of the profits on bank circulation than is secured by the government of England or of France. The tax here is 1 per cent., in England, seven-tenths of 1 per cent., in France, one-tenth of 1 per cent. on the circulation. A still more important advantage in the American system is its entire freedom from monopoly. The national bank recommended by Hamilton, like the public banks of Europe and most of the State banks in this country, was open to this grave objection. We have now a system which furnishes a national currency under the control of the general government, pays a liberal duty for the privilege, aids the treasury efficiently in the management of the public debt, and, besides, is absolutely free to all citizens who choose to comply with the regulations of a general law. This fact makes it impossible that the profits of banking should rule permanently above the ordinary gains in other pursuits, and so removes the last excuse for incurring now the risks from which Secretary Chase shrunk when called upon to provide means for a great war.

XIII.

CONDITION OF THE NATIONAL BANKS IN

1878.

THE net result of the national bank act is to be found in the annual statement of the condition of the banks, compiled and published by the comptroller of the currency. No statement so complete and authentic was ever before made in this country or any other. It exhibits the actual condition of the banks on five different days selected by the comptroller, without previous notice; and the fact that these returns may any day be called for, is a powerful incentive to the banks to keep within the prudent restrictions of the law. If these requirements have tended to restrain speculation, to prevent a declaration of dividends not earned, to provide ample security not only for bill-holders but for depositors and share-holders-in a word, to create a body of solvent banks upon which the commu

nity may safely rely-then we ought to find evidence of their solvency in the comptroller's reports.

Here is the last report before the resumption of specie payments, showing the condition of the 2053 national banks in operation on the 1st of October, 1878:

Analyzing these accounts, we find the following liabilities of the banks to the

The circulating notes and the public deposits are amply secured by United States bonds deposited with the treasurer of the United States; but for the purpose of this comparison, let these items also stand as if they were unsecured.

The immediately available resources are these:

Here are one-third of the gross liabilities of the banks in cash or its equivalent. To this sum must be added as available though not instantly available resources, the stocks and bonds:

With these resources should be placed the balances due from other banks, so that, without counting upon the loans, the banks

can rely upon