Chapter XXI: Part 21

Machinery Hall was 1402 feet long and 360 feet wide, with an annex on the south side 210 by 208 feet, and the main building and annex had together a floor space of 558,440 square feet, or nearly thirteen acres. The total cost was $792,000. Horticultural Hall, near the Art Gallery, was built by the city of Philadelphia for permanent uses. It exhibits the Moorish architecture of the twelfth century, is 383 feet long by 193 feet wide, and is 72 feet high to the top of the lantern. Its cost was $251,937. The Agricultural Building was erected of wood and glass, the ground plan showing a parallelogram 630 feet long by 465 feet wide, and a nave 826 feet long and 100 feet wide crossed by three transepts, and cost about $356,000.

(Atlanta Exposition, 1895.)]

Other noteworthy edifices were the United States Government Building, 504 feet long by 300 feet wide, prepared to exhibit the various functions of the public service; the Women’s Pavilion, covering an area of an acre, and with its exhibits of woman’s handiwork from the fifteen leading nations of the world constituting the first display of the kind ever attempted on a large scale; twenty-six buildings erected by State and Territorial governments; and many others put up by foreign governments or exhibitors. Before the exhibition closed there were more than two hundred buildings on the ground.

An interesting feature of this exhibition was the observance of State Days, when the governors of the States, with their official staffs and a large following of citizens, made ceremonial visits and held receptions in the several State buildings. There were also numerous other special days, when hosts of people united in a common interest, religious, fraternal, social, military, aquatic, or educational, added thousands to the ordinary attendance.

During the exhibition 9,910,966 persons entered the grounds, of whom 7,250,620 paid the full rate of fifty cents, 753,634 paid twenty-five cents each, and 1,906,692 had free entry. The exhibition represented an outlay of all kinds and by all interests of about $20,000,000. The United States Government aided it with a loan of $1,500,000, which was repaid; the State of Pennsylvania appropriated $1,000,000, and the city of Philadelphia gave $1,500,000. From every point of view it was an unqualified success.

Two years after the Centennial Exposition another one was held in Paris, which not only exceeded all previous ones in that city in size and magnificence, but made an unprecedented display of works of art and literature. On this occasion about one hundred acres were set apart for the various buildings, the exhibitors numbered some eighty thousand, the gross receipts were upward of $2,500,000, and 16,032,725 visitors were registered.

The third world’s exhibition in the United States was held in New Orleans during the winter of 1884–85, and was planned to commemorate the centennial of the first export of cotton from America. The conception was an outgrowth of the exposition in Philadelphia, and was first carried out on a limited scale in Atlanta in 1881, and on a larger one in Louisville in 1883. Under the belief that the cotton centennial should be celebrated in the chief city of the cotton belt, the National Cotton Planters’ Association joined heartily in the scheme suggested by Major E. A. Burke, of New Orleans, for a universal exhibition in that city, in which the great industry of the Southern States should play the most prominent part. Congress aided the movement by an Act incorporating the World’s Industrial and Cotton Centennial Exposition, and, further, made a loan of $1,000,000 and appropriated $300,000 for a Federal Building. Railroad and other corporations subscribed for $500,000 in stock, the State of Louisiana appropriated $100,000, and the city of New Orleans contributed a similar sum for the erection of a permanent Horticultural Hall.

(Nashville Exposition, 1897.)]

Formal invitations were sent out to all foreign governments by the State Department at Washington, commissioners were appointed for the several States and Territories, and the time of the exposition was fixed for December 1, 1884, to May 31, 1885. The site selected was the Upper City Park, an unimproved tract of 245 acres, and in its centre was erected the Main Building, a structure built wholly of wood, 1378 feet long and 905 feet wide, and with a continuous roof principally of glass. The entire building covered a space of thirty-three acres. A Music Hall capable of seating 11,000 persons was constructed in the centre of this building, and a Machinery Hall in the rear. An extension at the southern end, 570 by 120 feet, was devoted to mills and factories in operation, and at right angles with this extension was a building given up to sawmills.

The Federal Building, planned for the exhibits of the United States Government and of the States, was 885 feet long by 565 feet wide, and in general style and construction conformed to the Main Building. Horticultural Hall, built of iron and glass, is 600 feet long, 100 feet wide in main structure, and has a central transept carrying out the extreme width to 194 feet. The Art Building, of corrugated iron and glass, stood nearly in front of the Main Building, and was 250 long by 100 feet wide, with a rotunda 50 feet square in the centre. Two other noteworthy buildings were erected by the Mexican Government, one in the style of a native hacienda, with an interior gallery for the display of horticulture and bird-life; the other for native minerals. Excluding those of Mexico, the various buildings covered an area of 2,673,588 square feet, or sixty-two acres, and all buildings covered about seventy-six acres.

Among the special features of this exposition were the display of woman’s work, under charge of Mrs. Julia Ward Howe; of the work of the colored race, under charge of the late Blanche K. Bruce; of the cultivation of cotton and manufacture of the fibre; and of the cultivation, harvesting, and preparation for market of rice and sugar.

On May 5, 1889, another universal exposition was opened in Paris. This was also a commemorative one, marking the centennial of the French Revolution, and because of its political character only the United States and Switzerland accorded it official recognition, although most of the European governments encouraged individual participation. The exposition, despite this feature, was a grand success because of its unusual extent and comprehensiveness and its distinctive features. This exposition cost $8,600,000, and had about 60,000 exhibitors and more than 28,000,000 reported visitors, the greater number, of course, being French.

The making of the World’s Columbian Exposition, to commemorate the discovery of America by Columbus, began soon after the close of the Centennial Exposition in Philadelphia. It was at first proposed to create a permanent exposition, to be held in Washington in 1892, to illustrate the progress of North, Central, and South America, and a board of promotion was organized. By 1889, however, a strong popular sentiment had been aroused for a more comprehensive display, and citizens of Washington, New York, Chicago, and St. Louis vied with each other in pressing on a special committee of the United States Senate the advantages of their respective cities. A certificate to the effect that subscriptions to the amount of $5,000,000 had been made in Chicago decided the controversy in favor of that city.

