3,000 dollars doubtful. The undersigned Commissioner, examined this bank Oct. 25 and 26, 1839, and his Trial Balance, in two or three items, differs from the preceding one, which was enclosed to him two or three weeks afterwards. The discrepancies arose probably from the incomplete state of the bank books, and of accounts with their said "Agents," Israel Lombard and Charles O. Whitmore, Boston; who are, as such, under bonds of 5,000 dollars, with two sureties, Mr. Groton, the Cashier, being one. By the Ledger account of the bank, the balance against them was the above sum; but by their letter dated Nov. 23, 1839 to the Commissioner, they say, they have redeemed and had in the Suffolk Bank, Oct. 26, 19,339 dollars of the bills of the Medomak Bank. Hence the amount of its bills in circulation at that time, though large did not exceed 30,246 dollars; and the balance due from their said agents was only 835 dollars 31 cents.

At WATERVILLE, is only the Ticonic Bank, chartered April 1, 1836, the successor of the Waterville Bank, incorporated Feb. 12, 1814. The Directors of the Ticonic Bank are, Timothy Boutelle, President, Jediah Morrill, Moses Appleton, Simeon Mathews, all of Waterville, Asa Redington-and Augustine Perkins, Cashier.

Directors liabilities, 12,550 dollars. Last year's dividend six per cent. Taxes paid to the State, 4,500 dollars. Stockholders 51. Of the discounted paper, there are 185 demands, all of recent date or discount, in good order; perhaps 1,000 dollars doubtful.

At WESTBROOK, is only the Bank of Westbrook, chartered April 1, 1836. Its Directors are Samuel Jordan, President, Samuel B. Stevens, Gerry Cook and Joseph Walker, Jr. all of Westbrook, Freeman Bradford of Portland; and Christopher C. Tobie, Cashier.

Directors' liabilities 15,585 dollars. Last year's dividend four per cent. Stockholders 35. Amount of taxes paid to the State 1,507 dollars 53 cents. Of the discounted paper, there is said to be not exceeding 100 dollars that is doubtful;—about 3,500 dollars bears date prior to January last. This bank will not deposite in the Suffolk Bank, which will therefore not take the bills of the Westbrook Bank; though the latter bank has a deposit in the Merchants' Bank, Boston, of 4,788 dollars, ready to meet all the Suffolk Bank could collect. The "Deficit," is owing wholly to a robbery of the vault, between Saturday night and Monday morning, July 2, 1838-a part being providentially found, leaving the net loss 6,241 dollars; and so much of which has been sunk or made up out of the profits as to leave the above sum of 4,153 dollars 79 cents, to be made up in the same way.

At WISCASSET is the Mariners' Bank, chartered March 21, 1835. Its Directors are, William M. Boyd, President, John H. Shephard, Wilmot Wood, John Brooks, Henry Clark, all of Wiscasset, Samuel Alley, of Dresden, James McCarty of Westport;-Samuel P. Baker, Cashier.

Directors' liabilities 15,169 dollars. Last year's dividend six per cent. Amount paid in taxes to the State 2,014 dollars 11 cents. Stockholders 61. Books and papers are in good order. The amount due from other banks" is a deposit in the Suffolk Bank. For the preceding six months, this bank has had a permanent deposit of 3,000 dollars in the Suffolk, and an avarage balance against the latter of 5,000 dollars, in favor of this bank, without interest.

Our system of banking, matured by practical experience and framed by able Legislators, is probably as perfect, as in any State of the Union. Such however have been of late, the uncommon and repeated agitations in all monetary affairs, such the trials of both corporate and individual credit, so various the conditions of different banks, and so entirely several are they in their interests and character, that it has been thought expedient, to report the state of each one by itself. For it is only by particular facts, that the community are enabled to form an opinion of relative merit, or to judge of the safety or danger, which so directly in these cases concern the public. In furtherance of the same purpose, it remains to take a view of the several parts, which constitute the Liabilities and Resources of the banks, as exhibited in each Trial Balance.

All Bank-capital, is intended to be duly distributed, as no one is allowed by law to own more than a 5th part of any bank, nor any Stockholder to carry more than 20 votes. Yet it is

found, they frequently evade this salutary provision, by holding shares in the names of others, and thus controling to an improper extent the affairs of the institution. So the law evidently designs, that the credit of a bank should rest essentially on the gold and silver in its vaults; as it requires half its capital to be placed there in specie before any discounts are made; and there to remain till gradually withdrawn, in the regular course of business. For it is a certainty foreseen, that stock based and abiding on the solid specie, will secure public confidence, sustain a large circulation, and command a round price and ready market. Nay, it will be sought by literary and charitable institutions, females and orphans' guardians;—also the bank will become the general depositary of others' monies, and swell its semi-annual dividends. But unfortunately, stockholders, or directors have, in this particular, thought themselves wiser than the law, and have permitted the precious coins to be displaced for a paper substitute, which has not unfrequently proved to the bank, an untimely death-warrant.

So banks are under several wise regulations as to the Circulation and Redemption of their bills. For these are not only to be made payable on demand, and in nothing other than gold and silver; the amount allowed by Act of March 17, 1838, to be issued is limited. A bank, having 50,000 dollars capital, may issue bills to the same amount only; having a capital between that and 150,000 dollars, the issue may never exceed three-fourths of it; if it be still greater, only two-thirds as much as its capital, is it allowed to have in circulation. It is believed this law is rarely violated; as few banks ever venture so high as the limited amount.

Of their Redemption, much more is to be said. The law requires each bank to pay its bills at its own counter on demand. A failure to do so, incurs a heavy penalty, and also may render liable in certain cases a Stockholder's private property. But although only one Banking institution in the State, the Bank of Oldtown, has, since the passage of the last General Banking law, in 1831, utterly failed; there are many others,

which in a late uncommon emergency did suspend specie payments; and lately a few have not paid their bills or bank notes, when requested; thus violating the express requirements of law. These direlictions are frequently the first indications of an ultimate failure; and naturally originate among the people, charges upon Boards of Directors of sinister measures, offending mismanagement, and even unhallowed motives.Indeed how seldom are these indignant reprehensions not justly deserved? For what sufficient excuse can a bank render for its refusal to pay its bill or note in specie, when presented? He who has it, holds it as money, equivalent to the amount expressed upon its face;-it promises no interest and is useless and dead while it remains in his hands. The law allowed to the bank the special favor of issuing it, upon the solemn undertaking of keeping its credit always equal to gold and silver. A failure to do this, is a breach of confidence and honor as well as of promise. Instantly the bill has lost more or less of its value, and has become uncurrent depreciated paper; and its owner is forced to part with it at a loss he ought in no wise to sustain. Its true value is unknown from day to day; yet it is made the laborer's hire, the price of the farmer's produce, and the value of every man's dues, so long as it is allowed to circulate.

These depreciated bills are in character and effect, like the paper currency of former ages, which so much injured the whole community, ruined thousands, and hence brought into the National Constitution, the provision, by which nothing but gold and silver shall be made by any State a tender. In short, no evil in society is more universal, than the circulation of such bills. They effect every one, as every one has more or less dealings in society; and the loss falls altogether disproportionately on the ignorant, poor and unsuspecting, as they are the last to know of their depreciation. The direct and certain tendency is to destroy good faith and fair dealing between man and man; nor will a bank be very anxious to redeem in specie while its agent can purchase its bills at a dis