Morning journal and courier., 1881-07-13
Profits of Banking.
Some Boston E1pertenees-A Comparison
 With Thirty Years Ago.

some bOstOh E1p0r10nceS-A OONnpAF1SOh
 With Thirty Years Ago.
 [From the Boston Commercial BuIetin.l
 Thirty years ago were the days of State banks, and dozen years before that creation of necessity the national bank system came into vogue. State street was the compara- lively quiet headquarters of the ''moneyed power' of the State; it was before the clear ing-house system was introduced to facilitate the exchanges of the banks, and about the time of turning point in the commercial history of the city. The number of banks in Boston at the time of which we write was twenty eight. There were also one at Charlestown, two at Cambridge, and one at Roxbury. Twenty-two of the Boston banks were located on State street. Of the bank presidents three still occupy the positions which they did thirty odd years ago, viz, James w. Converse, of the Mechanics bank; Franklin Haven, of the Merchants, and Thomas Lamb, of the New England. The Grocers' and the Union banks, both located on State street, have disappeared from the list of Boston banking institutions. The dividends paid at the Boston banks four years previously had ranged from 3 to per cent. In the year following; two banks the Suffolk and the Market, each paid 10 per cent. the Freeman's paid 81 four others the Boston, Mechanics, Merchants, and New England-paid 8; the Shoe and Leather Dealers paid 9, and the lowest dividend paid was 64 per cent, by the Washington. In 1850 there were twenty-eight banks, with capital of SIS, ,960, 900, and the dividends were at the rate of S1, 534, ,OOO for that year, or at the average rate of 768 per cent. The increase of the capital of the banks has been slow in the previous ten years, growing from $17, ,850, ,0OO to $19, 2S0, ,000, but the rate of dividends in the meantime had increased from $97O, ,25O to $1, ,534, ,OOO. At the time of which we write (30 years ago) there were 42 country banks in the State, with capital of $7 ,320, 900.
 Compared with the last (ApriD statement of 61 national banks in Boston, it would ap- pear that the banking business was more profitable in this city 30 years ago than it is to-day. The amount of dividends of the national banks within the limits of Boston during the 12 months ending with April 1 was $3, 341, 300, equal to an average dividend of $6, 365.52, against $17.6S declared in 1850 by 28 banks with capital of SIS, ,960, 900. These figures show that the money of our banks 30 years ago possessed more saving power than it now does, the difference amounting to S1.32 on each $1O0, or $441,- 13O in all, which sum added to the 1SSO-S1 dividends would equal $3, 783, ,O3O.
 Thirty years ago there were only seven banks each with capital of $1 ,OOO, 900 or over, but 8 majority of the total capital was held by Il banks. At the present time 30 of the 6l banks hold four-ffths of the total capital The combined premium on one share of all the banks ''rolled into one, " &C., cording to the last official statement, was $7,7S1, or an average of $127.50 per share. The average premium is as high now as it was then.
 The constant and regular increase in the ratio of profits earned by the money em- ployed in commercial banking in this city 30 years ago not only indicated the increased burden which the merchants were compelled l to pay, but showed the growth and progress ' of our trade at that period. From 1S43 to | 1850 the rate of money increased 90 per cent, or per cent. per annum.
 A further analysis of the figures also shows ! that the. aggregate dividends in Boston in | some years were higher than in New York | in the same years; while the increase of bank capital here was also larger than in New York In 1851 the capital of the Boston banks had increased to $3S, 265, 900, and the | dividends ranged from to per cent. per \ annum The capital of the Merchants bank at this time was $3, ,000, GOO. The Faneuil \ Hall bank went into operation this year. These are very suggestive figures. Bank | stock must have been very desirable in- Il vestment in those days. Now purchasers are \ compelled to pay premium all the way f from to GO per cent. for bank stock, and l be satisfied with a dividend ranging from 3 I to per cent. per annum, the banking busi- ness to-day being handicapped in various ! ways and trade subjected to a severe and in- | tense competition, the government also having V1fGually eSLADuBQ6Q d 1OW Idbo O4 4AtcHe6C perforce the immense volume of currency in l the country, and coupled the general bank l ing business with it's financial system. The volume of business transacted by the banks of 30 years ago, which paid such large dividends on 8 comparatively small capital, was, however, 8 mere drop in the bucket contrasted with the gigantic doings of our banks nowadays. The weekly business of the 28 banks could be carried in mans hat, but the sssolid men" of that period would grow round d-shouldered under the load of the clearancss of our banks to-day, and become dazed at the figures necessary to employ in representing that business The value of the business of our banks during the past six months aggregates $2, ,124, AL s91, against $I, ,647, ,512, ,696 for the first six months of 1880, and for the month of June, 1881, the exchanges aggregated $39s, ,204, 4s3.
 When the banking capital of the city was less than $20, ,OOO, 900 the valuation was $780, 900, 900 and it's population about 135, 900; i; the value of foreign com, 4erce was about $2g, ,0OO, ,0O0. The value of that trade last vear was @I26, 633, ,245 Who will dare pre- dict what the next 30 years will bring fortha