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part of their funds abroad, provided it is not done at the inconvenience of those who are entitled to the accommodation at home? Does it not enable the banks at such times as money is close, or our manufacturers and others do not meet with a ready sale of their goods, to aid them by curtailing their foreign business, and thereby sustain our own citizens? Indeed, would it not be for the interest of a large portion of the taxpayers in the State, if the banking capital were increased? Would it not afford an opportunity of bringing out a large amount of capital that now entirely escapes taxation? It would seem that if even citizens of other States could be induced to make investments in bank stock here, it would do us no harm, for we should get the benefit of taxes, as well as use of capital. It certainly would be wise to so legislate as to retain our own capital at home. It is unquestionably true, that a very large amount has been driven out of the State for the reason that no opportunity is afforded for investments in banks at home, and also from the operation of our unequal system of taxation-a system that it would seem could not much longer remain in its present shape.

It is not unfrequently claimed that capitalists of other States come here to make investments in the stock of the banks. It is believed, from the best information we have been able to obtain, that it is a mistaken idea. The whole amount of stock owned by non-resident stockholders in the banks in this State, is three hundred thirty-three thousand four hundred dollars, as appears by the returns of the cashiers to the Comptroller.

It is claimed by many, and particularly in the eastern part of the State, and certain localities in the western, with no small degree of justice, that there is a deficiency of banking capital, and that many of our citizens are under the necessity of going abroad to obtain their necessary accommodations, because these cannot be afforded by the present banks. It is true that it requires a much larger amount of banking capital to do the business than it would, could the banks keep out the amount of circulation their charters authorize. We have a banking capital now of eight millions seven hundred twenty-six thousand three hundred eighty-one dollars, which would authorize a circulation of thirteen millions eighty-nine thousand five hundred seventy-one dollars, exclusive of deposits; and as these ordinarily run, it might be increased nearly two millions more, which would give a circulation of about fifteen millions. It rarely, however, exceeds about four millions and a half; but so long as the system of par redemption is kept up, (and we hope it always may be sustained,) few, if any, banks can keep out but a small portion of their legally authorized circulation.

Whether it is good policy for our Legislature to so far disregard the wants of any considerable portion of the people of the State as to compel them to go abroad for their necessary bank accommodations, in their ordinary business, may well be questioned. It should also be borne in mind, that the great increase of manufacturing in the State requires much more bank facilities than was required before that increase, and the works of internal improvement have very materially changed the location of business, and banks are much more used for making collections than formerly. A large proportion of the goods of the manufacturers are sold on a credit and the notes discounted at the banks and collections made.

It may be claimed that by increasing the banking capital, greater inducements will be held out for the people to engage in improvident speculations and investments, and greatly endanger the sound and safe operations of business. If there was no check upon circulation there might be some danger. But the frequent redemptions at the Suffolk Bank, and the rapid communications between different parts of the country, will prevent any greater circulation than the natural business wants of the country will sustain. The moment any banks in New England are unable to meet their redemptions at that institution, their bills are thrown out, their credit is doubted, and they can do but very little business until they make their credit good again. Indeed, this system of par redemption seems to be a most perfect regulator upon all the New England banks. It would seem somewhat surprising that something has not been adopted in other parts of the country that should produce the same beneficial results. If there were, there would be but little necessity for brokers. The bank note of Ohio might be as good in New York, Boston, or Philadelphia, as at the counter from where it issued.

When we visited the Quinnebaug Bank in September last, we found their accounts in such a confused condition, that a balance sheet could not be made, that could be relied on as correct. We however made such an examination into the resources of the bank as to become fully satisfied of their abundant ability to meet all their liabilities to bill-holders and depositors. They had obtained the services of an experienced accountant who was making a thorough examination into the affairs of the bank. We forbade the making of any dividend until they could furnish undoubted evidence of their ability to do so; no dividend has been declared the past year. We visited the bank again in March last, and from exhibitions made to us by the present efficient cashier, and from our own examinations, we were fully satisfied the bank was sound, and would very soon be in a condition to make a dividend. Had the directors for the last few years discharged their duty to the stockholders, by frequent and thorough examinations of the accounts of the Bank, they would have discovered the errors and negligence of the late cashier, and much trouble would have been saved.