On April 25, 1890, Congress passed an Act giving a legal status to a World’s Columbian Exposition, to be held under the auspices and supervision of the United States Government, the organizing corporation to guarantee the subscription of $10,000,000 and the payment of $500,000 before the national commissioners should officially recognize the site offered by the corporation for the exposition. On December 24, following, President Harrison announced the forthcoming exposition, to be opened on May 1, 1893, and invited the nations of the world to participate in it. Congress appropriated in various sums a total of $3,238,250 in money and authorized the coining of 5,000,000 souvenir fifty-cent pieces in silver to be sold for the benefit of the exposition.

The management was vested in a National Commission of two representatives of each State and Territory and of the District of Columbia, and eight from the country at large. The site was Jackson Park, on the shore of Lake Michigan, to which was added the Midway Plaisance tract of 80 acres, making an aggregate ground area of 633 acres. On the main ground more than 150 noteworthy buildings were erected. The Midway Plaisance was devoted to amusements and the illustration of the manners and customs of the world. Here, the most conspicuous of a multitude of great and curious objects was the gigantic revolving and passenger-carrying Ferris Wheel. All of the exposition buildings proper were constructed of wood, iron, and glass, in combination with a material known as “staff,” made by uniting plaster and jute fibre in water, in the form of a paste. As all exterior surfaces were painted white, the exposition grounds became popularly known as the White City.

(Nashville Exposition, 1897.)]

The principal buildings, with their cost, were those of Manufactures and Liberal Arts, the largest of all, 1687 by 787 feet, $1,500,000; Machinery, $1,285,000; Fine Arts, $670,000; Agriculture, $618,000; Administration, $435,000; Electricity, $401,000; United States Government, $400,000; Live Stock, $385,000; Transportation, $370,000; Horticulture, $300,000; Mines, $265,000; Fisheries, $224,000; Woman’s, $138,000; Forestry, $100,000; and a brick imitation of a modern United States battleship, with complete armament and equipment, $100,000. Foreign governments appropriated a total of $6,571,520 for their respective buildings and exhibits, France leading with $650,000, and being followed by Japan, $630,000; Brazil, $600,000; Germany, $214,200; and Austria, $149,100; and the States and Territories, a total of $6,020,850. The entire cost of construction was $18,322,622.

According to the original Act of Congress, the buildings then completed were dedicated on Columbus Day, October 21, 1892, with prayer, music, and an oration by Chauncey M. Depew, and during that week a number of State buildings were also dedicated. The exposition was formally opened with exceedingly brilliant ceremonies on May 1, 1893, and was closed with an entire lack of formality on October 30, following, in consequence of the assassination of Carter Harrison, mayor of Chicago, two days before. Up to November 12, the receipts from all sources aggregated $33,290,065, and the expenditures, $31,117,353. The total number of paid admissions, excluding those prior to the opening and after the closing, was 21,477,218, and of all, 27,529,400; smallest single-day number, 10,791; largest, on “Chicago Day,” 729,203. In all there were 65,422 exhibitors, and medals were awarded to 23,757 of them, the jury examining and reporting on more than 250,000 separate exhibits.

Present space will only permit the briefest summarizing of this greatest of all international expositions hitherto held,—matchless in extent, in completeness of composition, in grandeur of setting. A pleasing evidence of the influence the undertaking was expected to yield is found in the remarkably large number of international congresses that were held during its progress. This feature alone called for 1245 separate sessions, at which there were 5974 speakers and a special attendance of more than 700,000 persons, chiefly adults. Almost every conceivable branch of human thought and effort had its individual congress. Particularly noticeable among these formal gatherings was the Parliament of Religions, in which Christian, Protestant, Catholic, Jew, and Buddhist expounded their doctrinal beliefs and narrated the story of their sectarian progress and hopes.

The Cotton States’ and International Exposition, opened in Atlanta on September 18, 1895, had its origin in two purposes: the first, to give the industrial conditions of the Southern States a more adequate display than they had at Chicago, owing to the constitutional inability of their Legislatures to appropriate public money for such a purpose; the second, to promote larger trade relations between the South and the Latin-American republics and with Europe. It was set on foot by private enterprise, and received its largest official aid from the city council of Atlanta, which appropriated $75,000.

Piedmont Park, a tract of 189 acres, two miles from the centre of the city, and memorable because traversed by the rifle-pits over which General Sherman threw shells into the city thirty-one years before, was selected as the site. In a natural dip of the ground an artificial lake was constructed, covering thirteen acres, and around it the principal buildings were erected. Not only the Southern, but many of the Northern and Western States aided the enterprise with special buildings and exhibits.

Of the thirteen large buildings, that of the United States Government occupied the most conspicuous site. The Administration Building was a reproduction of portions of Blarney Castle, the Tower of London, Warwick Castle, the Rheinstein in Germany, and St. Michael’s, on the coast of Brittany. On a considerable elevation was the Auditorium, a four-story building with a dome surmounted by a statue of Music. The largest building was that devoted to Manufactures and Liberal Arts, and the most original of all in design was the one set apart for Minerals and Forestry, which was constructed entirely of wood from the different Southern States in its natural condition, with the bark on. The Fine Arts and the Woman’s Buildings were the showiest, and the Negro Building was made attractive by specimens of the industry of negroes in fourteen States. The exposition was closed December 31, and cost about $2,000,000.

The international exposition at Nashville, open from May 1 to October 30, 1897, was a commemoration of the one-hundredth anniversary of the admission of Tennessee into the Union, and had for its special attraction a reproduction of a number of notable buildings of antiquity. The original plan provided for an exposition in 1896, the true centennial year, but the projectors encountered unusual opposition in their efforts to procure the necessary funds, and it was not till early in 1897 that the incorporators were able to begin the creation of the Centennial City.

