$50,000,000 of the stock. There remained then $100,000,000 of the authorized loan, but the Secretary had issued $25,000,000 in demand notes, and the banks claimed the right to take $50,000,000 more three-year bonds in Jan. if they should then elect to do so. In all this time there had been no steps taken to place the Government finances on a sound and permanent footing; the arrangements with the banks were justly regarded as mere makeshifts. The institutions had advanced the money of their depositors for Government securities, in the hope of being able to get the money back by selling them to the public. The public had not purchased them, however, and they had depreciated on the hands of the banks, while capitalists stood aloof. The meeting of Con- The depositors made rapid drafts on the specie, Specie. $159,793,953 $42,818,610 157,647,702 89,485,478 155,784,230 86,818,369 29,857,712 Deposits. Weekly Decree 64 28. Jan. 4. which ran down $18,334,732 in the banks suspended Dec. 30. lowed by those of other cities. the banks in respect to the loan BANKS OF Capital. Subscribed. N. York.. $69,907,000 $102,056,835 Boston.. 88,231,700 29,159,095 Phila.... 11,811,485 14,579,548 154,756,318 four weeks, and Sold to the Public. Balance in Bank. $35,000,000 $67,056,835 5,000,000 9,579,548 Total.. $119,950,185 8145,795,478 $50,000,000 $95,795,478 When the number of banks in the city of New York began to multiply in the years 1852-23, and from 31 soon reached 55 in number, the labor of keeping the mutual accounts was immensely increased; it was requisite for each institution to keep as many as there were banks, and to settle daily. It became apparent that the work might be simplified, and the clearing-house system was adopted. By this each bank sends every morning to the clearinghouse all the checks, drafts, and demands that it may have received the day previous in the course of business; all these are mutually exchanged, and those institutions against which there are balances pay the amount. This was adopted in 1853, and has since been in successful operation. The banks of Boston and Philadelphia adopted subsequently the same plan. The settlement in balances was effected by each bank making a proportionate deposit of specie in a common fund, and receiving for it certificates of convenient size, and these were used in the payment of balances. The amount of these clearings was annually as follows in New York: Balances. $297,411.493 259,694,187 834.714.499 865,813,901 23,963,878 These figures not only indicate the immense increase of transactions in a series of years, but show also the violent fluctuations which take place in business from year to year. The larg est amount was in the year of panic 1857, and it fell off nearly one-half in the next year as a consequence of the panic. In November, 1860, the banks agreed to lodge with the clearing-house committee a portion of the loans, on which each was to receive 75 per cent. of the amount in a "loan certificate" bearing 7 per cent. interest, which certificates were to be used in the payment of balances. When the institutions had taken the Government loan, the 7 Treasury notes were deposited for certificates, and subsequently when the demand notes of the Government became currency, the banks under the law of Congress deposited these with the assistant treasurer, and received 5 per cent. certificates of deposits, which were used in place of the loan certificates, for the adjustment of clearinghouse balances." While the growth of bank facilities had been very rapid at the East, it was for the most part actual capital to be loaned or advanced upon actual business paper, or such as represented commodities in transitu. The increase at the West, however, represented credits, and took the shape rather of circulation than loans. The basis of the circulation was Western and Southern stocks, and they kept afloat as long as exchange remained in favor of the section. The political events changed the current of exchange and greatly depreciated the value of the stocks held, which were as follows (p. 67) in three Western States. Such was the magnitude of free banking in three States only. The effect of the war panic was to drive the circulation in faster than the 863,954,659 banks could redeem it, under which circumstance it became the duty of the State officers 353,363,944 to close up the banks and sell the securities. $2,627,434,994 This was done at the moment the expedition 808,693,438 Wisconsin, Missouri Sixes... $8,026,000 $1,397,000 Total other States, 222 banks. $4,688,000 17,000 4,194,000 10,000 7,000 Minois, Indiana, $265,000 162,500 S. Carolina Sixes, 100,000 42,000 845,560 perintendent of the Banking Department at Albany. April 25, the banks of the city renewed the measure of making the specie a common fund. On the 11th of May the Bank of Albany, hav1,478,600 ing lost a large portion of its capital in unau100,000 thorized loans, suspended; it was followed on 1,603,500 the 18th by the Bank of the Capital and the 441,000 Bank of the Interior; and on the 23d the Na463,854 tional Bank suspended. In Nov. Mr. Van 650,500 Alen, receiver of the Bank of Albany, paid a 213,000 dividend of 46 per cent. on the liabilities of 282,000 the bank. 14,500 112,500 178,000 6,000 205,500 3,000 91,000 18,000 90,700 780,681 82,700 462,000 89,500 82,700 551,500 Total stocks....