State or National banking departments. The deposits in these banks amounted to $219,830,000. See Postal Savings Banks; Banks, Federal Reserve; Savings Banks; etc.
The following tables, compiled from the report of the Comptroller of the Currency (Dec. 1, 1919) give a comprehensive view of the development of the National banking system in recent years:
GROWTH OF NATIONAL BANKS BY FIVE-YEAR PERIODS
[In thousands of dollars]
| Date | Number of banks |
Total deposits |
Loans and discounts[1] |
Reserve held |
Excess reserves |
Capital | Surplus and undivided profits |
Circulation | Total resources |
| Sept. 7, 1899 | 3,595 | $3,459,611 | $2,496,751 | [2]$890,569 | $259,780 | $605,773 | $350,516 | $200,346 | [1]$4,650,355 |
| Sept. 6, 1904 | 5,412 | 5,131,210 | 3,726,151 | [2]1,244,465 | 334,678 | 770,778 | 583,137 | 411,231 | [1]6,975,087 |
| Sept. 1, 1909 | 6,977 | 7,079,570 | 5,128,882 | [2]1,605,932 | 346,886 | 944,642 | 801,738 | 658,040 | [1]9,573,954 |
| Sept. 12, 1914 | 7,538 | 8,187,569 | 6,400,767 | [2]1,577,666 | 116,955 | 1,060,332 | 1,011,482 | 918,270 | [1]11,483,529 |
| Nov. 17, 1919 | 7,865 | 17,467,853 | 12,240,718 | [3]1,264,482 | 59,562 | 1,153,752 | 1,340,300 | 680,879 | 22,444,992 |
History.—The first bank in the United States was organized in Philadelphia in 1780, and a bank of North America was planned in 1781 and opened in 1782. The Massachusetts Bank was incorporated in 1784; that of New York was chartered in 1791, although since 1784, under Alexander Hamilton's “Articles of Association,” it had been doing business. Alexander Hamilton also originated a plan for a United States bank, with a capital of $10,000,000, three-fourths to be paid in United States stock, at 6 per cent., which plan was adopted and approved by Washington in 1791. The bank was reorganized in 1816 with a capital of $35,000,000, the United States subscribing $7,000,000, with interest at 6 per cent., but in consequence of a general financial depression, was, the next year, in great danger of failure. Congress refusing to renew the charter, a State bank, called the United States Bank, was chartered in Pennsylvania, and eventually failing, the whole account was settled in 1856. The $28,000,000 deposited by shareholders was totally lost, while the Government realized $6,093,167 upon its investments of stock. State banks were afterward chartered in the interest of individuals and dominant political parties. The charters were sometimes fraudulently obtained and currency issued to three times the amount of their capital, and, in 1814, 1837, and 1857, many of them suspended payment. A reform movement in bank currency was inaugurated in Massachusetts in 1825, and a “safety-fund” system, recommended by Mr. Van Buren, adopted in 1829. In 1838 the Free Bank Act passed the New York Legislature, which authorized any number of persons to form a banking association, subject to certain specified conditions and liabilities.
On Feb. 25, 1863, the National banking system was organized, but the act establishing it was modified by that of June 3, 1864. This provided for a National Bank Bureau in the Treasury Department, whose chief officer is the Comptroller of the Currency. Under it National banks, could be organized by any number of individuals, not less than five, the capital to be not less than $100,000 except in cities of a population not exceeding 6,000; in these banks could be established with a capital of not less than $50,000. In cities having a population of 50,000 the capital stock could not be less than $100,000. One-third of the capital was required to be invested in United States bonds, which were deposited in the Treasury for security, upon which notes were issued equal in amount to 90 per cent. of the current market value, but not exceeding 90 per cent. of the par value; and these notes were receivable at par in the United States for all payments to and from the Government, except for duties on imports, interest on the public debt, and in redemption of the national currency. On
- ↑ 1.0 1.1 1.2 1.3 1.4 Includes rediscounts.
- ↑ 2.0 2.1 2.2 2.3 Includes cash on hand and due from reserve agents.
- ↑ Besides the $1,262,339,000 carried with reserve banks on Nov. 17, 1919, the member national banks held on that date cash in vaults amounting to $450,041,000 and had $2,443,599,000 due from other banks.
