Sources of Revenue. 33 



chased until after October, 1815, and the vicious circle was broken. 

 In October, 1815, the comptroller suggested that inasmuch as the 

 state had already subscribed a considerable amount in bank stock 

 and as the school fund would in the future be able to hold a consider- 

 able amount of bank stock, it might be prudent for the state not 

 to invest in such stock the whole of its reimbursements from the 

 United States. Therefore he proposed that the state treasurer be 

 authorized to purchase some of the seven per cent loan of the United 

 States or any of the public loans; to subscribe to the stock of any 

 of the banks of the state; or to loan on such bonds and mortgages 

 as he might approve.^ The banks to the stock of which the state 

 had already subscribed had temporarily refused to receive New York 

 money or "facihties" in payment for stock. The United States 

 was making its payments to the state on the principal of the debt 

 in this form and consequently the funds were lying idle in the state 

 treasury for want of a place to invest them.^ This was another reason 

 why the comptroller made this proposal. Accordingly the general 

 assembly during its October session, 1815, passed an act empow- 

 ering the treasurer to invest the reimbursement of the United 

 States stock and the dividends of bank stock in the banks of this 

 state, or in funds of the United States. ^ Under the authority of 

 this act there were purchased before May 1, 1817, the following 

 amounts of stock: thirteen thousand six hundred nineteen dollars 

 of seven per cent stock; $707.78 of six per cent stock; $1,557.36 of 

 deferred six per cent stock; and $5,264.55 of three per cent stock. 

 This was the last purchase of United States stock by the state until 

 after the Civil War. 



Inasmuch as the stockholders of the Norwich and New London 

 banks did not vote to accept the provisions of the act of May, 1803, 

 authorizing the subscription to their stock from the money received 

 from the United States for the redemption of its six per cent stock, 

 the treasurer of the state subscribed to the shares of the Hartford, 

 New Haven, and Middletown banks only. 



During the first year of the operation of this act, the state sub- 

 scribed for forty-two thousand five hundred twenty-five dollais 

 of stocl^ in these three banks. With the exception of the two fiscal 

 years ending on April 30, 1809, and April 30, 1814, additional sub- 

 scriptions were made every year until, on April 30, 1816, the state 



1 Compt. Report (Ms.), Oct. 1815. 



2 Compt. Report (Ms.), Oct. 1815. 



3 Treas. Report (Ms.), Oct. 1818. 



Trans. Conn. Acad., Vol. XVIL 3 March, 1912. 