(Night view.)]

West Side Park, a former race-course in the suburbs of Nashville, with many natural attractions in running water and forest growths, was selected as the site, and Centennial City was made for the brief time of the exposition a full-fledged municipality, with a mayor, board of aldermen, and a combined police and fire department. The reproduction of notable buildings showed on a reduced scale the Parthenon, the Pyramid of Cheops, the Alamo of Texas, the Blue Grotto of Capri, a glimpse of the Rialto of Venice, and, in the beautiful main entrance, a type of early Egyptian architecture. A flagstaff 250 feet high, cotton and tobacco fields, Venetian gondolas, Vanity Fair, a typical Chinese farm, an abundance of statues of classical and mythological subjects, waterfall and old-time wheel at work, Lake Katherine, Ellen Island, the umbrella fountain, and a large field for athletic sports, were among the pleasurable features. The State made a strong showing of its industrial development and of its riches yet in reserve.

In all 190 acres of ground were occupied. The total receipts were $1,087,227, and the expenditures balanced to a cent. A unique expense feature was that, excluding the preliminary work, the women raised the money and paid the entire running cost of the Woman’s Department. The turnstiles registered 1,886,714 entrances.

This exposition was succeeded in 1898 by the Trans-Mississippi and International Exposition at Omaha, an undertaking designed to show what had been accomplished by the pioneers and their children in the great Trans-Mississippi Valley, and especially in a State that forty-three years before was an unorganized territory in the vast tract known as the Louisiana Purchase. The site was a plateau just north of the city, and in planning the display every consideration was given to originality. Excepting that the grounds constituted a second White City, from the use of “staff,” as at Chicago, every feature of design and construction possessed striking elements of difference from all similar efforts in the past.

The management was under the presidency of Gurdon W. Wattles, and the exposition was formally opened by President McKinley, who, in the White House at Washington, pressed an electric button that started the great engine. The United States Government erected a building of the classic style, following the Ionic order. It was surmounted by a colossal dome supporting a copy of Bartholdi’s statue of “Liberty Enlightening the World,” and had a floor space for exhibits of about 50,000 square feet. The Government also recognized the importance of the event by issuing a special set of commemorative postage stamps. Fine arts was exhibited in a twin-domed building, a structure in two parts, with an elaborate peristyle between them, and all under one great roof.

What afforded the masses the greatest delight were the ethnological exhibits and the instructive and amusing scenes on the Midway Reserve. These included an Indian village, with representatives from every tribe between Alaska and Florida, a Chinese village, an Arabian encampment, a Moorish town, a Swiss village, a Cairo street, the entertaining Egyptian Pyramid, and the gigantic passenger-carrying Sherman Umbrella—a mechanical marvel operated by electricity, and one hundred feet higher than the Ferris Wheel of Chicago. There was also a picturesque lagoon or canal, half a mile long and 150 feet wide at its narrowest part, terminating in an artificial lake trefoil in shape and 400 feet across.

The exposition was opened on June 1 and was closed on October 31. In that time it was visited by more than 2,600,000 people, the largest single-day attendance being 98,785. The total receipts were not quite $2,000,000, and the expenditures were about $1,500,000.

This completes the record of the most notable expositions and the incidental history of their development, from the commercial fair of the previous century up to near the close of 1899.

There remains to note a form of permanent exhibition that has been purposely reserved for this point. The Commercial Museum, of which Philadelphia has the two most effective examples in existence, is a purely commercial development, yet an educational text-book of unique and extraordinary compass. Though the Philadelphia Commercial Museum and the similar department of the Philadelphia Bourse were both projected before the foreign trade of the United States had reached the enormous volume that caused wonder and alarm alike all over the world, both have had a powerful, direct, and immediate influence in bringing about a greater appreciation abroad of American products.

The commercial museums stand between the American producer and the foreign factor. They inform the former where special articles are needed and the latter of reputable firms who can supply their needs. By a large corps of traveling agents, an enormous correspondence, and a direct coöperation with the State Department and its representatives, these museums keep in the closest possible touch with the commercial interests of the world. All this is independent of the exhibition feature, a vast department in which the principal economic productions, first of the United States and then correspondingly of the world, are spread before the eye of the visitor. In this connection should also be noted the fact that many of our commercial representatives abroad have established at their headquarters collections of American products that are particularly needed in their respective localities.

In all of the foregoing a single text has been kept in mind: What has been the influence of the fair, the exhibition, the international exposition? Ready answers have been suggested by the several items of cost and attendance. Another answer may be divined in their frequency and universality. And at the close of this survey of more than a hundred years, probably the best answer of all is to be found in the efforts in this line with which one century is closed and another opened.

These include the Greater American Exposition at Omaha, July-November, 1899, a commercial success, and a revelation of trans-Mississippi pioneering enterprise. This was supplemented by the Export Exposition and World’s Commercial Congress, the first of the kind ever held under the joint auspices of the Commercial Museum and the Franklin Institute of Philadelphia, in that city, in September-November, 1899. Then followed the Universal Exposition in Paris, in 1900. It was regarded as especially elaborate and successful. It beautified the Champ de Mars and Place des Invalides with handsome industrial palaces, brought into permanent existence the two Palaces of Fine Arts and the Alexander III. Bridge, lined the banks of the Seine with the “Street of Nations,” and swarmed the Trocadero with the world’s colonization. Over 50,000,000 witnessed its panoramic scenes. Its expense was largely provided for by prior sales of tickets on a bonded plan. The century turned with a prospective of the Pan American Exposition at Buffalo and International at Glasgow in 1901; the Ohio Centennial and International at Toledo in 1902; the International at Liege, Belgium, in 1903; and the Louisiana Purchase Centennial at St. Louis in 1904.

