245 53 the period of five years, and $5 935 per cent. in that of 27 years, and $6 16 256 per cent. in that of 32 years. Stockholders have, therefore, received on their stock, during the whole period of 32 years, over one sixth part of one per cent. per annum, more than six per cent. which in the whole time amounts to $5 42ğ per cent. 245 256 The aggregate of capital of all the banks in 32 years, from 1808 to 1839, has been $545,679,507 28, and the aggregate of dividends at the average rate of $6 16- per cent. per annum, has been $33,666,080 88, which is $925,310 44 more than $32,740,770 44, the interest at six per cent. per annum. During these 32 years, the annual average of the capital has been $17,052,484 604. It has been estimated that the loss to stockholders in the banks of Massachusetts, in 32 years, from 1808 to 1839 inclusive, or the amount which it is probable those banks which have wound up, and which are winding up, have failed, or will fail, of paying par on the stock, will be about $2,000,000,-scarcely a dollar of which loss had occurred till within the last three years. If we take from this sum the surplus of interest received over six per cent., which the banks have paid in dividends to stockholders during this time, $925,310 44, we shall have the sum of $1,074,689 56, as the remaining loss. This loss will reduce the average dividends during this period about three cents per annum, on $100, and make the annual average dividends to have been $5 97 per cent., half of which has been semi-annually received on the capital stock over and above the loss to stockholders. It should also be added in this connexion, that, according to the returns in November, 1839, the "amount of reserved profits at the time of declaring the last dividend," that is, on the 7th of October, 1839, was $1,516,325 34, which, after deducting $894,982 16 for "debts due, and not paid, and considered doubtful," on the supposition that these "debts" are worthless, will be $621,343 18, and will reduce the loss to $453,346 06, and make the profits to have amounted to over $6 08 per cent. per annum for the thirty-two years. This is indeed only an approximate result; but if we were to go through the labor of ascertaining the rate of dividends paid semi-annually, or the amount paid by each bank during this period, it is probable that the result would not be materially different. We have reference to the original par value of the stock, and not to what the shares may have cost individuals who afterwards purchased them. This result will bear a favorable comparison with the results of investments generally in other securities. We may suppose that other investments generally have not been so profitable, or at least have not been more profitable. The loss to bill-holders and to depositors, though it may have pressed very heavily on a very few individuals, has not probably exceeded $650,000 in the aggregate, or about one third of the loss to stockholders. The fraud or folly which has brought on this loss to either, is deserving of public indignation. The mass of stockholders have been as innocent of the mismanagement as the confiding bill-holder and depositor. The billholder generally has it in his power to dispose of the bills for nearly their par value, and, with the depositor, must be fully paid before the stockholders can receive any thing on their stock. The loss of one hundred dollars on bank bills, is no greater than the loss of one hundred dollars on bank stock. The following table contains the number of banks, the aggregate capital, specie, circulation, ratio of specie to the circulation, deposits not on interest, and ratio of specie to the circulation and deposits, in Boston, for thirty-seven years, from 1803 to 1839, inclusive, according to the bank returns. 1 76 2,892,949 3337 4 36 1803 to 1839. 1237 9,743,764 8837 1,111,474 9637 1,958,823 317 * The circulation in this, and the other tables, includes "bills or notes in circulation, bearing interest," from 1825 to 1828. The following table contains the number of banks, the aggregate capital, specie, circulation, ratio of specie to the circulation, deposits not on interest, and ratio of specie to the circulation and deposits, in the banks out of Boston, for thirty-seven years, from 1803 to 1839, inclusive, according to the bank returns. The following table contains the number of banks, the aggregate capital, specie, circulation, ratio of specie to the circulation, deposits not on interest, and ratio of specie to the circulation and deposits, in all the banks of Massachusetts, for thirty-seven years, from 1803 to 1839, inclusive, according to the bank returns. 1814 21 11,050,000 00 6,946,542 62 1,144,645 71 987,210 47 1,258,444 05 919,959 73 4,401,965 62 13 19 The following tables are added, in order to show, at one view, the ratio of the specie to the bills in circulation, and to the sum of the circulation and deposits, in the Boston banks, in the banks out of Boston, and in all the banks of Massachusetts, together with the number of banks in the several years, and the average ratio in different periods, from 1803 to 1839, prepared from official returns. |