Litchfield enquirer., 1858-05-27

THE BANK COMMISSIONERS James E. Durham,
Benjamin Noyes and George H. Noble. have not
been meal-mohed in the report just laid before the
Legislature. In some previous reports such guard
ell and vague style used that ordinary reader
would appreciate the enormities charged The cir
cumlocution- Office phraseology smoothed over the
little Irregularities in such way that only those all
ready familiar with the delinquencies. would see
what was meant but in the report just made the
commissioners prefer their charges. distinctly and
boldly, so that whether Just OF unjust no man can
fail to understand the peccadiioes alleged. r
The severity of the financial storm last fall, APP
pears from the fact that the circulation of banks
shrank from So Al 600 in July to "a, 100. 265 in
January, most of the contraction occurring between
the LIST of August and the LIST Of November. That
the banks could sustain themselves, without sacri-
fcng their customers under such circumstances was
creditabe both to the banks and the customers. On
the 18th of October. 1857. most of the Banks of
Connecticut following the Banks of New York and
Boston, and giving those banks days start, re-
fused to redeem their notes il presented in large
amounts, at their own counters, although they
| tinued to redeem in Boston or New York. and thus
prevented any depreciation of the currency of Con-
necticut.
The Legislature at the session of 1857 granted nine
bank charters, but only four were organized, and
only three are now tiansacting business, viz: The
Etna, and the Merchants and Manufacturers of
Hartford and the Bank of Norwalk.
The cases OF the Bank of Hartford County, of ths
Bank of North America at Seymour of the Exchange,
ford the Colchester Bank the Granite Bank and the
Litcheld Bank of Litchfeld, each receive page or
two of comment and details. Then follow specified
groun Is Of complaint against the Quinnebaug Bank
If Norwich, the shetucket the Norwich the Mer-
chants Bank Of Norwich the Uncas Bank Of Nor
wich the Iron Bank of Falls Will age, (which is said
in one instance only to have loaned railroad cor
poration out of the State than the legal pro-
portion of loans to one firm.) Norfolk Bank, the
Winsted Bank, the Saugatuck Bank of Westport, the
Farmers Bank of Bridgeport the Danbury Bank, II
Pahquioque Bank of Danbnry, the Manufacturer
| Bank of Birmingham, the Windham Bank of Wind
ham. the Waterbury Bank. the Middletown Bank,
the Stat Bank of Hartford the Merchants and Manu-
| factur, rs Bank, the Home Bank of West Meriden,
! the Clinton Bank of Clinton, the City Bank of
Bridgeport, the Whaling Bank of New London the
Bank of Commerce, the New London Bank, the NJ s.
tic Ri, er Rank the Jewet City Bank. the Stafford
Bank, Stafford Springs the New Haven County
Bank, the Phoenix Bank, the City Bank of New Ha-
ven, the Merchants Bank of New Haven, the Rock
vile Bank of Rockville, and the Connecticut River
Banking Co. of Hartford in most of the cases the
charge is that the Bank has bought paper out of the
State at illegal rates. The commissioners say that
the Banks may have been encouraged in their Illegal
practices by the omission of previous Legislatures
to act upon complaints made in the commissioners
reports. They consider the present favorable time
for modifying some of the banking laws Of the State
and suggest:
1st reduction of the circulation allowed the
Banks to so or IS per cent. upon the capital actu
ally paid in.
2. The specie should bear fixed proportion to
the capital, not to the circulation.
3. The Banks should be allowed to use only 25
per cent of their capital in discounts out OF the State
4th. Interest paid on deposits should not exceed
A per cent.
1t is said that many of the Banks are in the habit
OF carrying forward in their accounts large amounts
| As surplus earnings, while at the same time they
| have sustained heavy losses on suspended debts
There various penalties attached to violations
of the banking laws, but as the statutes make it the
duty of no particular person or officer to enforce
them. they remain dead letter, and will doubtless
so remain until some person or officer Is specially
charged with the tlsagreeable duty Of instituting
proceedings against offenders.
| In conclusion, the commissioners testify to the
general soundness Of the Banks and to the efforts
made by the Banks during the panic, to sustain both
themselves and their customers.
The Bank Commissioners charge for 619 days at
SO per day; 81, $50 expenses printing blank cir
culars. stationery, and postage $3.50, giving an ag
gregate of S4, 4S9.
The commissioners have handled the Banks with
out gloves and it would not be surprising II the
Banks were to turn upon their aectlsers or some Of
them. They will, If they can.-Cowant.