$13,938,170 $5,080,780 $1,897,181 $20,866,181 circulation 11,010,887 4,580,632 1,160,851 16,752,820 to Fort Sumter, by making war inevitable, ruined the value of the securities, and prices fell heavily: Missouri, from 70 to 36; Tennessee, 78 to 34; Virginia, 78 to 40; Louisiana, 80 to 51; N. Carolina, 80 to 44; Georgia, 100 to 53; and other stocks to a greater or less extent. It is no doubt the case that a large portion of the decline was due to the forced sales of the stocks, since it was the duty of the State officers to sell the stocks and redeem the circulation as far as the proceeds would do it. It is a vice of the free banking system that it requires the sales of stock at the moment when the market is the least able to bear them. Hence, unless the margin is very large, the circulation cannot be paid in full. At the close of the year the banks stood as follows: Stocks. Circulation. TOTAL. Illinois. Wise'n. Indiana. Jan. 1862 Jan. 1861. 599,975 2,153,270 1,370,036 4,128,281 20,374,871 508,719 1,684,262) 879,164 8,469,783 16,752,820 In Illinois the circulation of 3 of the closed banks was redeemed at par, and that of 57 at from 50 to 80 cents on the dollar. In Wisconsin 23 were redeemed at par, and others at 46 to 80 cents on the dollar. The result has been sales of $16,251,090 of State stocks upon the Eastern market throughout a year, during which the Government and the several States were also sellers of stocks for war purposes. This operation, originating in the war panic, inflicted a loss of nearly $5,000,000 upon the holders of notes in those three States. The State Bank of Indiana, an old chartered institution, did not suspend its payments. Most of the Southern banks had suspended soon after the election of Nov., 1860, and reliable returns of their movements have not been received. New York.-March 15, a meeting of bank officers was held, and the resolution of non-intercourse adopted in Nov. against the Chemical Bank was rescinded. March 19, James M. Cook resigned as su Vermont.-There were many applications for re-charters before the Legislature. Pennsylvania. The banks of Pennsylvania had suspended Nov. 19, 1860, and in Jan., 1861, a bill was introduced into the Legislature to relieve the banks from the penalties incurred by that act. The auditor-general reported that the exact amount of relief notes issued at the general suspension in 1837 was $2,243,015; of these there were still outstanding $102,336. The Legislature discussed a bill requiring the banks west of the Alleghany Mountains to redeem in Pittsburg, and those east, in Philadelphia. May 16, a bill was passed supplementary to the act for equalizing the currency of the State. It required all banks to receive the notes of all other banks that had paid specie Nov. 19, and to pay theirs out. The resumption of specie payments was fixed for Feb., 1862; the bank notes to be taken for taxes and tolls; the banks were required to redeem in specie as much of their circulation as is required to meet the August interest of the State debt. Minnesota.-March 8, an act was passed allowing United States stocks, bearing not less than 5 per cent. to be taken as security for bank circulation. New Jersey.-The Legislature, which was in session in Jan., 1861, had bills before it for the creation of new banks. Wisconsin.-By the law the banks were exempted from paying specie until after Dec. In Sept. the bankers held a convention at Millwaukie, and resolved to commence the redemption of Wisconsin currency at that city and Madison, Oct. 15, thus anticipating the action of the Legislature. Some of the banks failed to comply with these resolutions, and in Nov. the convention again assembled and resolved that such banks as failed to resume, according to law, December 1, should be wound up. If it was found necessary to make a temporary reduction in the currency of the State, the bankers' committee were authorized to make a requisition on the banks for the purpose. Illinois.-A bill was introduced into the Legislature in Jan. to create a new banking system for the State. It was to consist of a mother bank at Springfield, with 30 branches in different parts of the State, on a specie basis, This plan was submitted to the people in Nov. and voted down by a large majority. The bank commissioners notified the auditor of the failure of 17 banks, and that they must be placed in liquidation. The Legislature passed a bill that no checks or paper of any kind payable at sight, should be allowed grace. All new banks were required to redeem their notes in Chicago or Springfield, at not more than 4 of 1 per cent. discount. Virginia.-The Governor in January sent a Message to the Legislature on the subject of the banks refusing to supply sufficient specie circulation to meet the July interest on the State debt in specie. The circulation of all the banks was stated at $9,476,355, and he advised measures to compel them to furnish the required means; the banks, however, subsequently met the requirement of the Governor. The Legislature legalized suspension until March 1st, 1862, on condition of their furnishing specie funds, $1,024,440, to meet the interest of the State debt, and $1,284,567 for the January interest. April 18, the city of Richmond issued small notes, and a great many corporations, towns, and villages pursued the same course. Louisiana.