Page:The New International Encyclopædia 1st ed. v. 13.djvu/187

MASSACHUSETTS. (1803) semi-annual bank reports to be sworn to by the directors. Thus its banks were put on a firmer basis and passed through the panic of 1808-09 in better shape than the other New England banks as a rule. In 1814 again the Massachusetts banks showed their superior strength. A comprehensive banking law was enacted in 1829, with stringent provisions as to capitalization and limits of circulation. Yet these were evaded during the speculative régime of 1830-36; as a consequence in the financial depression 1837-44, 32 banks failed. In 1838, however, a system of official examination of banks by a board of bank commissioners was adopted. The banking law of 1857 provided for one commissioner. Under this improved system there was only one bank failure in the panic of 1857. The banking capital of the State banks reached

its maximum in 1862, when there were 138 banks, with a capital of $67,544,200. When the system of national banks was introduced State banks of discount were prohibited and do not exist at present. The necessity for loans on real estate (which the national banks are prohibited from making) led to the development of trust companies. Savings banks are numerous and popular, and their investment and general management are strictly regulated by law. In 1902 there were 241 national banks, with capital $73,187,000, surplus $27,922,000, cash, etc., $29,027,000, loans $245,841,000, and deposits $231,856,000; 37 trust companies, with an aggregate capital of $12,595,000, surplus of $9,248,500, cash $4,332,363, loans of $105,991,407, and deposits $127,928,218; 41 savings banks, with 1,593,640 depositors and deposits of $560,705,752.