THE CENTURY’S PROGRESS IN COINAGE, CURRENCY, AND BANKING

BY HON. BRADFORD RHODES,

_Editor of “Banker’s Magazine.”_

I. BANKS AND BANKING RESOURCES.

The history of nation building contains no parallel to the progress and development of the United States in the past one hundred years, and the most accurate and striking indication of this remarkable growth may be seen in the evolution of our currency and banking systems. As the variations in temperature and the changes in atmospheric pressure are measured by the thermometer and barometer, so are the fluctuations in a country’s wealth gauged by the banks and other financial institutions. Likewise the degree of civilization to which a country has attained is reflected by the perfection of its monetary machinery. After having tried nearly every unwise experiment condemned by the teachings of history, the United States has finally reached a position where its currency meets the two fundamental requirements of sound finance, namely, (1) the standard of value is that in use among the great commercial states of the world; (2) all of the currency is either directly or indirectly convertible into the standard coin.

Despite some minor faults in our financial system which make the maintenance of the parity of the several kinds of currency a cumbersome and expensive operation, and prevent the banks from rendering that full degree of assistance to commerce and industry which they would afford under laws that did not unnecessarily restrict their rightful functions, all our money responds to the two essential tests—safety and convertibility; while the banks have been among the most powerful factors in placing the United States in the front rank of the nations of the earth.

Our finances may be likened to a triangle, of which the base—the gold standard—has been in actual existence since 1879 (much longer than that in law), and the other side—safety—also assured, wanting but another addition—elasticity—to complete the symmetrical and perfect figure. That this last requisite of a sound currency will be supplied by the wisdom and ingenuity of our people, is not to be doubted.

There are two respects in which the financial policy of the United States is unique in comparison with most other great commercial countries; first, its gold reserve is unprotected by the devices in use elsewhere, as it does not charge a premium on gold as the Bank of France does when gold is wanted for export, nor can it protect the gold reserve by raising the rate of discount as the great banks of Europe may do; second, banking is practically free and anti-monopolistic. Under these conditions we have reached a place that may well excite the astonishment of the old-world countries. Our stock of metallic money, as estimated by the Director of the Mint, in 1898, was $925,000,000 in gold and $638,000,000 in silver. No other nation owned so much gold. Only one—China—owned as much silver, but it had no gold, and the per capita of silver in China is only $1.96 against $8.56 in the United States. Our stock of gold is more than double that of Great Britain, greater by a hundred millions than that of France, and also exceeds that of Germany and Russia. Of our silver stock, $561,500,000 is a full legal tender, and $76,700,000 a limited legal tender, the latter sum representing the subsidiary coins.

In our banking power the situation is equally fortunate. Mulhall defines banking power as the paid-up capital of banks, the deposits exclusive of savings banks, and the amount of convertible paper money. He shows the growth of this form of wealth to have been as follows, from 1840 to 1894:—

MILLIONS POUNDS STERLING.

----+----------+--------+---------+----------+--------+-------
| Great | United | France. | Germany. | Other | Total.
| Britain. | States | | | States |
----+----------+--------+---------+----------+--------+-------
1840| 132 | 90 | 16 | 12 | 58 | 308
1894| 960 | 1,030 | 356 | 231 | 760 | 3,337
----+----------+--------+---------+----------+--------+-------

In the two great essentials of financial strength—the quantity of metallic money and banking power—we have far outstripped every other nation. This is an unfailing sign of our advance toward a position of commercial and industrial supremacy. The sceptre of financial power has crossed the Atlantic from Europe to the New World. We are gradually acquiring command of the world’s markets, and in time we shall see our banks—ever the handmaids of commerce—extending their operations to the most distant quarters of the earth and carrying everywhere the beneficent influences of modern civilization.

New York as a financial centre has been growing with astonishing rapidity in recent years. From 1879 to 1899 the banks belonging to the New York Clearing-House Association increased their deposits from $254,700,000 to $910,500,000, and their specie—chiefly gold—from $54,700,000 to $202,600,000, the latter item having about doubled in the past two years, being $104,700,000 in 1897, and $202,600,000, as above stated, in 1899. The aggregate of banking institutions in the city—national banks, state banks, trust companies, and savings banks, exclusive of private banking firms—had, about January 1, 1899, capital, surplus, and profits amounting to $311,600,000; deposits of $2,047,800,000; and total resources of nearly $2,500,000,000. One bank—the National City—with over $144,000,000 of deposits, is the largest in the United States; while the Bowery Savings Bank, with 121,000 depositors and $67,000,000 of deposits, is the largest of its kind in the country.

The present status of the different classes of banks in the United States is fairly shown by the following table compiled from the Annual Report of the Comptroller of the Currency, for the year 1898:—

PRINCIPAL ITEMS OF RESOURCES AND LIABILITIES OF ALL CLASSES OF BANKS IN THE UNITED STATES, JULY 14, 1898.

--------------------+--------------+-------------+------------+-
| National | State Banks.|Loan & Trust|
| Banks. | | Companies. |
--------------------+--------------+-------------+------------+-
Loans |$2,151,757,655| $813,749,803|$539,162,445|
United States bonds | 285,356,900| 4,185,304| 34,186,440|
Other bonds | 250,689,375| 127,500,484| 159,791,312|
Cash | 492,882,724| 133,877,133| 22,250,862|
Capital | 622,016,745| 233,587,353| 101,228,555|
Surplus and profits | 332,971,643| 109,554,519| 97,643,666|
Deposits | 2,076,226,576| 912,365,406| 662,138,397|
Total resources | 3,977,675,445|1,356,084,800| 942,462,179|
--------------------+--------------+-------------+------------+-

--------------------+--------------+-----------+--------------
| Savings | Private | Total.
| Banks. | Banks. |
--------------------+--------------+-----------+--------------
Loans |$1,070,775,293|$57,206,819|$4,632,632,015
United States bonds | 140,029,726| 927,473| 464,685,843
Other bonds | 834,670,491| 3,599,092| 1,376,250,754
Cash | 32,928,323| 5,857,132| 687,796,174
Capital | 18,536,130| 16,721,750| 992,090,533
Surplus and profits | 187,475,971| 5,092,341| 732,738,140
Deposits | 2,028,208,409| 62,085,084| 5,741,023,872
Total resources | 2,241,344,991| 91,436,387| 8,609,003,802
--------------------+--------------+-----------+--------------

There were 3582 national banks that reported, and 5903 other banks, a total of 9485. The total banking funds, that is, capital, surplus and profits, and individual deposits, of all banks reporting, amounted to $7,416,355,568.

