The maximum circulation of bank notes has here coincided with the panic,
a thing which had not happened either in France or in England for a long
time, and instead of presenting its highest figure during the
liquidation of the panic of 1873, it shows us its lowest figure,
$290,000,000 in 1877. Far indeed from increasing at this time as
happened in Europe, the amount of bank notes in circulation decreased by
means of the ebbs of metallic cash into the coffers of the banks: in
reality the cause was lacking here; the ebb of specie was hardly felt at
all.
With $4,000,000 in 1865, the reserve was poorly provided, increasing to
$48,000,000 in 1870. At the end of the bursting forth of the panic of
1873 it became reduced to $10,000,000, at the worst of the panic to
$16,000,000; then, under the influence of a slight whirl, it rose to
$33,000,000 in 1874, without reaching the highest figure of the
preceding period, but soon the flow reappeared and reduced this metallic
reserve to $8,000,000 in 1875. It was not until after this depression
that the true ebb reappeared, when the circulation of bank notes was at
its lowest figure ($290,000,000).
Pages:
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135