The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1845-10-01

The above table shows that for the six months ending
October T. semi dividends were all above
three per cent several banks declaring 81 per
In October 1874 many of the banks declared but "a per
cent dividend and in instance only per cent The
banking capital of Boston is but three hundred and
seventy thousand dollars larger than it in October
s43 The value of the capital according to the average
dividends for ten years had decreased in October lsi3
from Sl7ll0000 to SIG AGO 972 considered six per
investment The dividends received by the four
banks in Boston for the ten years to ls4 inclusive
since they commenced paying dividends, indicate the
value Of their aggregate capital six per cent invest
ment, the which six per cent per annum has
been received to have been in October Is4l Sl676 2s9
H. less than the par Of sl7 by the sum of $s4
no 49, and in October lS4s $1,000 972 81 which was
less than the par by the of s649o27 49, having su
fered depreciation of ,sl7 80 in 1912 and ls43
The capital of the "a banks 1871 and 1913 was ST.
10000 and the aggregate capital for ten years SILL
100000 The aggregate dividends for the ten years to
ls4l indicate the value of as six per cent investment
or the sum on which interest has been received have
been only Sl67 1877 &c. less than the par by the
sum OF S34l7l0 81, or S3il 40 % per The
amount S34l7l02 81 was unproductive and the interest
thereon S2ooo26 IA in ten years 500 81 per
mum, which has been a loss to stockholders.
The aggregate dividends for ten years ls43 indicate
the value Of the aggregate capital have been for that
time as per cent investment Sl6l 722 60 or the
sum on which interest has been received less than the
par by the sum of $649o277 81 s649o27 10 per
which has been less to stockholders The difference
between these two amounts S3073 for ten years
or S3O7s7 so per annum which last is the
of the value Of the capital $ 600 of the "a banks in
Boston in 1912 and lsa3 This difference the depreci
alton in two years indicates loss of interest to stock
holders of SlSi 800 so in ten years Ss O5 per an
mum, and amounts to 56h Of the whole capital or 55th
Of the value of the capital in lsi The whole depreca
ton S6i9027 70 amounts to than 25h part Of the
capital, ST., 900.
Since ls43 the capital invested in banking in Boston
has paid more than six per cent per The average
dividend declared payable the 9th of Oct 1885, was
at the rate Of 81 per cent on the whole banking capital
of the city The increased business of Boston, without
corresponding increase In the banking capital gives
that in existence more active employment This i'm
in the per cent interest paid by the banks will
raise such investments in the minds of the capitalists of
that section of the country and improve the value of the
stocks SO long the amount Of capital invested in that
business remains reduced but any increase in the prefs
OF these institutions creates anxiety among capita
lists to get up new banks or increase the capitals of the
DID, and applications made at to the legislature
for additional banks and the old banks for an addition
al capital In this way the banking capital of all the
principal cities becomes too large and the competition
Tor Its employment expands the currency stimulates spe
culaon in the staple articles Of commerce. and conse
quenty deranges trade generally. The banking capital
of Boston is large enough to afford all the facilities the
merchants ofthat cyor vicinity actualyrequre carry
on their legitimate business for the ten years. no
matter what the increase may be- and by keeping down
the amount Of capital the currency would every year
become valuable trade increased and should
not hear of SO many Of bankruptcy and the almost
instantaneous loss of immense fortunes. There would
be gradual increase in business but it would be
permanent and healthy there would be of those
runous reactions that now sweep away many mer-
camille houses whenever they come upon them.