We cannot get a correct understanding of these figures without going back to earlier dates and making comparisons. In 1798 there were twenty-five state banks in the country, against 3965 reporting to the Comptroller of the Currency in 1898, which is perhaps about 90 per cent of the total of such institutions now existing.

A hundred years ago the capital of the state banks was less than twenty millions, compared with $233,971,643 now reported. They had, all told, but $14,000,000 of specie—half as much as is now held by one New York city bank alone. Their circulation was only $9,000,000, compared with more than $200,000,000 of national bank circulation now outstanding.

The national banks also show a remarkable growth. In 1869 there were 1620 banks in operation, reporting $420,800,000 capital, $547,900,000 individual deposits, $17,500,000 specie, and $1,517,700,000 total resources. Thirty years later the number of banks had increased to 3590, while the capital was $608,300,000, the individual deposits $2,232,100,000, and specie $371,843,400, while the total resources had increased to $4,403,800,000.

The total wealth of the United States in 1895 was estimated at more than $80,000,000,000,—far exceeding in the aggregate that of any other country in the world. It is expected that the census of 1900 will show our total wealth to be more than $100,000,000,000, or probably double that of Great Britain, the next richest nation.

But while the nation is piling up wealth at an unexampled rate, it cannot be said that this is a land “where wealth accumulates and men decay.” Great in its material resources, the country was never before stronger in those elements which constitute the chief reliance of national power. A united citizenship, possessing an honesty that adversity cannot sully and an intelligence that when once aroused penetrates the most cunningly concealed economic sophistries, working out the problems of the future under laws and conditions assuring to the individual the largest opportunities, points to a development in the twentieth century in no wise inferior to that of the hundred years preceding.

II. COINAGE AND PRODUCTION OF PRECIOUS METALS.

The prevailing systems of coinage in this country and among all great commercial nations are the result of development and growth. Gold and silver have become the principal money metals by a process of natural selection, which has chosen the instruments best suited to the purpose. In recent years, and under the laws of development, nearly all the great trading countries of the world have selected gold as the standard of value. In the future, gold itself may give way to something better, for it only relatively meets the essentials of a perfect standard.

Among Greeks, Romans, and Oriental peoples, cattle were generally used as a standard of value. The modern rupee of India is the old Sanscrit word _roupa_, a herd. Capital is but the estimate of Roman riches in cattle. The Latin _pecus_, cattle, is the root of _pecunia_, riches, and the origin of our word pecuniary. The Icelanders measured values in dried fish; the Hudson Bay country in skins; the early Virginians in tobacco; the Indians of the United States and Canada in wampum; the Chinese, even in recent times, in squares of pressed tea; the Africans in bars of salt and slaves.

These primitive devices gradually gave way, under the demands of international trade, to the use of metals as standards of value. Tin, copper, gold, silver, and iron all were used, and, at first, passed by weight. Government coinage of money is thought to date from the seventh century B. C., and is credited to the Lydians and to Pheidon of Argos, the official stamp being a guarantee of the honesty, weight, and purity of the coins.

Modern coinage dates from the reformation of the coinage of Rome under Constantine, who introduced the gold _solidus_ of $3.02 in value, and a silver coin of like weight but of relative value. After the time of Julian, this silver piece, called _siliqua_, was given such value as that twenty-four of them equaled a gold _solidus_. In the Frankish Empire, under the Merovingian kings, the relative values of the _solidus_ and _siliqua_ fluctuated greatly. In the eighth century, on account of the scarcity of gold, there was a gradual transition to the silver standard, and a silver unit, also called a _solidus_, was substituted for the gold _solidus_, the former being divided into twelve pence. This silver _solidus_ afterwards became the shilling of England and Germany. At first 300 pence were coined out of a pound of silver; but under Pepin the number was reduced to twenty-two _solidi_ of twelve pence each—264 pence—out of a pound of silver. Under Charlemagne it was provided that only 240 pence, or twenty _solidi_ of account, should be stamped out of a pound of silver, and this system was introduced, with more or less success, in what is now France and Germany. As to form, it has remained, up to the most recent period, the basis not only of the countries of Charlemagne’s Empire but of England.

After the time of Henry VIII. came a period of coinage debasement which culminated in 1551. A thorough coinage reform was effected under Elizabeth in 1560. The first large coinages of gold in England were made under James I. These continued until the death of William III., in 1701. Still, silver continued to be the standard metal, and in 1695 another attempt was made to reform the currency by a recoinage of the silver pieces, most of which had been clipped or worn, into a new full-weight silver coin. These, however, were soon exported, in spite of a reduction of the current value of the guinea, in 1717. The gold standard in England gained a nearly complete victory by act of Parliament in 1774, which provided that silver coins not of full weight (there were hardly any others) need not be accepted in payments of more than twenty-five pounds, except by weight. This provision, after several renewals, became permanent in 1798. In 1797 coinage of silver was suspended, and the single gold standard practically introduced, though its operation was somewhat interfered with by the existence of a paper currency. In 1816 the present English monetary system was introduced. It held fast to the gold standard, by the provision that silver pieces should be used only as divisional coins, and with a legal-tender power limited to forty shillings.

