3 The officers of the bank are, James Bell, President; James Burley, Cashier; James Bell, Moses Sanborn, Robert Shute, George Gardner, William Odlin, John Sullivan and Charles Connor, Directors. James Bell is indebted to the bank, as principal, in the sum of $1,031 12, and is liable, as surety, in the sum of $576 62. He owns stock to the amount of $650. Moses Sanborn is liable, as surety only, in the sum of $300. He owns stock to the amount of $11,600. George Gardner is liable, as surety only, in the sum of $215 59. He owns stock to the amount of $1,950. No other director is in any way indebted to the bank. The charter will expire Janua ry 1, 1852. The following table will exhibit the liabilities of the aforesaid banks, to both private individuals and corporations, (exclusive of what is due to the stockholders, in the capacity of stockholders,) together with the available funds with which to pay the same, deducting therefrom the real estate, bad debts, debts due on the pledge of their own stock, and unavailable stock. The first column of figures shows the amount of said debts, and the second the amount of funds. From the facilities furnished the undersigned, to enable him to obtain the means of making the foregoing report,and the prompt answers of the officers of all the banks, to his interrogatories, he has no doubt of the correctness of the foregoing statements, and of the soundness of the institutions, and that the public are perfectly secure from loss, by reason of their transactions. All which is respectfully submitted. IRA ST. CLAIR, Bank Commissioner. Concord, May, 1845. To His Excellency the Governor: The undersigned, having between the 25th of March and the 15th of April last, in the discharge of his duty as Bank Commissioner, visited and made an examination into the condition of the Lancaster Bank at Lancaster, the Bank of Lebanon at Lebanon, the Mechanicks and Merrimack County Banks at Concord, and the Winnipissiogee Bank at Meredith, respectfully submits the following REPORT: It has been his aim in every examinatiou, to discharge thoroughly and fully, the duties imposed upon him by law. And he has in reference to every bank he has visited, entered into such an inspection of books, papers, evidences of debt and funds on hand, and into all such inquiries as seemed to him necessary, to ascertain what was its actual condition, and whether it had violated in the administration of its affairs, any provisions of its charter, or of the laws of the land. Below is a recapitulation in tabular form, of the statements of the several banks, substantially as rendered to me by their cashiers, on oath, and tested by the present examination. If the assets of these banks were good for the amounts above stated, the stock of each of these would be above par, to the extent of the item of "profit and loss," embraced in the statement of its liabilities. This, in some instances, is far from being the case. Are, then, the means of either of them, bad, doubtful or unavailable, to such an extent as to endanger the public, or af ford any juat grounds to doubt the ultimate redemption of its bills? The Lancaster Bank, has twice within a short period, been subject of special examination. Heavy losses occurring several years since, and certain errors in the manner of its organization and management, explained at some length in a report made in June last, have involved it in embarrassments of long standing. All its bad paper, and over-due interest, has been brought into its statements and retained there. I am disposed to regard the following as a fair classification of its demands as at present existing. Notes, Good. Doubtful. Bad. 19,874 24 $50,503 62 I have been exceedingly desirous to arrive at a correct estimation of the above assets. And though the above statement is, of course, at the best, but an approximation towards the precise truth, I trust it will not be found to do much injustice to the bank or the public. The item of "real estate," included among the means of this bank, at 5,758 73, after a careful examination of the particulars of which it is made up, I estimate at $4,051 93. The deductions made on both items, amount to $30,102 28. It is due, perhaps, to this bank to state, that its immediate means have increased within the last year, from 5,879 18 to $20,395 43, and that the balance of its liabilities to bill holders and depositors, over its immediate means, which was $36,582 68, in August, 1843, and $31,692 10 in May, 1844, has been further reduced to the sum of $30,102 36. The payment of extra interest by the bank, has been wholly discontinued; its expenses, though yet too great, have been somewhat reduced, and the securities upon some of its demands, have been considerably improved. The Bank of Lebanon has among its "debts due" only one which its cashier deems to be bad, and that for $200 only. Probably $525 would not be far from the proper deduction upon its real estate, which consists mostly of its banking house. The Mechanicks Bank has a considerable amount of bad and doubtful paper. Its cashier says "from my recollection of ex aminations and estimates heretofore made, I think we have from 10,000 to $11,000 of bad and doubtful paper." The sums noted by me as of that character at the time of the examination, amounted to $14,494. The item of real estate is large, and subject to some reduction, which for the present purpose I shall estimate at $1,500. The "debts due" the Merrimack County Bank, embrace only $506 50, estimated by the cashier upon oath, to be bad or doubtful. The item of "real estate" in its statement, is probably rated at $2,000 above its cash value. The Winnipissiogee Bank has a considerable amount of bad paper, embraced in its statement of means. Including a few ledger balances, it will amount, I think, to $11,185, bad, or too doubtful to be worthy of much reliance. The value of the "reat estate" included in the statement of the cashier, at $4,425 32, is probably in reality $1,300 less than that amount. If the above estimates are correct, the Merrimack County Bank has added $14,587, and the Lebanon Bank $5,535 to its capital, while on the other hand, the Lancaster Bank has lost $26,213, the Mechanick's Bank $12,872, and the Winnipissiogee $8,426. Below is a tabular statement of the inmediate means and liabilities of the above banks, reckoning their cash funds and deposits for the redemption of their bills, under the first head, and their circulation and deposits under the second. The third column shows the per cent. upon its whole amount of debts due, which each must collect to pay the balance to the public. Immediate means. Do. liabilities. Per cent. It is but just in this connection, to advert to the fact, that the amounts of real estate owned by the above banks, would of course be a deduction to their full value, from the amount of liabilities to be paid by collections upon their notes due, and thus add considerably to their strength. Upon a review of all the facts, I can scarcely entertain a doubt that all the above banks possess abundant means for the redemption of their bills and the payment of all the debts they owe to the public. Another important question arises here, into which I shall now proceed to inquire. Are any of our banks extending their liabilities and spreading their operations over toe broad a surface, by maintaining a larger circulation than the law allows? Upon this subject the government cannot be too watchful. If there were no limits prescribed for bank circulation, a credit once established, a bank of the very smallest amount of capital might, by energetic efforts for that purpose, so extend its business in every direction, as in the event of failure, to involve the whole community. The Revised Statutes, chapter 140 section 14, provide that "no bank shall have in circulation at any one time, its bills or notes to a greater amount than four-fifths of its capital stock, actually paid in at such time, and then composing its capital stock, deducting therefrom the amount of loans made by such bank upon the pledge of its own stock.” The construction of this section admits of some doubt. As it is generally, and as I am inclined to believe correctly understood, the facts in reference to the several banks may be stated as follows: Banks Lancaster Bank, Merrimack County Bank, Loans made 3.759 33 2,887 66 10,460 97 77,232 00 10,880 00 Winnipissiogee Bank, This table should be taken in connexion with the following explanations. * As to the Bank of Lebanon, the cashier, in answer to the question, "What sum of the loans of the bank now due, 'were made by the bank upon a pledge of stock?" answers, "Nothing, the bank in some few cases holds its own stock to a small amount as collateral, on notes which are good without it—say four or five thousand dollars." At the time my examination of the Merrimack County Bank was made, $3,600 of its bills had been redeemed at the Suffolk, (as I have been satisfied since by sufficient evidence,) which had not then been heard from. If these were to be deducted, the over-circulation would come down to the sum of $2,429. I understood from the cashier of this bank, at the time of the examination, that its officers were not disposed to enter into any controversy with the State, in reference to their rights of circulation, but design to keep themselves hereafter within the limits prescribed by law. |