The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-09
From the Hartford Patriot and Democrat.
SUMMARY OF THE BANK LAWS OF CON
NECTICUT A..

We have been induced to make the following summa-
nv Of the bank laws Of this State that readers may
understand the character Of the laws, by which those
institutions regulated. IL the salutary restraints,
which keep those institutions in check, were more
tensiyey known and better understood should hear
less Of that wholesale denunciation, which many
accustomed to indulge in, towards the entire system
few years ago the banking system not perfect
it s II possessed much power without the ncces-
say restrictions to protect the public from arbitrary en-
croachments, and often acted the part Of favore
child spoiled BY much indulgence. But the people,
ever jealous Of their rights discovered that the
power which they had too freely bestowed, was exer
cised much to their disadvantage. They called loudly
for reformation, and the system quickly freed from
its most obnoxious features-the rights Of stockholders
were defined and limited, and the public efectualy
guarded from oppression however willing bank directors
might be exercise it. Such is the benefit, which has
resulted from the clamor raised against banks Any
who examines the subject and observes the important
changes which have been made, will not regret the
suit And the more thoroughly it is understood, the
reason will the democracy OF the State have to
pride themselves in being instrumental in accomplish
ing great reformation. Many who, in those days,
raised their very loud for the reform, yet g
that the desired change has taken place. and are
now much more jealous for the humiliation of the en-
tire system, than they were for its reformation.
No doubt there yet many criis IN our banking sys-
tenn, but believe that this Stale is tccH of NOT
BETTER than most other States. We should like to see
similar summary from crcry State IN the Union, and
then zoe should De able contrast tch neigh
bors, and judge ,ohich Is the best system
The several Incorporated banks in this State have
power issue post notes. and prohibited from ssu
ing any bill for sum less than dollar All shares
banks, manufacturing and other incorporated compa-
nes considered personal estate, and may be dis
posed Of any other personal estate. The President
and Directors Of each bank, bound annually to lodge
in the Office Of the Comptroller statement under oath,
Of the Cashiers Of the several banks of the amount Of
the capital stock of such banks of the debts due to the
same, Of tho monies remaining in deposite therein Of
the notes in circulation and Of the cash hand and
generally Of the state Of the bank power Of Attor-
ney entities the person holding the same to vote at any
meeting Of the Stockholders within the period OF twelve
months after such power Of Attorney has been execut
ed. Such power of Attorney cannot be used at more
than one annual meeting of the Stockholders. When
the shares of stock in any incorporated bank exceed
hundred dollars, the Stockholders may at any regular
meeting divide the same into shares Of hundred dol
lars each. .. .-
Since the 18th day Of January, 1885, no bank has
been permitted to retain surplus earnings, more than
FIVE per cent. the amount Of capital stock actually
invested in said bank.
In 1895, the act prohibiting the circulation of small
bills passed which forbids any corporation having
banking powers this State, after the first day OF July
1885, ISSUE and any put in circulation any
note bill other evidence Of debt OF less denomination
than two dollars and after the first day of January 1885,
nomination than three dollars, under forfeiture Of one
hundred dollars for cpery bill put IN creuiaton-an
every incorporated company that shall receive any such
bill, &c shall on conviction forfeit lis charter.
The law Of 1895, regarding the circulation of small
bills was suspended by the last Legislature until the LIST
day Of JULY 1885, under certain conditions, viz that
they should pay specie for all bills Of less denomna
ton than three dollars and bank be permitted after the
LIST day Of July, 1888, TO issue to circulate any
manner bills under a less denomination than fre dollars.
A. al, ,,T
S5OOO in any bank in this State entities the State
one director therein; and $4,000 Of stock entities
to two directors who appointed by the General As
semby When this State holds stock belonging to the
School Fund, in any bank. the Commissioner OF said
fund has access the books and statements Of the bank
aud has right Of examining to the condition Of the
long to the State the Treasurer Of the State has the
the Commissioner Of the School Fund has. All banks
issued and notes Of all denominations numbered
regularly when issued The act relating the suspcn-
sion Of specie payment declares that every bank rcus
United States violated their charters and for which
they had no legal sanction, but condition. that the
acts Of incorporation shoud at all times be subject 10
be modified amended and repealed by the Legislature
said acts OF incorporation confirmed and establish
cd During the continuance of said suspension, banks
are authorized to issue notes for not exceeding
in notes OF other Incorporated banks which current
whose capital stock paid in, docs no, exceed one hun