Properly speaking, there was no coinage in the United States during the colonial period. Maryland had a mint at one time, and one or two of the other States, but they practically amounted to nothing. In the early colonial period the substitutes for coins were wampum and bullets, as in Massachusetts; skins and furs, as in New York; tobacco, as in Maryland and Virginia. The coins in use before the Revolution were, to some extent, those of England, but more largely those of Spain, circulated in South America and traveling up to the United States. The unit of account was the Spanish milled dollar or piece-of-eight, though, up to 1775, accounts were kept in pounds, shillings, and pence, a pound consisting, then as now, of twenty shillings, and a shilling of twelve pence “colonial” or “pound” currency. Four pounds of this “colonial currency” were reckoned as equal to three pounds sterling.

This colonial composite system of current coins was regulated by coinage tariffs. Such a tariff, issued in 1750, valued one ounce of silver at six shillings and eightpence, the Spanish milled dollar at six shillings, the guinea at twenty-eight shillings, and the English crown at six shillings and eightpence. All foreign coins were valued in proportion to the value of the Spanish piece-of-eight. Some of the colonies stamped the shilling, which constituted a large part of the money in circulation. It, however, varied greatly in value in the different colonies. Thus, the Spanish dollar equaled five shillings in Georgia; eight in North Carolina and New York; six in Virginia, Connecticut, New Hampshire, Massachusetts, and Rhode Island; seven and sixpence in Maryland, Delaware, Pennsylvania, and New Jersey; thirty-two and sixpence in South Carolina. The Spanish dollar itself, with which these comparisons were made, was frequently below legal weight, and, therefore, varied in value. Where the pieces mentioned in the tariff of 1776 were of full weight, the ratio there established was the English ratio of one to 15.21, the ratio for bullion being nearly the same.

After the tariff of 1776 had been in operation for six years, the colonies began to feel keenly the difficulties caused by the variety of coins constituting their metallic circulating medium, and the need of a special American coinage was frequently expressed. In 1782, Robert Morris, superintendent of finance, submitted to the Congress of the Confederation a scheme for a national coinage and the establishment of an American mint, which met with approval. Jefferson recommended the decimal system, with the dollar as the unit. Neither of these proposals was carried into effect till, in 1786, the Congress of the Confederation chose as the monetary unit of the United States the dollar of 375.64 grains of pure silver, which unit had its origin in the Spanish piaster or milled dollar, then the basis of the metallic circulation of the English colonies in America. This American dollar was never coined, there not being at the time a mint in the United States.

The Act of April 2, 1792, established the first monetary system of the United States. The bases of the system were: The gold dollar, containing 24.75 grains of pure gold, and stamped in pieces of $10, $5, and $2.50, denominated respectively eagles, half-eagles, and quarter-eagles; the silver dollar, containing 371.25 grains of pure silver. A mint was established. The coinage was unlimited, and there was no mint charge. The ratio of gold to silver in coinage was 1:15. Both gold and silver were legal tender. The standard was double.[4] The Act of 1792 undervalued gold, which was therefore exported. The Act of June 28, 1834, was passed to remedy this by changing the mint ratio between the metals to 1:16.002. The latter act fixed the weight of the gold dollar at 25.8 grains, but lowered the fineness from 0.916⅔ to 0.899225. The fine weight of the gold dollar was thus reduced to 23.2 grains. The Act of 1834 undervalued silver as that of 1792 had undervalued gold, and silver was attracted to Europe by the more favorable ratio of 1:15½. The Act of January 18, 1837, was passed to make the fineness of the gold and silver coins uniform. The legal weight of the gold dollar was fixed at 25.8 grains, and its fine weight at 23.22 grains. The fineness was therefore changed by this act to 0.900 and the ratio to 1:15.988+. Silver continued to be exported. The Act of February 21, 1853, reduced the weight of the silver coins of a denomination less than $1, which the Acts of 1792, 1834, and 1837 had made exactly proportional to the weight of the silver dollar, and provided that they should be legal tender to the amount of only $5. Under the Acts of 1792, 1834, and 1837 they had been full legal tender. By the Act of 1853 the legal weight of the half dollar was reduced to 192 grains, and other fractions of the dollar in proportion. The coinage of the fractional parts of the dollar was reserved to the government.

[4] This was true so far as the law was concerned, but
not actually, as may be seen by reading the sentences
immediately following the above statement.

The Act of February 12, 1873, provided that the unit of value of the United States should be the gold dollar of the standard weight of 25.8 grains, and that there should be coined besides the following gold coins: A quarter-eagle, or two and-a-half dollar gold piece; a three-dollar gold piece; a half-eagle, or five-dollar piece; an eagle, or ten-dollar piece; and a double eagle, or twenty-dollar piece, all of a standard weight proportional to that of the dollar piece. These coins were made legal tender in all payments at their nominal value when not below the standard weight and limit of tolerance provided in the act for the single piece, and when reduced in weight they should be legal tender at a valuation in proportion to their actual weight. The silver coins provided for by the Act were a trade dollar, a half-dollar or fifty-cent piece, a quarter-dollar, and a ten-cent piece, the weight of the trade dollar to be 420 grains troy; the half-dollar, twelve and a half grams; the quarter-dollar and dime, respectively, one half and one fifth of the weight of the half-dollar. The silver coins were made legal tender at their nominal value for any amount not exceeding $5 in any one payment. Owners of silver bullion were allowed to deposit it at any mint of the United States to be formed into bars or into trade dollars, and no deposit of silver for other coinage was to be received. Section 2 of the joint resolution of July 22, 1876, recited that the trade dollar should not thereafter be legal tender, and that the Secretary of the Treasury should be authorized to limit the coinage of the same to an amount sufficient to meet the export demand for it.