We have during the past year obtained a classification of the stockholders in the banks of the State: and from the best information we have been able to obtain, we are satisfied that the stock is held by a very different class of individuals from what has very generally been supposed. We find that the State of Connecticut owns

The School Fund

Held in trust for minors and others

Held by school, ecclesiastical and other societies
By 2141 females -

Total,

$406,000

319,600

447,800

553.665

1,631,515

$3,358,580

The return of the East Haddam Bank not having reacled us, is not included in the above. The whole number of stockholders in the banks in the State, is six thousand two hundred and seventy, exclusive of the amount owned by the State, the School Fund, Ecclesiastical and other societies, so that the average amount of stock held by each stockholder, is about one thousand two hundred and six dollars.

It is believed that a very large proportion of the stock is held by individuals who are not engaged in active business, and who depend mainly on the earnings of the banks for their support.

Annexed hereto may be found an abstract of the condition of the banks in this State, as made from the returns, about the first of April last; also an abstract of their condition for the last twelve years.

All which is respectfully submitted,

NELSON BREWSTER,
JOHN DUNHAM,
HENRY T. HUGGINS,

Bank
Commissioners.

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The above table has been compiled from the Annual Reports of the Bank Commissioners. The typographical execution of these returns is by no means creditable. Several errors are observable-and in the Report of 1847 we find one error of $200,000 in the summary.

The annual Report of the Connecticut Banks for 1847 will be found at page 35, volume second, July, 1847.

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CONDITION OF THE BANKS IN CONNECTICUT, APRIL 1, 1848.

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Hartford.

$15,000

$72,136

$21,388

$103,159

$31,783

$2,450

$4,333

$1,871,534

$2,122,553

Phoenix,

36,683

48,414

19,681

103,130

37,905

2042,076

2,293,795

Connecticut River,

7,000

13,675

2,438

12,370

13.321

24,000

327,220

401,099

Exchange,

11,939

20,119

16,462

85,588

4,646

860,985

1,002,259

Farmers & Mechanics,

11,500

50,407

12,362

27,060

312

9,766

984,322

1,100,139

New Haven,

7,900

31,175

2,494

109,659

818

498,707

653,435

City,

64,382

19,658

5,891

57,651

105,891

5,000

2,982

684,238

947,447

Mechanics,

9,000

23,455

20,185

95,377

535.980

684,166

N. Haven County,

13,700

23,958

10,578

71,944

73,813

35,000

3,405

650,830

887,554

Middletown,

5,600

33,056

128

21,964

7,898

26,000

585

479,735

575,965

Middlesex County,

663

19,426

8,129

1,402

18,968

1,410

324,013

375,411

Norwich,

6,026

14,312

19,247

19,725

37,192

299,449

396,097

Merchants,

17,742

5,634

6,881

5,221

271

716

246,050

282,737

Thames,

10,044

5,694

10,117

10,936

2,257

362,889

463,009

Quinnebaug,

12,868

7,212

6,952

15,475

20

73,150

5,123

295,700

420,360

Bridgeport,

10,500

15,065

18,434

144,212

5,058

20,700

1,800

348,957

569,032

Connecticut,

36,673

24,341

4,678

88,911

23,563

72,615

5,132

358,784

616,764

New London,

4,000

4,741

3,950

27,024

201.402

241,127

Union,

2,500

7,521

6,387

28,616

25,000

3,337

144,735

218,356

Whaling,

5,600

5,000

31.763

5,000

46,050

5,265

156,601

255,475

Windham,

1,553

4,202

1,735

14,945

3,000

1,102

90,434

116,978

Windham County,

1,861

6,783

904

24,313

580

102,659

137,261

Stonington,

500

4,427

170

15,023

1,412

102,815

126,196

Fairfield County,

12,085

6,638

5,842

30,087

55.060

5,491

201,176

317,168

Danbury,

6,845

6,246

3,200

16,636

8,000

30,901

1,774

192,403

266,016

Stamford

5,812

6,235

5,698

8,501

39,770

5,531

142,398

214,053

Meriden,

4,480

5,371

3,263

27,998

206,350

248,425

Tolland County,

2,355

13,996

2,299

9,182

641

183,946

213,922

Thompson,

1,600

3,627

7,276

20,168

2,145

83,822

118,640

Iron,

2,503

5,490

1,365

82,021

5,047

125,654

224.359

Mystic,

600

2,721

89

585

2.000

295

116,697

126,662

Jewett City,

4,300

1,972

134

1,114

4.650

1,577

78.739

92,508

East Haddam,

1,187

4,317

858

2,752

9,319

10,482

123,335

159,745

Total

$329,407

$517,700 $227,603

$1,301,635

$390,543 $505,978

$54,978

$13,424,653

$16,808,829,

Resources.

Stock.

Deposits.

CONDITION OF THE BANKS IN CONNECTICUT, APRIL 1, 1848.

Capital

Bills in

Circulation.

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