NEW YORK. 



G57 



Congress exempts United States stocks from 

 State taxation, and the New York banks held 

 $125,000,000 of the various Federal stocks. 

 Thus that large sura was withdrawn from the 

 . operation of State taxes, diminishing the State 

 revenue nearly $600,000, in addition to the 

 sums held by individuals. The commissioners 

 of internal revenue also claimed that the 

 stamps and other taxes were applicable to the 

 transactions of the State treasury. The House 

 of Representatives passed a bill to exempt State 

 Governments from taxation. This was rejected 

 in the Senate thus intimating on the part of 

 that body a purpose to absorb State revenues 

 into the Federal treasury ; since, the right to 

 tax being admitted, there is no limit to the 

 rate, which may comprise the whole. 



The debt of the State, Oct. 1, 1862, was as 

 follows : 



Of canal debt $23,981,610 25 



Of general fund debt 6,505,654 37 



Total State debt $30,487,264 62 



By abstaining from further borrowing, and 

 by depositing the usual annual contributions to 

 the credit of the sinking funds, the comptroller 

 estimates that the above debt will be substan- 

 tially extinguished within 12 years. 



The canal debt at that time was held as fol- 

 lows: 



On United States account $22,528,782 89 



On foreign account 1,452,827 86 



Total canal debt $23,931,610 25 



The canal debt was nearly all held by the 

 bank department, as security for bank circula- 

 tion, as follows : 



Statement of New York State Canal Stock, held by 

 JSanking and Insurance Corporations in the State of 

 3tw York. 



went some change during 1862. Of the old 

 banks 7 charters expired, as follows : 



Of these, three the Bank of Rome, Bank 

 of Salina, and the Essex County Bank ceased 

 business, and are winding up their affairs. 

 The four others, with six new associations, and 

 six individual bankers, deposited securities and 

 commenced business under the general law, 

 raising the number of banks doing business in 

 the State to 305. There are also 53 in process 

 of liquidation at the close of the fiscal year. 



There had been a substitution of United 

 States stock for other securities during the 

 year. The circulation in 1862 increased $9,541,- 

 625, as follows : 



By whom held. 



Banks 5's 



Do. 6's 



Do. 7's 



Savings Banks 5's , 

 Do. 6's , 

 Do. 7's . 



Insurance Companies 5's. 

 Do. 6's. 



Do. Te. 



This large increase was compelled to some 

 extent by the withdrawal of the metals from 

 circulation, causing an urgent demand for small 

 notes, which the banks alone could supply. 

 This demand was the more urgent as the United 

 States issued none under $5, and the larger the 

 issues of those the more small notes were re- 

 quired to make change. Hence, notwithstand- 

 ing the increased circulation, the redemptions 

 were less, and also the number of notes re- 

 turned upon the department. 



The amount of Federal stocks held by the 

 New York banks at the close of the year was 

 as follows : 



United States stocks $31,631,708 



Treasury Notes, 7.30's -. 25,383,505 



Indebtedness certificates 14.941,679 



Certificates bearing interest 87,047,870 



Certificates payable in gold 6,774,612 



Demand and Legal Tender Notes 20,189,093 



Total of Banks $135,968,044 



Savings Banks funded 10,892,102 



" unfunded 7,626,428 



$942,40000, $60,72000 Total.., ..$"153^986,574 



$5,200,106 13 $260,005 81 



11,094,656 00 665,679 86 



225,000 001 15,750 00 



$16,519,762 13! $941,434 67 



$445.667 00 ! $22,283 85 



2.060,700 00 123,642 00 



104,000 00 ! 7,280 00 



$152.40000' $7,62000 

 220,000 00 13.200 00 

 570,000 00 39,900 00 



.J20.072.5-29 13 .41.155.860 08 



The State paying the interest on these stocks 

 at a time when gold was at 30 per cent. prem. 

 for the United States legal tender, raised the 

 amount of interest to be paid to nearly $1,500,- 

 000. The operation of the banking law framed 

 by Congress was intended to cause a substitu- 

 tion of United States bonds for the New York 

 stocks thus held . as security for circulation. 

 The tax is imposed upon banks organized under 

 the new law as well as upon the old banks, but 

 not to so great an extent. 



The banks of the State of New York under- 

 VOL. II. 42 



The entire funded debt of the Government 

 being at the same time $500,978,142. The New 

 York banks held about 30 per cent, of it, or an 

 amount double the sum of their aggregate cap- 

 ital, and were not in a position to make further 

 advances to the Government. 



The number of railroads in the State of New 

 York, is 82 ; of these 16 made their annual re- 

 ports for 1862 to the State engineer at Albany. 

 The aggregate of the reports shows the follow- 

 ing results : 



Amount of capital stock authorized 



Amount of capital stock paid in 



Amount of funded debt ....................... 69,067,933 