-The Board of Currency, in January, urged upon the Legislature the propriety of suppressing all notes under $10. This proposal was approved by the Governor in his Messsage to the Assembly. Kentucky. There were various schemes before the Legislature to increase the bank capital of the State. One, by Senator Andrew Johnson, proposed to the State to start a bank, "the State Bank," with a capital of $15,000,000, to be made up from stock owned by the State in existing banks, the issues from $1 to $100. The profits to go to increase the capital until the fifteen millions should be paid. The bank to keep 33 per cent. of the circulation on hand, and if, by any cause, the amount should fall below, the institution might suspend payments until the quota is recovered. S. Carolina-The State Bank issued notice that the bonds of the State authorized for the war of independence, were ready for sale by the institution. Missouri.-Governor Jackson, in March, signed the bill legalizing suspension of the Missouri banks, and made some important changes in the banking law. August 16, the 11 banks of St. Louis made a loan of $250,000 on behalf of the Federal Government. Ohio.-May, a petition to the Legislature to legalize suspension was reported against unanimonsly in the Senate Committee. The Board of Control of the State Bank agreed to take $300,000 of the war loan at par. Massachusetts.-April 18, the Boston banks addressed the Governor of the State offering 10 per cent. of their capital in aid of the Commonwealth. A law was passed, to take effect June 1, 1861, requiring all banks out of Boston to keep on hand 15 per cent. of their circulation, and deposit balances due a bank in specie in Boston and New York shall be deemed specie after July in each succeeding year; each bank is to add 1 per cent. to its specie, until the aggregate reaches 20 per cent. of the circulation and deposits. Georgia.-The Bank Convention met at Atlanta, June 3d, and recommended to all banks to receive as currency the Treasury notes of the Confederacy, and to advance their own notes to the Treasury until the Treasury notes could be prepared. The convention adjourned to meet at Richmond, July 24, when they passed resolutions to support the Government. BARBOURSVILLE, the county seat of Cabell County, in the extreme west of Virginia, situated on the Guyandotte River, a tributary of the Ohio, was the scene of a brilliant skir mish on the 13th July, 1861, which resulted in the expulsion of the Confederate forces from the village. Five companies of Colonel Woodruff's Regiment, belonging to General Cox's division of Federal troops on the Great Kanawha River, started at midnight, on the 12th, from their camp, and marched silently but rapidly upon Barboursville, which, however, they did not reach till two hours after sunrise. On coming in sight of the town they found the Confederate troops drawn up in order of battle, in a very strong, and apparently inaccessible position, commanding their route for two miles. Between them and the Federal troops was a covered bridge, which must be crossed, and which was commanded by the enemy's cannon. The Federal troops entered the bridge at doublequick-step, but found that the planks had been removed from the farther end, and after a moment's delay, were compelled to cross it in single file on the string pieces, subjected to a galling fire. Though necessarily disordered by this movement, they rallied at once, and under a suecession of volleys from the Confederate troops, charged bayonets up the precipitous side of the hill, pulling themselves up by the bushes and jutting turf, and rushed, yelling at the top of their voices, upon the enemy, who fled panicstricken, without attempting any further resistance. The Federal forces occupied the town at once, and fired upon the retreating foe, wounding one or two, but were too much exhausted to pursue them. He BAUR, FERDINAND CHRISTIAN, a German professor of theology, born June 21, 1792, at Tubingen, died in the same city Jan. 4, 1861. became professor ordinarius of evangelical the ology at Tubingen in 1826. He early distinguished himself as a theological writer, and was regarded as the founder of the Tubingen school of theology, a modified rationalism. His eloquence and power of vivid illustration attracted numerous pupils to his lectures, and many of the eminent scholars of Germany embraced his views among them, Zeller, Schwegler, Korblin, and others. He was a voluminous writer on theological topics, and many of his treatises give evidence of profound research and thorough appreciation of the subjects which he discusses. His "Historical Manual of Christian Dogmas," published in 1847, is regarded as a work of great value, and his investigations of Gnosticism threw much light on the history of that early heresy. At the close of his career he is said to have expressed regret that his teachings should have