The relationship of the two sections was
much more marked than in France and in England, where the amounts
carried in accounts current vary more.
In the United States we then experienced a market based on credit,
which, through discounts or loans by the banks, had reached the amount
of the accounts current, and was about to call the clearing house into
action to settle debts everywhere.
The office of the circulation of bank notes, subsequent to the severe
regulations enacted in 1863 for the organization of National Banks, had
varied in the last two periods that we are studying. From 1863 to 1873,
after the war troubles, in proportion as greenbacks were withdrawn, the
bank notes issued by the National Banks not only took their place, but
replaced those of the State Banks, whose position the National Banks had
taken.
We observe them rise firstly from $66,000,000 to $341,000,000
(1865-1873) at the sharpest period of the panic. We might even charge
them with causing it, if the disproportion alone of the two sums,
$341,000,000 bank notes compared with $944,000,000 of bills discounted,
did not at once repel this theory. It is only necessary to glance at
this idea to see its falsity.
Pages:
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134