interesting fact that the most important modifying influence at that time was the movement of specie to India. Professor Stanley Jevons, a contemporary writer of high repute... writing in 1865 and reviewing prices since 1849, said: If we compare prices now (March, 1865) with what they were at their lowest in 1849, we find there has been a rise of 21 per cent. If we take the average of 1845-1850 as our standard of comparison, the rise is 11 per cent. The real permanent rise due to the gold discoveries is doubtless something between these, or probably nearer the higher limit, 21 per cent. The gold discoveries have caused this rise of price. They have also neutralized the fall of prices which might have been expected from the continuous progress of invention and production, but of which the amount is necessarily unknown. THE NATIONAL BANKS [THE Comptroller of the Currency, an officer of the Treasury Department of the U. S., gives in his annual report much information not only about the national banks, but about State, private, and savings banks in this country and in foreign countries. The following are a few extracts from the report of 1910.] Organization of national banks. Under section 5133 of the Revised Statutes the organization of national banking associations by any number of persons, not less than five, is authorized. This section provides that the incorporators shall enter into articles of association specifying in general terms the object for which the association is formed and a copy thereof forwarded to the Comptroller to be filed and preserved in his office. The following section provides for the execution of an organization certificate by those who have entered into articles of association. This certificate is required to be acknowledged before a judge of some court of record or a notary public and transmitted to the Comptroller. When these documents have been filed with the Comptroller the association becomes a body corporate, but with powers limited to transaction of business incidental to organization until the issuance of the Comptroller's certificate authorizing the association to begin the business of banking. The law further requires the collection and certification of payment of at least 50 per cent. of the authorized capital stock and the deposit of a specified amount of United States registered interest-bearing bonds, and authorizes an examination for the purpose of determining the amount of money paid in on account of capital stock and whether all requirements of law in relation to organization have been met. As the law, however, specifically confers upon the Comp troller discretion with respect to approval of the name selected for an association, the course of procedure under the established rules of the office is to require the submission of a formal application for authority to organize an association wherein is stated the title desired, location of the bank, capital stock, the signatures of the applicants given, accompanied by advice in regard to the business and financial standing of the applicants, number of shares to be subscribed for, and the previous banking experience, if any, of the applicants. Indorsements are required with respect to the character and standing of the applicants, the population of the place at which it is proposed to organize the bank, and an expression of opinion with respect to prospects of success of the association if chartered and conservatively managed. Prior to the disposition of an application a copy thereof is sent to the national-bank examiner, to the member in Congress for the district in which the bank is located, and to the superintendent of the State banking department, with request for information with respect to the character and standing of the applicants, the existing demand for a bank at the locality, and an expression of opinion as to whether success is probable. Applications for authority to convert State banks into national banking associations are made by the directors, and each case of this character is investigated for the purpose of determining whether the bank has been conducted in conformity with law, its measure of success, and also as to the character of its assets and general business. In view of the fact that bank stock is generally regarded as a very desirable investment, the organization of banks, both national and State, has been very active during recent years, and it has been shown to be evident to both federal and state authorities that many banking institutions are organized, or organization attempted, without giving due consideration to their demand or their prospects of success. As far as possible the state authorities are now acting in har mony with the Comptroller in the upbuilding of banking conditions by preventing the organization of banks where the demand therefore is not apparent or where organization is attempted by those whose character and standing are questionable. During the year ended October 31, 1910, 425 applications were received for authority to organize national banks, including applications to convert state banking institutions. Approval was granted in 315 cases and there were 74 rejections, the cause of the latter being, first, existence of ample banking facilities at the place; second, population and business too limited to warrant success; third, character of the applicants and of others interested. Rejections of applications to convert were based, primarily, upon information received to the effect that the management had been neither in conformity with law nor successful. Charters were issued during the year to 311 associations having aggregate authorized capital stock of $30,760,000, and from the date of the passage of the national-banking act in 1863 to October 31, 1910, charters to the number of 9883 were granted. At the close of the current year 7218 banks were in active operation, 2176 having been placed in voluntary liquidation and 489 in the charge of receivers for liquidation of their business in the interest of depositors and other creditors. Included in the total number of charters granted were 1571 to institutions which were conversions of state banks. The capital of these converted banks at date of entrance into the national banking system was $330,665,928. Under the provisions of the act of March 14, 1900, national banks to the number of 2953, with aggregate capital of $76,930,500, were organized, the average capital being approximately $26,000. Since the date of the act in question, 1666 banks were organized under the law of 1864, their aggregate capital being $214,912,800 and the individual capital $50,000 or more. It further appears that 652 of the banks chartered in this period were conversions of state banks, their capital being $51,445,800; 1403 reorganizations of state or private banks, with aggregate capital of $93,987,000; and 2564 primary organizations, the capital represented being $146,410,500. The total number of banks organized from March 14, 1900, to the end of the current year was 4619 with aggregate capital of $291,843,300, exceeding by 1002 the number of banks in active operation on March 14, 1900. The average number of banks organized monthly from March 14, 1900, to October 31, 1907, was approximately 40; the average in 1908, 27; in 1909, 25; and in 1910, 26. Reserves and deposits. The original law required the maintenance of a reserve on deposits in all respects but an exception was made with respect to United States deposits in the act of May 30, 1908. In determining the amount of deposits on which reserve is required to be held there is first ascertained the net balance due to other banks, to which are added dividends unpaid, individual deposits, and deposits of United States disbursing officers. From this gross amount the following deductions are allowed: Checks on other banks in the same place, exchanges for clearing house, bills of other national banks, and amount due from the Treasurer of the United States. The resultant amount of these deductions represents the sum of the deposits upon which is based the required reserve; that is, 25 per cent. for reserve city banks and 15 per cent. for all other banks. The amount of the reserve being determined, there is deducted therefrom the 5 per cent. redemption fund which the law authorizes to be counted as a part of the reserve. The 25 per cent. reserve required by central reserve city banks must consist of lawful money in bank; in other reserve city banks at least 121⁄2 per cent. in bank, with a limit of 1212 per cent. with approved agents in central reserve city banks. Banks located elsewhere than in reserve cities are required to maintain a reserve of 15 per cent., of which at least two-fifths or 6 per cent., must . |