118 The Financial History of Connecticut. 



banks" organized under the act of 1852 could be specially incor- 

 porated. If the holders of two-thirds of the stock of any of these 

 banks voted to accept the provisions of the act granting the privi- 

 lege, a charter would be granted on condition that the banks pay 

 to the state a bonus of two per cent on their capital.^ This bonus 

 was to be paid in two instalments, one-half on or before January 1, 

 1856, and the other half on or before January 1, 1857. ^ All the free 

 banks accepted this offer,^ which allowed them to withdraw the 

 securities which under the Free Banking Act of 1852 they had been 

 required to deposit with the state treasurer, and the state received 

 over one hundred thousand dollars in bonuses from banks in the 

 two years ending March 31, 1857. In the regular session of the 

 legislature this year an act similar to the act of 1854 was passed, 

 requiring that all banks which, during this session, were chartered, 

 or were authorized to increase their capital, should pay a bonus of 

 two per cent on the capital granted. This was payable on January 1 , 

 1858, and January 1, 1859.^ The state continued to derive revenue 

 from bank bonuses until March 31, 1860. The total amount thus 

 received from banks from March 31, 1853, to March 31, 1860, was 

 one hundred fifty-nine thousand four hundred sixty-eight dollars. 

 One other form of corporation tax was tried during this period 

 but was in operation for two years only. A tax of one-eighth 



of one per cent on the market value of the paid-in 

 Banks and capital stock was laid on banks and insurance companies 

 Companies ^'^ 1857.^ This tax was repealed in 1859.^ The state 



received fifty thousand six hundred twenty-nine dollars 

 from this tax, of which about eighty-five per cent was paid by the 

 banks. 



5. Non-Resident Stock. 



The tax of two-thirds of one per cent of the value of the capital 

 stock of banks and insurance companies held by non-residents, 

 which was imposed in 1831,'^ remained unchanged until 1852. In 

 1849 the legislature directed the railroad and turnpike companies 

 to pay a tax of one-half of one per cent of the market value of all 



1 Public Acts, May 1855, chap. 13. 



2 Public Acts, May 1855, chap. 14. 

 ^ Treasurer's Report, 1856, p. 4 



4 Private Acts, 1857, p. 3. 



'"> PubHc Acts, May 1857, chap. 64. sec. 2. 



" Public Acts. May 1859, chap. 4. 



' Cf. p. 74. 



