requires, has been done by the association, the comptroller of the currency gives them a certificate under his hand and official seal, to that effect, and that they are authorized to commence business. This constitutes the association a corporation. They have the right to make and use a common seal, and have all the rights, and are liable to all the responsibilities of ordinary legalized corporations; and may exist not to exceed twenty years from the passage of this act. Every shareholder is made. personally liable for the debts of the association or bank, to the amount of the par value of his stock.

4. In order to secure the holders of bills issued by these banks, they must deposit with the Treasurer of the United States, United States bonds bearing interest to an amount not less than one-third of the capital stock paid in. These bonds are safely kept by the Treasurer. The comptroller of the currency then issues to the bank an amount of bank notes equal to the amount of bonds thus deposited, less ten per cent. In case the bank should fail to redeem its circulating bills, its bonds are sold, and with the proceeds the comptroller of the currency redeems them, or orders them to be paid at the United States Treasury. The bonds held by the Treasurer as security for the redemption of the bills issued by the association, must be transferred to him in trust; thus giving him entire control of them in case it becomes necessary to sell them in order to redeem the bills of any association which may have failed to pay them on demand.

5. This act has brought a great number of banks into existence, besides organizing most of the banks formerly existing under State laws under this system; so that we have a nearly uniform system of banking all over the United States. The bills of these banks pass in any part of the country, which was not often the case formerly. In case the bank should be mismanaged, or fail to pay for any cause, there is ample security for their redemption deposited in the United States treasury, where they will be paid on presentation.

6. The bill-holder is also better protected against counter

feits than he was under the old system; for all the bills issued by these associations are engraved by the government, and the plates and dies on which they are printed are kept by the comptroller of the currency in the Treasury Department. The engraving is done in the best possible manner, and it is exccedingly difficult to counterfeit them. Besides this, they all have the imprint of the seal of the Treasury on their face, and are numbered and countersigned by the treasurer and register. With all these guards and precautions, we have the best paper currency ever used since the establishment of the government.

7. This act necessarily threw upon the Treasury Department a great increase of labor, and in order to provide for it a separate bureau was created, which is denominated the bureau of currency, the chief officer of which is called the comptroller

currency. He acts under the general direction of the Secretary of the Treasury. This bureau is charged with the execution of this and all other laws that may be passed by Congress respecting the national currency. The comptroller of the currency is appointed by the President and Senate, has a deputy. receives a salary of $5,000 per year, holds his office five years, has an official seal, gives bonds to the amount of $100,000, and takes and subscribes the oath of office prescribed by the Con stitution and the laws. His duties are numerous and very responsible, he having hundreds of millions under his care. The term national banks, given to these institutions, and currency to the bills they issue, were given from the fact that they were organized by an act of Congress, and that the security for the redemption of their bills consists exclusively of national bonds; no other securities will be taken.

national

CHAPTER XV.

FINANCIAL CONDITION OF THE UNITED STATES.

1. The United States government belongs to its people. Those people own property estimated at upwards of thirty billions of dollars. The public lands belonging to the government are between one and one and a half billions of acres. Besides, the public domains contain gold, silver, iron, coal, and a large number of other mineral deposits, chiefly in regions worthless for agricultural purposes, of unknown, but ascertained to be, at least, a very great quantity-enough to make all its present inhabitants millionaires if (besides paying the debt) their value could be divided among them. The capacityof the country for production is very far beyond what is drawn from it now. The future will probably increase it a thousand fold, for we are yet a new people, and in the act of settling ourselves to the work of development.

We are very rich, if all our resources are taken into account, yet we are in debt. In five years from the commencement of the civil war the public debt had run up from less than one hundred million dollars to over two billion seven hundred millions. This we began to reduce at once, for as a nation we do not like to be in debt; and it was, December 1st, 1873, a little over two billion one hundred and fifty millions. The debt is, indeed, a trifle compared with our vast national property; but we do not wish to sell our property at a loss, nor disturb the regular course of business; so it stands to be gradually paid in the regular course of things, as we find it to be convenient.

It is a vast sum, but gives more trouble by reason of the

desire and determination of the people to pay it soon, and sacrifice no property, than from any inability to meet it.

