NATIONAL BANKS.    419

NATIONAL BANKS.

j,    The    first    National    Banks    established    since    the    commencement    of

f    the    rebellion    of    1861,    were    in    1863.

In October, 1863, there were 66 National Banks; in 1864, 508;
in 1865, 1,513; in 1866, 1,644; in 1867, 1,642; in 1868, 1,644; in
1869,1,617; in 1870,1,615; in 1871,1,767; in 1872,1,919. In
1863, the loans and discounts were $5,466,088 ; in 1872, it had
swelled to the large amount of $872,520,164. The capital invested
in all the banks, in 1872, was $479,629,000.

The law provided to establish these National Banks is that the
parties desiring such bank, shall deposit in the United States Treas-
ury a certain amount of United States bonds, and the government
will issue to them, 90 per cent, of the amount deposited, in paper
bank notes, and guarantee to the public the faithful redemption of
the notes thus issued, whenever required. The banks receive the in-
terest specified on the bonds besides what they receive from the
paper currency, which they loan to the public; and this, together
with what they receive on money deposited for safe keeping, makes
a very lucrative business, considering the actual capital invested.

This national banking business, is managed by the United States
Comptroller of the Currency.