The Act of March 3, 1887, retired the trade dollar and prohibited its coinage. That of September 26, 1890, discontinued the coinage of the one-dollar and three-dollar gold pieces. The Act of February 28, 1878, directed the coinage of silver dollars of the weight of 412½ grains troy, of standard silver, as provided in the Act of January 18, 1837, and that such coins, with all silver dollars theretofore coined, should be legal tender at their nominal value for all debts and dues, public and private, except where otherwise expressly stipulated in the contract. The Secretary of the Treasury was authorized and directed by the first section of the act to purchase from time to time silver bullion at the market price thereof, not less than $2,000,000 worth nor more than $4,000,000 worth per month, and to cause the same to be coined monthly, as fast as purchased, into such dollars. A subsequent act, that of July 14, 1890, enacted that the Secretary of the Treasury should purchase silver bullion to the aggregate amount of 4,500,000 ounces, or so much thereof as might be offered, each month, at the market price thereof, not exceeding $1.00 for 371.25 grains of pure silver, and to issue in payment thereof Treasury notes of the United States, such notes to be redeemable by the government, on demand, in coin, and to be legal tender in payment of all debts, public and private, except where otherwise expressly stipulated in the contract. The act directed the Secretary of the Treasury to coin each month 2,000,000 ounces of the silver bullion purchased under the provisions of the act into standard silver dollars until July 1, 1891, and thereafter as much as might be necessary, to provide for the redemption of the Treasury notes issued under the act. The purchasing clause of the Act of July 14, 1890, was repealed by the Act of November 1, 1893. The War Revenue Act of June 13, 1898, authorized and directed the coinage of standard silver dollars to the amount of not less than one and one half million dollars a month, from the bullion in the Treasury purchased under the Act of July 14, 1890. The Act of June 9, 1879, made the subsidiary silver coins of the United States legal tender to the amount of $10. The minor coins are legal tender to the amount of twenty-five cents.

The following official figures give, by periods of ten years, the coinage of the United States from the establishment of the Mint to the present time:—

-------------+-----------------+---------------+--------------+-
Years. | Gold. | Silver. | Minor. |
-------------+-----------------+---------------+--------------+-
1793–1799 | $696,530.00| $1,216,158.75| $50,111.42|
1800–1809 | 3,067,067.50| 3,154,687.75| 164,865.79|
1810–1819 | 2,348,915.00| 6,107,903.75| 162,534.07|
1820–1829 | 2,579,017.50| 14,787,327.65| 178,372.70|
1830–1839 | 17,745,422.50| 28,112,136.60| 334,810.21|
1840–1849 | 58,909,439.00| 22,223,733.00| 360,840.33|
1850–1859 | 352,915,059.00| 47,238,813.00| 1,135,580.03|
1860–1869 | 290,786,131.00| 13,637,607.90| 8,504,070.00|
1870–1879 | 370,718,883.50| 142,196,178.60| 2,231,009.50|
1880–1889 | 411,766,277.00| 305,869,081.20| 8,127,305.56|
1890 to June | 374,806,225.00| 136,248,501.65| 7,564,849.65|
30, 1897 | | | |
-------------+-----------------+---------------+--------------+-
|$1,886,338,958.00|$720,792,129.85|$28,814,558.26|
-------------+-----------------+---------------+--------------+-

-------------+-----------------
Years. | Total.
-------------+-----------------
1793–1799 | $1,962,800.17
1800–1809 | 6,386,621.04
1810–1819 | 8,619,561.82
1820–1829 | 17,544,717.85
1830–1839 | 46,192,369.31
1840–1849 | 81,494,012.33
1850–1859 | 401,289,443.03
1860–1869 | 312,927,808.90
1870–1879 | 515,146,071.60
1880–1889 | 725,762,663.76
1890 to June | 518,619,576.30
30, 1897 |
-------------+-----------------
|$2,635,945,646.01
-------------+-----------------

At this writing the report of the Director of the Mint has not been published, but the coinage for the full year 1897 may be stated as follows: gold, $76,028,484; silver, $18,486,697; and for the year 1898, gold, $77,985,757; silver, $23,034,034. From January 1 to June 30, 1899, the coinage was: gold, $65,915,020; silver, $12,780,441.

It is sometimes thought that the silver dollars are not a full legal tender, but this is not so. They are an unlimited legal tender for all debts, public and private. The Treasury does not, in practice, redeem silver dollars in gold, but successive Secretaries of the Treasury have announced their readiness to do so, if necessary to keep the silver dollars from depreciating,—that is, preserve their parity,—which the law directs.

Silver certificates and gold certificates are not legal tender, but entitle the holder to receive the kind and amount of coin named on their face.

The value of gold bullion in a dollar of that metal is 99.991125 cents, or practically 100 cents. The value of the silver bullion in a dollar of that metal is about 45 cents. It varies, however, with the fluctuations in the market value of silver.

It will thus be seen that the bullion value of a silver dollar and of a gold dollar differs greatly, but the equality of the purchasing power of the two coins is due to the fact that the silver dollars are receivable for public and private debts, that they are indirectly exchangeable for gold, by depositing them in the banks, and that the government is pledged to redeem them in gold, if necessary to preserve their parity with gold.

As early as 1826 the United States began to export domestic gold, beginning with an export of $1,056,088 of gold coin and bullion, and receiving an import of $678,740. Up to 1897 the grand total of exports of gold coin and bullion amounted to $2,186,238,541, and the total imports to $1,112,138,766, an excess of exports over imports of $1,074,099,775. In 1898 the imports of gold coin and bullion into the United States were $120,391,674, and the exports $15,406,391, making the net imports $104,985,283.

From 1821 to 1897 the grand total of exports of silver coin and bullion from the United States was $1,152,688,776, and the imports $730,325,881, making an excess of exports over imports of $422,362,895. In the fiscal year 1898, the silver imports were $30,927,781, and the exports $55,105,239, making the excess of exports $24,177,458.

