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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 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

106,000 The School Fund

319,600 Held in trust for minors and others

447,800 Held by school, ecclesiastical and other societies 553,665 By 2141 femals

1,631,515

Total, $3,358,580 The return of the East Haddam Bank not having reacl'ed us, is not included in the above. The whole number of stockholders in the banks in the State, is six thousand two hundred and seveniy, exclusive of the amount owned by the State, the School Fund, Ecclesiastiral 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
JOHN DUNHAM,
HENRY T. HUGGINS,

Commissioners.
New Haven, May, 1848.

COMPARATIVE VIEW OF THE BANKS OF CONNECTICUT,

1847, 1818.

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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.

$4,333

20

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

Bills of Due from Due from Stocks, Checks and Bills
Resources. Estate. Specie. other Banks other Banks. Brokers. Bonds &c. Cash items. Discounted,
Hartford.

$21,388
$103,159 $31,783 $2,450

$1,871,534
Phænix,
36,683 48,414 19,681 103,130 37,905

20.12,076
7,000 13,675
Counecticut River,

2,438
12,370 13,321
24,000

327,220
Exchange,
11,939 20,119 16,462
85,588

860,955

27,060 312 9,766

954,322 7,900 31,175 New Haven, 2,484

818 103,659

498,707
City,
64,382 19,653 5,891
57,651 105,891 5,000 2,982

684,238
Mechanics,
9,000 23,455 20,185
95,377

535,950
N. Haven County,
13,700 23,958 10,578
71,941 73,813 35,000

3,405

650,830 Middletown,

128 21,364 7.898 26,000

585

479,735 Middlesex County, 663 19,426 8,129 1,402 18,968

1,410

324,013 Norwich, 6,026 14,312 19,247

19,725
37,192

299,449
Merchants,
17,742 5,634 6,881

716

216,050 Thames, 10,044 5,694 10,117

10,936 2,257

362,989 Quinnebaug, 12,868 7,212 6,952

73,150 5,123

295,700 Bridgeport, 10,500 15,065 18,434 144,212

5,058 20,700

1,800)

319,957 Connecticut, 36,673 21,341 4,678 89,911 23,563 72,615 5,132

358,754
New London,
4,000 4,741 3,950
27,024

201.402
Union,
2,500 7,521 6,397

25,000
3,337

144,735
Whaling,

5,600
5,000
31.763 5,000 46,050

5,265

156,601 Windhain, 1,553 4,202 1,735 14,915 3,000

1,102

30,134 Windham County,

580

102,659 Stonington,

1,412

102,815 Fairfield County, 12,085 6,638 5,842

55.060 5,491

201,176 Danbury, 6,845 6,216 3,200

16,636 8,000 30,901

1,774

192, 105
Stamford

5,698
8,501 39,770 5,531

142,398
Meriden,
4,480 5,371 3,263
27,998

206,350
Tolland County,
2,355 13,996 2,299
9,182

641

183,946 Thompson, 1,600 3,627

7,276
20,168 2,115

83,522
2,503 5,490) 1,365
82,021

5,0.17

125,654 Mystic,

585 2.000

295

116,697 Jewett City,

4.650 1,577

78.739 East Haddam,

858 2,752 9,319 10,452

123,335 Total

$329,407 $517,700 $227,603 $1,301,635 $390,543 $505,978 $54,978 $13, 124,653

Total
Resources.
$2,122,553
2,293,795

401,099
1,002,259
1,100,139

653,435
947,417
684,106
887,554
575,965
375,431
396,037
282,737
403,009
420.360
569,032
616,761
211,127
218,356
255,475
116,978
137,261
126,196
317,168
266,016
214,053
245,425
213,922
119,640
224,359
126,662

92,508
159,745

$72,136

$15,000

4,6-46
11,500
Farmers & Mechanics,

50,407 12,362

5,600 33,056

5,221 271

15,475

28,616

1,961 6,783

904 24,313

500 4,127

170 15,023

30,097

5,912 6,235

600 2,721

8)

4,300 1,972

134 1,114

1,187 4,317

Iron,

$16,808,829

CONDITION OF THE BANKS IN CONNECTICUT, APRIL 1, 1848. Capital Bills in

Earnings since Dividends Other Resources.

Stock. Circulation. Deposits. Banks. Surplus. last dividend. Unpaid. Liabilities. Hartford, $1,131,699 $ 517,264 $221,919 $64, 742 $121,863 $ 27,899

$ 4, 264 Phenix, 1,253,000 531.807 257,136 16,593 98,173

65,583

2,363 $8,842
Connecticut River, 250,000 91,311 42,733 1,714 7,305

7,294

709
Exchange,
525,000 265,173 149,6 16 18,388 30,821

12,763

1,466
Farmers and Mechanics, 510,60) 331,909 125,597 11,297 55,560 28,437

438
New Haven,
361,800 159,137 85,501 19,761 11,048

9,026

860 City, 500,000 299,537 105,146 13,776 17,147 10,832

9 18 Mechanics, 300,000 187,003 149,425 20,808 18,337

7,894

607 New Haven County, 514,975 246,423 66,406 27,821 16,000 13,866

2,052 Midletown,

7,465 1,079

37 Middlesex County, 221,000 98,616 35,975 5,706 9,353

4,949

811 Norwich, 210,000 98,614 45,046 27,066 6,774

4,781

815 Merchants, 157,211 62,257 43.167 5,916 8,969

1,216

2,248 1,751
Thanies,
247,-100 100,035
49,126 1,955 1,652

2,270
1,149

119
Quinebaug,
250,000 73,239
55,519 16,055 20,234

5,312
Bridgeport,
210,000 235,954 70,061

445
22, 462
6,597

511 Connecticut, 275,000 216,000 92,657

691 New London, 150,875 59,075 20,961 2,231 4,482

3.077

364 Union, 100,000 79,238 24,932 1.709 10,000

2,390

36 Whaling, 163,750 47.405 31,999 2,302 6,305

3,314

318

80 Windham, 60,000 44,297

630

572 Windham County, 62,700 59,560

2,194 Stonington, 59,600 39,393

8,287 1,631

844
Fairfield County,
100,000 168,754 29,452

4,878
Danbury,
89,500 147,758
13,770 3.065 8,292

3,422

178 Stamford, 60.000 116,900 25,210 2,146 8,0 13

804

943
Meriden,
150,000 74,425

5,650

105 Tolland County, S0.200 68,472 46.072 2,994 11,985

4,170

28 Thompson, 60.000 44,085

2,169 Iron, 73,960 113,627 31,705 1,361

3,705 Mystic, 52,700 53,359

133
Jewett City,
44,000 39,744

2,268
362

35
East Haddam.
66,160 61,515 21,236

3,275

177

Total
Liabilities.
$2,122,553
2,293,795

401,099
1,002.259
1,100,139

653,435
*947,447
681,166
857,554
575,965
375,411
396,097
282,737
403,009
420,360
569,032
616,764
241,127
218,356
255,475
116,978
137,361
126,196
317,168
266,016
214,053
245,425
213,922
116,640
224,359
126.662

92,508
159,745

Due other

369,300 103,519 49,565 16,630 28,369

212 25,983

6,186

8,610 324 2 513

10,605 3,000

10,767 5.623

14,083

13,497 3,134 1,621

9.285 569 2,531

11,747 1,201 5,894

1,627

2, 148 3,650

139 7,242

Total.

$8,726,381 $4,891,265

$1,994,589 $299,397

$ 595,908

$261,325

$29,132

$ 10,830

$ 16,808,829

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