I. The national banks on a greenback basis from 1863 to 1879, 602.—Attitude of different sections of the United States towards banking and currency in 1870, 603.—Pacific States continued on a gold basis, 604.—II. The Gold Bank Act of 1870 authorizing gold notes, 608.—Intended for foreign traders in East and to introduce national banking system into Pacific States, 609.—III. The gold banks in California, 612.—Promised success, 1872 to 1875, 613.—Panic of 1875 discredited the gold notes, 615.—Decline of the gold banks, 617.— IV. Further causes of the failure of the system, 619.—Analysis of the law and of banking under it, 620.