The Bennington banner. [volume] (Bennington, Vt.) 1858-1894, 1891-08-28
BANKS AND BANKING.
Large Amount OF Capital Invested In
the business.


the Ruslneas.
The history of the Boston banks be-
gins with 1886, when the first one in
America was established in this city 1t
loaned money onTeal and personal estate
and imperiShable merchandise, and its
career was brief. The second bank in the
country was also established here in
TIA, 1t, too, had short lease OF life, but
during its period of existence it issued
100000 worth of scrip called 'mer-.
chants notes." and its credit was good.
In 1910 the Land Bank" was organized
by several hundred citizens to afford re-
lief at time when specie was scarce
The Massachusetts Bank, which still
exists, was established in 1874, and eight
years later, the Union was chartered, the
state subscribing one-third of its capital
stock of S1.2O0,000. From this time until
about 1912, state subscription was reg
ular feature of the bank charter. In 1892
branch of the United States Bank was
opened in Boston, and In 1918. by the es-
tablishment of the Suffolk Bank, the ia
nous Suffolk Bank system" for the re-
demption of bank notes issued by insti-
buttons outside of Boston, was intro
duced. This system was put into opera
ton at time when the CITY was flooded
with country bank bills, and continued
in operation until 1858, when the Bank
OF Mutual Redemption was established
for the special purpose Of acting as the
agent OF
The New England Banks
generally in the redemption Of their
bills.
At the time of the financial distress in
1887 there were "a banks in the city, all
of which suspended specie payment,
though not until after the New York
banks had suspended. Several of the
banks were not able to stand the strain
and went under, but the older ones
passed through the crisis without per-
manent injury.
In 1856 the clearing house was estab-
lished, some 80 banks entering into the
scheme. The exchanges IN that year
amounted to about 81, O00, 100000. In the
crises of 1857 only one bank failed.
Upon the passage Of the national bank
ing law the banks of the city changed,
the Safety Fund. being the pioneer, be-
coming the First National of Boston.
In 1883 the city had 80 national banks,
representing a combined capital stock
paid in OF $50, 10000. There were also
several trust companies which did a
general banking business, but issued no
circulation.
At the present time there are 81 ma
tional banks in Boston, 10 savings banks
and 10 trust companies.
The full statement of the condition of |
the
sIxty-one National Banks
Of the city, as made to the comptroller of !
the currency up to the close of business, !
May T. 1891, is given below
As an interesting summarys0f the con-
dition Of the banks table is also given,
showing the capital, the surplus and the
undivided profits of each bank, with
other items which directly bear upon
their condition. AS will be seen, the 81
national banks of Boston represent a
capital stock paid in Of $53, $4,000. The
banks also show surplus Of $40, 421, 113,
and undivided profits Of S5,637. 4S3 Ex-
penses and taxes paid amount to S196,
800 The undivided profits, Jess ex-
penses and taxes paid. were S5.44O, 5s3
A comparison with the return for Feb.
%, 1891, shows the following changes;
The surplus has increased S53S,S7S, the
profits have decreased 81, 1853,
439. The undivided profits, less expenses
and taxes paid, have decreased since the
last statement 81, $780, Se.
The amount of United States deposits
held by the various depository banks of
the city at the date Of this statement was
Ss17,7l3, divided among the following
banks Shawmut, S774,S5e; Merchants,
$40, b57. Total, SSl7,713