We add a table of the Public Debt for every year since 1791, a Statement of the debt in detail Dec. 1st, 1873, and various Statistics relating to the finances, resources, and business of the country.

SIXES OF 1861.-Dated 1861, and redeemable in twenty years from January 1st and July 1st of that year. Interest six per cent. in gold, payable semi-annually-January 1st and July 1st. These Bonds were issued in three series: Under Act February 8th, 1861, $18,415,000; dated variously in 1861. Under Acts July 17th and August 5th, 1861, $50,000,000; dated November 16th, 1861. Under Acts July 17th and August 5th, 1861, in exchange for 7-30's, $139,317,150; dated November 16th, 1861. Under Act March 3d, 1863, and principal made especially payable in gold coin, $75,000,000; dated June 15th, 1864. Total issue, $282,732,150.

FIVE-TWENTIES OF 1862.-Commonly termed Old Five-Twenties, dated May 1st, 1862, Redeemable after five years, and payable in twenty years from date. Interest six per cent. in gold, payable the first of May and November. Issued under Act February 25th, 1862, $514,771,600.

FIVE-TWENTIES OF 1864.-Dated November 1st, 1864. Redeemable after five, and pay. able in twenty years. Interest, six per cent. in gold, payable 1st of May and November. Issued under Act March 3d, 1864 (principal specified as payable in gold), $3,882,500. Issued under Act June 30th, 1864, $125,561,300. Total issue, $129,443,800.

FIVE-TWENTIES OF 1865.-Dated July 1st, 1865. Interest, six per cent. in gold, payable January and July. They are redeemable in five years, and payable in twenty years. Issued under Act March 3d, 1865, in exchange for 7-30 notes converted, and amount, August 1st, 1868, to $372,346,350.

FIVE-TWENTIES OF 1865.-Dated November 1st, 1865. Redeemable after five, and pay. able in twenty years. Interest, six per cent. in gold, payable 1st of May and November. Issued under Act March 3d, 1865. $197,777,250.

FIVE-TWENTIES OF 1867. Dated July 1st, 1867. Redeemable in five, and payable in twenty years. Interest, six per cent. in gold, payable 1st of January and July. Issued under Act March 3, 1865, in exchange for 7-30 notes, and amount, August 1st, 1868, to $371,346,350. FIVE-TWENTIES OF 1868.-Dated July 1st, 1868. Redeemable in five, and payable in twenty years. Interest, six per cent. in gold, payable 1st of January and July. Issued under Act March 3d, 1865, in exchange for 7-30 notes, and amount, August 1st, 1868, to $39,000,000.

TEN-FORTIES.-Dated March 1st, 1864. Redeemable in ten and payable in forty years. Interest, five per cent. in gold, payable on the 1st of March and September on all Registered Bonds, and on all Coupon Bonds of the denomination of $500 and $1,000. On the $50 and $100 Bonds, interest is paid annually, March 1st. Issued under Act March 3d, 1863, and Supplement, March 3d, 1864; principal, payable in gold, $194,291,500.

FIVES OF 1870.-Redeemable at the pleasure of the United States, after May 1, 1881, in gold. Interest, five per cent. in gold, payable quarterly - February, May, August, and November 1st. Exempt from all taxation. Issued under Acts of July 14th, 1870, and January 20th, 1871. Amount, $200,000,000.

U. S. PACIFIC RAILROAD CURRENCY SIXES.-Dated January 16th, 1865, and variously thereafter. These Bonds are issued by the Government, under Acts July 1st, 1862, and July 2d, 1864, to companies receiving their charter from Congress, which gives them the right to construct railroads to and from the Pacific Coast, and on the completion of each twenty miles of track, to receive at the rate of $16,000, $22,000, or $48,000 per mile, according to the difficulty of constructing the same. They are payable thirty years from date of issue, and are registered in [Bonds of $1,000, $5,000, and $10,000. Amount issued to September 1st, 1870, $64,618,832. All of the Bonds are issued "Coupon " or "Registered." Coupon Bonds can be changed into Registered Bonds, but Registered Bonds cannot be changed into Coupons. Coupon Bonds are in denominations of $50, $100, $500, and $1,000: the Registered Bonds the same, with addition of $5,000 and $10,000.