The above tables present a favorable view of the banks of Massachusetts during the last thirty-seven years, in respect to the ratio of specie to their immediate liabilities from circulation and free deposits. The ratio of both kinds has been generally less in the latter part of this period of thirty-seven years, especially in the country banks, from 1830 to 1837. In the last two years, this ratio has been very much increased, so that in 1838 and 1839 it had approximated considerably to the average of the whole period. The expansion of the paper currency, and also the increase of the capital, have been very much according to the prosperity of the times, and the activity of business.

It will be perceived, that generally, the specie in the Boston banks has been comparatively larger than in the country banks; but it should be borne in mind, that the latter have, for a number of years, usually had a deposit of specie in one of the banks in Boston, for the redemption of their bills, while at their own counters, specie, to any great amount, is seldom called for. There are only three years, namely, 1825, 1826, and 1828, in which the proportion of the specie to the circulation, has been more favorable in the country than in the Boston banks.

In 1812, 1813, 1814, 1815, and 1821, the amount of the specie in all the banks, exceeded the circulation. In 1813, it was nearly three times the circulation, the capital then being $8,895,000, the circulation $2,186,837, and the specie $5,780,798 08. The largest amount of specie was in 1814, when it was $6,946,542 62; but the circulation had increased during the preceding year in a greater proportion than the specie.

The smallest proportion of specie to circulation, in the Boston banks, was in 1825, when it was only $1 to 7 02; the smallest proportion in the country banks, was in 1836, when it was $1 to 22 18; and the smallest proportion in all the banks, was in 1833, when it was $1 to 8 55. From 1836 to 1837, the ratio of the specie to the circulation, in the Boston banks, was a little diminished; and in the country banks, increased nearly one third part, or 31 per cent.; and in all the banks, a little less than 10 per cent. In 1837, the bills in circulation of the Boston banks, were about (3 88,) four times the specie, while those of the country banks, were more than (15 17,) fifteen times the specie; but, it should be recollected, that the country banks had specie deposits in the Boston banks for the redemption of their bills. In 1838, the circulation of the Boston banks was twice the specie, while that of the country banks, was over eight and a half times the specie (8 53.) Thus, there was in one year, from 1837 to 1838, a reduction of the proportion of the circulation to the specie, in the aggregate average of all the banks, from 6 76 to 1, to 3 92 to 1, or 42 per cent., effected partly by diminishing the circulation over a million and a half in the Boston banks, though the circulation was increased in the country banks, in the sum of $125,150 04, and partly by increasing the specie, which was nearly doubled in the country banks, and in the Boston banks this increase was $560,227 30. In the Boston banks, this reduction was from $3 88 to 82, or more than 48 per cent.; in the country banks, from $15 17 to $8 53, or nearly 44 per cent.; and in all the banks, it was from $6 76 to 3 92, or 42 per cent. In 1838, the ratio of the specie to the circulation in the Boston banks, being as $1 to 2, was only 14 per cent. less than the average for 36 years, and that in the country banks, being as $1 to

8 53, was 49 per cent. less than the average for 36 years, and was the most favorable since 1830.

The aggregate ratio of the specie to the circulation, in the Boston banks, was better in 1839 than it had been since 1824; in the country banks, than it had been since 1830, except in 1838; and in all the banks, better than it had been since 1824, except in 1838.

The smallest proportion of the specie to the circulation and deposits, in the Boston banks, was as 1 to 10 80, in 1831; in 1825, it was as 1 to 10 53; in 1836, as 1 to 9 86. The smallest proportion in the country banks, was as 1 to 27 65, in 1836; before 1829, it had never been less than as 1 to 8. The smallest proportion, in all the banks, was as 1 to 13 52, in 1836.

From 1836 to 1837, this proportion in the Boston banks, was increased nearly two per cent.; in the country banks, 27 per cent.; and in all the banks, 8 per cent.

From 1837 to 1838, this proportion in the Boston banks, was increased nearly 49 per cent.; in the country banks, 424 per cent.; and in all the banks, 44 per cent.

From 1838 to 1839, this proportion, in the Boston banks, was increased nearly 12 per cent.; in the country banks, diminished nearly 8 per cent.; and in all the banks, increased about the half of one per cent.

The ratio of the specie to the circulation and deposits, in 1839, in the Boston banks, differed only by a small fraction from the average for 37 years; in the country banks, it was 51 per cent. less, and in all the banks, about 28 per cent. less.

The following table exhibits, at one view, the average ratio of the specie to the circulation, and to the circulation and deposits, in all the banks of Massachusetts; in the bank of England, according to the quarterly returns in March, June, September, and December, (the ratio in 1838 embracing only the first three quarters;) and in all the banks in the United States, nearest to January 1, following the years in the first column, as the condition of these last is made up from the most recent returns on the first of January.

On the seventh of May, 1838, the specie to the circulation, in all the banks in the United States, was as $1 to 3 08, and to the circulation and deposits, as $1 to 5 80.

The average ratio of the specie in all the banks of Massachusetts, for the five years, from 1834 to 1838, inclusive, according to the official returns, and in the bank of England, for the five years from December, 1833, to September, 1838, inclusive, according to the quarterly returns in March, June, September, and December, was

To circulation &To circulation &To circulation & lation. deposits. lation. deposits. lation.

deposits.

1 to 3 211 to 7 97 1 to 15 011 to 18 86 1 to 6 211 to 10 74 1 to 2 46 1 to 4 23

From which it appears, that during these five years, according to the returns, the average ratio of the specie to the circulation has been 30 per cent. more favorable in the bank of England than in the Boston banks, 510 per cent. more so than in the country banks, and 152 per cent. more so than in all the banks of Massachusetts; and also, during the same period, the average ratio of the specie to the circulation and deposits, has been 88 per cent, more favorable in the bank of England than in the Boston banks, 345 per cent. more so than in the country banks, and 153 per cent. more than in all the banks of Massachusetts. It should, however, be remembered, that London is truly the metropolis of the commercial world; and as such, we may suppose that the liabilities of its great monied organ to demands for specie, are in greater proportion than its superior ratio of bullion to that of the bullion in the banks of Massachusetts.

The following table shows the number and capital of the banks in Boston, in the country, and in the state, at different dates.

In 1837, in consequence of the numerous charters granted in 1836, the whole number of banks returned, as having gone into operation, was 129, with a capital of $38,280,000; but, before the next returns, the charters of several having been surrendered or annulled by the legislature, the number in 1838 was 120, with a capital of $34,630,000.

From 1803 to 1813, inclusive, embracing eleven returns, the number of banks in Boston was doubled, and the capital was increased over four times; in the country, the number more than doubled, and the capital increased more than three times; and in the state, the number more than doubled, and the capital increased about four times.

VOL. II.NO. II.

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