CAUSE OF FINANCIAL CRISIS IN 1873

1862.
Total liability of all the banks in the United States$1024 mills.
Increase of capital in the preceding nine years117 mills.
Increase of liability in the same nine years248 mills.
1872.
Total liability of national banks, including the State banks only, of the city of New York$1759 mills.
Increase of liability in said ten years $717 mills.
Increase of bank capital in said ten years $78 mills (!)
Add legal-tender notes and fractional c.400 mills.
Total$2159 mills.

"Showing

"Money means in the hands of the community in excess of that of 1862, $1117 mills. And this $2,159,000,000 is the hub of the wheel from which radiates the individual debt of the community, until it reaches the apple-woman at the corner.

"Perhaps the above may vary, more or less, 20 or 30 mills.

In 1854 the number was 1208
In 1873 the number was 1945
Nineteen years an increase of738
In 1862 the number was 1492
In 1873 the number was 1946
Eleven years an increase of454
New banks with an increase of capital only of $78 mills.

"In considering the position, the banks are recognized as part of the public in their representations of their stockholders, and it is not intended to dissect out of their liabilities their individual status."