000 21 4,500,000 170 55,392,500.00 Rhode Island.

1
500,000

1 500,000 18 6,070,000.00 Connecticut.... 125,000

5 250,000 10

375,000 74 19, 289, 200. OC Total........ 21

525,000 1 30,000 36 5,935,000 58 6,490,000 436 98,786,700.00 Eastern States:

New York. 118 2,950,000 10 317,500 105 18,520,000 233 21,787,500 478 166, 150, 100.00 New Jersey. 58 1,450,000 8 240,000 44 3,710,000 110 5,400,000 201

22, 127,000.00 Pennsylvania.. 235 5,875,000 24

807,000

230 24,690,000 489 31,372,000 833 118, 289, 390.00 Dela sare... 61 150,000 95,000

9 245,000 24 1,638, 975.00 Maryland.

32 800,000 172,000 13 1,480,000 50 2,452,000 100 16,379, 710.00 District of Columbia....

6 1,975,000 6 1,975,000 13 6,977,000.00 Total....... 44911, 225,000 50 1,631,500 398 50,375,000 897 63, 231,500 1,649 331,562, 175.00 Bouthern States:

Virginia... 54 1,350,000 12 431,000 50 5,640,000 116 7,421,000 136 18,628,500.00 West Virginia.. 42 1,050,000 13 455,000 3,565, 000 99 5,070,000 117 10, 297,000.00 North Carolina. 23 575,000 5

160,000

36 3,885,000 64 4,620,000 80 9,350,000.00 South Carolina. 18 450,000 1 42,000 41 4,500,000 60 4,992,000 71 9,167,000.00 Georgia.

26 650,000 20 675,000 53 5,100,000 99 6,425,000 113 14, 706,000.00 Florida.

10 250), 000 7 225,000 32 5,775,000 49 6,250,000 56 7, 265,000.00 Alabama. 36 900,000 12 379,500 40 3,935,000 88 5,214,500

11,339, 840.00 Mississippi.

9 225,000 4 125,000 27 2,515,000 40 2,865,000 35 3,875,000.00 Louisiana.

13 325,000 1 30,000 22 3,710,000 36 4,065,000 30 7,035,000.00 Texas..

248 6,200,000 93 2,998,500 160 20, 210,000 501 29, 408,500 537 53,977,500.00 Arkansas.

26

650,000 3 95,000 32 2, 480,000 61 3,225,000 58 5, 286,000.00 Kentucky. 54 1,350,000 7 230,000 36 5,370,000 97 6,950,000 141 17,675,900.00 Tennessee.

39
975,000

9 270,000 40 4,795,000 88 6,040,000 116 14, 420,000.00 Total........

598 14,950,000 187 6,116,000 613 71, 480,000 1,398 92,546,000 1,582 183,022, 740.00 Middle Western States: Obio

111 2,775,000 19 658,000 91 13,075,000 221 16, 508,000 378 62, 139, 100.00 Indiana.

94 2,350,000 16 513,000 75 10,950,000 185 13, 813,000 258 28,332,400.00 Illinois.

181 4,525, 000 21 733, 500 100 14,800,000 302 20, 058, 5001 468 75, 995,000.00 Michigan.. 18 450,000 6

190,000

30 11,015, 000 54 11,655,000 104 17,561, 420.00 Wisconsin.

43 1,075,000 4 125,000 32 3,650,000 79 4,850,000 136 18,065,000.00 Minnesota. 186 4,650,000 18 566,000 31 5,100,000 235 10,316,000 277 28, 936, 000.00 lowa..

121 3,025,000 23 770,000 73 4, 470,000 217 8, 265,000 348 23, 777, 270.00 Missouri.

38
950,000

16 510,000 42 16,085, 000 96 17, 545,000 131 36,085, 000.00 Total.

792 19,800,000 123 4,065, 500 474 79, 145,000 1,389 103,010,500 2,100 290,891, 190.00 "This amount does not include $719,561 circulation outstanding on June 30 secured by miscellaneous Mcurities.

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