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