French navigation is in a deplorable state of feebleness, and the evil increases daily. In 1832, the total amount of French shipping was 670,000 tons, of British 2,225,000, of American 1,440,000. In France and England the amount varies little from year to year, but in the United States it increases rapidly, and in 1837 it was 1,896,685.
Note 5—page 38—omitted.
Note 6—page 38.
All the banks in the United States, like the Bank of France in Paris, are at once banks of discount and loan, and banks of deposit and circulation. Almost the whole currency of this country consists of paper-money, the metals being chiefly in the the vaults of the banks, which cannot dispense with them, because their bills are payable on demand in gold and silver.
The old Bank of the United States, founded in 1791, had a capital of ten million dollars, the Federal government holding one fifth of the stock. The present Bank was incorporated in 1816, with the right of establishing any number of branches. The Bank of England also has branches in Manchester, Birmingham, Liverpool, Leeds, Gloucester, Bristol, Hull, Newcastle, Norwich, Swansea, and Exeter. The Bank of France has but two branches, one at St. Etienne and the other at Rheims, both established since 1836.
The capital of the Bank of the United States is 35,000,000, in 350,000 shares of 100 dollars each. That of the Bank of England is 11,000,000 pounds, divided into shares of one hundred pounds; and that of the Bank of France is 90,000,000 francs, in shares of 1000 francs, of which 22,100 are held by the Bank itself. The United States' Bank stock was at a premium of 25 to 30 per cent. before General Jackson began his war upon it, that of the Bank of France is at an advance of 129 percent., and that of the Bank of England at 116 per cent. advance.
The operations of the Bank of the United States consist in discounting commercial paper with two names, in making advances upon public stock and other securities, and in trading in the precious metals. The Bank of France discounts commercial paper with three names, or with two names and a deposit of Bank stock as collateral security. It is at present authorised to advance four-fifths on public stock on the sole guarantee of the depositor. It also makes advances on deposits of bullion and foreign coins, charging a commission of one eighth for forty-five days, or one per cent. a year. The commercial attributes of the Bank of England are still more limited than those of the Bank of France. It makes no advances on public securities, except while the transfer books are closed, which occurs for a certain period in London.
The Bank of the United States discounts at the rate of six per cent.; the Bank of France at four per cent.; and the Bank of England at different rates, but rarely at less than four per cent., which is high in London. In 1836, the rate was advanced to four and a half and five per cent. The Bank of the United States effects foreign and domestic exchanges; the Bank of England only domestic exchange, which it does without charge for those who have an account open with it; and the Bank of France operates neither.
The circulation of the Bank of the United States has varied within late years from ten to twenty millions; in October 1835, it was twentyfive millions, consisting chiefly of five and ten dollar notes. Of late years the circulation of the Bank of England has amounted to about 100 million dollars. Since 1830, the Bank of France has usually had a circulation of forty millions, so that the two last institutions play a more important part as banks of circulation, than the first. In the United States, the five or six hundred local banks, whose aggregate circulation is five or six times greater than that of the United States' Bank, perform this service. This coëxistence of more than five hundred distinct currencies is the great defect in the financial system of this country. The joint-stock banks, which have been of late much multiplied in England, tend to introduce the same confusion into that country.