The total product of gold in the United States from 1792 up to 1896 was $2,113,034,769, and of silver $1,444,970,000, making a grand total of the precious metals of $3,558,004,769. The total value of the entire world’s production of gold, between the years 1493 and 1896, was $8,983,320,600, and of silver $10,556,700,800, making a grand total of gold and silver of $19,540,021,400.

As a comparison of the money status of the United States at the beginning and end of the century, the following figures are interesting: In 1800 the population was 5,308,483; the estimated bank notes outstanding, $10,500,000; the estimated specie in the country, $17,500,000; the total money in the United States, $28,000,000; the specie in the Treasury, $1,500,000; the money in circulation, $26,500,000; the amount per capita, $4.99. In 1898 the population was 74,522,000; the total coin in the United States, including bullion in the Treasury, $1,498,993,249; total paper money, $1,138,440,126; total money of all kinds, $2,637,433,375; coin, bullion, and paper money in the Treasury, $799,537,480; total circulation, $1,837,859,895; circulation per capita, $24.66.

(First Site of First United States Bank.)]

Perhaps no law relating to the coins and currency of the United States has been so widely discussed, or has borne more directly on the attitude and influence of political parties than the Coinage Act of 1873. This act grew out of a proposition to revise our coinage laws, made by John Jay Knox to the Secretary of the Treasury, in April, 1870. Mr. Knox, in his rough draft of a bill, provided for a silver dollar of 384 grains, to be a legal tender for sums not exceeding $5.00. Thus, the standard silver dollar of 412½ grains was eliminated. It did not appear in the bill as it passed the Senate, January 10, 1871, nor in that reported to the House, March 9, 1871. The bill underwent protracted and thorough discussion, and on May 27, 1872, was passed in the House. As passed, it contained the original provision for coining a silver dollar of the weight of 384 grains—twice the weight of the silver half dollar. These dollars were to be a legal tender for amounts not exceeding $5.00. The Senate amended this House bill, by substituting a trade dollar of the weight of 420 grains for that of 384 grains, at the same time preserving the legal-tender limit of $5.00. In the amended form, it passed the Senate, January 17, 1873, and the House, February 7, 1873, and became a law. It will be seen that the standard silver dollar of 412½ grains was never in the bill, and could not, therefore, have been secretly omitted, as was afterwards charged. It was omitted from the first draft, and all through, because none were being coined, and those that had been coined were exported, the silver bullion in them being, at that time, worth more as bullion than coin. By joint resolution of Congress, approved July 22, 1876, the trade dollars provided for in the act were deprived of their legal-tender quality. It was supposed they would circulate in China, but they proved useless even for that purpose.

III. EARLY BANKING IN THE UNITED STATES.

The first banks in the United States owed their origin to Robert Morris and Alexander Hamilton. Morris, as early as 1763, conceived the plan of a bank to assist in developing American trade, and in 1779, Hamilton proposed the organization of “The Company of the Bank of the United States.” These plans did not mature, but were followed, at the suggestion of Thomas Paine, by an association of ninety-two subscribers to a fund of 300,000 pounds Pennsylvania currency to support the Revolutionary army. This association became known as the Pennsylvania Bank. It commenced business July 17, 1780, and after a career of a year and a half, during which time it greatly aided the government in furnishing army supplies, its affairs were wound up.

On May 17, 1781, Hamilton presented the plan of a bank to Congress, which was to be truly national, and “created avowedly to aid the United States.” Its name was to be the Bank of North America, with a subscription of $400,000 in gold and silver, and its notes, payable on demand, to be receivable for duties and taxes in every State. Congress approved the plan, and Morris, then Superintendent of Finance, published it, with an address showing its advantages to the government and people, then suffering from the ill effects of a depreciated currency.

The Bank of North America was organized November 1, 1781, and began business January 7, 1782. It creditably fulfilled its mission “to aid the United States,” and, after the expiration of its charter, became a State institution. In 1864 it entered the national banking system, though retaining its old name. This bank was followed by the Bank of New York, which began business June 9, 1784, and by the Massachusetts Bank, which began business July 5, 1784.

FIRST UNITED STATES BANK.—This institution grew out of the recommendations of Alexander Hamilton, and formed a part of his scheme of strengthening the public credit and bringing about a closer union of States. His plan was incorporated into a bill which passed the Senate January 3, 1791, and the House, January 20, 1791. Washington signed it February 25, 1791. The bill was hotly opposed as unconstitutional by Secretary of State Thomas Jefferson, Attorney-General Edmund Randolph, and in general by representatives from the Southern States.

The capital of the bank was fixed at $10,000,000, one fifth of which was to be subscribed by the government. The remainder was subscribed by individuals, and two hours after the opening of the books the capital was oversubscribed to the amount of 4000 shares. The central bank was located at Philadelphia, and afterwards branches were established in New York, Boston, Baltimore, Washington, Norfolk, Charleston, Savannah, and New Orleans. Business was first opened in Carpenters’ Hall, Philadelphia, December 12, 1791. In July, 1797, the site was removed to a new building on Third Street, below Chestnut, and it remained there till the dissolution of the bank, with the exception of a brief removal to Germantown in 1798, during the epidemic of yellow fever. Though this bank proved a profitable enterprise for the government, it failed to secure a renewal of its charter in 1811, chiefly because so many of its shares had passed into foreign hands.

(Second Site of First United States Bank.)]

EARLY STATE BANKS.—From 1790 to 1811 the number of State banks increased from four to eighty-eight; their circulation from $2,500,000 to $22,700,000; their capital from $2,500,000 to $42,610,000. In the same time the metallic circulation of the country rose from $9,000,000 to $30,000,000. These banks failed to meet the monetary necessities of the War of 1812, and in 1814 practically all of them south of New England suspended specie payments. Their notes were poured out in all denominations from six cents upward, and, with coin redemption stopped, they depreciated rapidly. This led to great financial distress in 1818–1820, and to excessive bank failures. The seriousness of the general situation, and the declining credit of the government, led to the establishment of the second Bank of the United States.