led so many of his pupils into what he then regarded as error. BEALINGTON. A small village at the foot of Laurel Hill, near Beverly, Randolph County, in Western Virginia, where a severe skirmish took place on the 8th of July, between a detachment of the 14th Ohio and 9th Indiana regiments and the Georgia 3d, one of the finest regiments in the Confederate service, numbering 1,260, and supported by portions of several Kentucky and Tennessee regiments. The Confederate troops, a considerable portion of whom were cavalry, advanced from a wood near their camp, to attack the Federal force, when their progress was arrested by a sharp volley from the latter. They rallied, and put forward their cavalry to charge upon the Unionists, when Colonel Barrett's (Ohio) battery threw a couple of shells into the midst of the troop with such effect that they retreated into the wood; the Federal skirmishers pursued, and the battery shelled the woods till the Confederate force broke and fled, and could not be rallied, and the Federal troops advanced and occupied their camp. The Union loss in the engagement was 2 killed and 6 wounded; the Confederate loss, 20 killed and 40 wounded. BEAUFORT. (See ST. HELENA PARISH.) BENNETT'S MILLS. At this small village, in Dent Co., Missouri, a small body of the Dent Co. Home Guard having their head-quarters there, and numbering only 38 men, were attacked about the dawn of day, Sunday morning, Sept. 1, by a body of 350 Confederate troops, belonging to Schnabel's regiment. The Confederates advanced stealthily in two divisions, having first picketed their horses on the Salem road, and crept around the pickets, and had nearly reached the camp before the alarm was given. The little band of Home Guards, taken by surprise, caught up their guns and resisted bravely for half an hour, driving the Confederate troops back at their first rush up the ravine. At length, finding themselves in danger of being overpowered by the greatly superior force of the enemy, they retreated under the order of Sergeant Bay, the highest officer left, and escaped up another ravine. The Confederates did not pursue them. The Federal loss was 3 killed and 6 wounded. The Confederate loss was not ascertained, but their killed and wounded filled a large Michigan wagon which they seized, and in which they carried them from the field. BEVERLY, the county seat of Randolph County, Western Virginia, a considerable village, situated east of Laurel Hill, on an affluent of the east fork of Monongahela River. On the 12th July, Gen. McClellan, then in command in Western Virginia, and having his head-quarters at this place, received propositions of surrender from Col. Pegram, commanding the Confederate force in Tygart's Valley, six miles distant, which force Gen. McC. had been pursuing for some days. The following was the corre spondence preceding the surrender: NEAR TYGAET'S VALLEY RIVER, SIX MILES FROM BEVERLY, July 12, 1861. To Commanding Officer of Northern Forces, Beverly, Va.. SIR: I write to state to you that I have, in consequence of the retreat of Gen. Garnett and the jaded and reduced condition of my command, most of them having been without food for two days, concluded, with the concurrence of a majority of my captains and field officers, to surrender my command to you tomorrow as prisoners of war. I have only to add, I trust they will only receive at your hands such treatment as has been invariably shown to the Northern prisoners by the South. I am, sir, your obedient servant, Lieut.-Col. P. A. C. S. Comd'g.. To this letter Gen. McClellan replied by his aid, Lieut. Williams, U. S. A., as follows: HEAD-QUARTERS, DEPARTMENT OF THE OHIO, John Pegram, Esq., styling himself Lieutenant-Colonel to me. SIR: Your communication, dated yesterday, proposing the surrender as prisoners of war of the force assembled under your command, has been delivered As commander of this department, I will receive you and them with the kindness due to prisoners of war, but it is not in my power to relieve you or them from any liabilities incurred by taking arms against the United States. I am, very respectfully, your obedient servant, GEO. B. MCCLELLAN, Maj.-Gen. U. S. A., Comd'g Department. The number of prisoners thus surrendered was about 600. BINGHAM, KINSLEY S., an American statesman, born in Camillus, Onondaga Co., New York, Dec. 16, 1808, died at Green Oak, Livingston Co., Michigan, Oct. 5, 1861. He received a good academic education in his native State, and was placed at an early age in a lawyer's office, where he served as clerk for three years. In 1838 he emigrated to Michigan and settled upon a farm. In 1837 he was elected to the Michigan Legislature, and continued for five years a member of that body, and subsequently for three years was Speaker of the House of Representatives of the State. 1849 he was elected a Representative in Congress, and served during the 30th Congress on the Committee of Commerce. In 1854 he was elected Governor of the State, and retained in that position till 1859, when he was chosen United States Senator, which office he held at the time of his decease. Mr. Bingham was an able and judicious legislator, a patriot, and an estimable man. In |