The following table will shew a comparison of the business done by

the banks in the principal items in the years 1948, 1847 and

So that, although the banking capital of the state has been increased during the last year $237,770, the circulation has been reduced $636,921, and is still larger than in 1846 by $59,641. The individual deposits have been diminished $794,611 53, and are somewhat lower than in 1846. The loan has been reduced from that of 1847 $294,163 07, but is much larger than in 1846. The specie has fallen off $46,800 88, yet is almost double the amount in 1846.

The net balances due from banks out of the state have dimin ished $678,153 99, and are less than in 1846. Bills of other banks are less than last year by $58,669, and above those of the year 1846.

It will be perceived that the liabilities and resources have been diminished to about a corresponding extent.

The items above named constitute the active means of the banks. The capital stock is of a more permanent character. The other items are continually changing with the daily business of the banks. The real estate is such generally as is used by the banks, bankinghouses, and fixtures, sometimes of other real estate taken in discharge of doubtful or bad debts; but is never considered a desirable investment, any further than is necessary for their actual accommodation.

The reserved profits are funds, the earnings of the banks from which the dividends are made, and are always under the control of

the directors.

The indebtedness of the banks named in the statement, consists of mutual accounts among the banks themselves, and being nearly equal, the net balances only are given in the tables, which, although not entirely accurate, are nearly so, sufficiently so for practical purposes.

These net balances are made of the indebtedness of banks out of the state and principally in Boston, on which our banks may draw at sight. And this fund is far more convenient in the business of the banks than that amount of specie in their vaults. It is created by sending foreign bills to be deposited in the banks in Boston and payments made into them, by our citizens, customers of our banks, from the sales of their products abroad, and is employed in redeeming the circulation of the bills of our banks, as they flow into Boston, in the natural course of trade.

The number of banks in Maine now doing business under charters not expired, is thirty-one, with an aggregate capital of two millions nine hundred and seventy thousand dollars.

To this should now perhaps be added the Veazie Bank of Bangor, with one hundred thousand dollars, a portion of its chartered capital of two hundred thousand dollars. This was about being organized at the time of our visit to the city of Bangor. We apprehend that it is intended to take the place of the Bank of Bangor, which was not renewed under the late law of August 10th, 1846, granting liberty to all the banks in the state to renew their charters in a specified manner. One hundred thousand dollars, half of the capital of the Veazie Bank of Bangor, was to be paid in by the 1st day of October, 1848, and the other half of said capital to be paid in on or before the 1st day of October, 1849.

The other banks which ought to be closing their concerns, have still an undivided capital of two hundred and eleven thousand seven hundred and seventy dollars.

The Biddeford Bank has gone into operation within the present year.

The Kenduskeag Bank of Bangor has taken the place of the Kenduskeag Bank, which has well nigh closed up its concerns, or merged them in the new bank.

The Megunticook Bank, at Camden, the Bank of Westbrook, at Westbrook, and the Franklin Bank, at Gardiner, have made good progress in closing.

The Central Bank, at Hallowell, and the Bank of Bangor, have undoubtedly continued banking operations in defiance of the severe penalties of the law against banking without charter.

The Central Bank has continued to do business by its cashier without observing any of the usual forms of banking. No records of discounts have been kept-no record of directors' meetings; and probably none have been had. Nor had we the evidence of any stockholders' meeting since the 4th day of October, 1847; nor any weekly, monthly or yearly statements of the cashier, after the trial balances of 2d October, 1847. The cashier answered all questions with apparent fairness and truth, and probably gave all the information he could. But without weekly statements and without footings to them, it was impracticable for us, in the limited time that could be spared, to make out a complete statement of the bank. In the statement as to this bank, before given, we assumed the loan to be nearly one hundred and fifty thousand dollars. If the cashier was understood, he contended that he had two years in which to close the affairs of the bank.

On the 2d of October, 1847, the Central Bank had a circulation of $161,091. This was an over issue of $111,091. On the 13th of March, 1848, they burnt $80,811 of their bills, but left in existence bills to the amount of $161,032. On the 10th of October, 1848, they had in their bank, bills to the amount of $99,713, not then destroyed, and still the circulation would be $61,319.

No dividend has been declared since October 4th, 1847, when a dividend No. 30 of two dollars per share was made at the rate of three and two-sixth per cent. This, we infer, was a dividend of the profits, for we were informed by Mr. Leonard, the cashier, that the profits on hand, on the 10th Oct., 1848, were $17,263 76.

If a bank really designs to settle up and close its concerns after the expiration of its charter, it would be unusual to permit the whole capital to remain undivided. No portion of the capital of

this bank had been divided to the stockholders when our examination was made.

The cashier said that, as a bank, they have discounted nothing since 1st October, 1847.

The Bank of Bangor has made no dividend of any portion of its capital stock. It has observed the ordinary forms of banking and keeps a record of its proceedings, and had on the 27th day of Sept., 1848, a circulation of $125,165-too much by $50,165, according to the law as it was at the expiration of the charter of the bank.

We have addressed a letter to the cashier of the Central Bank and one to General Veazie, on the affairs of these two banks, respectively, and may yet have to give further details.

Under the charter of the Veazie Bank of Bangor, passed by the legislature on the 14th day of July, 1848, the stockholders, six in number, on the 16th of September, 1848, accepted the charter, and chose five directors: Samuel Veazie, John Fisk, John McDonald, John Bright, and Jones P. Veazie.

On the 30th day of September, 1848, the stockholders met, as was stated to us, to put in the capital. No commissioners had been appointed to count the money, and they adjourned to the 11th of Oct. The directors chose Mr. William S. Dennett, cashier, but no record was completed.

By the law of this state, passed the 10th day of August, 1846, to take effect on the 5th day of October, 1847:

"SEC. 3. No bank now incorporated, or which may hereafter be incorporated within this state, shall issue and put in circulation as money, bills to the amount of more than fifty per cent. of its capital stock actually paid in, unless said bank shall have in its vault, at the time of such issue, one dollar in specie for every three dollars in bills so issued, over and above fifty per cent. of its capital stock; nor shall the circulation of any bank within this state, at any time, exceed the amount of its capital stock paid in, and the specie in its vaults.

"Sec. 4. Weekly balances shall be made by the cashiers of banks, exhibiting the amount of specie on hand, and the amount of bills in circulation; and it shall be the duty of the bank commissioners at their annual examination to note all over issues shown by such balances, and report the same to the governor and council."

In compliance with the requisition of this law we are constrained to report that the following banks have not duly regarded the limitations of the statute in their circulation as compared with their capital stock and specie, as shown by the weekly balances exhibited

to us:

The Belfast Bank, in its weekly statement of 29th April, 1848, shows a circulation of $58,082; specie, $10,903 66; over issues, $371. The cashier states that this excess was unintentional, accidental, purely so, and being small and the only instance which we discovered, it is doubtless the fact.

The Calais Bank, on the 9th of October, 1847, as appeared by the weekly statement of the cashier, had a circulation of $44,390, and specie, $4,836 68. The over issue was $4,880. Their specie had not arrived from Boston. It reached the bank soon after. We observed no other instance of over issue, and were assured by the cashier that no other had occurred.

The Skowhegan Bank, in the weekly statement of

The cashier stated that the bank had seasonably purchased of the Lincoln Bank, in Bath, a sufficient amount of specie, and sent for it. Their messenger was delayed, and finally failed to bring it to the bank, and unavoidable delays prevented their getting it until after the 6th of November, 1847. Since which time there have been no over issues.

The Mercantile Bank, at Bangor, in its weekly statement of